Document Ref: Date: PR-HT014 Oct-02-2014 Document Version: 1.0 Regions: US/CA/AUS Earliest available version of COINS: 10.23 These notes are published as guidelines only. This How to Guide may contain recommendations about configuration changes. Your configuration will almost certainly vary from the examples given in this document. Any configuration changes should always be applied to a separate non-live environment first and tested to prove that the features work as you require. Should you have any difficulties with this please contact the COINS Support Center or your account representative to arrange for some COINS consultancy. Please note that you should not expect the Support team to conduct configuration changes for you. 2014 Construction Industry Solutions
CONTENTS 1 Purpose of this Document... 3 1.1 Overview of Functionality... 3 2 Configuration... 4 2.1 Employee Allocation Types... 4 2.2 Employee Maintenance... 5 2.3 Allocation Groups and Calculations... 5 2.3.1 Define GL Credit Account... 8 2.3.2 Define Allocations as a Percent of Pay Item... 10 2.3.3 Define Cost Type and Cost Category (Cost Head and Cost Category)... 11 2.4 Assign Allocation Groups to Costing Elements... 12 2.4.1 Assign Allocation Groups for General Ledger, Asset, or Workshop Transactions... 12 2.4.2 Assign Allocation Groups for Job Cost Transactions... 13 2.4.3 Information about Service Orders... 14 3 Other Information... 15 3.1 Payroll Calculations and Allocations... 15 Construction Industry Solutions, Oct-02-2014 Page 2 of 15
1 Purpose of this Document 1.1 Overview of Functionality Payroll Allocations are used to calculate additional costs on a timecard to a Job, Asset, Workshop, or General Ledger account for costs such as a Truck Charge, Overhead Costs, and Small Tool Charge. The charge basis can be Flat Amount, Hourly, or a Percent of Gross Wages. Typically, similar charges apply across all jobs for similar employees. For example, direct hours worked for Superintendents and Foremen may include a Truck Charge of $6.00 per hour in addition to ordinary labor charges, such as Workers Compensation insurance or employer s Medicare tax. COINS uses Allocation Calculations within an Allocation Group to generate additional timecard costs. The individual calculations can be configured to apply to certain types of employees or to certain earnings categories. For payroll timecards that are costed to a Job, the Allocation Group is entered on a Job or Section and defaults to the timecard; for all other timecards, Allocation Groups are defined in Payroll Parameters and default to the timecard. Construction Industry Solutions, Oct-02-2014 Page 3 of 15
2 Configuration 2.1 Employee Allocation Types Employee Allocation Types (Figure 1) are maintained in Payroll Global Setup. They are associated with Allocation Calculations within an Allocation Group. A particular calculation, such as a Truck Charge, only runs for employees who have that type in their File Maintenance. Set up Employee Allocation Types that control which allocations can be run for certain types of employees. NOTE For example, you may choose to assign all of your field employees an Allocation Type of F, and assign Superintendents and General Foremen types of S and G, respectively. When creating the Allocation Calculations for a Truck Charge, only include S and G as valid Allocation Types. Any employee whose type is F is excluded from the calculation. Figure 1: Employee Allocation Types Construction Industry Solutions, Oct-02-2014 Page 4 of 15
2.2 Employee Maintenance In Employee Maintenance (Figure 2), enter an Employee Allocation Type in the Employee File. During Payroll Calculations, the Employee Allocation Type is evaluated against each allocation calculation in the timecard s Allocation Group to determine if allocated costs should be created for the transaction. Figure 2: Employee Maintenance 2.3 Allocation Groups and Calculations Create Allocation Groups (Figure 3) that contain additional charges associated with Labor. Ordinary employer burdens such as taxes and insurance are handled through other Payroll processes; allocations can be used to allocate other intangible costs or consumables, such as Overhead Charges and Small Tools to a Job, Asset, Workshop, or General Ledger account. A single Allocation Group may hold many calculations. Allocation Groups are generally associated with similar types of work. Types of work, such as Jobs, Service Orders, and Asset maintenance, may be considered similar because of the nature of the work, geography, or other factors. Construction Industry Solutions, Oct-02-2014 Page 5 of 15
Figure 3: Allocation Groups Create Allocation Calculations (Figure 4) for each Group by clicking the hyperlink of the Allocation Group code on the Allocation Groups screen (Figure 3). One or many calculations can be associated with a single Group, and they may apply to different employee types and earnings categories. Construction Industry Solutions, Oct-02-2014 Page 6 of 15
Figure 4: Allocation Group Calculations You can enter maximum amounts or hours for an allocation and define how the General Ledger Credit Account is defined (Figure 5) by drilling on the Calculation Number hyperlink on the Allocation Group Calculations screen (Figure 4). You may also define Valid Employee Allocation Types as well as Excluded Earnings Categories. Construction Industry Solutions, Oct-02-2014 Page 7 of 15
Figure 5: Allocation Calculations Main Tab 2.3.1 Define GL Credit Account You may derive the GL Credit Account from either the Pay Item or, beginning with COINS version 10.28, from the timecard s expense account. If you choose to derive the GL Credit Account from the Pay Item, enter the GL account or GL Mask directly onto the Costing tab of the Pay Item assigned to the calculation, as shown in Figure 6. In this example, the first element of the General Ledger is found in the employee s Department, while the remainder of the GL account comes from the Pay Item. Construction Industry Solutions, Oct-02-2014 Page 8 of 15
