5 Replies Latest reply on Jan 3, 2013 12:33 PM by GovindVenu

    How to handle Fixed salary payroll cost in Projects?

      Hello Experts / Dina,

      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.

      Salary Cost from Payroll To GL -

      Project "0"- Mathew - DEC-12 - 5000 USD - Expense a/c (Salary Expense A/c)

      Project Cost To GL -
      Project "1" - Mathew -DEC-12- 2500 USD - Expense a/c (Labor Expense A/c)
      Project "2"- Mathew- DEC-12- 2500 USD - Expense a/c (Labor Expense A/C)

      How to solve this double costing issue?

      Please help