Understanding Labor Burden Billing Lines

Labor burden is the cost that a company incurs as a result of employing people. You link labor burden transactions to a billing line for labor. The billing amount for labor burden is included in the billing lines that you set up for labor.

To display the labor burden amounts that are included in billing lines for labor as a separate line on the invoice for the contract, you must set up a billing line for labor burden. Setting up a separate billing line for labor burden enables you to specify characteristics for the labor burden billing line that differ from the base record.

For example, assume that when you set up a billing line for labor to calculate the billing amount for payroll costs, the amount includes a labor burden transaction for company-paid payroll taxes. Because you have agreed to bill the client for the taxes separately from the payroll costs, you enter a billing line for labor burden to separate the payroll and burden amounts.

Note: You must set up the PDBA or tax type for labor burden for each employee.

See "Entering Employee Deduction, Benefit, and Accrual Instructions" in the JD Edwards EnterpriseOne Applications Human Capital Management Fundamentals Implementation Guide.

When you define billing lines for labor burden, the system automatically supplies the information for the job and the accounts receivable company based on the contract master.

If you don't need to print labor burden billing lines separately from labor billing lines on the invoice, you can include labor burden amounts in labor billing lines by having the system calculate labor burden when you create payroll journal entries.

When you first define a contract billing line for labor burden, the system displays this message:

Warning - Cross-Reference Not Setup

Note: The system highlights the X Ref field until you define a cross-reference for the labor burden billing line.