"Resource Cost" is the hourly wage assigned to an Office user or a Field user. Assigning the resource cost is optional. If assigned, the per-hour wage will be used in project calculations. Per-hour wages can be used to compare against the quoted labor rates and arrive at the labor cost variance to track profit and budget.
Here are some things you need to know before assigning a resource cost to users.
To assign resource costs to users, the owner of the subscription will need to grant you the "View resource costs" permission.
The users themselves will not be able to see the resource costs assigned to them unless the owner of your subscription has granted them the "View resource costs" permission.
The resource cost will take precedence over the hourly price of the labor type you select for a project task or a service call when you add time entries for the tasks and calls. For example, Joe has the resource with a resource cost of $50 per hour assigned to them. Joe has completed a project task of the labor type "Installation" with an hourly price of $60, as quoted in the proposal. Cloud will always consider $50 in the project calculations.
To assign a resource cost to a user:
1/ Go to "Settings > Account > User & Permissions" in the left navigation menu.
2/ Click the user to who you want to assign the resource cost.
3/ Scroll down to the "Resource cost" section.
4/ Select the type of wage: "Hourly wage" or "Annual salary."
5/ Enter the wage or salary in the "Wages" text box.
If you select Annual Salary, the hourly wage will be determined using the following formula:
Hourly Wage = Annual Salary / 2080
#2080 implies 52 weeks per year multiplied by 40 hours per week
6/ Enter a cost burden in percentage, and you will see a cost appear under "Burdened Labor Cost."
The cost burden is optional but allows you to add more weight to the hourly wage to account for the overhead of the resource.
The burdened labor cost is the additional cost per hour, regardless of whether you choose hourly wage or annual salary.
7/ Select whether to retain or disable "Overtime Exempt."
Retaining Overtime Exempt will override the attempt to enable overtime when adding time entries to Cloud.
8/ Click "Set an overtime pay multiplier" to set a multiplier value to the burdened labor cost. This is specific to a user. You can set different values for different users.
If the "Overtime" option is selected when adding the time entry, Cloud will calculate the cost per hour as burdened labor cost multiplied by the overtime multiplier.
For example, with an hourly wage of %50, and a cost burden of 10%, the burdened labor cost is $55. If the overtime multiplier is 1.5, the cost per hour in the time entry will be $82.5.
9/ Click "Save."