Adjust Salaried Job Costing
Use the Adjust Salaried Job Costing feature to create an adjusted hourly job cost rate for each salaried employee based on the employee's salaried pay rate and the actual hours the employee works each pay period.
When an employee charges time to a project, Vision calculates labor costs with the job cost rate defined for the employee in the Employee Info Center. If the employee is paid hourly, the labor cost reflects the actual cost of the hours worked. If the employee is salaried, the employee may charge time for which he or she is not paid, such as overtime. In this case, the labor charged to the project exceeds the amount actually paid to the employee.
The adjusted rate reflects the actual cost of the employee's labor and provides more accurate payroll costing for salaried employees.
This feature is typically used by firms who perform a lot of government work, because the government requires that jobs be costed at actual rates rather than at standard rates.
Timing
Deltek recommends that you run the Adjust Salaried Job Costing routine in synchronization with your payroll periods. If this is not possible, then you should run the Adjust Salaried Job Costing routine more frequently than your payroll periods.
Benefits
The Adjust Salaried Job Costing feature:
- 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.
- 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.
Considerations in Using Adjust Salaried Job Costing
The Adjust Salaried Job Costing feature:
- 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.