41 Set Up AAIs for Time Accounting

This chapter contains these topics:

Section 41.1, "Entering Default Journal Types,"
Section 41.2, "Setting Up AAIs for Labor, Billings, and Equipment Distribution,"
Section 41.3, "Setting Up AAIs for Burden and Premium Labor Distribution,"
Section 41.4, "Setting Up AAIs for Labor Billings,"
Section 41.5, "Setting Up AAIs for Accruals and Clearing,"
Section 41.6, "Setting Up Journal Summarization Rules."

You set up automatic accounting instructions (AAIs) to automatically assign account numbers to the journal entries created in the Time Accounting system. You can establish AAIs separately for each company. Always set up generic instructions in Company 00000. The system searches for a specific company first. If it finds no instructions for the specific company, it searches for Company 00000.

In addition to defining rules in the separate AAI tables, you can also set up rules for how the system summarizes journal entries.

You can have a line in an accounting instruction table that has no search criteria other than the journal type. This is a default line.

41.1 Entering Default Journal Types

You can have a line in an accounting instruction table that has no search criteria other than the journal type. This is a default line.

Each table can have a default line with a default journal type. For example, LD is the default journal type for the labor distribution table. When the timecard or employee criteria do not match any of the other lines, the system uses the default line, if one exists. You can use a default line for a specific company and for Company 00000.

The following table lists the default journal types for default lines:

Journal Type	Description
LD, ED, and RD	Use in labor, billings, and equipment distribution tables
RO	Use in labor billings tables
AW	Use in accrued wages in accruals and clearings tables

You can also use a default line to indicate that instructions are missing from a table.

A default line with an invalid account informs you that a line is missing from a table. If you use a valid account, no warning prints on the journal proof report.

To enter default journal types

On any accounting instructions form

Complete the following fields for the default journal type:
- Journal Type
- Distribution Account Object
Complete the following optional fields:
- Distribution Account Business Unit
- Distribution Account Subsidiary

41.2 Setting Up AAIs for Labor, Billings, and Equipment Distribution

Navigation

From Time Accounting (G05), enter 29

From Time Accounting Setup (G054), choose Payroll Constants and Tables

From Additional Constants and Tables (G0541), choose Debit-Labor/Billing/Equipment

You set up AAIs for direct labor, billings, and equipment distribution to define accounts for transactions related to labor, labor billing (recharge), and the use of equipment. You do this by specifying search criteria for employee or timecard information and the account number information for the system to use in making the labor, billings, and equipment journal entries. All of these transactions are related directly to timecard entries.

When you set up direct labor, billings, and equipment distribution instructions, the minimum setup requirements for journal types are:

Journal Type	Description
Equipment distribution (ED)	This is necessary only if you are creating equipment transactions.
Payroll labor distribution (LD)	This is always required.
Labor billing distribution (RD)	This is necessary only if you are using billing (recharge) rates.

The system accesses this table during time entry. The system uses the values from the timecard which retrieved the values from the Employee Master table, other sources, or overrides that you supply. You use these search criteria fields to assign account numbers based on the specific timecard information.

41.2.1 Example: Search Criteria for Labor Distribution

The system uses the search criteria fields to determine the account distribution for the labor, billings, and equipment entries for your payroll. The system searches these accounting instructions in the following order, depending on the business unit used by time entry:

It compares the time entry record's business unit, union, job type, job step, and pay type to the rule's search criteria and matches it to the appropriate journal type.
It searches the timecard's business unit worked for an accounting rule for that company.
If no matches exist, it assigns the account number according to the rules for the default Company 00000.

