About the Employee/Project Hour utilization rates in Microsoft Dynamics AX 2012

Monitoring the utilization rates of the resources in projects in a very important aspect of every service based organization today. The more the resource is utilized, the more are the number of billable hours to the customers.

Every organization today wants each of its project resources to be utilized optimally.

With Microsoft dynamics AX 2012, you can track it all with few simple and easy steps.

Let us learn today what are the setups and processes involved in arriving at the utilization rates of resources in AX 2012.

Utilization rate signifies the % of time that a workers engages in a billable/productive assignment in a given working period. Ideally the workers utilization rate is calculated by dividing the number of billable hours by the total working hours in that working period.

In dynamics AX, we can calculate both billable and efficiency rates when calculating the utilization rate.

Billable rate – The billable rate is the difference between billable hours and non-billable hours.

Efficiency rate – The efficiency rate is the difference between productive hours vs. non-productive hours or norm hours. Non-productive hours are never chargeable to a customer.

Setup to calculate the billable and efficiency rates for projects:

We can setup the required parameters in the Project accounting parameters form as shown below.


We can setup the definition of billable rate as per our business requirement for each of the project types. The different definitions are as below.

Utilization – Hours registered on the selected project type are always billable or efficient utilization.

Burden – Hours registered on the selected project type are always non billable or non-efficient utilization.

According to line property : Line property of each transaction registered on the selected project type decides if the hours are billable/efficient.

Not included – Hours are never considered in billable / efficiency utilization.

In the screenshot above, I have setup the values as per my requirements. Assume that for the period of 01/01/2012 to 01/15/2012, I have worked on an internal project for 10 hours and 65 hours on a time and material project.

Let us now take a look at the billable rate report and the form and analyze the data in them.

Go to Reports > Hours > Billable rate > Worker Hour utilization.


The utilization rate for the employee is 86.67% which as 65(total billable hours) is 86.67 % of 75 which is the total consumed hours by the employee.

Also, you can verify the hour utilization details can be viewed from  Worker > Select the worker > Project Management tab > Hour utilization button.


Simple, yet good !


Keep DAXING Smile

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