Clarification on labor rate hierarchy when generating expense lines from workforce

jordimsant
Tera Guru

Hi everyone,

I’m currently working on generating expense lines in ServiceNow based on workforce / time worked, and I’m struggling to clearly understand how labor costs are actually determined.

From different documents and community posts, I see references to multiple possible sources for the hourly cost of a resource, such as:

  • Labor Rate Cards

  • Rate Models

  • Role Rates

  • Group Rates

  • Default Rates

What is confusing to me is:

  • What is the exact order of precedence when ServiceNow determines the hourly rate?

  • In which scenarios should each of these be used?

  • How do these elements interact when more than one applies to the same user (e.g. user has a role rate, belongs to a group with a rate, and there is also a labor rate card)?

My goal is to understand how ServiceNow calculates the final cost when converting worked hours into expense lines, so I can configure this in a predictable and maintainable way.

If anyone could explain the hierarchy or share a concrete example of how ServiceNow resolves the labor rate, I’d really appreciate it.

Thanks in advance!

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