Calculation Method Examples for Employee Realization Reporting
Review examples of how calculation methods for the Employee Realization feature affect the employee realization calculation for an invoice.
You enter the calculation method when you enable Employee Realization in
.The calculation method is used to calculate the value of employees' time records on an invoice. This value is then used to determine the percentage of an invoice's revenue to allocate as realization to each employee who has time records on the invoice.
In the following examples, options on the Labor Options settings form are set as follows:
- The Enable Reporting Realization by Employee option is set to Yes.
- The Frequency option is set to Invoice.
- The general ledger revenue account, 401.00, is the only account entered in the Employee Realization Allocation Accounts grid.
Invoice A is a fixed-fee invoice for $900. The invoice has $650 posted to the 401.00 account and $250 posted to the 407.00 account. Only $650 will be allocated for employee realization because only account 401.00 is designated for employee allocation in the Employee Realization Allocation Accounts grid on the Labor Options settings form.
Percentage and Amount of Realization Allocated to Each Employee | |||
---|---|---|---|
Using the Billing Calculation Method | Using the Cost Calculation Method | Using the Hours Calculation Method | |
Time records included on Invoice A | |||
Time Record 1 for Jim Taylor has 1 hour of labor |
Jim's realization:
$123.50 Jim's billing value for the time is $100. $100 / $525 = 19% 19% of $650 = $123.50 *see the note below regarding $525 |
Jim's realization:
$91 Jim's cost for the time is $40. $40 / $290 = 14% 14% of $650 = $91 *see the note below regarding $290 |
Jim's realization:
$110.50 Jim's hours for the time are 1. 1 / 6 = 17% 17% of $650 = $110.50 *see the note below regarding 6 |
Time Record 2 for Jan Carlton has 2 hours of labor |
Jan's realization:
$214.50 Jan's billing value for the time is $175 $175 / $525 = 33% 33% of $650 = $214.50 |
Jan's realization:
$221 Jan's cost for the time is $100. $100 / $290 = 34% 34% of $650 = $221 |
Jan's realization:
$214.50 Jan's hours for the time are 2. 2 / 6 = 33% 33% of $650 = $214.50 |
Time Record 3 for Ken Brownwell has 3 hours of labor |
Ken's realization:
$312.00 Ken's billing value for the time is $250. $250 / $525 = 48% 48% of $650 = $312.00 |
Ken's realization:
$338 Ken's cost for the time is $150. $150 / $290 = 52% 52% of $650 = $338 |
Ken's realization:
$325 Ken's hours for the time are 3. 3 / 6 = 50% 50% of $650 = $325 |
Notes: | * For the Billing calculation method, $525 is the total billing value for all three time records ($100+$175+$250) | * For the Cost calculation method, $290 is the total cost value for all three time records ($40 + $100 + $150) | * For the Hours calculation method, 6 is the total hours for all three time records (1+2+3) |