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