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Overview
The purpose of labor distribution is to post labor to the General Ledger and mirror payroll.
Key Concepts
| • | When labor distribution is run, the Owning Org. (Profit Center) will receive the labor cost transferred to it. If Labor Distribution is run at a rate other than pay rate, the difference between that rate and pay rate will be debited against the Owning Org. of the project and credited against the Home Org. of the employee for employees outside of the Owning Org Unit. |
| • | Labor Distribution posts labor figures to the General Ledger based on time sheet entries. The process scans time sheets that have been approved, but not yet processed by this utility. In general, labor is divided between direct and indirect labor cost accounts. |
| • | When run, this utility makes a single entry for the pay period in the General Journal and marks it as a Labor Distribution entry. It then flags all time sheet entries that were a part of the run with the General Journal transaction ID. Deleting the General Journal transaction will erase the link to time sheets, allowing them to be reprocessed in a future run. |
| • | By running Labor Distribution, you are associating the included time transactions with a G/L Period. If you are attempting to run Project Management Reports by G/L Period, you must be running this utility. |
| • | Every time Labor Distribution is run, any time sheet items that exist prior to the start date (of the pay period) are processed and booked to the General Journal as a separate journal entry. This means that Labor Distribution could generate two entries. Salary variance is not calculated for prior pay period entries. |
Note: The purpose of Prior Pay Period Booking is to capture any G/L changes between direct and indirect account that occur when timesheets are moved between projects after the pay period has been processed. These adjustments usually balance to zero (no change in hours or dollars) but if they do not, the variances will be placed in the payroll and subcontractor clearing accounts accordingly.
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