How Are Effort Transactions Created?

Effort transactions are created when you process employee payroll by running Payroll Close (PR197) for Lawson Payroll, or Non-Lawson Payroll Tran Import (GM500). The programs use the following rules to calculate and create effort transactions:

• Effort applies only to earnings and does not apply to employer-paid expenses.

• When the employee is subject to effort reporting (in other words, the Effort Reporting field is set to Yes on the employee record HR11.3), effort transactions are created from payroll distribution records.

• The effort transaction includes the activity, if applicable, and general ledger account from the payroll distribution record. An activity is not required in an effort transaction.

• The effort transaction's salary amount is the same as the corresponding payroll distribution's amount.

• Tracking planned effort is optional.

• If you want to track planned effort, the employee must be subject to both effort reporting and labor distribution (in other words the Labor Distribution and Effort Reporting fields are set to Yes on HR11.3). Your labor distribution templates need to contain planned effort percentages. When the employee is also subject to labor distribution, effort transactions' effort amounts are calculated using earnings from time records multiplied by the effort percentage from the labor distribution template.

• As with payroll distributions, if the labor distribution template is not approved, the effort transaction will use the activity (if applicable) and general ledger account from the time record.