How should I configure Cross Charge Labor?
The Post Cross Charge Labor property is used when there are multiple indirect cost rates (I.e., Divisional Rates) in the same Legal Entity and people from one division do work in the other divisions. In this scenario, we want to show the labor as a cost in the correct divisional JSR (the division of the project), while also allowing the labor cost to be included in the base of the pool to which the Person belongs (the division of the resource).
The cross charge labor post does this. It moves costs from one Organization to another for the purpose of indirect rate calculation.
NOTE: This setting should only be used if the amount of cross charging is significant and will materially impact your indirect rates. Please work with a Unanet expert to determine if this configuration is ideal for you. While it may offer you benefits and efficiencies, it also requires some setup and/or changes to your current configuration. It may also result in many offsetting debits and credits.
The system will (assuming a positive time entry to the posting organization) debit the Cross Charge Labor account/credit the Cross Charge Labor Offset account in the Person HOME Organization AND credit the Cross Charge Labor account/debit the Cross Charge Labor Offset account to the Labor POSTING Organization.
Create the Accounts and Offset accounts (Admin > Setup > Accounts). Note that the Cross Charge Labor Offset account should be excluded from the indirect rate calculation (see the cost pool parents are blank).
Map the cross charge accounts in the posting group as needed (Admin > Setup > Posting Groups).
Please note that if you have a large number of people cross charging it may clutter your GL, creating many offsetting debits and credits. These would show up in the GL Details report as shown below.