SYSTEM CONTROL - The Power Tools



POWER TOOLS

Documentation – Payroll

System Control Overview 2

Account Setup 3

Company Maintenance 4

Job File 6

Bank Accounts 10

Classes 11

Jobber Setup 13

System Control

The System Control consists of two sections.

Account Setup

The Account Setup is used to setup defaults for automatic processes performed in the Windows Accounting modules.

Processes include:

Work In Process journal entries (over/under billings)

End of Year automatic journal entries for closing jobs/expenses

AP and AR asset and liability accounts

Profit/Loss accounts

Control Numbers for Payroll overhead processing

Companies – setup for automatic GL entries and company information

Jobs File – add/edit jobs/controls to be used for data input - including labor

overhead processing.

Bank Accounts - add/edit each bank to be used by the accounting system

Transaction Classes – setup for classes (Material, Labor, etc.) used during data input

Job Cost Setup

The Job Cost Setup contains the cost types, divisions, and profit center screens utilized in the JCPM and GL module.

The information entered here will affect the JCPM module and should be accessed with approval only.

Change Job Data – Qualification Statement – allows access to basic job information

Job Cost Types – setup for type breakdown in job cost reporting

Division – setup for user-defined job filters (type, location, etc)

Profit Centers – additional setup for user-defined filters for jobs (year, type, etc)

Account Setup

Company Maintenance

NOTE: Any changes make to this screen will affect the accounting system and should be made with caution.

Company Name Full – This will be the name used on all reports and documents

Company Name Short – Unused at this time – not a required field

Federal ID Number - included on any accounting reports requiring Fed ID such as W-2s and 1099s

Company Directory – location of data files for the company info. Set up by Power Tools Support

Address/Phone/Fax – utilized on W-2 and 1099 reporting as well as populates the Contractor address on the job setup

Default account numbers for A/R and General Ledger processing

Accounts Receivable – enter the asset account for unpaid receivables

Retainage Receivable – enter the asset account for unbilled receivable retainage

Excess Cost/Recognized Profit – enter the asset account for under-billings – used during

auto WIP monthly journal entries

Excess Billings – enter the liability account for excess billings – used during auto WIP

monthly journal entries.

Ret’d Earnings Account – used during End of Year Processing to close out income

statement.

Current Yr Profit or Loss Account – used to plug income or loss to financial statement

Prior Yr Revenues – used during End of Year Processing to recognized revenues

brought forward into the new year

Prior Yr Job Cost – used during End of Year Processing to recognize job cost

brought forward into the new year

P & L Accounts Start > Than – Usually set to 39999 – this marks the last account in

the Balance Sheet. This lets the GL System know where to begin closing out

accounts in the End of Year Process.

First Revenue Acct – List the first account in the revenue division (usually 40000)

Last Revenue Acct – List the last account in the revenue division (usually 49999)

AR Bank Account – Enter the default cash account for AR Cash entries – can be changed during entry of receipts

Excess Billings – account to be used for offset during automatic WIP processing

Excess Cost – account to be used for offset during automatic WIP processing

Warnings – check each warning to be tracked through Accounts Payable Processing.

If checked, Accounts Payable will notify the user within one month of the expiration date of the Worker’s Comp, General Liability, and Auto Insurance policies.

W-9 - Track whether a W-9 has been received and checked off in the AP Vendor File

Letters to Notify Accounting – track back-charge and other pertinent letters from Project

Management specific to the job, vendor, and commitment.

SCO Not Locked – track subcontract change orders not verified and locked by Accounting.

Show Company Name with Bitmap – check if Company Name (at top of screen) should be

displayed in addition to the company logo.

Auto AP Batch w/ Date – if checked, the AP Invoice entry will not require a batch number to be entered. The invoice will receive a batch # using the computer date and user name.

If not checked, the invoice entry will require a batch number to be added or selected before entering the data entry screen.

The remaining options are for UCS support only. Password is required to make any further changes in the system.

Jobs File

The Job file contains Control information for each job including state located, certified payroll status and PR overhead related items including actual or percentage allocation of labor burden.

Use the Single Record View button to view a job in a single form format.

The Control Number is used during AP invoice and payroll input to allow for ‘By Control’ reporting and check processing.

NOTE: In addition to the jobs, a control for miscellaneous/office expenses will be necessary for AP processing. Control number “00001” is an example of a commonly used G&A control for AP.

Batching indirect expenses under Control 00001, non-job related items can be paid separately and reported separately by Control.

Non-job account numbers for payroll distribution are also required to be entered in the job file.

Job are auto added to the Job File. Default job 99999 includes the default setup of the job/control file. Once the job is added, it can be edited to include different values. For example, the default may be set in State 10 – Florida. A new job may be in State 11 - Georgia. This can be changed simply by selecting the job number and changing the state.

Job Number/ Name - This info will be plugged directly from the information entered into Job Cost. If changes are necessary, edit name for this Job as is should appear.

State Located - This is a Mandatory Field. Enter the appropriate two-digit State Code. The State Tax routine in the Payroll Tax Calculation File accesses these codes.

