Standard payroll cost to Job - actual payroll cost to overhead

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Steve Hunt

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Oct 6, 2015, 1:20:01 PM10/6/15
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PTUG -

I am looking for a Profitool solution for the following scenario:


* Superintendent works on job 1234, 40 hours each week, plus occasional OT.

* Weekly time sheet reports time on job 1234.

* Rather than showing actual payroll costs in job 1234, would rather show a standard cost per hour in job 1234.

* Would rather actual payroll costs post to overhead job.

* To prevent overstating overall cost, the above scenario would also require a process to subtract from overhead the standard cost already posted to job 1234.

* The net effect in overhead cost would be any difference between actual and standard.


The only ideas I have so far are...

* Journal entry. Not a good solution as information would be delayed until JE was posted. Prefer an answer that works and posts simultaneously with payroll process.

* 3 lines of data entry for each payroll entry.

o Example:

? Line 1: Superintendent's actual time on job 1234. Use pay rate over ride on this line = Standard Hourly Rate

? Line 2: Superintendent's actual time input as negative hours to overhead job. Use pay rate over ride on this line = Standard Hourly Rate

? Line 3: Superintendent's actual time input into OH. Pay rate over ride NOT used on this line.

o Result of the above 3 lines should be that hours and standard rate post to the actual job. Zero hours post to overhead. Difference between standard and actual cost post to overhead.

o The 3 line entry is cumbersome and subject to human error and omission.

* SA ALLOC RULE. I don't think this function works across companies, so not an option.


Anybody have a similar scenario already solved?

Thanks,

Steve

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Tamblyn, Gary M.

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Oct 6, 2015, 2:12:02 PM10/6/15
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Steve,

 

One piece of information about SA ALLOC RULE, in case it becomes part of a solution, is …

 

Inter-company Transactions

--------------------------

This selection may be used for generating inter-company

transactions from the allocation entries where applicable.  The

selection SA AUTHORIZE ICT is used initially to establish the Job

or Ledger Account that is subsequently used on this screen in the

three different 'Account' fields:

       Basis Account

       Debit Account

       Credit Account

 

This information, plus a much lengthier description of the control you have over accruals generated by SA ALLOC RULE, can be found in the Help documentation on the SA ALLOC RULE screen.

 

As usual in Profitool, an intercompany transaction triggered when the a $charge is debited and credited to jobs that are in different coids.

 

Gary

 

From: PT_U...@googlegroups.com [mailto:PT_U...@googlegroups.com] On Behalf Of Steve Hunt
Sent: Tuesday, October 06, 2015 11:19 AM
To: '(pt...@ptug.org)'
Subject: {PTUG} - Standard payroll cost to Job - actual payroll cost to overhead

 

PTUG –

 

I am looking for a Profitool solution for the following scenario:

 

·         Superintendent works on job 1234, 40 hours each week, plus occasional OT.

·         Weekly time sheet reports time on job 1234.

·         Rather than showing actual payroll costs in job 1234, would rather show a standard cost per hour in job 1234.

·         Would rather actual payroll costs post to overhead job.

·         To prevent overstating overall cost, the above scenario would also require a process to subtract from overhead the standard cost already posted to job 1234.

·         The net effect in overhead cost would be any difference between actual and standard.

 

 

The only ideas I have so far are…

·         Journal entry.  Not a good solution as information would be delayed until JE was posted.  Prefer an answer that works and posts simultaneously with payroll process.

·         3 lines of data entry for each payroll entry. 

o   Example:

§  Line 1:  Superintendent’s actual time on job 1234.  Use pay rate over ride on this line = Standard Hourly Rate

§  Line 2:  Superintendent’s actual time input as negative hours to overhead job.  Use pay rate over ride on this line = Standard Hourly Rate

§  Line 3:  Superintendent’s actual time input into OH.  Pay rate over ride NOT used on this line.

o   Result of the above 3 lines should be that hours and standard rate post to the actual job.  Zero hours post to overhead.  Difference between standard and actual cost post to overhead.

o   The 3 line entry is cumbersome and subject to human error and omission.

·         SA ALLOC RULE.  I don’t think this function works across companies, so not an option.

Steve Hunt

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Oct 6, 2015, 2:31:55 PM10/6/15
to PT_U...@googlegroups.com, (ptug@ptug.org)

Gary,

 

Thanks for responding.  I remember trying SA ALLOC RULE years ago and had great success as long as both sides of the reallocation existed in the same COID.  SA ALLOC RULE seemed to ignore the rule if it concerned different COID’s.  Very possibly human (me) error in implementation.

 

I just looked at the SA ALLOC RULE screen again and still don’t think it’s the solution this time.  It allows a percentage of the original transaction to be allocated.  In my current scenario, I would need something to allocate an hourly rate, regardless of the actual rate.  The actual rates vary greatly between superintendents.

 

Still, good information for another situation, I’m sure.

 

Thanks so much!

 

Steve

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Varoujan Adamian

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Oct 6, 2015, 11:18:14 PM10/6/15
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Hi Steve,

The situation you describe is very interesting.  I never tested the inter-company, however based on what Gary said, if the overhead job is in a different company, then the process should work.  

As I recall, SA Alloc Rule could be triggered by any value on the screen including an entry in the memo field, which is what we used at ACCO to generate CAD charges.  When an employee in a specific department used the activity code for CAD work, a transaction was generated.  Anyone else outside of the department could use the same activity code, but no transactions would get generated.

In your case, the transaction can be triggered by an overtime or double-time G/L account for job 1234 and specific a class of employee, where 100% of the OT pay gets backed-out of the job and moved to overhead job.  Alternatively, you could trigger the transaction based on a memo entry when payroll is entered.  For example the SA ALLOC RULE trigger could be setup as:

 Job # = 1234   Memo (starts with)="Move OT" and/or
 Job # = 1234   Memo = "Move DT".  

Since I no longer have access to a Profitool environment, I can not provide you with more detail information.  Hopefully, my simple example helps you figure out a better approach.

Best of Luck,
va



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