MANUALS > G/L Interface > G/L Interface Module > G/L Interface, Update Menu > Journal Entries Expenditure > Configuring Expenditure Codes > Expenditure Class - FLAT RATE LABOR

The FLAT RATE LABOR Expenditure Class takes place when a Third Party Work Order is attached to a Customer Contract that is a 'Labor Flat' category and has a Sell Amount. The transaction occurs when manual labor is added to a Work Order. The Flat Rate charge will appear against the G/L when the Third Party Work Order is closed.

For example, create a Work Order with the Third Party checkbox selected.

After saving, the Customer Orders window will appear. Enter all relevant information.

From the W/O Sell tab, enter the Contract Number for the previously created Customer Contract. Select the Save button to save.

Note: For the Flat Rate Labor charge to appear after the W/O is closed, the Customer Contract must be a 'Labor Flat' Category and have a Sell Amount listed.

From the Work Order header window, find the W/O and select the Labor Mnl button.

The W/O field is auto-populated. Choose a previously attached W/O Task Card. The W/O Task Card must be assigned from the Work Order window by selecting the Task Card button or the Non-Routine Task Card button. Select the Find button.

When the detail window appears, add all relevant information then save.

From the Journal Entry Detail Query window users can see the adjustments against the G/L.

For more information regarding Third Party Work Orders and Customer Contracts, refer to the topics Third Party Button and Customer Contract via the Production manual.

Third Party Work Order Closing:

Through the Work Order Closing process the Flat Rate Labor fee is charged against the 'SALES' and 'ACCOUNTS RECEIVABLE' accounts. Both charges are then added and reversed into the 'COST OF SALES' account. (See notes at the bottom of the topic.)

Note: The amount of the Flat Rate Labor charge against the G/L comes from the Sell Amount listed in the Customer Contract.

From the Journal Entry Detail Query window users can see the adjustments against the G/L.

Notice the J/E Expenditure Class fields read 'FLAT/RATE/LABOR'.

For more information on the closing of a Work Order, refer to the topics Work Order Closing and Work Order Closing Post Completion via the Production module.

Note: Refer to G/L Interface Switch JETPWSAL for more information regarding the Accounts Receivable account. When set to Yes, the AR account will NOT be charged at Third Party W/O Closing. When set to No (as in the examples above), the AR account is charged. Users must also perform the Customer Invoice Authorization. For more information refer to the topic Customer Invoice Authorization via the Production module.