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Tracking Employee Time Off Costs

Fremont Corporation records time off hours in an indirect project. These hours represent one source of Fremont's overhead costs since Fremont cannot charge the hours directly to a paying customer's project and, therefore, earns no revenue for them.

When a Fremont employee uses sick, vacation, or holiday benefits, the employee fills out a timecard as usual, but indicates the time off project rather than a direct project on which the employee may also work. Fremont uses different project tasks to distinguish between hours employees record as sick time, vacation time, or holiday time.

Fremont uses the Projects window to enter the following time off project.
Project:
Number Time Off
Name Time Off
Description This project is a holding area for all time off hours of Fremont Corporation
Organization Human Resources
Status Permanent
Public Sector No
Type Overhead

Define time off tasks

Fremont defines three different tasks for the Time Off project to distinguish between sick hours, vacation hours, and holiday hours. Fremont assigns each task a different service type and implements AutoAccounting to use the service type on each task to distribute time off costs to the appropriate expense accounts. See: Defining Service Types.

Task Number Sick
Task Name Sick Hours
Description This task holds all sick hours for Fremont Corporation
Organization Human Resources
Service Type Sick
Task Number Vacation
Task Name Vacation Hours
Description This task holds all vacation hours for Fremont Corporation
Organization Human Resources
Service Type Vacation
Task Number Holiday
Task Name Holiday Hours
Description This task holds all holiday hours for Fremont Corporation
Organization Human Resources
Service Type Holiday

See Also

Accounting Transactions for Costs

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