Currently, when an employee has job cost on a payslip associated with any amount of hours worked...if you add an "add to gross" calculation type 2 (for example, a monthly vehicle, phone or uniform allowance that we have expensed to Overhead), Sage automatically calculates a percentage of job cost of the allowance in addition to hitting an overhead expense account. This is not hitting a direct expense account and causes job cost to not reconcile to direct expense accounts, which also overstates O/H. Also, if the allowance is monthly, it is allocating for that specific payroll week and doesn't consider anything for that said month. This misrepresents job cost, throws out of balance on job cost reports and misrepresents direct expenses along with O/H. There is currently no work around for this issue and is creating accounting reconciliation issues.
by: Katrina G. | over a year ago | Payroll
Comments
I just had to do some payroll corrections and even though every line is job costed it posted my entire cash fringe to OH benefits but still shows on the Job Cost Totals but for only one job of the entire timecard, now my Direct Expense is out of balance! This is a huge pain!