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Calculation of hourly wages for work on the project, taking into account weekends and breaks

My company provides software development services and related services.
We use the project and tasks to plan work, calculate the cost of work, as well as employee salaries based on hourly pay.
We have an 8-hour working day and 1 hour break at 15:00, that is, in general, the employee is in the office from 10:00 to 19:00.
We are trying to use Timesheet to calculate hourly wages. For example, we want to calculate the bill, from 16 Dec 2021 to 23 Dec 2021. We want the calculation to be made for 8 hours a day at the specified rate. At the same time, 1 hour break at 15:00 was excluded, as well as weekends Saturday and Sunday. That is, 5 days of work for 8 hours, and 40 hours of work for the period from 16 Dec 2021 to 23 Dec 2021. We have set the “Standard Working Hours” parameter to 8 in the company settings. And also set the “Default Holiday List” for 2021, in which all Saturdays and Sundays of the year are holidays.
However, this is not taken into account in the schedule and we get Hrs: 58.667.

Or, instead, we should create separate records in the TimeSheets table with a duration of 8 hours for each specific working day (not taking into account 1 hour break at all). This does not seem to be the right approach, since in real conditions the work lasts for months and not one week.

It is also not entirely clear what the fields are for:
Billing Hours
Billing Rate
Billing Amount
Casting Rate
Costing Amount

What is their purpose, what are they for and how to use them?

Hi, the time logs are intended to log literal times. For example, one time log for today, 10:00-15:00, another time log for today 16:00-19:00, etc. It does not consider holidays, breaks, etc.

As for the fields:

  • Billing Hours

    How many hours you want to bill (regardless of how many you worked)

  • Billing Rate

    What hourly rate you’re charging the client

  • Billing Amount

    Billing Hours * Billing Rate

  • Costing Rate

    How much one hours costs your company

  • Costing Amount

    Costing Rate * Hours Worked

1 Like

@rmeyer, I have similar requirement too.

Basically all is well as you described, with some differences:

  • billing hours

We have 9-hours shift (no break in-between), and any work hours after the 9-hours will be counted as Over-time. There are different Over-time rates for different Tasks.

  • billing amount

billing hours (9-hours) * billing rate + OT hours * OT billing rate

Is this possible?

With some customisation this could surely be done. Just add some custom fields and a Client Script to calculate the OT hours and amount.

1 Like

@rmeyer, I’m new to ERPNext. Can you give me some more pointers?

I’m not sure… it looks like Salary Component can do this? There is a Condition and Formula in New Salary Component. Where can I get the list of terms needed in Condition?

Salary component is for paying your employees, not for billing your customers.

The necessary customisation is hard to explain in a comment. You can read more about it here:

You could also subscribe to ERPNext hosting or pay an independent developer to have someone do the customisation for you.

@rmeyer, thank again.

I’m looking at paying my employees, so that is the right direction.

I’ll look into the docs you provided.