Adjust Salaried Job Cost Example
Review examples that show the Adjust Salaried Job Cost (ASJC) calculation with and without overtime included.
Employees Hub Settings
For these examples, the settings that are entered for the employee in are as follows:
| Employees Hub Tab | Field | Entry in the Field |
|---|---|---|
| Accounting | Job Cost Rate | $800 |
| Accounting | Type | Salary |
| Personal | Hours/Day
(Hours per day worked) |
8 |
| Accounting | OT Pct
(Overtime percentage) |
100 |
Accounting Company Settings Configuration
For these examples, the ASJC settings on the Timesheets tab in are as follows:
| Field or Option | Entry in the Field |
|---|---|
| Job Cost Frequency | Weekly |
| Allow job cost rates to be salaries | This check box is selected. |
| Include overtime hours in job cost calculation | See each column in the table below for an example with and without this check box selected. |
Timesheet Entry
For these examples, the Timesheet entry is as follows:
A salaried employee enters 40 regular hours and 10 overtime (OT) hours to one project.
ASJC Calculations
The following table shows the ASJC calculation with and without overtime included:
| Workflow | Include overtime hours in job cost calculation check box is selected | Include overtime hours in job cost calculation check box is NOT selected |
|---|---|---|
| Post Timesheets | ASJC calculates a standard hourly job cost rate for the employee using the employee’s job cost rate, hours/day worked, and the ASJC job cost frequency.
(Job Cost Rate/Job Cost Frequency in days) / Hours/day ($800/5 days) / 8 = $20/Hour The routine uses the standard hourly job cost rate and actual hours worked to calculate job costing amounts: 40 regular hours x $20/hour = $800 10 OT hours x $20/hour = $200 ---------- Job Cost Total per Posted Timesheet $1,000 If the overtime percentage for the employee was 150 instead of 100, the OT cost would have been calculated as 10 OT hrs x $30/Hr = $300. |
ASJC calculates a standard hourly job cost rate for the employee using the employee’s job cost rate, hours/day worked, and the ASJC job cost frequency.
(Job Cost Rate/Job Cost Frequency in days) / Hours/day ($800/5 days) / 8 = $20/Hour The routine uses the standard hourly job cost rate and actual hours worked to calculate job costing amounts: 40 regular hours x $20/hour = $800 10 OT hours x $20/hour = $200 ---------- Job Cost Total per Posted Timesheet $1,000 If the overtime percentage for the employee was 150 instead of 100, the OT cost would have been calculated as 10 OT hrs x $30/Hr = $300. |
| Run ASJC | ASJC calculates the hourly job cost rate for the employee using the employee's job cost rate and actual timesheet hours worked, including both regular and overtime hours:
$800/50 hours = $16.00/hour Job cost amounts are recalculated as follows: 40 regular hours x $16/hour = $640 10 OT hours x $16/hour = $160 ------- Job Cost Total per ASJC $800 When you select the Include overtime hours in job cost calculation check box, ASJC always uses the ASJC-calculated hourly rate to calculate overtime costs. |
ASJC calculates the hourly job cost rate for the employee using the employee's job cost rate and actual timesheet hours worked, including only the regular hours:
$800/40 hours = $20.00/hour Job cost amounts are recalculated for regular hours only. 40 regular hours x $20/hr = $800 ------- Job Cost Total per ASJC $800 When you do not select the Include overtime hours in job cost calculation check box, ASJC ignores overtime hours and does not calculate any cost for them. However, the overtime cost calculated when timesheets were posted still remains. |
| Job Cost Amounts on Reports | $640 Regular time
$160 Overtime ------ $800 Job Cost Total |
$800 Regular time
$200 Overtime (from timesheets) ------- $1,000 Job Cost Total |