GL Updates: Work Completed Labor

The system updates the General Ledger (GL) for work completed labor lines once you run the PR Ledger Update.

Work completed labor lines are handled somewhat differently in that no batch processing is done in SM. When you create a work completed labor line, the system creates a timesheet in PR My Timesheet.

Note: The system only creates timesheets if you selected the PR interface check box in SM Company Parameters. If you did not check the PR interface box, the system does not create timesheet entries in PR; however, labor entries added directly in PR My Timesheets or PR Timecard Entry will generate work completed labor lines (in SM).

Once you approve timesheets and post the timecard batches, you must then process payroll and run PR Ledger Update. If you selected the Interface PR to GL check box in PR Company Parameters, the system updates the Cost or Cost WIP account (depending on whether the call type is tracking WIP) specified for the work completed line with the "total amount" (gross + burden). It then creates one offsetting entry for the gross amount to the SM Applied Earnings account (defined by Earnings Type in PR Departments) and one offsetting entry for the burden amount to the SM Applied Burden account (defined by Liability Type in PR Departments Earnings Type).

Note: There is no interface level defined in PR; the system always generates a summarized entry for each applicable GL account.
For example, if you are tracking WIP for a call type, the update to GL for labor work completed would be as follows:

Job Work Orders

If the work order is job-related and you have checked the JC interface box in SM Company Parameters, the system will update the Total Billable for the work completed line as cost to Job Cost and create GL entries using the Cost or Cost WIP account (if tracking WIP) specified for the work completed line, with offsetting entries to the JC Applied Earnings account and JC Applied Burden account in PR Departments. However, it will also create additional entries to the GL account defined for the phase or cost type in JC Departments for the job's department, as well as the Revenue or Revenue WIP account (if tracking WIP) specified for the work completed line.

So, if you are tracking WIP for a call type, the update to GL would be as follows:

* If a GL account is defined for the phase (on the work order scope), the system will debit the phase's GL account, regardless of whether a GL account is defined for the cost type specified on the work completed line. The system will only use the cost type's GL account when no GL account is defined for the phase.

Note: The Costing Method defined for a work order determines the amount that will be updated to Job Cost. If the Costing Method is Actual Cost, the system sets the Total Billable for the work completed line equal to the Actual Cost amount and sends this amount to JC. If the Costing Method is Markup, the system calculates the Total Billable amount using the rate template for the scope and sends this amount to JC. However, because the Total Billable amount can include markups with this method, this may cause the amounts updated to GL to differ.
For example, using the GL account example from above, if the Cost Amount is $1000 and the Total Billable is $1500, the GL account updates would be as follows: