Benefits and Considerations for Using Adjust Salaried Job Costing

Before you decide whether or not to use Adjust Salaried Job Costing, you should review the benefits and the effects of this feature.

Benefits

The Adjust Salaried Job Costing feature:

• 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

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.