CORRECTION TIMESHEETS - Special Topic LD-4

This special topic explains how to correct a timesheet when an error is discovered. Remember that, in the government contract environment, actual timesheets should be corrected or changed only by the employee whose timesheet is corrected and who, along with the employee's supervisor, must initial the correction. The employee should cross out incorrect timesheet lines with a single line in blue or black ink (do not use whiteout or correction tape) and, in a space above the crossed-out entries, enter the proper account and number of hours.

If a timesheet has been posted to the G/L or used in the computation of payroll or leave, you must use "correction timesheets" to correct timesheet errors. You must use correction timesheets rather than journal entries, so that the Labor Summary and Timesheet History tables are properly updated with the corrections. Which steps you take to correct an error on a timesheet depend on when the error is detected.

Timesheet Type

Costpoint uses two types of timesheets for corrections, both of which are entered in the Enter Timesheets screen:

• Correcting. Costpoint combines a "Correcting" timesheet with regular timesheets when you compute payroll. For payroll purposes, Costpoint treats this timesheet exactly like a "Regular" timesheet, except that you can enter a correction reference date that prints on the Timesheet Edit Report and is saved permanently in Timesheet History. When you need to enter two or more correcting timesheets with the same date, use a different sequence number for each timesheet. You can enter up to nine sequence numbers for correcting timesheets. You can enter a maximum of nine corrections for an individual with the same date. If you need to make additional corrections, use another date in the same accounting period and begin with sequence #1.

• Labor Only. Costpoint does not process a "Labor Only" timesheet for payroll purposes. Use a Labor Only timesheet when you are transferring labor from one project, account, or organization to another, and when there is no affect on payroll (zero dollars, zero hours net effect). If the hours and dollar do not add to zero, there is a discrepancy between labor paid and labor charged. Costpoint warns you of this when you are adding non-zero "Labor Only" timesheets, but does not prevent you from doing so.

In addition to the correction timesheet types, you can use the "Regular" timesheets and "Bonus" timesheets if desired. The advantages of using the correction timesheets are the visibility, the reference date, and, for "Labor Only" timesheets, the non-payroll feature.

Timesheet Date, Sequence Number, and Correction Reference Date

The correction timesheet date should be a date in the current timesheet period. Enter the Seq No if there is more than one correcting timesheet entered on the same timesheet date. You can use up to nine different sequence numbers for an employee. The correction Ref Date should be the date of the original timesheet that was posted and is being corrected.

Processing Correction Timesheets

If you have entered correction timesheets that affect paychecks in the current pay period, you can execute the Compute Payroll program more than once. If you have entered correction timesheets that simply reclassify labor and have no effect on gross pay, you should use "Labor Only" correction timesheets so you do not need to recompute payroll. Correction timesheets automatically process the next time you compute payroll.

Net Zero Correction Timesheets - Type "Labor Only"

Use a " Labor Only " correction timesheet to adjust labor cost if the original timesheet has already been posted and net hours and gross pay are affected by the labor adjustment. Make this type of correction when you charge the incorrect project, organization, or labor account on the original timesheet. For example, you incorrectly charge to Project 1007. After posting or computing the timesheet to payroll, you discover that the charge number should be 1007.001.

Example

Regular Hours: 0              Other Hours: 0            Total Hours: 0

When making this type of correction, review the original labor cost to ensure that the same hourly rate is being used. The hourly rate may have changed since the original timesheet, the timesheet may have been auto adjusted, or premium rates may have been in effect for the hours in error.

Positive/Negative Timesheets - No Affect on Payroll

If you need to make many corrections on a timesheet, it may be easier to enter two separate timesheets. First, enter a negative timesheet for the entire original timesheet. Next, correctly enter the replacement timesheet. In this case, both timesheets should fall within the same accounting period and timesheet period.

If there is no affect on payroll, you can do this with two "Labor Only" timesheets or two "Correcting" timesheets. Both "Correcting" timesheets should use the same dates with two sequence numbers.  The "Correcting" timesheets should also use the same reference date. If you use two "Labor Only" timesheets, make sure that the positive and negative timesheets add to zero so that you do not inadvertently create a discrepancy between labor paid and labor charged.

Note: This type of payroll variance will not appear on the Payroll Variance Report because you do not normally post "Labor Only" timesheets to payroll.

