Adjusted Salary Job Costing

THE THEORY

ASJC is the practice of adjusting the hourly rate for salaried employees per timesheet posting. Used for Government work, where contractually, you are obligated to report actual cost rates on a job. Salaried employees do not get paid for overtime, so there
is a variance between timesheet cost and payroll expense (known as Job Cost
Variance).  In the most simple form, it spreads the salary cost over the hours on the timesheet. This allows employees to record all hours worked, however hourly rates may fluctuate with every timesheet posting accordingly.

PROS & CONS

In your Configuration you select and set your Timesheet Periods, your Job Cost Posting Frequency, and your Payroll Frequency. If Timesheet Periods are in sync with payroll
frequency, then ASJC works well and will eliminate any Job Cost Variance if
properly configured and payroll posted correctly.

But, if your Timesheet Periods are not in sync with Payroll or your Timesheet spans two periods ASJC will not work as is currently configured.

SETUP

To enable, you must first choose to ”Allow Job Cost to be Salaries” as well as selecting the Job Cost Posting Frequency.  This is found under Configuration/Accounting and then click on the Timesheets Tab.  Once enabled, each employee must be assigned with either Hourly or Salary Pay Type (drop down box) on the Accounting Tab in the Info Center.  If Hourly, no change to the Job Cost Amount, but if Salary change the Job Cost Amount to the Annual Salary divided by the number of Timesheet periods in the year.  If weekly timesheets, this would be 52, if bi-weekly 26 etc.

PROCESSING

Processing goes hand in hand with Timesheet Posting.  Immediately following timesheet posting go to Accounting/Adjusted Salary Cost.  Highlight the timesheet posting and click “Run”.  Do not highlight more than one posting sequence and run together unless you have timesheet periods that cross GL Periods.  (see problems below if this is the case)

PROBLEM

You cannot run the Adjust Salaried Job Costing routine between periods if you have
a payroll cycle that overlaps two different periods.  Nor if you have TS Weeks that don’t sync perfectly with Payroll Cycles.

SOLUTION

I can create Sql Stored Procedures that makes this possible for firms who do NOT want to change Payroll Cycles or Timesheet Periods.

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