Accrued Hours

LJ Lim
LJ Lim Member Posts: 2
Hi,

We have a client which has a building & construction business.

Some of their employees work overtime.  This is recorded as a cost against the job (so that they know exactly what it cost to construct), but the workers are not necessarily paid the extra hours.  These are accrued.

 

The journal entry is

Dr Wages  $$

Cr Accrued Hours  $$

 

The problem is that we are unable to produce a report from within Quickbooks that shows how many hours have been accrued.  The $$ amout is shown, but not the hours.  

Actually, we do not know how to properly
record accrued hours in Reckon.

 

We tried to enter the accrued hours in “Paycheque Details”, however  the “Hours” section is not allowed to enter figures in when the “ Accrued Hours” is chosen.

 

And we are not sure what is the impact on the report if the entered hours greater than 40 hours, while the payment amount is fixed.

 

Do you have any comments for above issues? Much appreciate your advice when you feel free.


Kind Regards,

Jodie

Comments

  • Graham Boast
    Graham Boast Accredited Partner Posts: 331 Accredited Partner Accredited Partner
    edited September 2018
    Hi Jodie

    I think I know what you are trying to achieve.  This can be set up as follows:

    1. Change the Other 2 Leave Description to TIL (Time in Lieu) in Edit > Preferences > Payroll & Employees
    image

    2. Edit the Payroll Item List to change "Other 2 Hourly" to "Time in Lieu"
    3. When processing the Pay, enter Hourly Pay for all the hours with the relevant Customer:Job for costing purposes (in the example below 38 hours + an additional 4 hours that will be accrued as Time in Lieu
    4. Enter an extra line against the Time in Lieu Item with a value of minus 4.  Note that the 4 hours accrues as leave under TIL and will show on the employees payslip

    image

    5. When you first set it up, check that the Super and PAYG are calculating correctly.  In the above example, 38 Hrs @ $25 = $950.
    6. The 4 hours can be taken in future using the Time in Lieu item but with a positive value.
    7. The TIL value does not have a value, but like other leave types can be up as an expense & payroll liability.

    I think this ticks all the boxes: Job Costing is correct; Time in Lieu is accrued and on the payee's payslip; TIL value available to be journalled with other leave.

    Graham Boast 0409317366
    Reckon Accredited Consultant
    [email protected]
    http://reckonhelp.com.au/remotesupport.htm 


     

    Graham Boast | 0409 317366 | [email protected]

  • LJ Lim
    LJ Lim Member Posts: 2
    edited November 2014
    Hi Graham,

    Thank you for your detailed explanation. It helped me a lot! :)


    Jodie
  • cosmic
    cosmic Reckon Developer Partner Posts: 1,070 ✭✭✭
    edited December 2016
    Thats was a great work by Graham as always, i would also like if  you wish to see we have special Report tools for builders and construction  companies as i have spent more than 15 years working as consultant , these reports were designed with the help of builders. go to www.cosmicaccountinggroup.com.au, and look for video gallery , u need to maximise the scrn. the video is quite old now .

    Cosmic Accounting Group

    Accountants and Tax Agents 22397009

  • Jake Evans
    Jake Evans Member Posts: 1
    edited June 2015
    Thank you for this Graham as I was also struggling with RDOs (or TIL), but I don't seem to be able to input any figures in the hours column on the 'Review or change payments' screen of the payroll process. It tabs over that column. Have I ticked something wrong somewhere?