1. Time and Labor Implementation Guide
  2. Understanding AAIs for Labor, Billings, and Equipment Distribution

Understanding AAIs for Labor, Billings, and Equipment Distribution

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 defining 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.

You can set up AAIs separately for each company. Always set up generic instructions in Company 00000 first. When searching for AAIs, the system searches for a specific company. If it finds no AAIs for the specific company, it uses the AAIs defined for Company 00000.

The minimum information that you need to set up an AAI is the journal type. When you set up direct labor, billings, and equipment distribution AAIs, these items are the minimum setup requirements for journal types:

  • Payroll labor distribution (LD) is required if you use employee hourly and salary rates.

  • Labor billing distribution (RD) is required if you use billing (recharge) rates.

  • Equipment distribution (ED) is required if you use equipment rates.

The system accesses this AAI table during time entry as well as during pre-payroll when it creates timecards for autopay employees. The system uses the values from the timecard, which obtains the values from the Employee Master table (F060116), other sources, or the overrides that you supply. You use these search criteria fields to assign account numbers based on the specific timecard information.

Note: If you enter an account number in an AAI table, you must first set up that account number in the chart of accounts. When you enter timecards for employees, the system enables you to enter any account number that is set up in the chart of accounts, regardless of whether the account is set up in the AAI tables. When you run the journal entries step of the payroll cycle process, you will receive errors on the Journal Batch Proof Report for any timecards that contain account numbers that were not set up in the AAI tables. You must either change the account number on the timecard to reflect an account number that is set up in the AAI table, or you must add the account number to the AAI table. After you make the account number corrections, you must reprocess the timecards through pre-payroll.