Understanding Setup for Contract-Specific Labor Categories

To use labor categories with an advanced contract billing 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 Advanced 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:

Contract Labor Categories (CLCA)	Subcontract As Labor (SUBLAB)	Object Account	Job Type	Hours (timecards) or Service Quantity (subcontracts)	Result
Selected	Selected	Employee Labor	Required	Required	The job type must be a valid contract-specific labor category for the contract.
Selected	Selected	Subcontract Labor	Required	Required	The job type must be a valid contract-specific labor category for the contract.
Selected	Selected	Non-labor	Optional	Optional	If you enter a job type, the job type must be a valid contract-specific labor category for the contract.
Selected	Cleared	Employee Labor	Required	Required	The job type must be a valid contract-specific labor category for the contract.
Selected	Cleared	Subcontract Labor	Optional	Optional	If you enter a job type, the job type must be a valid contract-specific labor category for the contract.
Selected	Cleared	Non-labor	Optional	Optional	If you enter a job type, the job type must be a valid contract-specific labor category for the contract.
Cleared	Selected	Employee Labor	Optional	Required	If you enter a job type, the job type must be valid in UDC table 06/G.
Cleared	Selected	Subcontract Labor	Optional	Required	If you enter a job type, the job type must be valid in UDC table 06/G.
Cleared	Selected	Non-labor	Optional	Optional	If you enter a job type, the job type must be valid in UDC table 06/G.
Cleared	Selected	Any object account	Optional	Optional	If you enter a job type, the job type must be valid in UDC table 06/G.

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.