Job Cost Administration Setup

Configuration settings *

  • Payroll Burden
  • Worker’s Compensation
  • Overhead
  • Activity Class overhead rates
  • Labor Activity Cost Rates
  • Actual Labor Cost Rates
  • Labor Billing Rates

How to Set Up Payroll Burden *

Log In as Administrator

From Administrate Menu navigate to Setup Wizard>HR & Payroll>Payroll Burden.

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Enter default payroll burden rates for Medicare, Social Security, Federal Unemployment, State Unemployment and any other applicable default labor related burdens.

To change the Field Label Text, double click on <Other> and enter new field description such as “401K“.

When new employees are entered into the system these rates will automatically be applied to the employee record. Changes to default information may be updated to all employee records from this tab. These may also be changed individually in each employee record. TracManager will use rates entered at the Employee Record level (if different from default) for Job Costing purposes.

How to Set Up Worker’s Compensation Rates *

Worker’s Compensation Rates may be set up in the Set Up Wizard :Administrate>Setup WIzard>HR & Payroll>Payroll>Worker’s Compensation or in the Time & Payroll Module>Employees>Worker’s Comp Rate.

  • Select preference for Worker’s Compensation.
  • If tracking, choose the appropriate setting for Employee or Activity.
  • Select <New> to enter a new rate.
  • Worker’s Compensation Rates

    Enter Worker’s Comp Code and Rate by % or $ amount. The additional fields for OT1 and OT2 will automatically be calculated if applicable.

How to Set Up Overhead *

The Overhead Rate is calculated by Total of Overhead Costs ($) divided by Total Direct Labor Hours for a set period of time. This is a forecast rate to be automatically applied to Direct Labor Hours when timesheets are approved for Budget, Estimates and Analysis.

To Set up an initial Forecast Overhead Rate, from Administrate>Setup Wizard>Job Costing>Overhead Rate, calculate and enter a starting rate for overhead costs.

How to Post Overhead

  • Select Period Start and End Date
  • Select Total OH Amount and enter $ amount or
  • Select OH per Hour and enter $ amount or
  • Select % of Wages and enter percentage
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NOTE: Overhead will be distributed over all direct labor hours that are NOT Overhead Jobs

  • Choose whether or not to include overtime (Include OT)
  • Select <Update Results>
  • Once updated, TracManager will prompt to Post Results.
  • TracManager will prompt to update Forecast OH amount

How to Set Up Activity Class Overhead Rates? *

Activity Class Overhead Rates are used when additional costs are associated with a specific Activity which are greater than the standard Overhead Rate. For instance, the costs associated with CNC work may be greater than other Activities; therefore, you may want to configure these by setting an additional Overhead amount.

  • From Time & Payroll navigate to Labor Activities>Activity Class

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  • Choose <New> from the <Menu> drop down.
  • Enter a Name for the Activity Classification and the additional Overhead Rate per hour to be applied.

How to Apply Activity Class Overhead Rate

To apply the Activity Class Overhead Rate, navigate to Time & Payroll>Labor Activities>Activity Center

  • Select an Activity to which additional Overhead should be applied.
  • In the Activity tab, choose an Activity Classification by selecting the green button beside the field.
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  • Choose the appropriate Activity Class. The additional Overhead Rate will now be applied to this Activity for Job Costing and Budgeting purposes.

Activity Labor Cost Rates

During the initial use of TracManager set the Labor Cost Rate are set to the default rate.  If specific Labor Cost Rates are desired, they can be set by the Administrator in the Setup Wizard.

  • Administrate>Setup Wizard>Job Costing>Labor Rates
  • Select <New Rate> and enter a New Rate Schedule Name
  • Enter a dollar amount for the new Labor Cost Rate.
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  • Go to the Time & Payroll Module>Labor Activities>Activity Center
  • Select the Activity to which the New Labor Cost Rate should be applied and choose it from the drop down to update.

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The Labor Cost Rate is applicable only when calculating the Labor Cost ‘by Rate’, a set dollar amount, instead of calculating the Labor Cost ‘by History’, determined using the actual historic cost.

Determine Actual Labor Costs

TracManager will automatically track and calculate the actual labor cost as the jobs and labor activities are performed; once the actual labor cost is learned, the ‘Labor Cost History’ option can be used for reporting purposes.

Labor Billing Rates

If the Activity is a Billable Labor Activity, check whether the Labor Activity is billable ‘hourly’ or ‘by quantity’. NOTE: This applies to the ability to bill by a billing rate associated with Quickbooks integration.

  • Navigate to Setup Wizard>Job Costing>Billing Rates
  • Select <New Rate> and enter a name for the New Rate Schedule.
  • Enter a dollar amount for the New Rate.

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  • Go to the Time & Payroll Module>Labor Activities>Activity Center
  • Select the Activity to which the new Labor Billing Rate should be applied and choose it from the drop down to update.

The Rate is saved upon exiting the screen.