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