How do I show Labor Costs in the Project and how Cost Codes are important to be used in Timecards?

Tracking labor costs is essential for managing a project’s financial health, even when cost codes are not being used in timecards. While cost codes can provide detailed job costing, Contractor Foreman still allows labor to be tracked and reflected in the project without cost codes.

Labor cost is determined by calculating the labor cost based on the employee’s wage, burden, or billing rate, along with the preferences set in the project module settings (Financials).
When cost codes are not being used, labor is tracked as a unassigned cost. When you navigate to the Reports section of a project, you can see costs recorded by time cards categorized using cost codes if you use appropriate cost codes when you use time cards.

But if you do not use cost codes, all costs recorded by time cards will be listed as Unassigned in the reports section.

Labor costs are calculated based on the hourly rate of the employee or contractor who is recording time. These rates can be configured in the employee profile, and the calculation method can be set in the project module settings. However, the labor costs recorded through timecards will appear in the Financial tab, in the (1) Cost Comparison by Type chart (Labor row), in the (2) Time Section and in the Reports Section under the column time card of the (3) Job Cost Reported Detailed.

(1)

(2)

(3)

At the top of the Time tab, you will see the total amount of time recorded for the project as well as the total labor cost. The labor cost is calculated based on the wage, burden, or billing rate set for each employee or contractor who has recorded time against the project.

Below the total time and cost, you will find a detailed list of all timecards associated with the project. Each entry will show the amount of time recorded by the employee.

Configuring Labor Cost Calculation Preferences

While the Time tab displays the labor costs based on the timecards, it’s important to ensure that the correct rates are being applied to those entries. To configure labor cost calculation preferences, go to the Projects module and click on the gear icon to access the Project Module Settings.

Under General Settings, you can configure how labor costs are calculated for the project. In the section labeled Job Cost Report: Labor Calculations, you can choose from the following options:

Approved Estimate: Labor costs will be calculated based on the rates used in the project’s approved estimate.
Wage Rate: Labor costs will be calculated using the wage rate set in each employee or contractor’s profile.
Burden Rate: This includes additional costs such as worker’s compensation, insurance and benefits on top of the employee’s wage rate.
Billing Rate: Labor costs will be calculated using the billing rate, which it is the actual cost of the cost of the employee per hour plus profit.

Make sure that the correct option is selected based on how you want to calculate labor costs for the project. Save the settings once you are done (note that if you do this in the settings, it will be applied to all your projects).

If you are not using cost codes, you won’t have a detailed breakdown of labor costs by task or activity. Labor will be shown as a general project cost rather than tied to specific parts of the project.