Correction Timesheets

This topic explains how to correct a timesheet when an error is discovered.

Remember that, in the government contract environment, actual timesheets must be corrected or changed only by the employee whose timesheet is corrected and who, along with the employee's supervisor, must initial the correction. The employee must cross out incorrect timesheet lines with a single line in blue or black ink (do not use whiteout or correction tape) and, in a space above the crossed-out entries, enter the proper account and number of hours.

Note:

If a timesheet has been posted to the G/L or used in the computation of payroll or leave, you must use correction timesheets to correct timesheet errors. You must use correction timesheets rather than journal entries, so that the Labor Summary and Timesheet History tables are properly updated with the corrections. Which steps you take to correct an error on a timesheet depend on when the error is detected.

Contents

Field	Description
Timesheet Type	Costpoint uses two types of timesheets for corrections, both of which are entered on the Manage Timesheets screen: Correcting: Costpoint combines a Correcting timesheet with regular timesheets when you compute payroll. For payroll purposes, Costpoint treats this timesheet exactly like a Regular timesheet, except that you can enter a correction reference date that prints on the Timesheet Edit Report and is saved permanently in Timesheet History. When you need to enter two or more correcting timesheets with the same date, use a different sequence number for each timesheet. You can enter up to nine sequence numbers for correcting timesheets. You can enter a maximum of nine corrections for an individual with the same date. If you need to make additional corrections, use another date in the same accounting period and begin with sequence #1. Labor Only: Costpoint does not process a Labor Only timesheet for payroll purposes. Use a Labor Only timesheet when you are transferring labor from one project, account, or organization to another, and when there is no affect on payroll (zero monetary amount, zero hours net effect). If the hours and dollar do not add to zero, there is a discrepancy between labor paid and labor charged. Costpoint warns you of this when you are adding non-zero Labor Only timesheets, but does not prevent you from doing so. In addition to the correction timesheet types, you can use the Regular timesheets and Bonus timesheets if desired. The advantages of using the correction timesheets are the visibility, the reference date, and, for Labor Only timesheets, the non-payroll feature.
Timesheet Date, Sequence Number, and Correction Reference Date	The correction timesheet date must be a date in the current timesheet period. Enter the Seq No if there is more than one correcting timesheet entered on the same timesheet date. You can use up to nine different sequence numbers for an employee. The correction Ref Date must be the date of the original timesheet that was posted and is being corrected.
Processing Correction Timesheets	If you have entered correction timesheets that affect paychecks in the current pay period, you can execute the Compute Payroll program more than once. If you have entered correction timesheets that simply reclassify labor and have no effect on gross pay, you should use Labor Only correction timesheets so you do not need to recompute payroll. Correction timesheets automatically process the next time you compute payroll.
Net Zero Correction Timesheets — Type "Labor Only"	Use a Labor Only correction timesheet to adjust labor cost if the original timesheet has already been posted and net hours and gross pay are affected by the labor adjustment. Make this type of correction when you charge the incorrect project, organization, or labor account on the original timesheet. For example, you incorrectly charge to Project 1007. After posting or computing the timesheet to payroll, you discover that the charge number must be 1007.001. Example Regular Hours: 0              Other Hours: 0            Total Hours: 0 Account Org Project Hours Amount Line 1 05300-010 1.1 1007.001 10 100.00 Line 2 05300-010 1.1 1007 <<10>> <<100.00>> Total 0 0.00 When making this type of correction, review the original labor cost to ensure that the same hourly rate is being used. The hourly rate may have changed since the original timesheet, the timesheet may have been auto adjusted, or premium rates may have been in effect for the hours in error.
Positive/Negative Timesheets — No Affect on Payroll	If you need to make many corrections on a timesheet, it may be easier to enter two separate timesheets. First, enter a negative timesheet for the entire original timesheet. Next, correctly enter the replacement timesheet. In this case, both timesheets should fall within the same accounting period and timesheet period. If there is no affect on payroll, you can do this with two Labor Only timesheets or two Correcting timesheets. Both Correcting timesheets should use the same dates with two sequence numbers. The Correcting timesheets should also use the same reference date. If you use two Labor Only timesheets, make sure that the positive and negative timesheets add to zero so that you do not inadvertently create a discrepancy between labor paid and labor charged. Note: This type of payroll variance does not appear on the Payroll Variance Report because you do not normally post Labor Only timesheets to payroll. Example Timesheet #1 Labor Only Timesheet Date: 6/30/03 Sequence 1 or Correcting Timesheet Date: 6/30/03 Sequence 1 Regular Hours: -40          Other Hours: 0            Total Hours: -40 Account Org Project Hours Amount Line 1 05300-010 1.1 1007 <<10>> <<100.00>> Line 2 05300-010 1.1 1007 <<20>> <<200.00>> Line 3 05300-101 1.1 1007 <<10>> <<100.00>> Total + <<40>> <<400.00>> Timesheet #2 "Labor Only" Timesheet Date: 6/30/03 Sequence 2 or Correcting Timesheet Date: 6/30/03 Sequence 2 Regular Hours: 40            Other Hours: 0            Total Hours: 40 Account Org Project Hours Amount Line 1 05300-010 1.1 1007.001 10 100.00 Line 2 05300-010 1.1 1007.001 20 200.00 Line 3 05300-101 1.1 1007.001 10 100.00 Total + 40 400.00