The following list identifies the search criteria the system uses to match information from the timecard for a specific company:

Business Unit	Union	Job Type	Job Step	Payment Type	Journal Type
100	3000	CARP	APPR	1	LD
100	3000	CARP	APPR		LD
100	3000	CARP		1	LD
100	3000	CARP			LD
100	3000			1	LD
100	3000				LD
100		CARP	APPR	1	LD
100		CARP	APPR		LD
100		CARP		1	LD
100		CARP			LD
100				1	LD
100					LD
	3000	CARP	APPR	1	LD
	3000	CARP	APPR	LD
	3000	CARP		1	LD
	3000	CARP			LD
	3000			1	LD
	3000				LD
		CARP	APPR	1	LD
		CARP	APPR		LD
		CARP		1	LD
		CARP			LD
				1	LD
					LD

The following list identifies additional search criteria the system can use to match information from the timecard for the default Company 00000:

Union	Job Type	Job Step	Payment Type	Journal Type
3000	CARP	APPR	1	LD
3000	CARP	APPR		LD
3000	CARP		1	LD
3000	CARP			LD
3000			1	LD
3000				LD
CARP	APPR		1	LD
CARP	APPR			LD
CARP			1	LD
CARP				LD
			1	LD
				LD

To set up AAIs for labor, billings, and equipment distribution

On Debit - Direct Labor/Billings/Equipment

Figure 41-1 Debit - Direct Labor/Billings/Equipment screen

Description of "Figure 41-1 Debit - Direct Labor/Billings/Equipment screen"

Complete the following required fields:
- Company
- Journal Type (JT)
- Distribution Account Object (Obj)
Complete the following optional fields:
- Employee or Time Card Basis Business Unit
- Employee or Time Card Basis Union Code
- Employee or Time Card Basis Job Type
- Employee or Time Card Basis Job Step
- Employee or Time Card Basis Pay Type
- Distribution Account Business Unit
- Distribution Account Subsidiary
Complete the steps to enter default journal type LD.

Field	Explanation
JT	This field represents the type of transaction for which an account is to be derived. Form-specific information For Equipment Billing: Enter the valid value ED to identify the accounting rules you want the system to use when distributing equipment costs to object accounts. The system changes the user defined code table you can access from the Type (Typ) field from the PDBA codes table to the Rate Groups table. When you associate an object account with journal type ED, the system applies accounting rules only to the equipment you specify in the Equipment Worked (EQPW) field on Equipment Time Entry forms in Payroll or Time Accounting.
Employee or Time Card Basis Bus. Unit	Identifies the Business Unit the system searches to determine the accounting distribution. When defining the default rules (Company 00000), leave the Business Unit blank for the system to retrieve the Business Unit number entered on the Employee timecard, or from the Employee's Home Business Unit. You can use the Skip to Business Unit field to specify the Business Unit to be displayed first in the lower part of the screen. Form-specific information For autopay employees, the system uses the labor distribution instructions, the employee's home business unit, or the lowest level of default.

Field

Explanation

This field represents the type of transaction for which an account is to be derived.

Form-specific information

For Equipment Billing:

Enter the valid value ED to identify the accounting rules you want the system to use when distributing equipment costs to object accounts. The system changes the user defined code table you can access from the Type (Typ) field from the PDBA codes table to the Rate Groups table.

When you associate an object account with journal type ED, the system applies accounting rules only to the equipment you specify in the Equipment Worked (EQPW) field on Equipment Time Entry forms in Payroll or Time Accounting.

Employee or Time Card Basis Bus. Unit

Identifies the Business Unit the system searches to determine the accounting distribution. When defining the default rules (Company 00000), leave the Business Unit blank for the system to retrieve the Business Unit number entered on the Employee timecard, or from the Employee's Home Business Unit.

You can use the Skip to Business Unit field to specify the Business Unit to be displayed first in the lower part of the screen.

Form-specific information

For autopay employees, the system uses the labor distribution instructions, the employee's home business unit, or the lowest level of default.

41.2.2 What You Should Know About

Topic	Description
Search criteria	The system uses the following search criteria to determine which distribution account to debit: Information coded on the timecard establishes the search argument. In the first pass, the system searches for all fields in the Time Card Basis section of the form. In the second pass, the system searches for business unit, plan, job type, job step, and journal type. Each successive pass uses a different combination of data fields for the search criteria. Codes in the Union, Type, and Step fields help to narrow the system's search.
Distribution account fields	To determine the distribution account, the system treats each distribution account as follows: Business Unit - Override or Timecard Basis Business Unit Object - Table entry required Subsidiary - Override or timecard subsidiary
Business unit search for Company 00000	You cannot specify a business unit search for Company 00000 because each business unit is attached to a unique company. To search by business unit, you must attach the business unit to a company specific table during setup.

