AutoCOGS is a Tempus feature that allows you to automatically calculate hourly COGS values for each new contract. As an alternative, Tempus allows you to manually set COGS for each individual contract.
To use AutoCOGS, open the Options page and click the AutoCOGS radio button. Then, enter the COGS value as a percentage of the contract Payroll Rate for each consultant subtype.
When you use AutoCOGS, Tempus will find the consultant subtype (Hourly, Independent, etc.) when the consultant is selected for the contract and use the appropriate percentage of hourly wage value for the subtype to calculate hourly COGS dollars. Subsequently, the calculated hourly COGS values will be shown on the Rate, Cost Comm page and will be used in reports to show net dollar values devoted to COGS for each contract and each timesheet
Since COGS is calculated as a percent of Payroll Rate, it is essential that the Payroll Rate for the contract is entered on the Rate, Cost, Comm page for each employee of the firm. If the Payroll Rate is zero the COGS value will be zero on all reports.
Also, a consultant subtype must be recorded on the User record for every billable employee. This value is entered on the User pages. When you use AutoCOGS, Tempus will default the subtype value to Hourly. You can, of course, choose other values. If you’re not using AutoCOGS, Tempus will default the subtype to “None”.
Most administrators will enter new users and contracts and run through a few timesheet cycles prior to experimenting with AutoCogs. For them, many employees may have defaulted to the “None” consultant subtype when they were created.
Now, several pages will change the “None” value automatically to the Hourly value when the use of AutoCogs is detected to make it easy to convert to AutoCOGS. These pages are User Edit and Rate, Cost, Comm. For example, when the User Edit page is opened, Tempus looks to see if you are using AutoCOGS and if the consultant subtype is “None”, Tempus will change it to Hourly. It works the same for Rate, Cost Comm.
The AutoCogs values on the Options page can be changed at any time. Tempus will automatically pick up the new values when the time sheets are submitted
While you’re setting up the costs on Rate, Cost, Comm, don’t forget to set the Exempt Employee checkbox. If the employee doesn’t get overtime, the box must be checked. If not, the Revenue and Cost reports will not calculate the cost of hours over 40 per week correct
In fact, this is true even if you’re not using AutoCOGS. As long as you are entering Payroll and Billing rates for non-exempt employees, the Exempt Employee box must be set correctly to calculate accurate overtime.