Labor Expense Allocation

Use the Labor Expense Allocation SuiteApp to allocate payroll costs to benefiting target programs or functional areas.

Most organizations need to classify all expenses into functional areas, and they are fundamental to the organization's financial management and reporting.

In an organization, employees commonly work on tasks in different functional areas. Therefore, the salary expenses must reflect the functional areas where the employees worked.

Using the Labor Expense Allocation SuiteApp, you can allocate labor expenses either by employee rates or by employee pay transactions. With employee rates, you define the employee rates to calculate the labor expense allocation. Whereas, with employee pay transactions, you create employee pay transactions and use these transactions for labor expense allocation.

Benefits of Using Labor Expense Allocation

The key benefits of using the Labor Expense Allocation SuiteApp include:

  • Allocating payroll costs, including salary and fringe benefits, to benefiting programs or functional areas.

  • Viewing and reporting on total direct costs.

Labor Expense Allocation Tasks by Roles

The following diagram illustrates the tasks performed by different roles in the Labor Expense Allocation SuiteApp using employee rates:

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           

The following diagram illustrates the tasks performed by different roles in the Labor Expense Allocation SuiteApp using employee pay transactions:

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   

Labor Expense Allocation Workflows Using Employee Rates

The following is the general workflow for using the Labor Expense Allocation SuiteApp using employee rates:

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     

Refer to the following table for more information about the workflow tasks:

Task

Help Topic

Create employee pay types

Setting Up Employee Pay Types

(Optional) Create new employee pay frequencies

Creating Employee Pay Frequency

Set up labor expense allocation preferences

Setting Up Labor Expense Allocation Preferences

Set up employee rates:

  • Set up expense allocation accounts.

  • Set up employee pay types.

Creating Employee Rates

Manage labor expense allocation periods

Managing Labor Expense Allocation Periods

Fetch employee timesheets

Fetching an Employee Timesheet

Process labor expense allocation period

Processing Labor Expense Allocation Periods

Review and approve labor expense allocation transactions

Approving Labor Expense Allocation Transactions

Review GL impact

Approving Labor Expense Allocation Transactions

Labor Expense Allocation Workflows Using Employee Pay Transactions

The following is the general workflow for using the Labor Expense Allocation SuiteApp using employee pay transactions:

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           

Refer to the following table for more information about the workflow tasks:

Task

Help Topic

(Optional) Create new employee pay frequencies

Creating Employee Pay Frequency

Set up labor expense allocation preferences

Setting Up Labor Expense Allocation Preferences

Create employee pay transactions

Creating Employee Pay Transactions

Manage labor expense allocation periods

Managing Labor Expense Allocation Periods

Fetch employee timesheets

Fetching an Employee Timesheet

Process labor expense allocation period

Processing Labor Expense Allocation Periods

Review and approve labor expense allocation transactions

Approving Labor Expense Allocation Transactions

Review GL impact

Approving Labor Expense Allocation Transactions

Related Topics

Installing the Labor Expense Allocation SuiteApp
Setting Up Labor Expense Allocation
Managing Labor Expense Allocation Periods
Employee Timesheets
Processing Labor Expense Allocation Periods
Approving Labor Expense Allocation Transactions

General Notices