What Happens During Labor Cost Transfer Processing?

Labor cost transfer processing uses labor cost transfer templates to redistribute labor costs after-the-fact. You set up labor cost transfer templates on Labor Cost Transfer Template Entry (GM12.2). Defining Labor Cost Transfer Templates

Note: To process cost transfers for employees paid using Lawson Payroll, use Labor Cost Transfer Processing (GM170). For employees paid using a non-Lawson payroll, or for 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.