adp.....utd function

[nineball]

i am a new service mgr,the old one had $12 techs costed at $15. in UTD,What all does this effect ?? wip runs a credit every month,is this why ?? any help is appreciated

[Art_Mopar]

Yes, that is why.

[nineball]

does it effect anything else ??

[jtr8178]

Yes, because every hour your tech works puts $15 in this account. When payroll is posted at the end of the month, it comes out at $12 per month, thus leaving a credit.

This is also having a negative impact on your gross margin by doing this, as ADP is calculating your cost at $15 per hour, not the $12 that it should be.

[no_account]

Nineball,

I'm not sure if you're saying the ending balance of your WIP account is a credit balance (after the entry for Accrued Labor), or you're closing entry for Adjusted Cost of Labor is an exceedingly large credit entry to the WIP account. The closing balance of the WIP account should always be a debit balance.

Art is right, your old UTD setup was shorting your cost of labor and failing to relieve the WIP account by $3.00/hr and increasing the debit balance of WIP. Remember if you are using the month-end ADP RWP report to reconcile the WIP account, it was short $3.00/hr. The net effect was overstating gross on labor sales, but an exceedingly large Adjusted Cost of Labor.

[This message has been edited by no_account (edited 02-10-2008).]