COINS offers the ability to post to job status using Standard Rates for Labour. The ability to assign Labour Rates based on Job and type of employee.
Both payroll redirection and Standard Labour Rates can be used within a company. However, an employee can only partake in one or the other, not both.
This document will outline the process to configure COINS and process a payroll using Standard Rates for Labour.
Pay Item
A Pay Item is required to be defined for the Standard Labour Rate Contra Account. This will create the general ledger entry which will hold the credit portion of the Standard Labour Rate.
This must be entered first as the Significant Items will complete a ‘Pay Item’ Validation to prevent reusing the SLR Contra Pay for other purposes.
Payroll > Global Setup > Pay Items
Item Sequences
The new Pay Item must appear in a sequence to follow payroll Logic. Add to ‘Payments’ block.
Payroll > Global Setup > Item Sequences
Company Configuration
In Company Setup, turn on Standard Labour Rates in Employee Setup Layout.
Payroll > Company Setup > Company Configuration
Other Tab
Field | Description |
Use Standard Labour Rates when cost method is contract | Whether rates should be in use for the company when the cost method is contract.
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New Employee Default value for Standard Labour Rates | This fields holds the default employee value when a new employee is added in the employee file
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Enter Employee Specific Rates | Whether to allow employee specific rates to be added. If ticked and a new employee entered a new Standard Labour Rate record is created for the employee automatically. The employee number will be filled in and the effective date will be the hire date. All other fields on the Standard Labour Rate record would set to the wildcard (*). Are not required to go to Standard Labour Rate file to add manually.
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Significant Items
A Standard Labour Rate Contra Pay Item will need to be added to the General Pay Items layout. The Pay Item will create a General Ledger entry that holds the credit portion of the Standard Labour Rate entry.
The field will be available when ‘Use Standard Labour Rates When Cost Method is Contract’ is selected.
A validation occurs to ensure the Pay Item must exist before entering the Item number. This is used to create a GL entry holding the credit portion of the Standard Labour Rate entry.
Earning Category
When ‘Use Standard Labour Rates when cost method is contract’ is set to Yes on the ‘Company Configuration’ form, a tick box will be available in the Earning Category. This will indicate that the Earning Category is used with Standard Labour Rates.
You may not want SLR used when costing time to Paid Leave, only when costing directly to contract.
Only hours-based earnings categories can be used with SLR rates; a validation process is present if you try to set on other ‘Pay Basis’.
Payroll > Global Setup > Aus Specifics > Earning Categories
Lookup Code
Setup up Labour Groups on the lookup table STLABRTGP – Standard Labour Rate Group. This is used to group like employees together for rate setup.
Payroll > Global Setup > Lookup Codes
Employee Maintenance
Once ‘Company Configuration’ has field ‘Use Standard Labour Rates when cost method is Contract’ a new SLR tab will appear within the ‘Employee Maintenance’ Menu.
‘Default Standard Labour Rates info’ Layout will only be visible when adding a new employee and ‘Company Configuration’, has ‘Enter employee Specific Rates’ set to Yes. When values are populated in the default rates and saved; these will automatically prefill the ‘Standard Labour Rate’ form. The employee number will be populated, the effective date will be the employee start date and the rates will flow through. All other fields will be set to the wildcard (*).
Hint: use indirect job to receive actual costs, it allows you to take advantage of Job Cost Reports when analysing the actual labour for a person or group to determine if SLR rates are sufficient.
Payroll > Employee Maintenance
Field | Description |
Use Standard labour Rates | Select if employee is to use Standard Labour Rates |
Standard Labour Rate Group | Allocated SLR Group for the employee if applicable otherwise leave Blank and set up rate on the ‘Standard labour Rate’ form |
Suspense Cost Method | Select cost method for the employee: GL or Contract Only pertain to current Company (no Blanks) |
Suspense Analysis | Account number or Contract which will receive a Debit entry for the actual labour cost (depends on Cost Method) |
SLR Regular Rate | Rate per regular hour entered on a timecard |
SLR Overtime Rate | Rate per OT hours entered on a timecard |
SLR Double Time Rate | Rate per DT entered on a timecard |
Standard Labour Rate Maintenance
This is a master list of SLR rates and will be used by the Payroll Calculation process to find the most suitable SLR for timecards. This menu option will only display if ‘Use Standard Labour Rates’ is set to Yes in ‘Company Configuration’.
