I am in situation where employee gets paid fixed salary for month via outsource payroll and then consolidated journal would be passed to GL against individual employee and cost center for the specific month.
Now when project costing module gets implemented in couple of months then employee cost on individual project would also be pass to GL against individual employee, project and cost center. At the end in GL for specific month there would be double cost.
Given in situation there is mandate requirment of transferring cost from Project module to GL in order to account project wise employee cost how to solve this issue.
Lets take example - Say Mr.Mathew is drawing fixed salary of 5000 USD / month for DEC-12 and working on 2 different projects for equal number of hours (88hrs/ project) then transaction would be follows as shown below.
The salary is sent to GL and charge payroll account XXXXX
When you import the employee time to Projects, you will distribute the expenditures. Verify you set up the auto accounting rules so the project labor costs will debit the project cost account on GL and credit the payroll account XXXXX.
At the end of each period you will see that the employee salary was allocated to the projects.
If the labor rate you use are not accurate, you will see that payroll account XXXXX is not totally offset. Remaining balance of account XXXXX has not been absorbed in project costs. Depending on the significance of the residuals, you may consider updating the labor rate and recosting.