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This is an "Advanced Feature". To be reviewed

The salary category and related cost is used in the Production module for the calculation of the cost of a product that is the result of the production process.

All operations in the production process consists of activities. These activities have a cost center defined and how much time of that cost center is used. Each cost center has the employees that are part of the cost center defined by salary category in the employee tab. The employee is set up as an operator in the employee tab of the business partner. Apart from the employee cost, also the machines cost used in the cost center and any indirect cost, such as electricity, is set up. Based on these components a cost per hour related to the cost center can be defined. Based on the use of the cost center during production, a cost per produced unit is added to the total cost of the unit.

The salary category and related cost is also used in the Project and Service management module to calculate the profitability of a project.The cost related to a salary category for Project Management has to be defined with the 'per hour' unit of measure.

The setup of the salary category of the employee is done in the [Cost Salary Category] tab underneath the [Employee] tab of the Business Partner