deltek insight 2012: contractor timesheet options with costpoint and time & expense
DESCRIPTION
Want to have your subcontract labor force fill out timesheets using Time Collection but not sure how to do it? There are multiple ways in Costpoint to process subcontractor labor. This session will focus on the most commonly used methods for capturing and processing contractor timesheets within Costpoint and in Time Collection 8. Intermediate Level.TRANSCRIPT
Contractor Timesheet Options with Costpoint and Time & Expense
Art Shearon, Technology Consulting Manager, McGladrey LLPGC-84
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Overview of McGladrey
What is a contractor and why do contractor timesheets?
Summary of most common processing options
Selection criteria and overall setup steps
Timesheet period, Leave period and Employee setup
Detail of each of the most common processing options
Summary of considerations for processing options
Questions
Agenda
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5th largest accounting and consulting firm in the US
Heavily focused on Government Contractors (GC) :
Implementation Services for GCs: Deltek Costpoint (CP), Deltek GCS Premier (GCS), Deltek Time and
Expense (T&E) Deltek Partner
Risk Management & Internal Controls Review of Current Policies and Procedures for FAR Compliance Implementation of Sarbanes Oxley Act (SOX) compliance programs applied
to contractor requirements for adequate internal controls
Government Contracting Consulting Services: Indirect Rates/Cost/Business Volume preparation Litigation support relating to cost realism and allowable cost
Tax & Audit Services
McGladrey Overview
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After this session, you should be able to: Decide on the proper approach for your company to handle contractor
(vendor) timesheets Setup the necessary screens within T&E and Costpoint to implement
the appropriate processing option After implementation, be able to validate or adjust contractor (vendor)
invoices for work performed by contractor employees. Minimize time spent with manual activities processing the vendor
invoices
Key Take Away Items
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What is a Contractor? Not an employee. May be an independent contractor or an employee of a vendor. As appropriate, gets a 1099, not a W-2.
Why have contractors do timesheets? Want to verify the vendor’s invoice amount and hours Want to accrue contractor labor cost based on timesheets Want to recognize actual contractor labor cost as soon as allowed
Can CP, T&E and GCS handle contractor timesheets? Yes, but the processing options are not a simple, built-in feature Several processing options are available Processing option depends on accounting environment, system
environment, Federal Government Contracting Officer and your objectives
Common Questions
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1) Keep track of contractor time without posting labor cost
2) Keep track of contractor time and post labor cost with Accrued Wages account adjustment via GL Journal Entry adjustment
3) Keep track of contractor time and post labor cost with Accrued Wages account adjustment via Labor Settings
4) Keep track of contractor time and post labor cost with Accrued Contractor account adjustment via a T&E SQL Stored Procedure
5) Keep track of contractor time and post labor cost with Accrued Contractor account adjustment via a Costpoint SQL Script
6) Keep track of contractor time and post labor cost with Accrued Contractor account adjustment via a Costpoint Allowance
7) Keep track of contractor time & process the hours/labor cost to AP as Voucher via custom software & AP Preprocessor
Processing Options
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Selection depends on accounting environment and objectives
Selection may entail one or more of the options depending on circumstances
Is no right or wrong way of doing this (as long as all steps are followed)
Presentation notes problems with certain options
Several setup steps are needed to enable each option
Some steps are common to most options, setup: Separate timesheet and leave periods Contractor employees Vendors Vendor employees (if AP Preprocessor functionality) TS/AP default information
Processing Options (cont.)
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Setup Separate Timesheet Cycle
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Setup Separate Leave Cycle
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Setup Subcontractor Employees
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Option 1 – Keep track of contractor time without posting labor cost
Contractor employee may be assigned an hourly rate equal to the amount to be paid to the vendor
Contractor employees enter hours worked using T&E Contractor employees enter into a separate Timesheet (TS) Cycle T&E Timesheets may be exported to Costpoint (or not) Timesheets in Costpoint are not posted for Labor Distribution Timesheets are used to reconcile to vendor invoices Problem: Costpoint Timesheets might get posted by mistake. Problem: Un-posted Timesheets in Costpoint will prevent GL
Accounting Period Closing. TSs will need to be deleted or marked as posted.