County Located - This field is required if the county in which the job is located imposes a withholding tax on the employees that work in the county.

If applicable, enter the user-defined code assigned to the county where the job is located. The county is set up in the PR program – State, County, City option.

City Located - This field is required if the city in which the job is located imposes a withholding tax on the employees that work in the city. The city is set up in the PR program – State, County, City option.

Tax Res State – Determines whether the employee will be taxed in their home state or the job location state.

Leave unchecked if the employee is to be taxed in state in which the job is located.

Check if the employee is to be taxed in the state in which they live – according to the state in their employee file.

NOTE: Under most state laws, the employee is taxed according to the location of the job. However, it is recommended that you check into the state laws for the employee’s residence and the job location to insure the proper withholding of taxes.

Certified Journal Required - Check if this job requires certified journal reports. If so, the payroll hours should be entered by day for the proper report detail.

Charge Percent Overhead - Check to include a percentage of gross wages each pay period. May include indirect overhead such as insurance, taxes, etc.

Charge Percent - Enter a percentage for the amount of overhead to be calculated

Account Debit - Enter the job # See below for distribution options

If the overhead it to be distributed to a specific code, enter the cost code and sub-code

If the overhead is to be distributed to the individual payroll distribution codes enter 00000-0000 for the code/sub.

Account Credit – Enter the appropriate GL number for the overhead credit offset. This account is commonly an Applied Wage Related Overhead.

Tran Class - Separating the overhead by selecting a class/type other than PR will allow the JC and GL systems to break out the overhead in a separate subtotal. However, a budget will be required for each account used for the overhead.

A common practice is to have a labor burden class set to reference the labor type. This breaks out the labor burden by class but will not require an additional budget line item for the overhead.

Summary or Detail - This code defines how the payroll distributions will be transferred to the job cost. The default is ‘S’ (summary). Payroll entries will be summarized by code and week ending date during the transfer to JC and GL. Select ‘D’ (detail) to list individual employee distributions on job reports (not recommended).

Charges Actual

The information entered here determines which actual labor related overhead costs will be charged to the Job Cost and General Ledger systems. This “actual” cost transfer is processed during the Payroll Current Pay Period and can be used in conjunction with the percentage method of charging labor overhead. The actual overhead is calculated on Regular, Overtime, and Double Time wages only.

Check each type of overhead to be used (FICA, FUTA, SUTA, WORKERS COMP)

Charge Account - Enter the account/job that is to be debited with this overhead cost.

If the overhead is to be coded to one specific cost code, enter the cost code.

If the overhead is to be coded to where time was distributed, enter all nines for the cost code

(99999-9999).

GL Credit Acct - Enter the General Ledger account to be credited with the overhead costs. The account can be either a Applied Wage Related Overhead. The SUTA, and FUTA may be accrued by entering the liability account.

Tran Class - Enter the Class Code to be used when posting the overhead cost. Examples are “OH” for Overhead, “LB” for Labor Burden, “BU” for Burden.

The Actual Overhead transfer is available for:

FICA

FICA Overhead is based on the appropriate gross wages up to the limit and the FICA Employer Percent. Appropriate wages are determined by the Other Income taxable status and SEC 125 deduction amounts.

FUTA

FUTA Overhead is based on the appropriate gross wages up to the limit and the FUTA Employer Percent. Appropriate wages are determined by the Other Income taxable status, 401(K) deductions, and SEC 125 deduction amounts.

SUTA

Before calculating the actual overhead for SUTA, the system will first determine whether to use the Company State or the Employee’s Resident State.

Once the state to use is determined, the unemployment rate and limit for that state will be used (see System Control State/County/City File documentation).

Worker Comp

The wages used to calculate Worker Comp Overhead costs are determined by the W. Comp rate and limit that corresponds with the employee’s labor class

Union Fringe

The Overhead cost calculation for Union Fringes is based on the same entries outlined in the PR Union File Maint/Print and the Payroll Appendix G documentation.

Lump Sum By Employee – This method prorates a set dollar amount entered in the employee file to each job used for payroll distribution per pay period.

Percent X Earnings – This method is similar to the Charge Percent Overhead but is calculated using Regular, Overtime, and Double Time earnings. A limit per pay period may be entered to control the total overhead.

Rate X Hours - This Overhead cost will be calculated using Regular, Overtime, and Double Time hours. A limit per pay period may be entered to control the total overhead.

Bank Accounts

The bank account screen is used to track the daily cash flow throughout the system using the Cash Manager module. The bank account setup also includes bank information used for direct deposit and positive pay processing.

Bank Name – Enter the name of the financial institution or nickname for bank. This displays in the bank selection dropdown during check print processing and AR receipt entry.

Company # - Enter the company to which this bank belongs

Bank # - Enter the GL Account Number for this bank

GL Cash Acct – Enter the GL Account Number for this bank

GL Subsid – Normally a 0’s unless the cash account is being detailed further

GL Div/Dept – If this cash account is to be set in a specific division, enter the division #

Bank Acct # - Enter the actual bank account number for this bank account

Account Type – Select the type of account – payroll, money market, general, etc.

