Distributing labor

When the Distribute Labor action is run, labor and fringe burden are calculated and distributed for posted transactions with system code PR. You can use custom groups on the distribute labor parameters to refine the selection of records to process:

  • Employee group: A group of employees for which you want to distribute labor, for example, all salaried employees.
  • Selection group: A group of payroll salary and wage records that are eligible for labor distribution.

See Custom groups.

If no business class is defined, then the records are selected using this process:

  1. All GLTransactionDetail records with these values are selected:
    • The system code is PR.
    • The employee number is in the resource field.
  2. The transaction records are matched to the project assignment records with these values:
    • A status of Approved.
    • A date that falls within the date range of the labor period.

All employees are tracked in a single GHR accounting entity. The GHR accounting entity is not a financials accounting entity. Employees payroll is distributed to the employees “home” expense accounting entity. This results in source PR transactions with different From Accounting Entity and To Accounting Entity. The Distribute Labor action creates GL journal and GLTransactionDetail records and the finance structure is based on the originating PR records. The action overlays the finance structure code block with overrides entered on the labor distribution record or the offset dimensions fields specified. The overrides includes To Accounting Entity and From Accounting Entity.

When labor and fringe burden are distributed, the offset is posted to the same finance structure to which the employee’s payroll is posted. When there is a salary cap for a project, the same calculation is used for both salary encumbrance and labor distribution. For labor distribution, any amount that is over the calculated amount for the employee for a period is posted. The amount is posted to the salary cap overage finance structure setup in the posting project. If no finance structure is defined, the overage of the salary remains posted to the employee’s salary and wages home account. There are also columns to capture the amounts for distributed overage and undistributed overage.

These records are updated and created by the Distribute Labor action:

  • Project assignment labor distribution records
    • Updates record status from Approved to Processed.
    • Updates records with the GL journalize group.
    • Updates records if a salary cap is applied.
    • Removes encumbrance records for the period.
  • Payroll salary and wage records: GLTransactionDetail posted from Payroll
    • Updates original payroll salary and wage GLTransactionDetail records to Processed.
  • Labor distribution records: Payroll project labor records created by labor distribution
    • Creates the labor distribution system code PR for Payroll.
    • Creates the labor distribution event PL for Project labor distribution entry.
    • Creates the fringe burden distribution event BD for Project fringe burden entry.