Issue/Symptom/Question

Is there a way to direct any "premium 1" or "premium 2" entries to go to an overtime account instead of a straight time account?

Applies To

Project Management > Setup > Job Types / Cost Types tab

System Management > System Rules > System Configuration / Payroll tab

Payroll > Setup > Pay Groups, Payroll Classes, and Workers Compensation > Pay Classes / Master tab

Resolution/Fix/Answer

There is a way to automatically divide the regular and overtime amounts charged through time entry in Payroll;

• Option 242 needs to be reviewed and changed to a value of N. 
• Cost type codes need to be set up in the Job Type screen (Cost Types tab) separating Regular Labor and Overtime Labor cost types and GL Accounts assigned
• Cost type codes are entered in the associated Payroll Class screens
• In the System Configuration window (System Management > System Rules > System Configuration / Payroll tab), you can set up default cost types you would like Penta to charge for Regular and Overtime hours entry - this 'default' setting will populate these fields in each new Payroll Class setup.  In order to access these fields, option 242 needs to be set to No, which will prevent entry of cost types in the time entry window.  
• For any current Payroll Classes that were set up before the System Config cost types were entered you will need to manually update each PR Class affected.  

Note that the cost types are linked to COS accounts through the Job Type setup screen, and you should set up separate cost types for Regular and Overtime costs.  

As always, I would advise setting this up in your TEST database, and running payroll tests to verify that the results are as you expect them to be.

Default Cost Type Codes – Labor

If System Option 242 (“Allow Cost Type with Time Entry”) is N, you cannot enter a Cost Type in the Time/Equipment/Production Units Entry window. Instead, PENTA assigns the Cost Type for regular hours to the value of the Default Cost Type Codes – Labor field during the labor distribution process.

Entry is required. This field defaults as the labor Cost Type established in the System Configuration window’s Payroll tab.

Default Cost Type Codes – Overtime

If System Option #242 (“Allow Cost Type with Time Entry”) is set to N, you cannot enter a Cost Type in the Time/Equipment/Production Units Entry window. Instead, PENTA assigns the Cost Type for overtime hours to the value of the Default Cost Type Codes – Overtime this value during the labor distribution process.

Entry is required. This field defaults as the overtime Cost Type established in the System Configuration window’s Payroll tab.