How are Transactions Selected for Labor Cost Transfer Processing?

When an eligible template has been selected, existing wage expense transactions that fall on or within the template period are processed. Transactions are evaluated, processed, and balanced by check ID.

When you process one time record for every day in a pay period, the existing transaction is eligible when its transaction date falls on or within the template’s date range. For example, the pay period starts May 16 and ends May 31, and the template is dated May 20 to May 26. Any existing distribution transactions dated May 20 through May 26 are selected. The existing distributions for other dates within the pay period are retained.

When eligible transactions are found, reversing entries are queued up for the selected records, then new adjusting entries are created with the activity and general ledger account from each cost transfer template line. Reversing and adjusting transactions retain the transaction date of the original distribution records, but use the posting date you specify on labor cost transfer processing form.

Are Employer-Paid Expenses Eligible for Cost Transfer?

Employer-paid expenses that were eligible for labor distribution are eligible for cost transfer. If you use Lawson Payroll, this means that company-paid deductions that "followed pay" are eligible. Company-paid deductions that did not "follow pay" are not subject to labor cost transfers since they were posted to the general ledger account and activity (if any) specified in the deduction code, and have no dependency on where pay was posted. If you do not use Lawson Payroll, employer-paid expenses are eligible if they were imported in detail by employee and check ID.