Understand cost corrections
A cost correction allows an administrator to override the baseline hourly cost of a human resource for a specific period of time. This is useful when the actual cost or selling price of a resource differs temporarily from the standard rate defined in the work hours contract.
What a cost correction is
Every work hours contract includes a baseline hourly cost — the default rate used to calculate budgets and financial reports. This rate applies for the entire validity period of the contract.
A cost correction is a separate record that says: for this resource, during this specific period, use a different cost instead of the baseline.
A cost correction contains:
- Resource — the human resource the correction applies to.
- Start date — when the corrected cost begins.
- End date — when the corrected cost expires.
- Corrected cost — the hourly rate to use instead of the baseline during this period.
When to use cost corrections
Cost corrections are designed for situations where the hourly cost changes temporarily or differs from the contract baseline without warranting a full contract change. Common scenarios include:
- Temporary rate adjustments — a resource is billed at a different rate for a specific project or client engagement.
- Promotional or discounted periods — an introductory rate applies for the first months of a contract.
- Overtime or premium rates — certain periods require a different cost due to overtime rules, night shifts, or holiday work.
- Mid-contract cost updates — the organization adjusts costs without changing the working schedule, and does not want to create a new work hours contract just for a price change.
When to use a new contract instead
If the change is permanent (e.g. the resource receives a raise that applies indefinitely), it is better to create a new work hours contract with the updated baseline cost. Cost corrections are meant for limited time frames.
How cost corrections interact with work hours contracts
The relationship between the two is straightforward:
- The work hours contract defines the baseline cost for the resource.
- A cost correction overrides that baseline for a specific date range.
- Outside the cost correction period, the baseline cost from the contract applies.
If multiple cost corrections overlap for the same resource and period, the system uses the most specific one (i.e. the one whose date range most closely matches the period being calculated).
Example
A resource has a work hours contract with a baseline cost of €30/hour starting January 2025.
| Period | Applied cost | Source |
|---|---|---|
| Jan 2025 – Feb 2025 | €25/hour | Cost correction (introductory rate) |
| Mar 2025 – ongoing | €30/hour | Work hours contract (baseline) |
In this example, reports for January and February will use €25/hour. From March onward, the baseline €30/hour applies automatically.
Where cost corrections appear
Cost corrections affect financial calculations in:
- Projects — budget and cost reports use the corrected cost when calculating how much a resource's time costs during the corrected period.
- Workforce — the resource detail view shows the list of cost corrections alongside work hours contracts, giving administrators a complete view of the resource's cost history.
Cost corrections do not affect:
- Timesheets — time reports show hours and balances, not costs.
- Timecards — clock-in/clock-out data does not include cost information.
Cost corrections vs. new contracts
| Scenario | Recommended approach |
|---|---|
| The hourly rate changes permanently | Create a new work hours contract |
| The weekly schedule changes | Create a new work hours contract |
| The cost changes temporarily (weeks or months) | Use a cost correction |
| A different rate applies for a specific project | Use a cost correction |
| Both schedule and cost change at the same time | Create a new work hours contract |