[PR] PR Departments

Created by Crystal Ann Harvey, Modified on Mon, 25 Aug at 4:38 PM by Crystal Ann Harvey

How the PR Departments work together:

All payroll comes into the PR Departments form and debits the GL Account for Earnings Expense. If there is a job on the timecard line, then the GL Account in the JC Applied Earnings is credited, and the system then looks to the JC Dept. to determine how the costs are expensed > to what GL Account. So, if the GL accounts in those two columns in the PR Department are the same account, the expense just washes (debit and credit).

Payroll Department codes are used along with Job Cost and Equipment Management Departments to control General Ledger expense distributions. If you always expense gross earnings and liabilities by job, you will still need to set up at least one department for your company to assign each employee a department code in PR Employees.

You may want to create department numbers that coincide with your General Ledger account codes. For example, a department number of 500 for Field Labor could correspond to a GL account code of 500-Gross Earnings, Field Labor.

When timecard data is updated (PR Ledger Update), all earnings are posted to the ‘Earnings Expense’ account specified for the employee's department. Earnings charged to jobs, equipment, or other companies will also be posted to the appropriate JC, EM, or Intercompany Payroll department accounts. Offsetting entries (credits) will be made to the ‘JC Applied Earnings’, 'EM Applied Earnings' or 'Interco Applied Earnings' accounts. Liabilities will be posted to the department’s “Burden Expense” account based on liability type. Liabilities posted to jobs, equipment, or other companies will also be posted to the appropriate JC, EM, or Intercompany Payroll accounts. Offsetting entries (credits) will be made to the 'JC Applied Burden', 'EM Applied Burden', or 'Interco Applied Burden' accounts.

Steps

There are GL Accounts that you need to specify for posting payroll to the General Ledger if you will be using the "Fixed Rate" options (in PR Employees) for posting time to jobs or equipment.

JC Fixed Rate GL Account — This account is credited when a fixed rate (as set up by Employee in PR Employees) is used to calculate an Employee’s labor and burden for JC. Offsets expenses debited to the JC Department’s Labor Accounts assigned by Earnings Type.
EM Fixed Rate GL Account — This account is credited when a fixed rate (as set up by Employee in PR Employees) is used to calculate an Employee’s labor and burden for EM. Offsets expenses debited to the EM Department’s Labor Account.
SM Fixed Rate GL Account - This account is credited when a fixed rate (as set up by Employee in PR Employees) is used to calculate an Employee’s labor and burden for SM work orders. Offsets expenses debited to the SM Department’s standard labor account or override labor account (if overrides are defined by call type and/or cost type).

The Earnings Type tab allows you specify the Earnings Expense account to debit when earnings are posted to this Department. Specific earnings are grouped by type in PR Earnings Codes and PR Deductions/Liabilities; therefore, you must specify the GL account to use for each of the earnings types (defined in HQ) that will be used when earnings are posted.

In addition, for each earnings type, you must specify the “JC Applied Earnings”, “EM Applied Earnings”, "SM Applied Earnings", and “Interco Applied Earnings” accounts. These accounts will be used to offset (credit) job, equipment, work order, and intercompany earnings (respectively).

The Liability Types tab allows you specify the Burden Expense account to debit when burden is posted for an employee assigned to this PR department. If you will be posting labor to jobs, equipment, or intercompany payroll, you will need to set up “JC Applied Burden”, “EM Applied Burden”, "SM Applied Burden", and/or "Interco Applied Burden" accounts for each applicable liability type. These 'applied burden' accounts will be credited with an amount equal to the debit additionally made to jobs, equipment, work orders, or intercompany payroll for labor burden expense (respectively).