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Department and Job Costing Good management relies, in part, on access to accurate and timely
information about actual labour costs. Wage Easy Payroll will provide historical labour
cost reporting collated on the basis of your organisational units and/or projects. These
options are known in Wage Easy Payroll as, respectively, departmental costing and job
costing. The two systems run separately in the program, but their methodology is similar. |
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| Wage Easy Payroll uses an
easy-to-establish user defined hierarchal system of departments and sub-departments to
gather basic payroll data. Each employee is allocated to a predefined department which
will accrue their actual payroll costs. To allow flexibility, work by an employee can be
allocated to another department on a minute-by-minute basis at the pay slip preparation
stage if required. Department and sub-department payroll expenditure reports can then be
generated over user specified timeframes as required, and they will be accurate to the
minute. Department costs can also be collected for export to an external accounting
package. Costs for multiple departments can be combined together as cost centres to create a separate reporting level. Cost centres can also be established to collect a user defined portion of costs from one or more departments. For example, at a hotel/motel, the Restaurant Cost Centre may collect 100% of the Kitchen Department costs plus 20% of the Maintenance Department costs. This makes the departmental system a very effective and flexible monitoring system. |
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Wage Easy Payroll also has a user defined hierarchal system of jobs and sub-jobs which can be used to gather the basic payroll data in a way that is not related to the department in which the employee works. The job costing system is usually associated with external client projects although it can equally be used for internal jobs. To collect job cost data, work by an employee is allocated to a job at the pay slip preparation stage, and can be allocated on a minute-by-minute basis if required. Job and sub-job payroll expenditure reports can then be generated over user specified timeframes as required. |
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Both the departmental and job costing systems collect the majority of payroll costs under the required department or job. This includes the base payments, overtime, loadings, leave and so on. Superannuation contributions, union fee payments and allowances are not included in the department and job cost figures. However, the total of department, superannuation, unions and allowances will always equal the actual payroll amounts paid through Wage Easy Payroll. |
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