Payroll timesheets record how many hours are spent on each job cost centre, but they also include overhead such as meals, taxi, travel, and living out. Plus, overtime hours represent another kind of cost, over and beyond the cost of doing work at a regular rate. We call the difference in cost between work done on regular hours and work done on overtime hours an overtime premium.
When Abio posts payroll costs to the jobs, it can move overhead costs to centres defined specifically for each type of cost. Each time a payroll timesheet is transacted to Job Costing, Abio creates a set of Labour Dispersion records. A Labour Dispersion record is an interim step between a payroll timesheet and the job cost centres. A different labour dispersion record is created for each type of cost on the timesheet. The dispersion type controls what labour dispersion records are created. For example, a timesheet like this:
will generate labour dispersion records to disperse the highlighted items to separate job cost centres.
To set up a dispersion type, navigate to [e] Job Costing, then [u] Set Up, then [a] Dispersion Type Entry.
Abio displays the list of dispersion types that have been defined.
Dispersion Type Details
In our demo, standard dispersions are set up like this:
You can set up dispersions for centres below a ceiling, and then a different set of dispersions for centres over that ceiling. Our demo just disperses labour overheads for jobs posted to centres up to 8ZZZZ.
Dispersion Type Actions
Click on the action field to see a list.
INQUIRE
This action lets you view, but not change, a dispersion type.
ADD
Add a new dispersion type.
CHANGE
Change any of the dispersion type fields.
DELETE
Delete a dispersion type that isn’t currently referenced by any job areas.
Print, email, or export the dispersion type record to excel.
RENUMBER
Change the name of the dispersion type, on this and all areas that reference it.
Dispersion Type Fields
DISPERSION TYPE
This is the key field for this dispersion type. You’ll be able to select this dispersion type on the job’s area record. You’ll also set up a default dispersion type for the application. This default will be used for all companies under your umbrella of companies.
DESCRIPTION
Used to identify the dispersion type.
DISPERSION CEILING
This dispersion rule will only apply to this centre or lower.
DISPERSE TO T/S AREA
Select ‘Y’es if overheads should be posted to the same job and area as the original timesheet, or ‘N’o if they should be posted to a different area in the same job. For instance, you may want to count all overheads in their own area.
DISPERSION AREA
If you selected ‘N’o for disperse to t/s area, specify the new area to disperse overheads to.
FIELD VS STAFF
Overheads can be dispersed differently for staff unions than field workers. Staff are employees who’s timesheets are posted to a trade union with the staff? flag set to ‘Y’es.
SCHEDULED PREMIUM $
Payroll timesheets have a flag to differentiate between scheduled overtime and spot overtime.
Scheduled premiums are the additional cost of doing scheduled overtime.
Example: An employee has 2 hours of overtime scheduled. If he or she makes $50/hr regularly, and $60/hr when they work overtime, the scheduled premium $ will be the extra $10/hr for 2 hours, or $20. In this case, $100 will be posted to the centre the timesheet is posted to, and $20 will be posted to the scheduled premium $ centre specified for the dispersion type.
Scheduled premium $ are recorded as earnings. Notice that the fringe associated with scheduled overtime is also posted to this labour dispersion.
SPOT PREMIUM $
If overtime hours are recorded as spot overtime, the premium for those hours will be posted to this centre.
Spot premium $ are recorded as earnings. Notice that the fringe associated with spot overtime is also posted to this labour dispersion.
SHUTDOWN PREMIUM $
You can indicate a shutdown period on a job. Historically this would pertain to Mill shutdowns.
The premium for time and a half and overtime hours worked during a shutdown are posted to the ‘shutdown premium $’ centre.
TRAVEL
Create a labour dispersion posting travel cost to this cost centre.
The travel cost is recorded as rotation on the labour dispersion.
LIVING OUT ALLOWANCE
Create a labour dispersion posting LOA to this cost centre.
LOA is recorded as subsistence on the labour dispersion. GST is stripped off and moved to the GST Recovery account, as per the G/HST Recovery Rule in use on the timesheet.
MILEAGE
Create a labour dispersion posting mileage to this cost centre.
Mileage is recorded as rotation on the labour dispersion. GST is stripped off and moved to the GST Recovery account, as per the G/HST Recovery Rule in use on the timesheet.
TURNAROUND
Create a labour dispersion posting turnaround to this cost centre.
Turnaround is recorded as rotation on the labour dispersion. GST is stripped off and moved to the GST Recovery account, as per the G/HST Recovery Rule in use on the timesheet.
SITE ALLOWANCE
Create a labour dispersion posting site allowance to this cost centre.
Site allowance is recorded as site allowance on the labour dispersion. No GST is recovered from site allowance, so the same amount appears on the labour dispersion as was recorded on the timesheet.
MEALS & CHECKOUT
Create a labour dispersion posting meals & checkout to this cost centre.
Meals & checkout are recorded as meals on the labour dispersion. GST is stripped off and moved to the GST Recovery account, as per the G/HST Recovery Rule in use on the timesheet.
TAXI & BUS
Create a labour dispersion posting taxi & bus to this cost centre.
Taxi & bus are recorded as rotation on the labour dispersion. GST is stripped off and moved to the GST Recovery account, as per the G/HST Recovery Rule in use on the timesheet.
RETROACTIVE PAY
Create a labour dispersion posting retroactive pay to this cost centre.
Like site allowance, there is no GST component to retro pay. It appears on the labour dispersion record exactly as it does on the timesheet. In this example, retro pay doesn’t have its own cost centre recorded, So instead of creating a separate dispersion record, it’s included on the same dispersion record with the timesheet earnings.
SHIFT PREMIUM
Like scheduled and spot overtime, shift work comes at a premium. We call the additional cost of work done on shifts 2 and 3 a shift premium. Use this field to create a labour dispersion posting shift premiums to this cost centre.
This labour dispersion represents 3 hours done on shift 2. The employee was paid an additional $3/hr for working the night shift.
Shift premiums are recorded as earnings. No GST is recovered.
RETENTION
Create a labour dispersion posting retention to this cost centre.
Retention is recorded as retention on the labour dispersion. No GST is recovered from retention.
RECRUITMENT
Create a labour dispersion posting recruitment to this cost centre.
Retention is recorded as retention on the labour dispersion. No GST is recovered from retention.
FRINGE
Create a labour dispersion posting fringe to this cost centre.
In this example, fringe doesn’t have its own cost centre recorded, So instead of creating a separate dispersion record, it’s included on the same dispersion record with the timesheet earnings. You’ll notice there’s less fringe on this labour dispersion record than was on the timesheet. The fringe associated with spot and scheduled overtime premiums was recorded on those labour dispersion records.
