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Overview
The purpose of Labor Distribution is to post labor expense to the General Journal to mirror payroll. This is done for firms that need to see a detailed breakdown of their labor expense accounts on their General Ledger and Income Statement.
To learn more about Labor Distribution and understanding if it is right for your company, Click Here
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 expense 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.
Setup Basics
Description - Below is a list of the areas within InFocus that need to be configured in order for the Labor Distribution utility to function correctly. It is highly recommended that you schedule a consulting session with a consulting expert before you begin to use Labor Distribution.
| 1. | The Labor Distribution Tab within Global Settings must be 100% configured, with all necessary accounts first created in the chart of accounts. |
| 2. | Salary amounts must exist in the employee record in the Pay History tab with an amount that represents the time frame that is to be used for labor distribution e.g. a semi-monthly amount if the utility is to be run for a semi-monthly period. |
| 4. | If the user wants to charge specific indirect accounts such as Vacation, PTO, etc., these must be first configured within Projects>Expense & G/L Tab. |
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