Answer

Allocation on Labor Hours works the following way.
It takes the labor distribution from payroll and allocates from one segments labor distribution  amounts (which has activity) to other segments that have labor distribution activity. You have to have labor distribution activity in both the pool and the accounts you are allocating the pool to.
 
In payroll earnings codes must have “track labor hours” turned on.
When a payroll is cut labor hours are associated with the various segment coding. This coding is determined by the distribution code. It can be changed if they redistribute labor hours.
 
For example:
An employee worked 100 hours, earned $10,000.
We are Allocating on the Prog Segment.
The distribution code sends it to 3 prog segments
50% to Prog A             50 hours          $5000
20% to Prog B             20 hours          $2000
30% to Prog C             30 hours          $3000
 
If you went in and changed the distribution code and then clicked distribute Labor Hours/Earnings this will update the values based on the current value of the distribution code.
 
For example let’s say we changed the distribution code to 40/10/50
We would now have
40% to Program A      40 hours          $4000
10% to Program B      10 hours          $1000
50% to Program C      50 hours          $5000
 
This can be seen by running Reports>History>Labor distribution.
 
It is important to run this report in payroll because labor distribution amounts are not stored in accounting. You cannot see them in a posted transaction or other report. The current state of the distribution is stored in the PRHistEarningDetails table in payroll.
 
 
 
Setting up the Allocation with Labor Hours Method
On Allocation Tab make sure to use the Labor Hours Method


On the Pool Tab put the codes that you are allocating from.
Make sure the Pool – GL combination has labor hours in it (Use Labor Distribution Report to verify).
These are the accounts that the allocation is coming out of.


On the recipient Tab choose the accounts you are allocating to. These accounts must already have labor hours in them or when you calculate you will get an error loading percentages.


The Method Tab is optional, it can be used for filtering but is not needed.

 

The Calculation
When you calculate this allocation it is going to go and pull all the values out of the pool and allocate them to the codes in the recipient tab. It is going to split the amounts out based on the labor hour balances in those accounts. This is why you can only allocate to recipient accounts that already have labor hours. Without labor hours it could not calculate the split. You cannot allocate to any account that doesn’t already have labor hours.
 
Example
 
If you remember our last example the labor distribution was
40% to Program A      40 hours          $4000
10% to Program B      10 hours          $1000
50% to Program C      50 hours          $5000

 

 
Let’s say we want to take the amount in program A and divide to up among program B & C.
 
Program A would be in our Pool
Program B&C would be in our recipient tab.
It would take the $4000 out of A and distribute it to B&C according to the following calculation
1000+5000= 6000 total.
 
Program B is 1000/6000 = 16.6%.  $4000x.16.6%= $666.66
Program C is 5000/6000= =83.3%  $4000x 83.3%= $333.33
 
 

Additional Information

Illegal characters in the allocation code ID will cause problems.
 
To check these numbers you have to run the Labor Distribution report. If you are getting an error calculating percentages, it means there is nothing in the Labor Distribution report for that period.

 
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Product Line
MIP Fund Accounting
Product Module/Feature
Allocation Management
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