Labor Adjustments

Enter labor adjustments in the Transaction Center to make changes to labor detail while keeping a tight audit trail on the changes.

You can use labor adjustments to:

• Adjust the number of hours or labor costs charged to a project, task, or labor code.
• Transfer labor charges to another, project, task, and/or labor code.
• Override standard job-costing rates when posting timesheet data.

Also, with labor adjustments, you can enter negative hours and/or amounts to adjust a previously entered timesheet. For example, if William Apple recorded 40 hours for drawings and this entry was costed at an older or incorrect rate, you could enter a cost-only adjustment for the same labor code through Labor Adjustments.

If the hours or timesheet that you are adjusting have the same cost rate, you can use Timesheets to adjust the hours. Performing an adjustment using timesheet transaction entry will automatically extend cost and billing rates, using the current rate.

Posting

During a labor adjustment posting, DPS:

• Debits the labor account set up for the labor type. (For example, in the Standard Chart of Accounts for a regular labor type, DPS debits account 602.00 - Direct Labor - Employees.)
• Credits the job cost variance account set up in your Chart of Accounts. (For example, in the Standard Chart of Accounts, DPS credits account 703.00 - Job Cost Variance.)
• If applicable, updates the time taken for benefit accrual plans (vacation, sick, and personal time, for example).
• Updates employee payroll information such as "hours to be paid" and "unpaid hours".
• Recognizes multiple cost rates and effective dates if the cost rate option is selected.
• Adds new employee records to the Employees hub if Payroll is installed but there is no record for the employee.

For the following Accounting processes, if the Post as they are generated option is not selected, and if the Enable for all transaction types Configuration option is selected, then you may also need to put the created Labor Adjustment transaction file through the manual approval process:

• Labor Cross Charge
• Intercompany Billing

If this process creates one or more Labor Adjustment files, then these Accounting processes will be marked as Submitted.

Posting Log

Use a posting log to view information about a batch of transactions. DPS produces a posting log each time that you post a transaction file.

In addition to the posting log, DPS generates a General Ledger summary for labor adjustments. This report lists the general ledger accounts that were affected by the posting. The report shows the total amounts debited and credited to each account.

Multiple Companies

If you use multiple companies, configuration settings determine whether you generate labor adjustment transaction files as part of the Intercompany Billing process.