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.
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.