Setting Up Contract-Specific Labor Categories

This chapter provides overviews of contract-specific labor categories, their setup, and cross-references for labor categories, and discusses how to enter contract-specific labor categories.

Understanding Contract-Specific Labor Categories

Contract-specific labor categories are job types that you set up for project and government contract accounting (PGCA) contracts so that when you enter transactions to record time that employees worked on the contract, the system validates whether the labor category on the transaction is valid for the contract. You use contract-specific labor categories in situations such as these:

• You are performing work that is part of a contract with the U.S. federal government, and the contract terms state that you must use contract-specific labor categories.

• You want to maintain an additional set of job types to use as external job titles for a contract.

Contract-specific labor categories can apply to both internal labor and subcontract labor. You record time for internal labor in the JD Edwards EnterpriseOne Time and Labor system, and you record time for subcontracted labor in the JD Edwards EnterpriseOne Subcontract Management and JD Edwards EnterpriseOne Procurement systems.

Depending on how the contract is structured, you can specify at the contract, invoice, or the funding levels that labor categories are required. For example, contract terms might state at the contract level that labor categories are not required but that a funding level for the contract does require them.

You use the Contract Specific Labor Categories program (P52G20) to enter labor categories for the contract. The P52G20 program enables you to set up labor categories by contract, invoice, funding level, or by business unit. After you set up the labor categories, you also use the P52G20 program to set up cross-references for them. Cross-references determine which labor category the system should assign based on the information that you enter on the transaction.

You must set up a default labor category in the Billing Constants program (P48091) for the system to use if it cannot find the correct labor category to assign to a transaction.

The system stores labor categories in the Contract Specific Labor Categories table (F52G20).

Understanding Setup for Contract-Specific Labor Categories

To use labor categories with a PGCA contract, you must first set up the applicable fields on the contract. You use these check boxes on the Billing/Revenue tab in the Create/Edit Project and Government Contracts program (P52G01M) to specify that the contract requires labor categories, and whether the categories apply to subcontract labor:

• Contract Labor Categories

• Subcontract As Labor

If you select the Contract Labor Categories check box, then the system requires that you enter valid labor categories on transactions that you enter for the contract. You must also enter hours on transactions for the contract. If you select the Subcontract As Labor check box, the system considers subcontracted labor transactions to be labor transactions, and it applies the same requirements for hours and valid labor categories to the subcontract labor transactions.

Note. For subcontracts, you enter hours in the Service Quantity and Service UoM (service unit of measure) fields.

In addition to the settings for the check boxes, the system also uses automatic accounting instructions (AAIs) to determine whether the account number on the transaction is an employee labor or subcontract labor account. Therefore, you must set up these AAI ranges to specify which object accounts are used for employee labor and subcontract labor:

• LAxx

  Identifies the account as an employee labor account.

• SLxx

  Identifies the account as a subcontract labor account.

This table describes how the system determines whether the labor category that you enter must be valid:

In addition to selecting the check boxes on the contract master that apply to labor categories and setting up AAIs for labor categories, you must also perform setup tasks that are specific to the JD Edwards EnterpriseOne Time and Labor and JD Edwards EnterpriseOne Subcontract Management applications.

See Processing Timecards Using Contract-Specific Labor Categories.

See Entering Contract-Specific Labor Categories for Subcontract Management.

See Also

Understanding Contract Master Information for PGCA Contracts

Understanding Cross-References for Labor Categories

After you set up labor categories, you also use the P52G20 program to set up cross-references for them. Cross-references for labor categories enable you to define a set of rules that determines which labor category to assign when a user enters a transaction, such as a time card. The user can enter the labor category, and the system validates that it is the correct one, or the user can leave the Contract Labor Category field blank, and the system populates the field with the correct labor category.

