Set Up Cross Charges

Use the Labor Options form to enable the Cross Charge feature and to specify related settings such as the rate method and the credit and debit accounts used to transfer revenue and overhead.

To ensure that Cross Charge is set up correctly, you should run and review the Labor Cross Charge Detail Report after timesheets are posted and before you process labor cross charges.

To set up labor cross charges:

1. In the Navigation pane, select Settings > Accounting > Labor Options.
2. In the Cross Charge Options section of the Labor Options settings form, set Enable Cross Charge Feature to Yes.
   When you enable this feature, a Labor Cross Charge option becomes available on the Accounting menu, and you can use the Labor Cross Charge form to transfer labor and revenue or overhead charges to the appropriate organization.
   If you do not select Yes for this option, Labor Cross Charge is not enabled for the active company, regardless of settings elsewhere in Vantagepoint.
3. In the Regular Projects section, set the Create Labor Adjustments option to Yes to transfer labor costs.
   Select this option only if you transfer labor back to the employee's organization. When you run the Labor Cross Charge process, Vantagepoint creates a labor adjustment transaction file using:
   • The employee's direct labor account, specified in Settings > Accounting > Labor Posting
   • The Labor Credit (Job Cost Variance) account, specified in Settings > Accounting > Time Analysis

   If you transfer the overhead costs associated with this employee to the project's organization, you should not select this option.

4. In the Regular Projects section, set the Create Journal Entry option to Yes if you intend to transfer labor and revenue back to the employee's organization or to transfer overhead to the project's organization.
   When you select this option, the following corresponding fields become available:

   • Credit Account
   • Debit Account
   • Rate Method
   • Multiplier

   When you run the Labor Cross Charge process, Vantagepoint creates a journal entry transaction file with the accounts, rate method, and multiplier that you specify in the next steps.

5. In the Credit Account field, specify the account to use when you transfer revenue or overhead between regular projects with a journal entry.
   This account always credits the employee's organization. The type of account that you enter depends on the type of information being transferred:

   • Enter a revenue account if you are transferring revenue.
   • Enter an indirect expense account if you are transferring overhead.
6. In the Debit Account field, select the account to use when you transfer revenue or overhead between regular projects with a journal entry.
   This account always debits the employee's organization. The type of account that you enter depends on the type of information being transferred:

   • Enter a revenue account if you are transferring revenue.
   • Enter an indirect expense account if you are transferring overhead.
7. In the Rate Method field, select the transfer price calculation method to use when revenue is transferred back to the employee's organization, or when employee overhead charges are transferred to the project's organization:

   Option	Description
   Calculate from Billing Terms	Select this option to use billing terms to calculate the transfer price. If your enterprise uses the Effective Dates feature in the Billing application, the feature can affect this calculation.
   Multiplier	When you select this option, you must enter the rate by which to transfer the revenue or overhead. This is the rate used on client invoices.

   Whichever method you specify, you can override it at the organization or project level.
8. In the Multiplier field, enter the markup rate to use when you transfer revenue back to the employee's organization or transfer employee overhead charges to the project's organization.
9. In the Overhead Projects section, set the Create Labor Adjustment option to Yes to transfer labor costs and revenue back to the employee's organization.
   When you run the Labor Cross Charge process, Vantagepoint creates a labor adjustment transaction file using:

   • The employee's direct labor account, specified in Settings > Accounting > Labor Posting
   • The Labor Credit (Job Cost Variance) account, specified in Settings > Accounting > Time Analysis

   If you transfer the overhead costs that are associated with this employee to the project's organization, you should not select this option.

10. In the Overhead Projects section, set the Create Journal Entry option to Yes to transfer labor and revenue back to the employee's organization or to transfer overhead to the project's organization.
    When you select this option, the following corresponding fields become available:

    • Credit Account
    • Debit Account
    • Multiplier

    When you run the Labor Cross Charge process, Vantagepoint creates a journal entry transaction file with the accounts and the multiplier that you specify.

11. Click Save.