Payroll > Company Setup > Standard Labour Rate
Field | Description |
Effective Date | Date the SLR become effective |
Employee | Default is wildcard (*) for all employees or set specific employee id (kno) |
Costing Company | Default is wildcard (*) for all companies or enter specific company code (kco). Ensure the company accepts intercompany transactions from the current company (intercompany control accounts) |
Employee SLR Group | Default is wildcard (*) for all employees or enter specific SLR Group as per the lookup table |
Contract Group | Default is wildcard (*) for all contract groups or enter the contract group for the costing company |
Contract Type | Default is wildcard (*) for all contract types or enter the contract type for the costing company
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Contract Location | Default is wildcard (*) for all contract locations or enter the contract location for the costing company |
Contract | Default is wildcard (*) for all contracts or enter the specific contract for the costing company, contract Group, contract type, contract location. |
Field | Description |
Valid Earning Category | Default is wildcard (*) for all valid earning categories. Only enter hourly based earning categories applicable for the SLR earning category with the same region as the current company. Single Valid Earning Category or a comma-separated list. Only include Earning Categories with ‘Use SLR’ option set to Yes. |
Regular Rate | Rate per regular hours entered on a timecard. |
OT Rate | Rate per OT hours entered on a timecard. |
DT Rate | Rate per DT hours entered on a timecard. |
Dormant | Whether the Standard Labour Rate is dormant. (no longer required) |
NOTE: Only enter a new record if a record with the same values already exist. With the exception of the Valid Earning Categories, and at least one of the earning categories being entered is already present in the existing record. NOTE: At least one Regular/OT/DT rate should be non-zero.
Payroll Timecards
Employee timecards are entered as per normal. The hourly rate will derive from the ‘Employee Maintenance’ form. A single Timesheet can use both Standard Labour Rates and Actual Rates. A single time card can only use either SLR or actual.
Payroll > [Payroll Frequency} Payroll > Input > Timesheets
Run the ‘CALC’ process once all timecards are uploaded. The calculation will replace the hourly rate on the timecard with the SLR rate from the ‘Standard Labour Rate’ Maintenance.
Timecard Details will display employee Gross as per the timecard.
The ‘Burden Detail’ tab will display the SLR Gross. This will reflect the SLR amounts along with Actual amounts.
Drilling into the SLR Gross will expend the Standard Labour Rate timecard calculations.
Costing Workbench – Analysis Summary
The distribution of GL and Job Cost can be easily displayed in the Batch Analysis. The total burden for the transaction is $24 830.45 (see below, using transactions in section 9)
The Standard Labour Rate cost of $25 999.75 will Debit the Contract Labour GL, Debiting full Standard Labour Rate dollar value.
GL recovery account will be credited with the Standard Labour Rate value via Pay Item 773 value $25 999.75.
The total Burden or actual cost of employee labour $ 24 830.45 will debit the suspense analysis on SLR Tab in Employee Maintenance (highlighted in green). All the oncost occur as they would ordinarily occur if Standard Labour Rate were not in use.
Payroll Cost Register Report
The payroll cost register will accurately display values posted to Contract Status and GL.
Payroll > Company Reports
Payroll Site Costs Register Report
The payroll cost register will accurately display values posted to Contract Status and GL.
Payroll > Company Reports
Gross Payroll Register Report
If the timecard used SLR, the following two records are found in the Gross Payroll Register:
Original Timecard Analysis – To hold the value of the SLR Total Gross (SLR x Hrs). the hours for the timecard must reside with this record
SLR suspense Analysis – To hold the value of the Total Burden for the timecard. (this is the suspense analysis entry in the employee file). The hours for the suspense analysis should be zero.
Payroll > Company Reports
By Contract Cost
By GL cost
By Summary