Contents of the Labor Options Form

Use the Labor Options form to add or update global settings for secondary overtime, enabling rate tables, reporting options, and company-level settings for job costing, cross charges, and enabling payroll.

Global Labor Options

Field	Description
Enable Secondary Overtime	Select Yes if you plan to use the secondary overtime feature, which enables you to track two kinds of overtime and does the following: Adds secondary overtime fields to Timesheet and Labor Adjustment Transaction Entry. Adds secondary overtime percentage fields to Employees hub forms for job costing and payroll purposes. Adds a secondary overtime multiplier field to the Billing Terms form. Adds secondary overtime columns to some reports. Merges secondary overtime hours and amounts with standard overtime hours and amounts on other reports. Allows you to establish provisional rates for secondary overtime for use in project reporting. Makes it possible to pay employees and bill clients for secondary overtime.
Enable Cost Rate Tables	Select Yes if you want cost rate tables to override the cost rate, the pay rate, or both, in the Employees hub for project reporting and payroll processing.
Enable Overtime Percent in Cost/Pay Rate Tables	Select Yes if you want the percentage for overtime hours in cost rate and pay rate tables to override the percentage for overtime hours in the Employees hub. When you select Yes, the Overtime Percent and Overtime-2 Percent fields display in cost rate tables.
Enable Pay Rate Tables	Select Yes to allow the employee pay rate established in pay rate tables to override the pay rate established on the Payroll tab of the Employees hub.
Enable Reporting at Billing Rates	Select Yes to generate project reports based on billing and cost rates. If you select this option, Billing and Cost are listed as options in the Report At field in Project Reporting.
Use Billing (Not Project) Currency for Reporting	This field is available only if you use multiple currencies. Select Yes to use the billing currency for project reporting, project dashparts, and payroll processing. The billing currency is the currency in which you generate invoices and billing reports for a project and its phases and tasks.
Use Reporting Default Terms for All Projects	Select Yes if you want reports that use billing amounts (for example Project reports, Employee reports, and posting logs) to use the billing terms and multiplier information specified in Settings > Billing > Reporting Default Terms. When you select No for this setting, the Rates for Reporting (Not Invoicing) check box displays on the Rates tab in Billing Terms.
Enable Reporting at Burdened Rates	Select Yes to run project reports at burdened amounts. This effectively combines labor and overhead on a single detail line. When you combine labor and overhead, the overhead for each detail line is estimated using the same calculation that is used when reporting at cost and overhead allocation needs to be run.
Enable Reporting Realization by Employee	Select Yes if you want to track realization amounts for employees. When you select Yes, you must enter a calculation method and frequency in the Calculation Method field and Frequency field and general ledger revenue accounts for realization in the Employee Realization Allocation Accounts grid. You can change the Enable Reporting Realization by Employee option to No at any time. If you change it from Yes to No and realization amounts have already been allocated to employees, previously calculated realization amounts are not removed from records. For more information, see Employee Realization Reporting.
Calculation Method	This field displays if you set the Enable Reporting Realization by Employee option to Yes. Select the method for calculating realization. The calculation affects how revenue is prorated among employees who work on a project. The calculation determines the percentage of revenue to allocate as realization to each employee who has time records for the invoice (if you select the Invoice frequency for employee realization) or for a period (if you select the Period frequency for employee realization). You can change the calculation method at any time. Changing it does not impact the realization amount for prior records. It impacts only future calculations. Calculation methods are:
	Cost: With this method, the cost value of time records is used to determine the percentage of revenue to allocate to each employee who has time records for an invoice (if you select the Invoice frequency) or for the selected posting periods (if you select the Period frequency). The cost amount is calculated from posted timesheet transactions and billing edits made in Interactive Billing (items to be billed, written off, deleted, modified, or inserted). If you use labor burden rates, the cost amount does not include burden. Billing: With this method, the billing extension is used to calculate a billing value that is used to determine the percentage of revenue to allocate to each employee who has time records on an invoice (if you select the Invoice frequency) or for the selected posting periods (if you select the Period frequency). You can select this option only if you also set the Enable Reporting at Billing Rates option to Yes on this form. For fee-based invoices, the percentages for employee realization are based on the fee amounts entered in Billing Terms for a project. Hours: With this method, the total hours for the labor transactions are used to determine the percentage of revenue to allocate to each employee who has labor transactions included on an invoice (if you select the Invoice frequency) or for the selected posting periods (if you select the Period frequency). This is how the calculation method is used to prorate revenue among employees: A value is calculated for each employee's total time records that are included on a billing invoice (if you select the Invoice frequency for employee realization) or included in the selected posting periods (if you select the Period frequency for employee realization). The value is a billing amount, cost amount, or hours, depending on which calculation method you choose. Each employee's time record value is divided by the total value of all employees' time records for an invoice (if you select the Invoice frequency) or for the selected posting periods (if you select the Period frequency). This determines the percentage of the realization that an employee will receive. Employee-specific unit transactions that are included on an invoice are not included in the total of all employees' time records that is used to calculate the percentage of realization that an employee receives. Employee-specific unit revenue is allocated directly to the specific employee. The realization that an employee receives is the percentage (determined in step 2) of the amount that is posted to the general ledger revenue accounts that you specify for employee realization in the Employee Realization Allocation Accounts grid on this form.
Frequency	This field displays if you set the Enable Reporting Realization by Employee option to Yes. This setting affects how employee realization is calculated and whether or not realization is allocated automatically or manually. Select the frequency for calculating employee realization. Options are: Invoice: This option is available only if you use the Billing module. When you select this option, the revenue allocated to employees is based on revenue from posted invoices. The allocation occurs automatically when you process invoices in Interactive Billing and Batch Billing. After you click OK on the Invoice Accept dialog box in Interactive Billing, realization amounts are displayed by employee on the Employee Realization Allocation dialog box. This dialog box does not display in Batch Billing. Period: When you select this option, the revenue that is allocated to employees is based on revenue posted in a specific accounting period or range of periods. You must manually run the Employee Realization Allocation program in Billing > Employee Realization to allocate realization. The allocation does not occur as part of Interactive Billing or Batch Billing. On the Employee Realization Allocation form in Employee Realization, you select the projects, a range of periods, and whether or not to include labor adjustments and Interactive Billing modifications in the realization calculation. Realization is calculated only when there is both an invoice and time records posted for a project in the period or periods that you selected for realization processing. You can change the frequency at any time. Changing the frequency setting changes the calculation method going forward. It does not impact records that have already been calculated.

