This chapter contains these topics:
Section 40.2, "Setting Up AAIs for Labor, Billings, and Equipment Distribution,"
Section 40.3, "Setting Up AAIs for Burden and Premium Labor Distribution,"
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.
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
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.
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:
Business Unit | 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 40-1 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. |
Topic | Description |
---|---|
Search criteria | The system uses the following search criteria to determine which distribution account to debit:
|
Distribution account fields | To determine the distribution account, the system treats each distribution account as follows:
|
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. |
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 40-2 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.
Topic | Description |
---|---|
Search criteria | The system uses the following search criteria to determine which distribution account to debit:
|
Distribution account fields | To determine the distribution account, the system treats each distribution account as follows:
|
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.
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:
Home Business Unit | 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 40-3 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. |
Topic | Description |
---|---|
Search criteria | On the first pass, the system searches on the following 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:
|
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. |
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 40-4 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 40-5 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. |
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:
|
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
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 40-6 Timecard Journal Batch Proof report
To set up journal summarization rules
On Journal Summarization Rules
Figure 40-7 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 |