[PR] PR Departments

How PR Departments Work Together

• Payroll Posting:

  • Payroll is entered in the PR Departments form and debits the employee’s Earnings Expense GL account.

  • If a timecard line has a job, the system credits the JC Applied Earnings account and looks to the JC Dept. to determine the expense account.

  • If the department’s debit and credit accounts match, the expense “washes” (no net effect).

• Department Codes:

  • Payroll department codes, along with Job Cost (JC) and Equipment Management (EM) departments, control how payroll posts to the General Ledger.

  • Even if all payroll is charged by job, at least one department must be set up per employee in PR Employees.

  • You may align department numbers with GL account codes (e.g., Dept 500 = GL 500-Gross Earnings, Field Labor).

• Ledger Update:

  • When PR Ledger Update runs, earnings post to the employee department’s Earnings Expense account.

  • Earnings charged to jobs, equipment, or other companies post to JC, EM, or Intercompany accounts, with offset credits to JC/EM/Interco Applied Earnings.

  • Liabilities post to the department’s Burden Expense account, with offset credits to JC/EM/Interco Applied Burden accounts.

GL Accounts for Fixed Rate Posting

• JC Fixed Rate GL Account: Credited when fixed-rate labor and burden are posted to jobs.

• EM Fixed Rate GL Account: Credited when fixed-rate labor and burden are posted to equipment.

• SM Fixed Rate GL Account: Credited when fixed-rate labor and burden are posted to service work orders.

Earnings Type Setup

• Specify the Earnings Expense account for each earnings type in PR Earnings Codes.

• Also specify the offset accounts: JC/EM/SM/Interco Applied Earnings for job, equipment, work order, or intercompany postings.

Liability Type Setup

• Specify the Burden Expense account for each liability type.

• For job, equipment, or intercompany postings, also set JC/EM/SM/Interco Applied Burden accounts to credit the offsets for labor burden.