What Does Labor Distribution Processing Do?

As part of the Lawson Payroll process, employee salary expenses and company-paid deductions are charged to grant activities and general ledger accounts (departments). When an employee is subject to labor distribution, these expenses are charged to the activities and general ledger accounts in eligible labor distribution templates.

Payroll Close (PR197) looks for employees eligible for labor distribution. For these employees, PR197 applies the eligible labor distribution templates to each time record in the payroll run to create distributions in the Payroll Distribution file. PR197 also updates an effort transaction file for employees subject to effort. Effort Calculation and Certification Report (GM165) uses this information to create effort reports.

Note: Payroll Close (PR197) updates payroll history with information from the completed payroll cycle, deletes processed time records from the system, and clears the cycle indicators on Payroll Cycle Status (PR00.1). For more information, see the Payroll User Guide.

General Ledger Posting (GL190) relieves any salary encumbrances dated on or earlier than the pay period for eligible employees paid in the payroll run. PR198 also creates Project Accounting (AC) and General Ledger (GL) transactions using information from the Payroll Distribution file. To complete processing, you update these transactions using Activity Posting (AC190), Accounting Unit Balance Post (AC191), and Billing and Revenue Recalculation (BR190).

Note: Updating company-paid deduction expenses to Project Accounting is optional. If you use burdens to charge employer-paid fringe to grants at a rate, you can avoid overstating the fringe costs in grants by not updating company-paid deduction expense to Project Accounting . To avoid posting company-paid deduction expenses to Project Accounting , set the Post Employer Paid Deductions to AC field on Human Resources Company (HR00.1) to No.