Processing Labor Cost Transfer Distributions

Labor cost transfer processing uses labor cost transfer templates to redistribute labor costs after-the-fact.

Before you process labor cost transfers, you must define and approve labor cost transfer templates. Setting up labor cost transfers

To process cost transfers for employees paid using Lawson Payroll, use Labor Cost Transfer Processing (GM170).

To process cost transfers for employees paid using a non-Lawson payroll, including employees of affiliate organizations, use Non-Lawson Payroll Labor Cost Trans (GM171).

Labor cost transfer processing determines eligible templates and finds corresponding labor distribution transactions for the dates covered by each template. When the eligible transactions are found, they are reversed. Adjusting (new) transactions are created with the new activity and general ledger account distributions defined in the template. Links to the initiating cost transfer template are maintained in the original, reversing, and adjusting transactions for audit. If the employee was subject to effort reporting when the original transactions were created, labor cost transfer processing updates the effort data repository with the reversing and adjusting entries so that the changes are incorporated into the next effort report generated for the employee. Any employer-paid expenses that were eligible for labor distribution are eligible for cost transfer.

To process labor cost transfers

  1. To process labor cost transfers for employees paid using Lawson Payroll, access Labor Cost Transfer Processing (GM170).
  2. To process labor cost transfers for employees paid using a non-Lawson payroll system, including employees of affiliate organizations, access Non-Lawson Labor Cost Trans (GM171).
  3. Type a job name and an optional description for the labor cost transfer processing job.
  4. Define the employees, dates, and options for processing labor cost transfers. Use the following guidelines to enter field values.
    Company

    Type or select the Human Resources company for the employees for whom you want to process cost transfers.

    Process Level or Processing Group

    Leave the process level and processing group fields blank to select labor cost transfer templates for any employee in the HR company.

    - or -

    Type or select a process level. Templates for employees assigned to the process level selected.

    - or -

    Type or select a processing group. Processing groups are sets of process levels. Templates for any employee associated with a process level in the processing group selected.

    Employee Group or Employee Range

    Leave the employee group and employee fields blank to select labor cost transfer templates for any employee in the HR company and process levels or processing group specified.

    - or -

    Type or select an employee group. Templates for employees assigned to the employee group selected.

    - or -

    Type or select a range of employee numbers. Templates for any employee number that falls on or within the range selected.

    Date Range

    Type a range of dates for cost transfer template selection.

    If the beginning date, end date, or any date within the range falls on or within the start and end dates for an eligible template, the template is selected.

    Example: The cost transfer template's start date is October 1 and its end date is October 13. The template is selected when any of the following date ranges are specified:

    • October 1 – October 1
    • September 30 – October 5
    • October 6 – October 10
    • October 2 – October 13
    • October 12 – October 31
    • October 13 – October 19

    The template would not be selected for any of these date ranges:

    • September 24 – September 30
    • October 18 – October 31
    Update

    Select No to run labor cost transfer processing in report only mode. This lets you verify adjustments before updating. You can fix errors by changing labor cost transfer templates or changing labor cost transfer processing parameters. The default is No.

    Type or select Yes to run labor cost transfer processing in update mode. Reversing and new distribution transactions are created, original transactions are linked to the initiating cost transfer template, effort transactions are created (if applicable), and the template’s processing status is changed to Updated.

    Post Date

    Type the posting date for adjusting and reversing transactions. The posting date is populated in Project Accounting (AC) and General Ledger (GL) transactions.

    Note: If the period of redistribution covers multiple general ledger periods and you want to post redistributions to the general ledger period in which the labor costs were originally charged, define multiple templates with dates that align with the general ledger period. For example, if you want to redistribute an employee’s labor costs for March and April, define one labor cost transfer template for March and a separate template for April.
    Exempt Pay Class

    (GM170 only) You can select a pay class to exclude from the processing all the pay codes associated with the pay class.

    Pay classes are defined on Pay Class (PR20.1). They consist of a list of pay summary groups. Pay summary groups are defined on Pay Summary Groups (PR20.2), and associated with a pay class on Pay Summary Group Relationship (PR20.3). Pay summary groups are also associated with pay codes on Pay Codes (PR20.4).

    Therefore, when you exclude a pay class, you exclude all the pay codes that are associated with the pay summary groups that comprise the pay class.

    Note: If you use activity burdens to calculate fringe, reversing fringe costs will be calculated on reversing labor cost transfer transactions and new fringe costs will be calculated on the adjusting labor cost transfer transactions. To use the burden rates that were in effect when the original labor distribution was incurred, make sure the Burden Date field on Activity Group (AC00.1) is set to Transaction Date.
  5. Select the Add form action to add the job and submit the job with the Update option set to No. Review the Labor Cost Transfer Processing report to make sure the results are correct. If the results are not correct, you can add or modify eligible templates or change job parameters.
  6. When the labor cost transfer processing results are correct, submit the job with the Update option set to Yes.
  7. If you use Labor Cost Transfer Processing (GM170), use General Ledger Posting (PR198) to update transactions to Project Accounting (AC) and General Ledger (GL).
  8. To post transactions in Project Accounting (AC), run Activity Posting (AC190). To post transactions in General Ledger (GL), run General Ledger Posting (GL190).

Related Reports and Inquiries

To Use
Print a list of labor cost transfer templates by employee Labor Cost Transfer Template Listing (GM212)
View labor cost transfer transactions that have been updated to activities and drill to initiating templates Transaction Analysis (AC96.1)
View labor cost transfer transactions that have been updated to General Ledger and drill to initiating templates Transaction Analysis (GL90.1)