Benefits and Considerations of Using Adjust Salaried Job Cost
Before you decide whether or not to use Adjust Salaried Job Cost, review the benefits and effects of this feature.
Benefits
- Requires employees to enter all hours worked on a project
- Provides more accurate payroll costing
- Allows all hours to be costed, even if overtime hours are entered with a zero cost rate
- Minimizes the amount in the Job Cost Variance account. If salaried job cost rates are equal to pay rates each pay period, there is no variance in this account.
Considerations
- Causes job cost rates to fluctuate from period to period
- Makes project budgeting more difficult
- May lead to inaccurate reporting data
- Results in revised timesheet posting logs and adjusted general ledger balances
Parent Topic: Learn More About...