Cross Charge Tab of Accounting Company Settings

Use the Cross Charge tab to enable the Labor Cross Charge feature and to specify related settings such as the rate method and the credit and debit accounts used to transfer revenue and overhead.

To ensure that Cross Charge is set up correctly, you should run and review the Labor Cross Charge Detail Report after timesheets are posted and before you process labor cross charges.

Contents

Field

Description

Enable Cross Charge Feature

Select this option to enable the Labor Cross Charge feature. When you enable this feature, DPS displays: A Cross Charge tab in the Individual Organization Setup form (Settings > Organization > Individual) that lets you enable or disable cross charging for an organization and set up related multipliers and projects. A Labor Cross Charge option on the Accounting menu that lets you transfer labor and revenue or overhead charges to the appropriate organization. If you do not select the Enable Cross Charge Feature option, Labor Cross Charge is not enabled, regardless of settings elsewhere in DPS.

Regular Projects

Complete this section for projects with a charge type of Regular that share resources.

Field	Description
Create Labor Adjustment	Select this option to transfer labor costs. Select this option only if you transfer labor and revenue back to the employee's organization. When you run the Labor Cross Charge process, DPS creates a labor adjustment transaction file using: The employee’s direct labor account as specified in Settings > Advanced Accounting > Labor Types and The Labor Credit (Job Cost Variance) account specified on the Timesheets tab of General Accounting Settings. If you transfer the overhead costs associated with this employee to the project’s organization, you should not select this option.
Create Journal Entry	Select this option if you transfer labor and revenue back to the employee’s organization or when you transfer overhead to the project’s organization. When you run the Labor Cross Charge process, DPS creates a journal entry transaction file with the accounts specified in the following fields on this tab.
Credit Account	Click and select the credit account to use when you transfer revenue or overhead between regular projects with a journal entry. This account always credits the employee’s organization. The type of account that you enter depends on the type of information being transferred: Enter a revenue account if you are transferring revenue. Enter an indirect expense account if you are transferring overhead.
Debit Account	Click and select the debit account to use when you transfer revenue or overhead between regular projects with a journal entry. This account always debits the employee’s organization. The type of account that you enter depends on the type of information being transferred: Enter a revenue account if you are transferring revenue. Enter an indirect expense account if you are transferring overhead.
Rate Method	This field is enabled when you select the Create Journal Entry check box on this tab. The Rate Method is the transfer price calculation method. Choose the rate method to use when revenue is transferred back to the employee’s organization or employee overhead charges are transferred to the project’s organization. You can specify either: Calculate from Billing Terms: Select this option to use billing terms to calculate the transfer price. If your enterprise uses the Effective Dates feature in the Billing application, the feature can affect this calculation. Multiplier: When you select this option, you must enter the rate by which to transfer the revenue or overhead. This is the rate used on client invoices. Whichever method you specify, you can override it at the organization or project level.
Multiplier	Choose the markup rate to use when you transfer revenue back to the employee’s organization or employee overhead charges to the project’s organization. If you select the Calculate from Billing Terms option, DPS uses billing terms when revenue or overhead is transferred. If you select the Multiplier option, you must enter the rate by which to transfer the revenue or overhead. This is the markup rate used on client invoices.

Overhead Projects

Complete this section for sharing resources on overhead or promotional projects.

Field	Description
Create Labor Adjustment	Select this option to transfer labor costs. Select this option only if you are transfer labor and revenue back to the employee’s organization. When you run the Labor Cross Charge process, DPS creates a labor adjustment transaction file using: The employee’s direct labor account as specified in Settings > Advanced Accounting > Labor Types and The Labor Credit (Job Cost Variance) account specified on the Timesheets tab of General Accounting Settings. If you transfer the overhead costs that are associated with this employee to the project’s organization, you should not select this option.
Create Journal Entry	Select this option to transfer more than labor costs. Select this option if you transfer labor and revenue back to the employee’s organization or when you transfer overhead to the project’s organization. When you run the Labor Cross Charge routine, DPS creates a journal entry transaction entry file and uses the accounts specified in the following fields on this tab.
Credit Account	Click and select the credit account to use when you transfer revenue or overhead between overhead projects via a journal entry. This account always credits the employee’s organization. The type of account that you enter depends on the type of information being transferred: Enter a revenue account if you are transferring revenue. Enter an indirect expense account if you are transferring overhead.
Debit Account	Click and select the debit account to use when you transfer revenue or overhead between overhead projects via a journal entry. This account always debits the employee’s organization. The type of account that you enter depends on the type of information being transferred: Enter a revenue account if you are transferring revenue. Enter an indirect expense account if you are transferring overhead.
Multiplier	This field is enabled when you select the Create Journal Entry check box on this tab. Specify the internal transfer price to apply to labor costs to calculate the amount of the journal entry.