Rules for Method L

Follow these rules:

• Assign to detail accounts.

  If you have a labor account that serves as a summary account for labor accounts at a lower level of detail, such as regular labor and overtime labor, assign method L to the labor account at the highest level of detail and method N or method I to accounts at the lower level of detail.

  Note: The unit of measure should be the same for all of the detail accounts.

• The system calculates PC using the formula (AU / HU) * 100.