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Employee/Project Hour utilization rates in MicrosoftDynamics AX 2012

Monitoring the utilization rates of the resources in projects in a very

important aspect of every service based organization today. The more the

resource is utilized, the more are the number of billable hours to the

customers.

Every organization today wants each of its project resources to be utilized

optimally.

With Microsoft dynamics A !"#!, you can trac$ it all with few simple and

easy steps.

%et us learn today what are the setups and processes involved in arriving

at the utilization rates of resources in A !"#!.

&tilization rate signi'es the ( of time that a wor$ers engages in a

billable)productive assignment in a given wor$ing period. *deally the

wor$ers utilization rate is calculated by dividing the number of billable

hours by the total wor$ing hours in that wor$ing period.

*n dynamics A, we can calculate both billable and e+ciency rates whencalculating the utilization rate.

Billable rate  The billable rate is the di-erence between billable hours

and nonbillable hours.

Eciency rate  The e+ciency rate is the di-erence between productive

hours vs. nonproductive hours or norm hours. /onproductive hours are

never chargeable to a customer.

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!etup to calculate t"e billable an# eciency rates for projects$

We can setup the re0uired parameters in the 1roject accounting

parameters form as shown below.

We can setup the #e%nition of billable  rate as per our business

re0uirement for each of the project types. The di-erent de'nitions are asbelow.

&tilization  2ours registered on the selected project type are always

billable or e+cient utilization.

Bur#en  2ours registered on the selected project type are always non

billable or none+cient utilization.

Accor#in' to line property3 %ine property of each transaction registered

on the selected project type decides if the hours are billable)e+cient.

(ot inclu#e#  2ours are never considered in billable ) e+ciency

utilization.

*n the screenshot above, * have setup the values as per my re0uirements.

Assume that for the period of "#)"#)!"#! to "#)#4)!"#!, * have wor$ed on

an internal project for #" hours and 54 hours on a time and material

project.

%et us now ta$e a loo$ at the billable rate report and the form and analyzethe data in them.

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6o to 7eports 8 2ours 8 9illable rate 8 Wor$er 2our utilization.

 The utilization rate for the employee is :5.5;( which as 54elect the wor$er 8 1roject Management tab 8 2our

utilization button.

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