Many companies need the ability to predict or forecast labor costs while factoring in an estimated pay increase for cost of living increase and raises. This is particularly important if you are using Unanet to develop multi-year cost proposals and/or to forecast existing projects. The two Options below describe how to handle an estimated lift in pay, either via:
- Option 1, using a query tool such as MS Access, the Unanet IMU (integration management utility), and the actual pay rates in the accounting system. The IMU is configured to kick off the process that generates the person import file and the import process itself which updates the Person Profile Rates tab.
- Option 2, using Cost Elements in the Cost Structures.
What’s covered in this document:
- OPTION 1 - Updates to the Person Profile Cost Rate
- OPTION 2 - Handling the lift in the Cost Structure
- Create Indirect Cost Element(s)
- Add this Cost Element(s) into the Cost Structures with the appropriate estimated lift, against the appropriate Labor Cost Elements ("Direct Labor")
- Place the appropriate lifts in the Cost Structure - Rates tab
- Map to the Cost reports as necessary.
- When actual pay increases are given, enter updates to pay in the appropriate Person Profiles. Follow up by removing the lift from the Cost Structure's Estimated Increase for current fiscal year, as outlined in the screenshot for Indirect Cost Rates above.
- Optionally, you can schedule lifts on ODC's to address inflation similarly for planning purpose
- Pros and Considerations of the Options
- Additional Information