Bank ABA # - Enter the ABA number – used in direct deposit processing

Address - Enter the address information for this bank

Contact – Enter the main contact person at the banking facility

Phone, Fax – Enter the contact numbers for this banking facility

Direct Deposit - Mark if direct deposit processing is used in PR

Deposit Name – Enter bank name required for direct deposit

Routing Number – Enter the routing # required for the direct deposit

Customer ID # - Company’s FEIN proceeded by a 1 – required for direct deposit processing

Active – uncheck if the bank is inactive – will not display in drop-down for bank selection

Transaction Classes

The transaction classes play a vital part in the accounting and Job Cost system. The classes not only determine the classification of the invoice but the way the invoice will be handled by the system.

When an invoice is entered into the system, only budgets entered for that class and corresponding type will be displayed. However, a class may be set up to list multiple types if needed.

Reports such as AP Check Registers, GL Detail Listings, Jobber Detail Listings, etc. can be processed by class. Data can also be sorted or filtered by class and/or type.

Classes can be set up to require a commitment or purchase order before invoicing. This allows the user to control the total dollars spent on a specific vendor and order.

The classes also correspond with a Job Cost Type. The type is used by Jobber for budgeting and reporting purposes. The estimates (budgets or cost items) are entered by type (subcontract, materials, equipment, etc). The invoice distribution will be charged to the budgets and be reflected in the Jobber reports.

The two digit class will show in the drop down menu on AP and Journal Entry processing and the two digit class and three digit type description will show on the drop down menus throughout Jobber for filtering purposes.

Class - Enter the two digit class. This will display in the drop down menu during AP invoice and journal entry processing. Examples are MI – material, MS – miscellaneous, OT – other, LB – labor burden, SC – Subcontract, etc.

Description – Enter a description for the class. The description will display when selecting the class.

If this class will require a commitment or order (such as subcontract or purchase order) check the Commitment box.

Commit Type – enter the commitment type. Type is either PO – Purchase Order, or SC – subcontract.

Type - Enter the Type for this class. For example – MI may be a Type 1 for Materials. This is where the class MI will subtotal on Jobber Reports and will determine only type 1 budgets will show during invoice entry. PO can also be set up as a Type 1 as Purchase Orders are most likely for materials. PO will be a Type 1 and will subtotal under Materials BUT it will be checked as a commitment so an order will be required before invoices are processed.

The types can be selected at the bottom in the Class Control section – a dropdown selection is available in this portion of the setup and will populate the top portion when selected.

Auto Distribution – Enter the liability accounts for each of the classes. This is the automatic distribution for the open invoices and payments. This is the balancing offset to the invoice distribution and the cash account when paying an invoice.

Multiple Type Distribution

Because classes and types play such a large part in the invoice processing, the system allows for multiple types to be added for classes. By allowing the user to set up multiple types for each class, multiple invoices for the same bill can be avoided. For example: a credit card bill may include dinner with a client (budgeted to type Other), small tools (budgeted to Equipment), and a few materials for the job (budgeted to Materials). Each of these budgets are different types. To get the cost to the correct budget, it would normally be four separate invoices as the class would have to be entered as an MI, an OT, and EQ (in order for the budgets entered to those types to show during distribution). By selecting multiple types for the classes, one invoice can be entered and coded to the budgets for Material, Equipment, and Other during distribution of the invoice.

The OT class in the example below includes multiple types. The user can enter distributions to budgets with Other, Labor, Subcontract, and Equipment types.

Job Cost Setup

The job cost setup screen includes the default cost types, divisions, and profit centers used in both job cost and financial reporting.

The menu also offers a Qualification Statement that includes active jobs with job information, contract amounts, and percent complete.

Change Job Data – Qualification Statement

The Change Job Data-Qualification Statement option includes portions of the job file that can be edited as the information is received. This information is also in the Job File in JCPM. Entries can be made in either location.

The Header Lines option allows the user to add additional heading information to the Qualification Statement. Enter the desired information on the lines 1-6. Refresh Preview will display the heading portion of the report for review.

Qualification Statement Example

Job Cost Types

This option is used to set up and maintain the cost types used by the accounting department. The types are used by Job Cost to give totals by type of cost (labor, materials, subcontract, and equipment).

If the Auto With WIP Date is checked, the type field in the Cost To Date menu will automatically change with the WIP date.

If Auto with PR Maximum Date is checked, the labor types will automatically change with the last date payroll was transferred. Any To Date reports will include the WIP information for journal entries and AP, but will be through the last payroll transfer date for any labor and overhead.

Divisions

The Maintain Divisions screen is used to add new divisions or change existing division descriptions.

Divisions are used to track jobs more specifically than by just job number. You can track jobs by city or state for example. Divisions may also be used to track buildings in a multiple building contract or track types of jobs (residential, commercial, etc)

To enter a new division, click in the empty field at the end of the file. Enter the new number and description.

Profit Centers

Profit Centers are an additional filtering tool. They can be used to break down jobs further for reporting purposes. Examples may be types of jobs – warehouses, hospitals, etc.

To enter a new profit center, click in the empty field at the end of the file.

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Single Record View

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