Topic Disclaimer An accounting question from an IT person
Could someome explain to me how Indirect Labor codes and suppose to work vs. standard Direct Labor, from a GL & Payroll posting standpoint? And how the four Account Context fields (Applied Labor, Applied Overhead, COS Burden, COS Labor) in the GL control attached to the expense codes which is connected to the Labor Codes should be setup?
I believe or are not setup correctly, and our CFO is asking how it’s supposed to work.
Just wondering if you got an answer to this question.
I wish I could be more help, but I’m still not sure how the indirect codes are supposed to work in relation to the GL…
Top Level ICW code will have context for COSLabor and COSBurden that is where Indirect flows. If you create GL control codes and apply them to the indirect codes, resource, or individual those can filter to different buckets but only if you have the COSLabor and COSBurden contexts filled in.
The transaction type is “Labor” vs a standard “MTL-STK”, “STK-STK” sort of thing. If it doesn’t find a top level account in ICW it will try to get it from the JCDept.
These are the contexts in the control code that need filling out
This is otherwise undocumented by normal means such as the technical ref manual but the information for it can be found here