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Project Accounting - Fully Burdened Job Costing & Payroll

  • 30 November 2020
  • 3 replies
  • 108 views

Background:

  • We have UKG Ready for Time & Attendance (old Kronos)
  • We have UKG Pro for Payroll (old UltiPro)
  • We have IDI Contractor Central for job costing, prevailing wage, and certified jobs
  • We use cost over cost (input method) accounting for revenue recognition

Problem: what is the best method for accounting for labor costs and payroll costs in Acumatica?

Solution 1:

  • Feed timesheet and payroll data to IDI. Have IDI calculate fully burdened project labor costs.
  • Upload project labor costs from IDI to Acumatica in an off balance account group that doesn’t hit the G/L
  • Upload direct labor payroll and benefit costs from UKG Pro to Direct Labor accounts as journal transactions, NOT project transactions.
  • Upload indirect labor payroll and benefits costs from UKG Pro to SG&A via journal transactions.

Solution 2:

  • Feed timesheet data (including project / task) to UltiPro for payroll run.
  • Upload payroll and benefit costs to SG&A accounts as journal transactions.
  • Secondary journal transactions to move from indirect accounts to direct labor accounts. This would include Project / Task to account for Direct Labor to the correct projects.
  • Each project would have detailed transactions, including wages, employer burden, and benefit costs.
  • No off balance accounts required

Anyone have any experience that they could share? I’m interested in learning what others are doing when they have 3rd party Time / Payroll systems in the mix.

Thanks in advance for any insights.

Colm

 

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Best answer by Denise Johnson 6 May 2021, 17:05

Hi @cmoore56

 

If you are not using Acumatica Payroll, you can use Allocations to set up an automatic burden rate with a Billing Rule when they are imported in.   

 

Let me know if that helps,
Denise

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Hi @Colm Lennon 

Thank you for submitting your question here in the Acumatica Community! 

There are several paths to consider here.   

I understand you are using IDI as the piece that transfers between Acumatica and Ultipro.  

Depending on the needs - You can send time information directly to the Time module or with 2021 R1 you can send time directly to Payroll for processing.   Acumatica payroll has both Certified and Union capabilities.  We also have the ability for Payroll to send Wage cost and Wage and Burden Costs to Projects.  

We can discuss further as well if you’d like - please email me at denise.johnson@acumatica.com to set up a time.  

 

Solution 2 is what we are currently using. We also have UKG (Old UltiPro) as our Payroll system.

We load project and task into UKG, calculate payroll, and then report out of UKG in a way that we can import into Journal Transactions for both SG&A and project costing. We then apply a 15% burden rate to the jobs and offset in an Over/(Under) applied burden account for the actual amounts to be posted against when reclassed from the payroll clearing account

 

Hope that helps!

 

Cassie

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Hi @cmoore56

 

If you are not using Acumatica Payroll, you can use Allocations to set up an automatic burden rate with a Billing Rule when they are imported in.   

 

Let me know if that helps,
Denise

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