Company-Specific Options

If you have multiple companies in Vantagepoint, you see the name of the active company that you have open on the form after the Global Labor Options section. Enter the following settings for the company you have open on the form. If you have one company in Vantagepoint, enter the settings for that company.

Payroll and Employee Realization Section

Field	Description
Consolidate Timesheet Postings by Employee and Work Breakdown Structure	Select Yes if you want to consolidate the posting of timesheets. This means that if the same employee charges time to the same project, task, and labor code combination, only one line displays for that employee on the posting log. Timesheet postings cannot be consolidate d when cost rate tables are enabled.
Enable Payroll Interface	Select Yes if you use ADP, Paychex, or Ceridian Powerpay to process your payroll. Then select the company that you use in the Payroll Interface To field, and enter the company's number/code.
Payroll Interface To	This field displays when you set the Enable Payroll Interface option to Yes. Select the company that processes your payroll. The options are: ADP Ceridian Powerpay Paychex
Default Company Code, Default Client Number, or Default Company Number	This field displays when you set the Enable Payroll Interface option to Yes. The name of the field varies, depending on which company you selected in the Payroll Interface To field. Enter the company or client number or code for the company that processes your payroll. This number/code is automatically entered for each employee who does not have a payroll company number or code specified on the Accounting tab in the Employees hub. If you have multiple companies in Vantagepoint, this number is also automatically entered for an employee's organization on the Units & Payroll tab in Settings > Organization > Individual (in the desktop application) if the organization does not already have one specified. If a payroll processing company has just one number or code for all your employees, enter it in the this field, and leave the company number or code in the Employees hub and Individual Organization Settings blank; the number will automatically prefill in those locations.
Employee Realization Allocation Accounts Grid	This grid displays when you set Enable Reporting Realization by Employee to Yes on this form. If you have multiple companies in Vantagepoint, use this grid to specify a general ledger revenue account to which employee realization will be allocated for each company. Click + Add Account below the grid to add a new row on the Allocation Accounts grid and add an account in the row for employee realization. Columns in the grid are: Company: This field displays if you have multiple companies in Vantagepoint. Select the company for which to enter a general ledger revenue account. Account: Select a revenue account to which realization will be allocated for your company. The labor revenue account from the Invoice Accounts form in Settings > Billing > Invoice Accounts for a company prefills in this grid. Enter a row for specifying a unit revenue account for units if the Employee-specific Revenue check box is selected in the Units grid in Settings > Accounting > Units. If you have multiple companies, a revenue account can be used only one time for each company.

Job Costing Options Section

Job costing is the practice of allocating labor costs to projects. The job cost frequency is how often (monthly, semi-monthly, weekly, or bi-weekly) timesheets are collected, posted, and costed to jobs.

Field	Description
Job Cost Frequency	If you use the Adjust Salaried Job Cost feature, select the frequency at which you want to adjust job cost amounts for salaried employees. This usually matches your payroll frequency.
Allow Job Cost Rates to be Salaries	Select Yes if you want to specify salaried rates and hourly rates in the Job Cost Rate field on the Accounting tab of the Employees hub. If you select Yes, a Type field displays in the Employees hub, allowing you to specify whether the rate is a salaried rate or an hourly rate.
Include in Overtime Hours in Job Cost Calculations	Select Yes to enter overtime hours separately from regular hours on timesheets. Overtime hours from timesheets are included in Adjust Salaried Job Cost calculations.
Maximum Hourly Rate	If you set the Allow job cost rates to be salaries option to Yes, you must enter a maximum hourly rate here. This is the maximum hourly rate to use when you enter hourly job cost rates on the Accounting tab of the Employees hub. If an hourly job cost rate exceeds the maximum hourly rate entered here, you receive a warning that the rate may not be appropriate for the job cost type. This field ensures that a salary is not entered with an hourly type.

Cross Charge Options Section

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.

Field

Description

Enable Cross Charge Feature

Select Yes to enable the Labor Cross Charge feature. When you enable this feature, Vantagepoint displays: A Cross Charge tab on the Individual Organization Setup form (Settings > Organization > Individual in the desktop application), which 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 Yes for this option, Labor Cross Charge is not enabled, regardless of settings elsewhere in Vantagepoint.

Regular Projects Section

Regular projects are revenue-producing projects. Costs charged to regular projects include direct labor, direct expense, and reimbursable expense.

Field	Description
Create Labor Adjustment	Select Yes 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, Vantagepoint creates a labor adjustment transaction file using: The employee's direct labor account, specified in Settings > Accounting > Labor Posting The Labor Credit (Job Cost Variance) account, specified in Settings > Accounting > Time Analysis 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 Yes 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, Vantagepoint creates a journal entry transaction file with the accounts specified in the following fields on this tab. When you select Yes, the following fields display on this form: Credit Account, Debit Account, Rate Method, and Multiplier.
Credit Account	This field is enabled when you set the Create Journal Entry option to Yes. 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	This field is enabled when you set the Create Journal Entry option to Yes. 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 set the Create Journal Entry option to Yes. 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	This field is enabled when you set the Create Journal Entry option to Yes. 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, Vantagepoint 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 Section

Complete these options for sharing resources on overhead or promotional projects.

Field	Description
Create Labor Adjustment	Select this option to transfer labor costs and revenue back to the employee's organization. When you run the Labor Cross Charge process, Vantagepoint creates a labor adjustment transaction file using: The employee's direct labor account, specified in Settings > Accounting > Labor Posting The Labor Credit (Job Cost Variance) account, specified in Settings > Accounting > Time Analysis 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 Yes to 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, Vantagepoint creates a journal entry transaction entry file and uses the accounts specified in the following fields on this tab. Selecting Yes enables the Credit Account, Debit Account, and Multiplier fields.
Credit Account	This field is enabled when you set the Create Journal Entry option to Yes. Select the credit account to use when you transfer revenue or overhead between overhead 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	This field is enabled when you set the Create Journal Entry option to Yes. Select the debit account to use when you transfer revenue or overhead between overhead 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.
Multiplier	This field is enabled when you set the Create Journal Entry option to Yes. 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, Vantagepoint 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