Adjusting Overtime
Occasionally, you may need to revise the number of hours on a timecard, which may affect the number of overtime hours you want to charge to an overtime project.
If you use manual overtime entry, a clerk must manually revise the overtime hours, and re-enter them when timecard hours are changed.
If you use automatic overtime calculation, the Overtime Calculation extension or other client extensions automatically handle adjustments to overtime hours that result from straight time adjustments.
Manual overtime adjustments
Overtime adjustment hours are entered the same way that straight time adjustment hours are entered.
If the adjustment hours increase the total number of hours, create a new expenditure item to record the positive number of hours that is the difference between the original number of hours entered and the new total number of hours to be entered.
If the adjustment hours decrease the total number of hours, create a new expenditure item to fully reverse the original amount of overtime hours and create a new item to enter the new amount of overtime hours. An expenditure item with negative hours must match an existing expenditure item based on the person, expenditure item date, expenditure type, project, and task. The numbers of hours reversed must equal the total number of hours of the original item.
To illustrate the way adjustments are entered, we will use Pat Miller's timecard as discussed in previous sections (See page ).
Increasing Overtime Hours
Assume Pat Miller charged 52 hours to the engineering survey project as described earlier. A week later, Miller submits an adjusting timecard for the previous week to charge an additional 2 hours to the engineering survey project. This increases the number of hours worked to 54 hours for the week; this also increases the number of overtime hours from 12 to 14 hours for the week. The timecard clerk enters an adjusting timecard with the expenditure ending date set to the previous week ending date and enters the following two timecard lines to record this adjustment:
- 2 hours of straight time charged to the engineering survey project
- 2 hours of overtime charged to the overtime project, Time and Half task
These two timecard lines record the hours and cost for the additional 2 hours for the previous week.
Decreasing Overtime Hours
Again, assume Pat Miller charged 52 hours to the engineering survey project. A week later, Miller submits an adjusting timecard for the previous week to back out 2 hours charged to the engineering survey project. This adjustment decreases the number of hours worked to 50 hours for the week; this also decreases the number of overtime hours from 12 to 10 hours for the week. The timecard clerk enters an adjusting timecard with the expenditure ending date set to the previous week ending date and enters the following timecard lines to record this adjustment:
- -52 hours of straight time charged to the engineering survey project
- 50 hours of straight time charged to the engineering survey project
- -12 hours of overtime charged to the overtime project, Time and Half task
- 10 hours of overtime charged to the overtime project, Time and Half task
The net result of these lines is an reduction of 2 straight time hours, and a reduction of 2 overtime hours.
The two reversing lines must match the existing items entered the previous week, based on the employee, expenditure item date, expenditure type, project, and task, and must fully reverse the existing item.
Reversing Overtime
Another type of overtime adjustment may result if overtime hours are incorrectly charged to the wrong overtime task. To handle this, the timecard clerk reverses the incorrect item and enters a new item charged to the correct overtime task.
Assume Pat Miller's 12 overtime hours charged to the Time and Half overtime task, should have been charged to the Double Time overtime task. The timecard clerk enters two timecard lines:
- -12 hours of overtime charged to the overtime project, Time and Half task
- 12 hours of overtime charged to the overtime project, Double Time task
These two lines record the adjustment to correct the overtime hours entered.
Automatic overtime adjustments
Timecard clerks or employees enter straight time adjustment items that increase or reduce the number of hours worked during a week using the Expenditure Batches window. After these items are costed by the PRC: Distribute Labor Costs process, the Overtime Calculation extension or other client extensions identify the employees and weeks that may potentially have new overtime to process, sums the hours required to calculate overtime, and then calculates overtime.
See Also
Overtime Calculation Extension.
