Distributing labor

When the Distribute Labor action is run, labor and fringe burden are calculated and distributed for posted transactions. 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 to distribute labor, for example, salaried employees.
  • Selection group: A group of payroll salary and wage records that are eligible for labor distribution.

See Custom groups.

If a business class is not defined, then the records are selected using this process:

  1. GLTransactionDetail records with these values:
    • The employee number is in the Resource field
    • The transaction date is within the labor period
    • The Labor Distribution field is Unprocessed
    • PS system codes are not included. Any indirect burdens that were previously created for the same labor period are automatically excluded.
  2. The transaction records are matched to the project assignment records with these values:
    • A status of Approved.
    • A date that is within the date range of the labor period.

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. Source PR transactions have a different From Accounting Entity and To Accounting Entity.

When Distribute Labor action is run, GL journal and GLTransactionDetail records are created. The finance structure is based on the originating PR records. The code block for the finance structure is overwritten with the values that are specified on the labor distribution record or in the offset dimensions fields. The overrides include To Accounting Entity and From Accounting Entity.

When labor and fringe burden are distributed, the offset is posted to the same finance structure as the employee’s payroll. For salary caps for a project, the same calculation is used for both salary encumbrance and labor distribution.

For labor distribution, any amount that is more than the calculated amount for the employee for a period is posted. The amount is posted to the salary cap overage finance structure based on the selected project structure.

When Original Transaction is selected and this field is blank, then the overage remains in the employee’s home account. If a specific field of the finance structure is different for the overage, then the field that is different must be specified. For example, an overage must be posted to the same accounting entity and accounting unit, but to another account. Specify the account field. If you specify an account, then it replaces the account on the original salary and wages account and is not posted to a project.

When Project Employee is selected and this field is blank, then the labor distribution finance structure on the employee is used for the overage. If a specific field of the finance structure is different for the overage, then the field that is different must be specified. For example, an overage must be posted to a specific project, but to the employee’s home accounting entity and accounting unit. Specify the Project field. If you specify any dimension, then the dimension on the labor distribution finance structure for the project employee is replaced.

The amounts for distributed overage and undistributed overage are available in columns.

These records are updated and created when the Distribute Labor action is run:

  • Project assignment labor distribution records
    • Record status is updated from Approved to Processed.
    • Records with the GL journalize group are updated.
    • If a salary cap is applied, the records are updated.
    • Encumbrance records for the period are removed.
  • Payroll salary and wage records: GLTransactionDetail that are posted from Payroll.
    • Original payroll salary and wage GLTransactionDetail records are updated to Processed.
  • Labor distribution records: Payroll project labor records that are created by labor distribution
    • The labor distribution system code PR for Payroll.
    • The labor distribution event PL for Project labor distribution entry..
    • The fringe burden distribution event BD for Project fringe burden entry.