When budgets are assigned to a job, you will be given the option to use rules to adjust the hours worked based on the hours budgeted. If no rules are selected, then no adjustments will be made. However, the budgeted time is still useful for reporting as the reports engine will show both budgeted time for each job, as well as “overages”.
If adjustments are desired, choose from the Budget Adjustment Rule pull-down menu shown here.
These rules are designed to adjust the time worked, based on the budgeted time for the job. There are 3 options for making adjustments to the time worked, based on the budgeted time:
1. Always Match – This rule will adjust the time worked to match the budgeted time, regardless of how much time the employee actually worked. This is designed for “flat-rate” jobs that always pay/bill the same regardless of how much time the job actually takes.
2. Always Match Unless Over – This rule will adjust the time worked to match the budgeted time, unless the employee worked more than the budgeted time. If the employee worked more than the budgeted time, they will get paid for the actual time they worked. For example, but budgeted time is 6 hours, but the employee worked for 7 hours. Since they were over, they will get paid for exactly what they worked (7 hours in this case).
3. Always Match Unless Over/Tardy – This is a custom rule that works just like the previous rule, but also factors in tardiness penalties in some cases.
Here are the full details on this custom rule, using a budgeted time of 6 hours:
Employee works the budgeted time or over:
If an employee works the full 6-hour budget or more, they will be paid for the exact hours they were clocked in, without any adjustments, even if they were late in starting.
Employee works less than the budgeted time:
If the employee works less than the 6-hour budget:
If they arrive on time, their hours worked will match the budget.
If they clock in late, their hours worked will be adjusted to the greater of these two values:
- The budgeted time minus the tardy duration (budget-tardy)
- The actual time they worked.
For instance, if the job has a 6-hour budget, and an employee works for 5 hours and 55 minutes but was 15 minutes late, the budget-tardy time is 5 hours and 45 minutes, but since the employee worked for 5 hours and 55 minutes, their hours worked will be adjusted to the actual time worked (5 hours and 55 minutes). However, if the employee only worked for 4 hours, their hours worked would be adjusted to the budget-tardy value, which in this case is 5 hours and 45 minutes.
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