See Also:

Section 41.1, "Entering Default Journal Types."

41.3 Setting Up AAIs for Burden and Premium Labor Distribution

Navigation

From Time Accounting (G05), enter 29

From Time Accounting Setup (G054), choose Payroll Constants and Tables

From Additional Constants and Tables (G0541), choose Debit-Burden/Premium Labor Distribution

You set up AAIs to define accounts for flat burden and labor distribution premium time transactions. The hierarchy method in this table helps control account derivation.

You can establish accounting instructions separately for each company. Always set up generic instructions in Company 00000. The system searches for a specific company first. If it finds no instructions for the specific company, it searches for Company 00000.

Actual burden is defined as the direct expenses that a company incurs for an employee in addition to wages. These expenses include:

Payroll taxes and insurance (PTI) - Company-paid taxes and insurance, such as workers compensation
Fringe benefits - Company-paid benefits, such as health insurance and company contributions to a 401k or RRSP plan

The Time Accounting system does not calculate actual burden. It uses a pre-determined percentage as an estimate of gross wages to approximate actual burden costs. This percentage is called flat burden.

The following are flat burden considerations:

Is an estimated burden that is a percentage of an employee's gross wages
Distributes the expense at the same amount throughout the entire year
Can be calculated per employee, union, or business unit for each timecard during time entry
Is not calculated for lump sum amounts

When you set up flat burden distribution debit instructions you must, at a minimum, include the following journal type codes:

FB - Flat burden

When you set up premium labor debit instructions you must, at a minimum, include the following journal type codes:

PR - Payroll premium labor distribution

You can split the premium portion of overtime and create a separate journal entry for straight time versus premium time.

When you set up recharge burden debit instructions you must, at a minimum, include the following journal type codes:

RB - Recharge (labor billing) burden

To set up AAIs for burden and premium labor distribution

On Debit - Burden/Premium-Labor Distribution

Figure 41-2 Debit - Burden/Premium-Labor Distribution screen

Description of "Figure 41-2 Debit - Burden/Premium-Labor Distribution screen"

Complete the following fields:
- Company
- Hierarchy Method (HM)
- Object (Obj)
To set up Company 00000, enter 00000 or a valid object in the following field:
- Time Card Basis Object
To set up a specific company, enter a valid object in the following field:
- Time Card Basis Object
For journal types BT, FB, and PR, complete the following field:
- Time Card Basis Journal Type
For a specific company, complete the following optional field:
- Time Card Basis Business Unit
Complete the following optional fields:
- Time Card Basis Subsidiary
- Distribution Account Business Unit
- Distribution Account Subsidiary
Complete the steps to enter default journal type BF, BT, FB, PR, and RB.

41.3.1 What You Should Know About

Topic	Description
Search criteria	The system uses the following search criteria to determine which distribution account to debit: On the first pass, the system searches for all fields in the Time Card Basis section of the form. On the second pass, the system searches for business unit, object, subsidiary, and journal type. On each successive pass the system uses a different combination of data fields.
Distribution account fields	To determine the distribution account, the system treats each distribution account as follows: Business Unit - Override or controlled by hierarchy method Object - Table entry required Subsidiary - Override or controlled by hierarchy method Subledger - Controlled by the hierarchy

See Also:

Section 41.1, "Entering Default Journal Types."

41.4 Setting Up AAIs for Labor Billings

Navigation

From Time Accounting (G05), enter 29

From Time Accounting Setup (G054), choose Payroll Constants and Tables

From Additional Constants and Tables (G0541), choose Credit-Labor Billings

You set up AAIs for labor billings to establish accounting rules for labor billing offsets. These offsets are natural credit or revenue entries that offset labor billing charges or debits. Entries for labor billings are generally credit entries.