Example

Timesheet #1

"Labor Only" Timesheet Date: 6/30/03 Sequence 1 or

"Correcting" Timesheet Date: 6/30/03 Sequence 1

Regular Hours: -40          Other Hours: 0            Total Hours: -40

Timesheet #2

"Labor Only" Timesheet Date: 6/30/03 Sequence 2 or

"Correcting" Timesheet Date: 6/30/03 Sequence 2

Regular Hours: 40            Other Hours: 0            Total Hours: 40

Positive/Negative Timesheets Affect Payroll

If there is an affect on payroll, use a "Correcting" timesheet. Costpoint combines the net difference between the two timesheets into the next regular paycheck or, if necessary, you can compute payroll and pay the employee the difference.

Example

Timesheet #1

"Correcting" Timesheet Date: 6/30/03 Sequence 1

Regular Hours: -40          Other Hours: 0            Total Hours: -40

"Correcting" Timesheet Date: 6/30/03 Sequence 2

Regular Hours: 40            Other Hours: 5            Total Hours: 45

Net Difference Correction Timesheets

A "Net Difference" correction timesheet adjusts labor cost after posting the original timesheet and results in an increase or decrease to net hours and/or gross pay. A "Net Difference" timesheet is not a "Net Zero" timesheet because it affects gross pay; therefore, you will typically use a "Correcting" timesheet in this situation. Costpoint combines the "Net Difference" correction timesheet, either in the current or next pay period, with a regular timesheet, to either increase or decrease gross pay.

Net Difference Positive/Negative

You can also make a "Net Difference" correction by entering two timesheets, a negative and a positive, as indicated in the example below. If an employee receives a pay increase but the information was not entered before timesheets and payroll were completed, you will need to enter a negative timesheet in order to back out the original timesheet:

Example

Timesheet #1

"Correction" Timesheet Date: 6/30/03 Sequence #: 1 @ $10/hour

Regular Hours: -80          Other Hours: 0            Total Hours: -80

Timesheet #2

Add the salary increase for the employee in the Salary Info and History screen in Costpoint Employee and then enter the timesheet; the new salary rate will default.

"Correcting" Timesheet Date: 6/30/03 Sequence #: 2 @ $11/hour

Regular Hours: 80            Other Hours: 0            Total Hours: 80

Another way to handle retro pay is to enter the difference between the employees' current rate of pay and his pay increase by entering a cost-only pay type. You then need to manually calculate the difference between the employee's old pay rate and new pay rate and then multiply the difference by the number of hours the employee was paid at the old rate. You enter only the dollar amount on the Timesheet.

Example:

Old Pay Rate: $10.00 per hour

New Pay Rate: $11.00 per hour

Difference $1.00 per hour

On the original timesheet, the employee worked 80 hours, so:

80 hours X $1.00 per hour = 80.00 Dollars

Regular Hours: 0    Other Hours: 0         Total Hours: 0

Create Retroactive Pay

You can also use the Create Retroactive Timesheet Adjustments application in Costpoint Labor for hourly employees who received pay increases that are retroactive. You cannot use this function for salaried employees. Please refer to the screen documentation for more details.

Enter Correcting Timesheet Screen

You can also use the Enter Correcting Timesheets screen to enter correcting timesheets. Please refer to the documentation for the Enter Correcting Timesheets screen for more details.

Timesheet Editing Shortcuts

The following examples illustrate shortcuts that can be used for editing timesheets if they have already been added, but not posted, to the G/L or if you have computed leave or payroll:

Incorrect Hourly Rate - If the hourly rate used is not correct, but all other items are correct, change the hourly rate in the Salary Info and History screen in Costpoint Employee. Then bring up the original timesheet using Query and return through all fields (you do not have to re-type the numbers). When you get to the Hrs field, enter the hours. This will cause the labor cost to be recomputed at the rate currently in the Salary Info and History screen.

Pay Cycle Change (Costpoint Payroll users only) - If the employee's pay code was incorrect in the Employee Taxes screen in Costpoint Employee at the time the timesheet was added, change this by correcting the pay cycle in the Employee Taxes screen, then go to Salary History and Info screen in Costpoint Employee and verify that the employee's salary is correct. If it is not, enter the annual amount again and tab out of the field; this will enter the correct salary amount. Then bring up the original timesheet using Query and return through all fields (you do not have to re-type the numbers). When you get to the Hrs field, enter the hours. This will cause the labor cost to be recomputed at the rate currently in the Salary Info and History screen.