Labor Distribution Human Resources>Labor Distribution

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Overview

The Labor Distribution Pop-up contains the settings that will be used when you run the utility. More on Labor Distribution

 

Field Descriptions

Header & Footer

•Period - G/L period to which the transactions will be posted.
•Error Account -  Error G/L account. Used if an account derivation cannot be achieved.
•Post button - After clicking on Post, an entry will be made in the General Journal.

 

Settings Tab (Misc. & Employees)

•Payroll Group - When selected, all employees assigned to a specific Pay Group (Employees>Employee Information Tab) will be selected when running the Labor Distribution Utility. Payroll Groups are managed through Administration>List Management>Payroll Groups
•Standard Day - Standard hours in a day.
•Pay Multiplier - Multiplier used when method is Pay Rate x Multiplier; otherwise, irrelevant.
•Work Start Date - Timesheet starting work date, (normally the start date of payroll period).
•Work End Date - Timesheet ending work date, (normally the end date of payroll period).
•Use Salary Amounts - When checked, employee salary amount are used to capture variance.
•Use Compensatory Time - When checked, a compensatory time project, as specified in Global Settings, is used to capture salary variance. More on Compensatory Time
•Treat Salaried as Hourly - When checked, Salaried employees are treated in the same manner that Hourly employees are. See Notes 1&2 below
•Employees - Optional filter list of employees. Leave blank for all.

 

 

Note 1 - In most scenarios Use Salary Amounts is checked and Treat Salaried as hourly is unchecked. Un-checking Use Salary Amounts is only done if you want to split a single labor distribution into two postings because the payroll transcends two G/P periods. Rarely, does anyone want to do that. Checking Treat Salaried as hourly is only done when 1) running diluted rates (More on Diluted Pay Rates) and 2) you prefer to have zero variance rather than payroll clearing exactly equaling gross pay. Again rarely does anyone want to do this.

 

Note 2 - If you do not have Use Salary Amounts checked then the system calculates salary variance on a per day basis based on the standard hours entered in this screen. For instance, if the standard hours is 8 and a salaried employee works 9 hours then one hour goes to variance.

 

Accounts Tab

Base Codes

•Direct Salary - Default Cost Base Account for direct salary labor.
•Overhead Salary - Default indirect salary labor cost base account.
•Direct Hourly - Default direct non-exempt labor cost base account.
•Overhead Hourly - Default indirect non-exempt labor cost base account.
•Direct Subcontractor - Default direct subcontractor labor cost base account.
•Overhead Subcontractor - Default indirect subcontract labor cost base account.
•Markup Debit - Default markup debit direct labor cost account.
•Markup Credit -Default markup credit direct labor cost account.

 

G/L Accounts

Description - The offset of the direct and indirect postings are divided amount clearing and variance accounts. More on Clearing and Variance Accounts

•Salary Variance - Salary variance G/L account.
•Payroll Clearing - Payroll clearing G/L account.
•Subcontractor Clearing - Subcontractor clearing G/L account.

 

Setup: Back to Labor Distribution Setup