Multiple Direct Labors & Applied Labor Accounts?

(Norman Hutchins) #1


Does anyone know if it’s possible to have multiple direct labors & applied labor accounts, for different employee groups? ie. manufacturing vs. engineering?

(Brad Boes) #2

You can do that with the employee expense account entry. I have seen dozens

Also look at the product group GL code controls.


(Norman Hutchins) #3

Thanks for the reply @BoostERP.

Employee Expense codes are indirect only I believe, and only allow Applied Labor and COS. Likewise, the Product Group GL Codes only show WIP & COS. How does the Direct Labor get assigned to a GL?

(Brad Boes) #4

OK, so how is your direct labor being captured? Are you using a third party timeclock/payroll system like ADP or are you using Epicor payroll?

For direct labor that comes externally from a third party system, these could be weekly journal entries. These entries could be done against the applied labor account as an offset or a separate account that is then reconciled against the applied labor account monthly.

You may have the natural account the same for all direct labor and change the department segment based on that GL control. If you are trying to go this direction you may need to match up your GL Departments with your Job Departments and add the appropriate GL control to the Job Dept.

I am not sure I can really answer this for you without seeing your specific setup and process.

Brad Boes

(Sue Nielsen) #5

We have direct and applied labor (and burden, material, etc.) accounts for each department. The department assigned to resource groups holds the GL control code for department. It controls the department segment of the account numbers for labor, burden, etc.


(Norman Hutchins) #6

Thanks, both of you for verifying that it’s at least possible. I have a consultant tell me last week that you could only have one Direct Labor Account…

@snielsen28, if resource group assigns the department GL control codes, do you know if this the resource group that is set up on the job or the resource group that the employee belongs too that directs the direct labor account used?

(Brad Boes) #7

The actual labor $ rate is driven from the employee, so I would expect the employee dept to drive the department account also.

Brad Boes

(Sue Nielsen) #8

The resource group assigned to the job drives ours, our employees are not linked to any GL control codes.

(Norman Hutchins) #9

Silly question, but is there a document/manual that explains how this works and how to set it up. We haven’t needed to change our GL setup since we went live on Vantage 8.0 and well it’s much more complicated now in E10…

(Sue Nielsen) #10

I haven’t found any type of guide. We were set up with multiple labor, burden, etc. accounts in Vantage so that portion came over without problems in E9. We are running 9.05.701. Our assistant controller worked with Epicor consultants in Vantage so come up with our current setup. The right consultant should be able to help you.

(Norman Hutchins) #11

And there is the key, finding the right consultant… any recommendations?

(Mark Wonsil) #12

Can you provide an email address for people to send recommendations. Listing recommendations for consultants goes against the group policy.


Mark W.

(Sue Nielsen) #13

Bonnie Stubbs helped us with most of our financial setup, not sure if she’s still with Epicor. I believe there are posts in this group with recommendations for financial gurus. One of the key elements will be to use hierarchies; that’s what sets up the department overlay on the accounts. Our GL accounts consist of division, chart, department. We have departmental accounts set up to go to suspense departments; the department overlay overrides the suspense department and sends it to the correct departmental account. Check the Inventory Transaction Hierarchy for type “Labor” for starters. The hierarchies can be found in Epicor help. A job’s product group also has GL codes which direct dollars. I should mention that we enter all time thru Time & Expense entry and we also use Epicor payroll. That may make our setup different from yours.


(Norman Hutchins) #14

Thanks for all of that info @snielsen28! After reading this I’m definitely encouraged that this will be doable. We used MES for time entry and Epicor Payroll as well so it’s not that different really.

Thanks again!