Positive/Negative Timesheets Affect Payroll	If there is an effect on payroll, use a Correcting timesheet. Costpoint combines the net difference between the two timesheets into the next regular paycheck or, if necessary, you can compute payroll and pay the employee the difference. Example Timesheet #1 Correcting Timesheet Date: 6/30/03 Sequence 1 Regular Hours: -40          Other Hours: 0            Total Hours: -40 Account Org Project Hours Amount Line 1 05300-010 1.1 1007 <<10>> <<100.00>> Line 2 05300-010 1.1 1007 <<20>> <<200.00>> Line 3 05300-101 1.1 1007 <<10>> <<100.00>> Total + <<40>> <<400.00>> Correcting Timesheet Date: 6/30/03 Sequence 2 Regular Hours: 40            Other Hours: 5            Total Hours: 45 Account Org Project Hours Amount Line 1 05300-010 1.1 1007.001 10 100.00 Line 2 05300-010 1.1 1007.001 25 250.00 Line 3 05300-101 1.1 1007.001 10 100.00 Total + 45 450.00
Net Difference Correction Timesheets	A Net Difference correction timesheet adjusts labor cost after posting the original timesheet and results in an increase or decrease to net hours and/or gross pay. A Net Difference timesheet is not a Net Zero timesheet because it affects gross pay; therefore, you typically use a Correcting timesheet in this situation. Costpoint combines the Net Difference correction timesheet, either in the current or next pay period, with a regular timesheet, to either increase or decrease gross pay.
Net Difference Positive/Negative	You can also make a Net Difference correction by entering two timesheets, a negative and a positive, as indicated in the example following. If an employee receives a pay increase but the information is not entered before timesheets and payroll are completed, you must enter a negative timesheet to back out the original timesheet: Example Timesheet #1 Correction Timesheet Date: 6/30/03 Sequence #: 1 @ $10/hour Regular Hours: -80          Other Hours: 0            Total Hours: -80 Account Org Project Hours Amount Line 1 05300-010 1.1 1007.001 -40 -400.00 Line 2 05300-010 1.1 1007.002 -40 -400.00 Total + -80 -800.00 Timesheet #2 Add the salary increase for the employee on the Manage Employee Salary Information screen and then enter the timesheet; the new salary rate defaults. Correcting Timesheet Date: 6/30/03 Sequence #: 2 @ $11/hour Regular Hours: 80            Other Hours: 0            Total Hours: 80 Account Org Project Hours Amount Line 1 05300-010 1.1 1007.001 40 440.00 Line 2 05300-010 1.1 1007.002 40 440.00 Total + 80 880.00 Another way to handle retro pay is to enter the difference between the employees' current rate of pay and his pay increase by entering a cost-only pay type. You then must manually calculate the difference between the employee's old pay rate and new pay rate and then multiply the difference by the number of hours the employee was paid at the old rate. You enter only the monetary amount on the Timesheet. Example: Old Pay Rate: $10.00 per hour New Pay Rate: $11.00 per hour Difference $1.00 per hour On the original timesheet, the employee worked 80 hours, so: 80 hours X $1.00 per hour = 80.00 Dollars Regular Hours: 0    Other Hours: 0         Total Hours: 0 Account Org Project Hours Amount Line 1 05300-010 1.1 1007.001 0 80.00
Create Retroactive Pay	You can also use the Create Retroactive Timesheet Adjustments application for hourly employees who received pay increases that are retroactive. You cannot use this function for salaried employees. Please refer to the screen documentation for more details.
Enter Correcting Timesheet screen	You can also use the Manage Correcting Timesheets screen to enter correcting timesheets. Please refer to the documentation for the Enter Correcting Timesheets screen for more details.
Timesheet Editing Shortcuts	The following examples illustrate shortcuts that can be used for editing timesheets if they have already been added, but not posted, to the G/L or if you have computed leave or payroll: Incorrect Hourly Rate: If the hourly rate used is not correct, but all other items are correct, change the hourly rate on the Manage Employee Salary Information screen. Then bring up the original timesheet using and return through all fields (you do not have to re-enter the numbers). When you get to the Hrs field, enter the hours. This causes the labor cost to be recomputed at the rate currently on the Manage Employee Salary Information screen. Pay Cycle Change (Costpoint Payroll users only): If the employee's pay code was incorrect on the Manage Employee Taxes screen at the time the timesheet was added, change this by correcting the pay cycle on the Manage Employee Taxes screen, then go to Manage Employee Salary Information screen and verify that the employee's salary is correct. If it is not, enter the annual amount again and tab out of the field; this enters the correct salary amount. Then bring up the original timesheet using and return through all fields (you do not have to re-enter the numbers). When you get to the Hrs field, enter the hours. This causes the labor cost to be recomputed at the rate currently on the Manage Employee Salary Information screen.