If your company does not use labor billings, you do not need to set up these instructions.

41.4.1 Example: Search Criteria

The following table represents the credit side only. It identifies the search criteria the system uses to match information from the timecard for a specific company.

Home Business Unit	Job Location	Pay Type	Journal Type
9	501	1	RO
9	501		RO
9		1	RO
9			RO
	501	1	RO
	501		RO
		1	RO
			RO

The following table represents the search criteria the system uses to match information from the timecard to the default Company 00000:

Job Location	Pay Type	Journal Type
501	1	RO
501		RO
	1	RO
		RO

To set up AAIs for labor billings

On Credit - Labor Billings

Figure 41-3 Credit - Labor Billings screen

Description of "Figure 41-3 Credit - Labor Billings screen"

Complete the following required fields:
- Company
- Journal Type
- Distribution Account Object
Complete the following optional fields:
- Home Business Unit
- Job Location
- Pay Type
- Distribution Account Business Unit
- Distribution Account Subsidiary

Field	Explanation
Job Location	This business unit represents the location in which the employee worked. It can be used to indicate that an employee worked at this location, but charged the time to another business unit. This field is used for deriving rates from the Union Pay Rate table and is used exclusively by the Certified Payroll Register.

41.4.2 What You Should Know About

Topic	Description
Search criteria	On the first pass, the system searches on the following fields: Home Business Unit Job Location Pay Type Journal Type On each successive pass the system searches on a different combination of data fields.
Distribution account fields	To determine the distribution account, the system treats each distribution account as follows: Business Unit - Override or employee home business unit Object - Table entry required Subsidiary - Table entry optional Subledger - None
Default labor billings	For your most common account distribution, you can define a default labor billing rule using the journal type RO with the distribution account information. The system will use the default rule when it does not find a business unit specific rule.

Topic

Description

Search criteria

On the first pass, the system searches on the following fields:

Home Business Unit
Job Location
Pay Type
Journal Type

On each successive pass the system searches on a different combination of data fields.

Distribution account fields

To determine the distribution account, the system treats each distribution account as follows:

Business Unit - Override or employee home business unit
Object - Table entry required
Subsidiary - Table entry optional
Subledger - None

Default labor billings

For your most common account distribution, you can define a default labor billing rule using the journal type RO with the distribution account information. The system will use the default rule when it does not find a business unit specific rule.

See Also:

Section 41.1, "Entering Default Journal Types."

41.5 Setting Up AAIs for Accruals and Clearing

Navigation

From Time Accounting (G05), enter 29

From Time Accounting Setup (G054), choose Payroll Constants and Tables

From Additional Constants and Tables (G0541), choose Dr/Cr-Accruals/Clearing

You set up AAIs for accruals and clearing to establish accounts for the following:

Accrued wages (T2)
Flat burden clearing (T2)
Recharge flat burden clearing

When you set up the accrued wages account you must, at a minimum, include the following journal type code:

AW - Accrued wages for the Labor Distribution and Payroll Disbursements Journals

When you set up the flat burden clearing account you must, at a minimum, include the following journal type code:

FC - Flat burden clearing for the Labor Distribution Journal

When you set up the recharge flat burden clearing account you must, at a minimum, include the following journal type code:

RC - Recharge burden relief for the Actual Burden Expense and Payroll Disbursements Journals

The following list identifies the search criteria that the system can use to match information from the timecard for a specific company for accrued wages, flat burden clearing, intercompany settlements, or recharge flat burden clearing:

Business Unit	Type	Journal Type
1		AW, FC, IC, or RC
		AW, FC, IC, or RC

The following list identifies the search criteria that the system can use to match information from the timecard for Company 00000 for accrued wages, flat burden clearing, intercompany settlements, or recharge flat burden clearing:

Business Unit	Type	Journal Type
		AW, FC, IC, or RC

To set up AAIs for accruals and clearing

On Debit/Credit - Accruals/Clearing

Figure 41-4 Debit/Credit - Accruals/Clearing screen

Description of "Figure 41-4 Debit/Credit - Accruals/Clearing screen"

Complete the following fields:
- Company
- Distribution Account Object
Complete one of the following fields, as appropriate:
- Employee Basis Type
- Employee Basis Journal Type
Complete the following optional fields:
- Employee Basis Business Unit
- Distribution Account Business Unit
- Distribution Account Subsidiary
Access More Details (F4).

