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Administrator Guide
Last Updated: 2023-06-23
Steps: Set Up Project Labor Cost Summary Configurations

Steps: Set Up Project Labor Cost Summary Configurations

Configure your preferred project labor costing method using:
  • Advanced labor cost calculation assignments.
  • Fully burdened cost rate definitions.
  • Payroll to allocate costs towards capital projects.
  • Standard cost rate sheets.
You can configure the summarization of your:
  • Labor costs for intercompany projects.
  • Labor costs from Workday Payroll journal lines tagged to capital projects.
  • Standard or fully burdened labor costs for worker time blocks and ad hoc project time transactions.
Workday uses your configuration to create accounting for your project labor costs.
  1. To identify the ledger account in which to record the resulting accounting, configure these account posting rules:
    • Project Labor Cost
    • Project Labor Cost Recovery
  2. (Optional) Configure project capitalization.
    For capital projects, configure Work in Progress accounting and select worktags to include.
  3. Edit Domain Security Policies.
    Configure the
    Manage: Project Labor Cost Accounting
     and
    Set Up: Project Labor Cost Summary Accounting
     security domains in the Capital Projects and Projects functional areas.
  4. Edit Business Processes.
    Configure the
    Verify Project Labor Cost Summarization
     business process and security policy in the Capital Projects and Projects functional areas.
  5. Access the
    Set Up Project Labor Cost Summary Configuration
     task.
    Configure for
    All Projects
     or
    Capital Projects Only
    .
    You can only configure your tenant to generate intercompany project labor cost summaries for all projects.
    Security:
    Set Up: Project Labor Cost Summary Accounting
     domain in the Capital Projects and Projects functional areas.
    If your tenant is configured to generate intercompany project labor cost summaries for payroll, Workday still generates accounting lines even if the
    Set Up: Project Labor Cost Summary Accounting
     domain is suspended.
  6. As you complete the
    Labor Cost Calculation Method
     section, consider:
    Option Description
    Payroll
    Summarizes payroll journal lines that use:
    • A capital projects worktag.
    • The same company as the tagged capital project.
    Only available for the
    Capital Projects Only
     configuration.
    Standard Costing
    Summarizes the standard cost amount of worker time blocks and ad hoc project time transactions tagged to the project.
    Fully Burdened Costing
    Summarizes the fully burdened cost amount of worker time blocks and ad hoc project time transactions tagged to the project.
    None
    Turns off all project calculations for labor cost summarization.
  7. (Optional) For standard or fully burdened costing methods, complete the
    Summarized By
     section.
    Worktag types you select determine:
    • The granularity of the summarization.
    • The detail on the journal lines generated from the
      Project Labor Cost Recovery
       account posting rule.
      Workday automatically includes worktag types in Work In Progress (WIP), primary, and optional balancing worktags.
  8. (Optional) Select the
    Worker
     check box under
    Company is From
     to include worktag rules, or to generate intercompany accounting.
  9. (Optional) For standard or fully burdened costing methods, complete the
    Worktag Rules for Labor Cost Recovery
     section.
    Rules determine whether worktags on journal lines from the
    Project Labor Cost Recovery
     account posting rule follow:
    • Projects.
    • Workers.
  10. (Optional) Set up project time entry.
    In the template for project time entry, include the worktag types you would like to group the time blocks by.
    Also include the worktag types that you selected in the
    Summarized By
     section to ensure that the worktags are available for summarization.
    If you configure balancing worktags in your tenant, require the primary balancing worktag type on the template for project time entry. Otherwise, the labor cost summaries will have a status of
    Invalid
    , and Workday won't generate accounting for them.
Create or schedule project labor cost summarizations.