Figure 6: Pay Item Costing Tab If you choose to derive the GL Credit Account from the timecards, do not enter any General Ledger information on the Pay Item. On the Allocation Calculation, tick the box that indicates the Credit Account will be derived from Cost, and then enter masking (underscores) for the portion of GL elements to be derived from the timecard. In the example shown in Figure 7, the first two elements of the GL account come from the Timecard s expense account, while the last element is fixed with Account 26900. This allows the credit to follow the Job or Service Order s Division or Profit Center. Construction Industry Solutions, Oct-02-2014 Page 9 of 15
Figure 7: Allocation Calculation GL Credit Account Setup 2.3.2 Define Allocations as a Percent of Pay Item You may find that you would like to base an allocation on something other than Gross Wages or Hours Worked. Another option is to use Pay Items to compute the basis for an allocation charged as a percent of some value. For example, it is possible that PM Costs will be computed as an additional charge of 10% of Gross Labor plus Employer Burden of taxes and insurances. To accomplish this, set up a new Pay Item that is the sum of Labor plus Employer SS Tax, Medicare Tax, FUTA, SUTA, Workers Comp, etc. In the Rates section of the Allocation Calculation, set the Percent Basis to Item Current Amount, and then enter the new Pay Item in the Percent Basis Item field, as shown in Figure 8. You must make sure that the new Pay Item is added to your Item Sequence, and also that it comes after all the values being summed into it, but before the Pay Item that will hold the result of the Allocation. Construction Industry Solutions, Oct-02-2014 Page 10 of 15
Figure 8: Percent of Pay Item Setup 2.3.3 Define Cost Type and Cost Category (Cost Head and Cost Category) Allocations can be configured so that the value of the calculation is added to the timecard s total value, or it can be set up to be directed at a unique Cost Type and Cost Category (Cost Head and Cost Category). Set the Cost Type and Cost Category (Cost Head and Cost Category) on the Pay Item if you wish to control where the value of an allocation should be applied. In Pay Items, open the Pay Item defined in the ITEM field of Allocation Calculations. Enter the Cost Type and Cost Category (Cost Head and Cost Category) that will receive the allocated cost, as shown in Figure 9. When payroll is processed for Job, Asset, or Workshop timecards, the Cost Type for the transaction will be derived from the Pay Item. Construction Industry Solutions, Oct-02-2014 Page 11 of 15
Figure 9: Define Cost Type and Category on Pay Item 2.4 Assign Allocation Groups to Costing Elements In order for Allocation Groups to default to timecards, the groups must be associated with the Jobs, Assets, Workshop, and General Ledger. 2.4.1 Assign Allocation Groups for General Ledger, Asset, or Workshop Transactions Three Global Payroll Parameters (Figure 10) were added to Payroll beginning with v10.28; these parameters allow you to set the timecard default Allocation Group for transactions that reference General Ledger, Asset, or Workshop cost methods. The values defined in the parameters default onto a timecard based on the timecard s costing method of Asset, General Ledger, or Workshop. Construction Industry Solutions, Oct-02-2014 Page 12 of 15
Figure 10: Allocation Parameters in Payroll 2.4.2 Assign Allocation Groups for Job Cost Transactions Allocation Groups default to Payroll timecards based on the setup of the Job or, if applicable, the Job s Section. If a Job does not use Sections, the value displayed on the Payroll Info tab of Job setup (Figure 11) defaults to the Payroll timecard. Figure 11: Job File - Payroll Info Tab If a Job uses Sections, you should first look to obtain the Allocation Group from the Job s Section; if that value is blank, you can get the Allocation Group from the Job. Construction Industry Solutions, Oct-02-2014 Page 13 of 15
2.4.3 Information about Service Orders Many clients use the Service Management module in OA. A Service Order is directly linked to a Job and Section in the Job Status module. In the event a Job s Section is created as a result of being linked to a Service Order, the Allocation Group is derived from the Service Order and set on the Section. If you need to add or update the Allocation Group on a Job s Section that is tied to a Service Order, you must make the change in Service Management. Open the Service Order and navigate to the PR Info tab of Allowable Work (Figure 12). Update the Allocation Group on the Service Order s Allowable Work record. When you save your change, the corresponding Section on the Costing Job is also updated. Figure 12: Service Orders - PR Info Tab Construction Industry Solutions, Oct-02-2014 Page 14 of 15
3 Other Information 3.1 Payroll Calculations and Allocations Payroll Calculations compute Allocation Calculations for each individual timecard based on the Allocation Group on the timecard, the Employee Type in the Employee File, and the Earnings Category used on the timecard. This setup allows you to define which type of Payroll transactions should receive certain Allocation Calculations. For example, you may not want to add allocated Small Tool cost to an employee s Auto Allowance; or you may not want to allocate PTO expense to a timecard that represents paid leave. The Gross Payroll Register report includes the value of Allocations by transaction. Use this report to see the sum of all labor charged to an Asset, Workshop, General Ledger, or Job Cost transaction. To view the value of allocations associated with a payroll period, go to the Burden Detail tab of Timesheets, as shown in Figure 13. Here you can browse through checks or Export to Excel to assess the reasonability of the Allocation charges. Figure 13: Timesheets Net Detail If you wish to see allocation detail about a specific employee s check (Figure 14), drill on the hyperlink for the Allocation cost (Figure 13). Figure 14: Allocation Detail Construction Industry Solutions, Oct-02-2014 Page 15 of 15