For example, if you set up labor category 55PM for project manager and then you set up a cross-reference for 55PM using address book number 6002, when employee 6002 enters a time card, the system uses the cross-reference to determine that the time card should contain labor category 55PM. If the user leaves the Contract Labor Category field blank, the system populates it with 55PM. If the user overrides 55PM to a different labor category, the system validates it to determine whether it is a valid labor category for the contract.

You can set up cross-references to be either generic or specific, depending on your business needs. In addition to address book numbers, you can set up labor category cross-references using any combination of this information:

• Job step

• Home business unit

• Cost pool

• Range of object accounts

• Range of subsidiaries

This table describes the first level of the hierarchical search that the system uses to determine the correct labor category to assign to a transaction:

Within each of the search levels in the preceding table, if it locates a labor category, the system then searches for a more specific cross-reference for the labor category. This table describes how the system determines whether a more specific cross-reference exists:

Within each of the search levels in the preceding table, if it locates a labor category, the system then searches for a more specific cross-reference for the labor category. This table describes how the system determines if a more specific cross-reference exists:

The system stores labor category cross-references in the Contract Specific Labor Category Cross Reference table (F52G21).

Entering Contract-Specific Labor Categories

This section discusses how to:

• Set up a contract-specific labor category.

• Set up a labor category cross-reference.

Prerequisites

Before you set up labor categories:

• Set up a default labor category in the Billing Constants program (P48091).

  See Setting Up Service Billing Constants for JD Edwards EnterpriseOne PGCA.

• Set up the LAxx and SLxx AAI ranges.

• Set up the contract to use labor categories by selecting the Contract Labor Categories check box and, if applicable, the Subcontract As Labor check box.

  See Adding a Contract-Level Contract.

Forms Used to Set Up Contract-Specific Labor Categories

Setting Up a Contract-Specific Labor Category

Access the Labor Category Revisions form.

Contract No. or Business Unit	Enter either a contract number or a business unit, depending on the level at which the labor categories are valid. For example, if the labor categories apply to all invoice and funding levels attached to the contract, enter the contract number for the contract level. If the labor categories apply to only a specific business unit within a funding level, enter the business unit number.
Job Type	Enter a code to represent the labor category for the contract. You can enter up to six alphanumeric characters.
Elig Ovr (eligibility overrides)	Specify an eligibility code to override the account and billing line eligibility codes for transactions for this labor category. Values are: Blank: No overrides exist for this labor category. 0: The labor category is eligible for invoicing and revenue recognition. 1: The labor category is eligible for invoicing only. 2: The labor category is eligible for revenue recognition only. 3: The labor category is non-billable. 4: The labor category is eligible for cost only. If you enter a value in this field, the system overrides the account and billing line eligibility codes for transactions for this labor category with the code that you enter. The system assigns eligibility codes to workfile transactions based on the Billable (Y/N) field in the Account Master table (F0901) and the Journal Generation Control field that you set up in the Billing Constants program (P48091). These values are hard-coded, and the system stores them in UDC table 52/EL.
Labor Type	Select a value from UDC table 52G/LT.
Fee Calculated	Specify whether the system should calculate a fee for transactions that you enter for this labor category. See Labor Category Method.
LOE Hours (level of effort hours)	If you entered 1 in the Fee Calculated field, specify the maximum number of hours up to which the system will calculate fees. For example, if you enter 1000, the system continues to calculate fees for transactions entered for the labor category until the total number of hours for the labor category reaches 1000. When calculating fees, the system uses the LOE hours for all labor categories for a contract. See LOE at Labor Category Method.
Fee Rate Type	Specify the method for calculating fees. Values are: 1: Amount per hour 2: Percent These values are hard-coded, and the system stores them in UDC table 52G/FT.
Fee Rate	Enter either a percentage or a rate per unit, depending on the value that you specify in the Fee Rate Type field.

Setting Up a Labor Category Cross-Reference

Access the Labor Category X-Ref Revisions form.

Complete any of the fields on this form. For each cross-reference, you can complete as many or as few of the fields as your business needs require.