Figure 41-5 Debit/Credit - Accruals/Clearing (Detail) screen

Description of "Figure 41-5 Debit/Credit - Accruals/Clearing (Detail) screen"
Complete the following optional fields:
- Subledger
- Type
- Description
- Enhanced Subledger 1-4
- Enhanced Subledger Types
Complete the steps to enter default journal type CF, CT, and AW.

Field	Explanation
Enhanced Subledger 1- 4	An enhanced subledger can be, for example, an equipment item number or an address book number. If you enter an enhanced subledger code, you must also specify the enhanced subledger type. This field acts the same and is edited much the same as the Subledger field.
Enhanced Subledger Types 1 - 4	A user defined code (16/E1 through 16/E4)) that is used with the associated Enhanced Subledger field (ABR1 through ABR4) to identify the Enhanced Subledger field type and how the system will perform the Enhanced Subledger editing. The second line of the description on the User Defined Codes form controls how the system validates entries in the Enhanced Subledger field. This is either hard-coded (edits against a file as described in the second line of the description) or user defined.

Field

Explanation

Enhanced Subledger 1- 4

An enhanced subledger can be, for example, an equipment item number or an address book number. If you enter an enhanced subledger code, you must also specify the enhanced subledger type. This field acts the same and is edited much the same as the Subledger field.

Enhanced Subledger Types 1 - 4

A user defined code (16/E1 through 16/E4)) that is used with the associated Enhanced Subledger field (ABR1 through ABR4) to identify the Enhanced Subledger field type and how the system will perform the Enhanced Subledger editing. The second line of the description on the User Defined Codes form controls how the system validates entries in the Enhanced Subledger field. This is either hard-coded (edits against a file as described in the second line of the description) or user defined.

41.5.1 What You Should Know About

Topic	Description
Search criteria	On the first pass, the system searches on the Employee Basis fields. On each successive pass the system searches on a different combination of data fields.
Distribution account fields	To determine the distribution account, the system treats each distribution account as follows: Business Unit - Override entry or employee home business unit Business Unit - LABOR for FC (Flat burden offset) provides the same business unit as labor, not Home Business Unit Object - Table entry required Subsidiary - Override entry or PAY for DBAs and *CO for intercompany settlements Subledger - Table entry

Topic

Description

Search criteria

On the first pass, the system searches on the Employee Basis fields.

On each successive pass the system searches on a different combination of data fields.

Distribution account fields

To determine the distribution account, the system treats each distribution account as follows:

Business Unit - Override entry or employee home business unit
Business Unit - *LABOR for FC (Flat burden offset) provides the same business unit as labor, not Home Business Unit
Object - Table entry required
Subsidiary - Override entry or *PAY for DBAs and *CO for intercompany settlements
Subledger - Table entry

See Also:

Section 41.1, "Entering Default Journal Types."

41.6 Setting Up Journal Summarization Rules

Navigation

From Time Accounting (G05), enter 29

From Time Accounting Setup (G054), choose Payroll Constants and Tables

From Additional Constants and Tables (G0541), choose Journal Summarization Rules

You set up journal summarization rules to establish how the system summarizes preliminary journal entries and actual journal entries in the general ledger. Summarizing journal entries reduces the number of transactions in the general ledger.

Defining journal summarization allows you to:

Summarize journal entries for specific companies and for the default Company 00000
Create both summarized and detail journals
Define up to six different summarization rules for a specific range of object accounts and for a specific business unit

If the system does not find summarization rules for a specific company, it uses those established for the default company (Company 00000). If it finds no summarization rules for an account, it assumes full summarization.

