Understanding Contract-Specific Labor Categories for Subcontract Management
Some contracts require the reporting of contract-specific labor categories for service lines on subcontract orders. These contracts dictate the definition of the labor categories used for costing, billing, and reporting on the contract, and the categories can apply to both internal and subcontracted labor. The labor category flows from the subcontract master to all released purchase orders for the contract. Labor categories do not apply to inventory based purchase order lines. The categories are only applicable to services lines with associated labor.
Subcontract labor billing requires hours and contract-specific labor categories be entered and validated for all associated transactions such as accounts payable and general ledger. Then the billing system calculates and bills the customer based on the contract-specific labor categories.
If you have selected the Advanced Contract Billing Used option in the Service Billing Constants program (P48091), the system enables the Job Typ field. The Advanced Contract Billing system uses the Job Typ field from the JD Edwards EnterpriseOne Payroll system to specify the type of labor category or job of the person who performs a service. You associate pay and benefit information with a job type and apply that information to the employees linked to that job type.
The Job Typ field displays in the detail grid of the Enter Subcontract Orders (P4310), Voucher Match (P4314), and PO Receipts (P4312) programs. Thus, if you have selected the Advanced Contract Billing Used check box in the Service Billing Constants program (P48091), the system displays and enables the Job Typ field on the following forms:
Contract Detail (W4310A)
Voucher Match (W4314A)
Account Distribution Entry (W4316A)
Purchase Order Receipts (W4312A)
The labor categories apply to C3 (Funding Level) contracts only. You activate the Contract Labor Categories and Subcontract As Labor features on the Billing/Revenue tab of the Edit Funding Level form (W52G01MB) from the Create/Edit Advanced Contracts program (P52G01M).
The settings of the Contract Labor Categories and Subcontract As Labor fields on the C3 contract determine if the job type is required at subcontract order entry. The setting in these fields also determine if hours and quantities are required during voucher match and receipts. If neither of these fields are selected, then contract-specific labor information is optional.
The Contract Labor Categories check box indicates whether a contract utilizes contract-specific labor categories. If a contract uses contract-specific labor categories, then hours and job type are validated for all associated transactions. The job type is validated against the Contract Specific Labor Categories table (F52G20).
The Subcontract As Labor check box indicates whether subcontractor labor is treated as labor on a contract. If subcontractor labor is treated as labor on a contract, then hours and contract-specific labor categories are validated for all associated transactions. The job type is validated against the Contract Specific Labor Categories table (F52G20).
You use the Contract Specific Labor Categories program (P52G20) to define valid labor categories. If the system finds that the job type is required but there is no value in the Job Typ field, then the system uses the default value from the Service Billing Constants form. The visual assist on the Job Typ field calls either the UDC 06/G or Contract Specific Labor Categories Search and Select (P52G20S).
Hours and quantities tie in to the general ledger and the JD Edwards EnterpriseOne Contract and Service Billing system. The account number, object account, and job type information pass to the F0911 table. Hours are also stored in payroll. The JD Edwards EnterpriseOne Contract and Service Billing system uses transactions from the F0911 table in order to bill the customer based on the contract.