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Overview
The Labor Distribution Tab manages the settings that control Labor Distribution postings. More on Labor Distribution
Key Concepts
| • | The purpose of labor distribution is to post labor to the General Ledger and mirror payroll. |
| • | 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. |
| • | To understand how Labor Distribution G/L Accounts are derived click here. |
Field Descriptions
Base Codes
Description - These are the default base codes that will automatically fill into the Labor Distribution utility when launched. They can be overridden by base codes on the job title, and those can be overwritten by base codes at the project level. More on Job Titles
| • | Direct Salary - Direct Labor base account for salaried employees. It is combined with the charged organization to derive a valid G/L account. The metric type is cost; the cost type is direct; and the project management type is labor. It cannot be flagged as a subcontractor base account. |
| • | Overhead Salary - Indirect Labor base account for salaried employees. It is combined with the charged organization to derive a valid G/L account. The metric type is cost; the cost type is indirect; and the project management type is labor. It cannot be flagged as a subcontractor base account. |
| • | Direct Hourly - Indirect Labor base account for non-exempt employees. It is combined with the charged organization to derive a valid G/L account. The metric type is cost; the cost type is indirect; and the project management type is labor. It cannot be flagged as a subcontractor base account. |
| • | Overhead Hourly - Indirect Labor base account for non-exempt employees. It is combined with the charged organization to derive a valid G/L account. The metric type is cost; the cost type is indirect; and the project management type is labor. It cannot be flagged as a subcontractor base account. |
| • | Direct Subcontractor - Direct Labor base account for subcontractors (timekeepers who are not employees). It is combined with the charged organization to derive a valid G/L account. The metric type is cost; the cost type is direct; and the project management type is labor. It must be flagged as a subcontractor base account. |
| • | Overhead Subcontractor - Direct Labor base account for markup portion. It is combined with the charged organization to derive a valid G/L account. The metric type is cost; the cost type is direct; and the project management type is labor. It is used only when a marked-up value (not pay rate) is used. |
| • | Markup Debit - Direct Labor base account for markup portion. It is combined with the charged organization to derive a valid G/L account. The metric type is cost; the cost type is direct; and the project management type is labor. It is used only when a marked-up value (not pay rate) is used. |
| • | Markup Credit - Direct Labor base account for the offset of the markup portion. It is combined with the employee home organization to derive a valid G/L account. The metric type is cost; the cost type is direct; and the project management type is labor. It cannot be flagged as a subcontractor base account and is used only when a marked-up value (not pay rate) is used. |
Base Codes
| • | Salary Variance - G/L account to post the difference between an exempt employees salary and their distributed pay rate amount. |
| • | Payroll Clearing - Offset or suspense G/L account for direct and indirect labor (non- subcontractor). |
| • | Subcontractor Clearing - Offset or suspense G/L account for direct and indirect subcontractor labor. |
Misc.
| • | Posting Method - Rate method used for posting labor. There are four Posting Methods to use to calculate the amount to post: |
| o | Pay Rate - Labor is calculated at the pay rate value in timesheets. |
| o | Job Cost Rate - Labor is calculated at the job cost rate value in timesheets. |
| o | Bill Rate - Labor is calculated at the bill rate value in timesheets. |
| o | Pay Rate X Supplied Multiplier - Labor is calculated at the pay rate value in timesheets and then multiplied by the supplied multiplier when this utility is run. |
Note - When using any method except pay rate, you can split the difference between pay rate and the select method into two debit and credit base accounts. This allows the user to transfer an overhead portion in cross-charge scenarios from one organization to another, and maintain visibility of that overhead transfer in the General Ledger.
| • | Hours In A Work Day - Standard number of hours in a work day. In Labor Distribution, it is used salary variance calculations, if compensatory time is not booked. It is also used in resource management projections. |
Compensatory Time Project
| • | Look-up Box - Project to which compensatory time is posted. When posting compensatory time, salaried variance is washed through a compensatory project. |
Next: Back to the Labor Distribution Overview
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