Adjust Salaried Job Costing Calculations

When you use the Adjust Salaried Job Costing feature, DPS calculates an adjusted hourly job cost rate for each salaried employee.

Job Cost Calculations When Timesheets are Posted

When you post a timesheet for a salaried employee, DPS calculates the standard hourly job cost rate using the following information:

• The employee's Job Cost Rate on the Accounting tab in Hubs > Employees.
• The employee's Hours/Day on the Employment Details tab in Hubs > Employees.
• The company's Job Cost Frequency on the Timesheet tab in Settings > Accounting > Company.

DPS performs the following calculations:

Standard Hourly Job Cost Rate = (Job Cost Rate / Job Cost Frequency in days) / Hours/day

or

Standard Hours = (Hours/day x 260) / Job Cost Frequency Per Year

Standard Hourly Job Cost Rate = Job Cost Rate / Standard Hours

Where:

• 260 = Number of work days in a year (52 weeks per year x 5 working days/week)
• Job Cost Frequency Per Year is one of the following:
  • Weekly = 52
  • Bi-weekly = 26
  • Semi-monthly = 24
  • Monthly = 12

The job cost amount is calculated by multiplying the actual hours worked, as entered on the timesheet, by the standard hourly job cost rate:

Job Cost Amount = Timesheet Hours x Standard Hourly Job Cost Rate

Job Cost Calculations When You Run the Adjust Salaried Job Cost Process

When you run the Adjust Salaried Job Cost process, DPS first calculates the hourly job cost rate. It uses the employee's Job Cost Rate on the Accounting tab in Hubs > Employees and the hours entered on the timesheet.

Hourly Job Cost Rate = Job Cost Rate / Timesheet Hours

Then DPS calculates the job cost amount by multiplying the timesheet hours by the hourly job cost rate.

Job Cost Amount = Timesheet Hours x Hourly Job Cost Rate

To include overtime hours in Adjust Salaried Job Cost calculations, select the Include overtime hours in job cost calculation option on the Timesheets tab in Settings > Accounting > Company.