Labor Cross Charge

Labor cross charging is the transfer of labor expense and associated revenue between different organizations within your enterprise. Use labor cross charges when an employee from one organization works on a project from another organization. The cross charge (transfer) allows each organization to match cost with revenue and fairly assess profitability.

In Deltek, each project and each employee are assigned to an organization. However, labor expense charges on timesheets and revenue from invoice postings are applied to the project's organization. See the Concepts section of the help for background information on labor cross charges and alternatives.

The Labor Cross Charge application uses special general ledger accounts, special projects, and configuration data to automate the accounting entries that are involved in the transfer of labor expense and revenue between organizations. The accounting entries are created when you run the labor cross charge process.

Use the Labor Cross Charge form to:

• View labor postings. You can specify whether or not the Labor Postings grid displays labor postings that are already processed in Labor Cross Charge and labor adjustments and transfers. Otherwise, the form displays only unprocessed labor cross charge batch jobs created by timesheet postings.
• Select files for processing.
• Enter processing options.
• Run labor cross charge on selected files.

You can set up one or more labor cross charge approaches.

Multiple Companies

If you use multiple companies:

• The Intercompany Billing application is designed to process cross charges between companies.
• You can still use the Labor Cross Charge application for cross charges within the same company. For example, you can use it use it to process labor cross charges among a company's offices.