Labor Cost Calculation
The costs incurred by the workers involved in the production process must be taken into consideration in product costing. Using labor cost calculation, you determine the labor cost rate per hour (gross) for the individual labor groups, depending on the location factors, qualification level and the shift model. The hourly labor rate of a worker is calculated based on the hours worked and the wages defined per unit of time.
Labor rate calculation is based on the following characteristics:
- Qualification level (labor group)
- Industrial sector and production location of the reference company
- Location factors, such as which shift model, number of working days per week
- Fringe labor costs
- Work productivity
Labor Rate Calculation
The labor rate calculation is available for the following calculation elements:
-
Worker -
Setup Worker
Depending on the selected valuation, you can calculate the labor rate using the following methods:
Value Rules for Labor Cost Calculation
You can create value rules to centrally manage some of the parameters relevant to labor cost calculation depending on the location and validity period in the master data.
- Global Properties: Wages