Each additional variable (company, business unit, or summarization code) that you define requires additional computer resources, which lengthens processing time. Therefore, JD Edwards World recommends that you:

Set up summarization rules at the Company 00000 level when possible
Avoid setting up summarization rules at the business unit level
Specify the same summarization code for each object account range when possible

41.6.1 Example: Summarization Rules on the Timecard Journal Batch Proof

When you define the journal summarization, the system creates journals based on the information. The following example of the Timecard Journal Batch Proof report lists pro forma journal entries with no summarization for AW, LD, and EO journals.

Figure 41-6 Timecard Journal Batch Proof report

Description of "Figure 41-6 Timecard Journal Batch Proof report"

To set up journal summarization rules

On Journal Summarization Rules

Figure 41-7 Journal Summarization Rules screen

Description of "Figure 41-7 Journal Summarization Rules screen"

Complete the following fields:
- Company
- Summarization Code
Enter the business unit number, object account range, or both in the following fields:
- Business Unit Number
- Object Account Beginning Range
- Object Account Ending Range

Field	Explanation
Payroll Summarization Code	The rules tell the system how to summarize the pro forma entries before creating the actual journal entries. The system looks for all documents that have the same value and summarizes them into one journal. Valid codes for rules and journal entry descriptions are: 1 – Full summary: The system looks for the same values for the following: business unit, object, subsidiary, subledger, subledger type, fiscal year, general accounting period number, equipment or asset number, document type and journal reference (See data dictionary item PRJE.) First description in the journal entry - Document description Second description in the journal entry - Blank 2 – Same as Rule 1 and include pay type First description in the journal entry - Document description Second description in the journal entry - Pay type 3 – Same as Rule 1 and include pay type, job type, and job step First description in the journal entry - Document description Second description in the journal entry - Pay type 4 – Same as Rule 1 and include pay type, job type, job step, and employee First description in the journal entry - Employee Second description in the journal entry - Pay type 5 – Do not summarize First description in the journal entry - Document description Second description in the journal entry - Time entry comment and pay type 6 – Do not summarize and include employee name First description in the journal entry - Employee Name Second description in the journal entry - Time entry comment and pay type

Field

Explanation

Payroll Summarization Code

The rules tell the system how to summarize the pro forma entries before creating the actual journal entries. The system looks for all documents that have the same value and summarizes them into one journal.

Valid codes for rules and journal entry descriptions are:

1 – Full summary: The system looks for the same values for the following: business unit, object, subsidiary, subledger, subledger type, fiscal year, general accounting period number, equipment or asset number, document type and journal reference (See data dictionary item PRJE.)

First description in the journal entry - Document description

Second description in the journal entry - Blank

2 – Same as Rule 1 and include pay type

First description in the journal entry - Document description

Second description in the journal entry - Pay type

3 – Same as Rule 1 and include pay type, job type, and job step

First description in the journal entry - Document description

Second description in the journal entry - Pay type

4 – Same as Rule 1 and include pay type, job type, job step, and employee

First description in the journal entry - Employee

Second description in the journal entry - Pay type

5 – Do not summarize

First description in the journal entry - Document description

Second description in the journal entry - Time entry comment and pay type

6 – Do not summarize and include employee name

First description in the journal entry - Employee Name

Second description in the journal entry - Time entry comment and pay type

41.6.2 What You Should Know About

Topic	Description
Summarization code	The summarization code also indicates the descriptions in the journal entry. EXA is the first description in the journal entry in the Account Ledger table (F0911). EXR is the second description in the journal entry in the Account Ledger table (F0911).
Equipment Transactions	You must set up the system so that the equipment transactions are not summarized. For those ranges of accounts, choose either: No summarization No summarization with Employee Name

Topic

Description

Summarization code

The summarization code also indicates the descriptions in the journal entry.

EXA is the first description in the journal entry in the Account Ledger table (F0911).

EXR is the second description in the journal entry in the Account Ledger table (F0911).

Equipment Transactions

You must set up the system so that the equipment transactions are not summarized. For those ranges of accounts, choose either:

No summarization
No summarization with Employee Name