The situation we're in is that we had rate changes for resources as January 1 of the current year. However these new rates only became final in February. This means the timesheets were posted to WIP using an incorrect rate as we only made the correct rate matrix changes in February new rate starting retrospectively as of January 1st.
Since we base many financial reports on the WIP tables and have an Interface with SAP based on the rate matrix we now want to correct the January Actual Costs. What is the best way to correct the rates for the January transactions?
After making changes to the live Rate Matrix Rows in Administration, Manage Matrix, be sure to execute the 'Rate Matrix Extraction' job with the options to 'Prepare' and 'Update' the matrix (and optionally select the option to create additional rows for expanding data for scheduler use). Do not run the job with the 'Incremental' option as it will not update the existing data with the new, changed rates.
If you only want to recalculate rates for the January transactions that have not been billed, then use the 'Create WIP Adjustment' action. When you select the transaction for adjustment, there is a checkbox that will allow you to re-calculate the rates. This will recalculate the rates and costs based on the current values in the referenced rate matrix.
Making an adjustment to the rates only through the 'Create WIP Adjustment' action only affects the financial transaction data. If you are using Project detailed Financial Planning, the new rates are reflected immediately, when the adjustment is approved and the detailed Cost Plan will show the updated Actual Costs. Simply re-posting the timesheet (creating an adjustment timesheet with no real adjustments) does not create an adjustment to the financials for the new rates. Any new timesheets or adjusted timesheets (with real adjustments to quantity or charge code, etc) will pick up the current rates in the matrix. After making the WIP Adjustment, execute the 'Import Financial Actuals' job and then the 'Update Earned Value Totals' job or go to the project and click on the Action to 'Update Costs'.