Labor Cost Capture

Yahoo Archive
1
Thanks for the input. Yes we sadly did have actual. We don't anymore. 
2
We used to keep labor costs associated to each employee. We are no longer doing this completely as we don't want pay to be able to be visible to others. I'm not an accountant but the statement below is from our accountant (who is new to Epicor). With his lack of Epicor knowledge and my lack of accounting I just wanted to see if we were doing this correctly. This would be for an employee who does not work on direct labor. They are strictly indirect all the time like a maintenance worker. His current labor rate is set to zero. We do not use the payroll module. 

Indirect labor in Epicor flows through an account called Applied Wages.  For example: if there is a labor cost associated with an indirect employee in Epicor, the entry is credit to applied wages and debit to indirect labor. However, because we do not run payroll through Epicor this amount in Applied wages needs to be flushed out at the end of the month, basically reversing the initial entry to clear the Applied Wages account.  The cost gets reconciled through the payroll journal entry using the indirect/direct labor report, therefore, any employee that does not work directly on jobs, such as maintenance, does not need to have a cost associated to them.   

3
I am not an Accounting person either but we have our Indirect employees set up with 0 labor rate.  The  others are all set the same labor rate.  This labor rate doesn't reflect any relation to their pay.  We don't use the payroll either.  The labor rate is set buy accounting and I am sure related back to what we charge to customer for the work.  I am not sure why anyone would see what an employee makes unless you have their actual pay in for labor rate.
Thanks Kim


On Thursday, January 8, 2015 8:21 AM, "jsmith@... [vantage]" <vantage@yahoogroups.com> wrote:


  
<div id="ygrps-yiv-76049520yiv0253523450ygrp-text">
  
  
  <div>We used to keep labor costs associated to each employee. We are no longer doing this completely as we don&#39;t want pay to be able to be visible to others. I&#39;m not an accountant but the statement below is from our accountant (who is new to Epicor). With his lack of Epicor knowledge and my lack of accounting I just wanted to see if we were doing this correctly. This would be for an employee who does not work on direct labor. They are strictly indirect all the time like a maintenance worker. His current labor rate is set to zero. We do not use the payroll module.&nbsp;</div><div><br clear="none"></div><div><span style="color:rgb(31, 73, 125);font-size:11pt;">Indirect labor in Epicor flows through an account

called Applied Wages.  For example: if there is a labor cost associated
with an indirect employee in Epicor, the entry is credit to applied wages and
debit to indirect labor. However, because we do not run payroll through Epicor
this amount in Applied wages needs to be flushed out at the end of the month,
basically reversing the initial entry to clear the Applied Wages account. 
The cost gets reconciled through the payroll journal entry using the
indirect/direct labor report, therefore, any employee that does not work
directly on jobs, such as maintenance, does not need to have a cost associated
to them.   


</div>
 


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4

Kim is right, the labor rate on the employee screen is used for actual costing on jobs.  Nothing to do with payroll.

 

Manasa

 

 

From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com]
Sent: Thursday, January 08, 2015 11:20 AM
To: vantage@yahoogroups.com
Subject: Re: [Vantage] Labor Cost Capture

 

 

I am not an Accounting person either but we have our Indirect employees set up with 0 labor rate.  The  others are all set the same labor rate.  This labor rate doesn't reflect any relation to their pay.  We don't use the payroll either.  The labor rate is set buy accounting and I am sure related back to what we charge to customer for the work.  I am not sure why anyone would see what an employee makes unless you have their actual pay in for labor rate.

Thanks Kim

 

On Thursday, January 8, 2015 8:21 AM, "jsmith@... [vantage]" <vantage@yahoogroups.com> wrote:

 

 

We used to keep labor costs associated to each employee. We are no longer doing this completely as we don't want pay to be able to be visible to others. I'm not an accountant but the statement below is from our accountant (who is new to Epicor). With his lack of Epicor knowledge and my lack of accounting I just wanted to see if we were doing this correctly. This would be for an employee who does not work on direct labor. They are strictly indirect all the time like a maintenance worker. His current labor rate is set to zero. We do not use the payroll module. 

 

Indirect labor in Epicor flows through an account called Applied Wages.  For example: if there is a labor cost associated with an indirect employee in Epicor, the entry is credit to applied wages and debit to indirect labor. However, because we do not run payroll through Epicor this amount in Applied wages needs to be flushed out at the end of the month, basically reversing the initial entry to clear the Applied Wages account.  The cost gets reconciled through the payroll journal entry using the indirect/direct labor report, therefore, any employee that does not work directly on jobs, such as maintenance, does not need to have a cost associated to them.