About labor planning
Use labor planning features to incorporate resource-based costs into your overall budget planning process. Labor costs are always a major component, possibly the largest component, of your IT budgets. Now, you can itemize resource-based costs by labor-specific dimensions such as Type, Location, and Role, using consistent and centrally managed labor costing rules.
Watch this video from Apptio Education Services: Editing the Labor Plan.
The Budget Process Owner defines labor costing rules used to calculate and spread a labor resource’s total cost to the correct general ledger expense accounts. These rules codify the guidance of your organization’s finance department. During new budget or forecast planning, the Budget Process Owner or budget owner provides their organization’s current and planned labor headcount, base salaries, and per-month allotments across the planning period. The labor costing rules are applied to the labor line information provided and both the aggregate fully burdened labor costs and the labor-specific line-item costs per general ledger account are calculated.
Apptio Planning applications allow budget owners to focus on current and planned labor resources and then rely on the planning application to handle the general ledger account charges of resource costs. This gives the Budget Process Owner more accurate and timely insight into planned labor spend, which is a significant component of most IT budgets.
In addition to accounting for the financial impact of labor, you can set and track variance against labor headcount targets. As with financial targets for budgets and forecasts, labor targets are set by the Budget Process Owner or by the budget owner for their subordinate Cost Objects. Unlike budget targets, labor targets focus exclusively on headcount tallies. For more information, see Set labor headcount targets and Set financial targets.
- Labor compensation rates may be sensitive or protected information in your organization. The Admin or Budget Process Owner can restrict budget owners’ access to just the Cost Objects they own. See Edit the Company Profile. For additional control over labor data, the Admin or Budget Process Owner can assign users to a custom role that restricts access to the Labor page. See Restrict access to labor salary details.
- You can model the long-term budget impact of contracts in multi-year plans. See Plan for multiple years.