Option 1
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Option 2 – Keep track of contractor time and post labor cost with Accrued Wages account adjustment via GL Journal Entry adjustment
Contractor employee are assigned an hourly rate equal to the amount to be paid to the vendor
Contractor employees enter hours worked using T&E Contractor employees enter into a separate Timesheet (TS) Cycle T&E Timesheets are exporteded to Costpoint Timesheets in Costpoint are posted for Labor Distribution JE is made to move the posting amounts from the Accrued Salaries
account to the Accrued Contractor Payable account at the Org Balance Sheet level – TS Edit report may be used to determine the JE.
Problem: offset is to Accrued Wages (used for employee posting)
Option 2
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Option 3 – Keep track of contractor time and post Labor cost with Accrued Salaries account adjustment via Labor Settings
Contractor employee are assigned an hourly rate equal to the amount to be paid to the vendor
Contractor employees enter hours worked using T&E Contractor employees enter into a separate Timesheet (TS) Cycle T&E Timesheets are processed to Costpoint Timesheets in Costpoint are posted for Labor Distribution\ However, immediately before posting change the Accrued Salaries account
to the Accrued Contractor Payable account in the Labor Settings screen Post the timesheets (offset is to the proper account) Change the Accrued Salaries account back to the Accrued Salaries
account in the Labor Settings screen Problem: forget to change the account before or after
Option 3
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Option 3 (cont.)
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Option 4 – Keep track of contractor time and post labor cost with Accrued Contractor account adjustment via a T&E SQL Stored Procedure
Custom Software Program (SQL Script) Program is executed in Costpoint after TSs are imported from T&E Program sums all the timesheet line hours for the appropriate TS cycle Program adds one additional timesheet line with negative hours for the
total hours on the timesheet Additional line references the Accrued Contractor Payable account The total net hours on the timesheet is zero after procedure. Additional SQL script is needed to delete added line for re-processing Problem: Requires custom stored procedure routine (software)
Option 4
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Option 5 – Keep track of contractor time and post labor cost with Accrued Contractor account adjustment via a Costpoint SQL Script
Custom Software Program (SQL Script) Program is executed in Costpoint after TSs are imported from T&E Program sums all the timesheet line hours for the appropriate TS
cycle Program adds one additional timesheet line with negative hours for
the total hours on the timesheet Additional line references the Accrued Contractor Payable account The total net hours on the timesheet is zero after procedure. Additional SQL script is needed to delete added line for re-
processing Problem: Costpoint has different timesheet data from T&E
Option 5
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Option 6 – Keep track of contractor time and post labor cost with Accrued Contractor account adjustment via a Costpoint Allowance
Allowance is a standard feature of Costpoint Normally used to add additional labor costs items to CP timesheets Program sums all the timesheet line hours for the appropriate TS cycle
in accordance with parameters Several setup screens involved Allowance has to be assigned to each contractor employee Problem: process has to be run before posting labor (no forgiveness)
Option 6
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Option 6 (cont.)
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Option 6 (cont.)
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Option 6 (cont.)
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Option 7 – Keep track of contractor time and process the hours/labor cost to AP as an AP Voucher via custom software & AP Preprocessor
AP Preprocessor is an optional additional cost module of CP (and GCS) Normally used to create AP Vouchers from an outside system Program loads a Voucher Header, Line and Line Account records Several setup screens involved, including Vendors & Vendor Employees Vendor Workforce and defaults may need to be setup, if needed Posting happens when the AP Vouchers are posted. Problem: requires a custom program to stage the data in the format that the
AP Preprocessor needs it in from the source system Problem: edits happen at time of import – may have to go back to source
system to fix inaccurate data
Option 7
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Many options available
Selection depends on environment
Amount of money to spend on a solution
Number of Timesheet Cycles
Number of contractors
Okay to bill Government for contractors before paying vendor
Ability of staff to perform necessary steps
Current Time Collection system
Check Out Version 9 of T&E and Costpoint 7
Conclusion
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Q&A
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