The Labor Expense Allocation SuiteApp is to allocate payroll costs to benefiting target programs or functional areas.
Most organizations need to classify all expenses into functional areas, and they are fundamental to the organization’s financial management and reporting.
In an organization, employees commonly work on tasks in different functional areas. Therefore, the salary expenses must reflect the functional areas where the employees worked.
Using the Labor Expense Allocation SuiteApp, you can allocate labor expenses either by employee rates or by employee pay transactions. With employee rates, you define the employee rates to calculate the labor expense allocation. Whereas, with employee pay transactions, you create employee pay transactions and use these transactions for labor expense allocation.
Benefits of Using Labor Expense Allocation
The key benefits of using the Labor Expense Allocation SuiteApp include:
- Allocating payroll costs, including salary and fringe benefits, to benefiting programs or functional areas.
- Viewing and reporting on total direct costs.
Disadvantages
The main disadvantage of the record is that the labor expense allocation will only show the total cost. The division of cost between the employees cannot be seen per projects.