Setting up PROCAS for SCA Employees author avatar

Do you have contracts that require you to pay service employees according to the area wage determinations (AWD) as outlined in the Service Contract Act (SCA)?

OR

Do you have personnel that are paid different hourly rates depending on the work they are doing?

If so, you can use the AWD capabilities in PROCAS to automatically record the proper hourly wage rate as well as fringe benefits per hour.

Here’s how:

1. Add AWD fringe accounts to your Chart of Accounts. (Go to >System, >Accounting, >Chart of Accounts)

You will only need to do this if the SCA employees receive a dollar amount per hour worked for fringe. When the labor journal transaction is recorded, it will add a line with an AWD fringe expense account along with its associated direct task. The cost center for the fringe account must match the cost center of the direct task. So, you will need to add a fringe account for each appropriate cost center.  The chart of accounts in PROCAS includes AWD Fringe Expense accounts 6600000, 6600100, and 6600105 by default. These accounts are used by the system to record the earned fringe expense in the labor journal.

When SCA employees also earn fringe per hour on paid leave hours (i.e., holiday, vacation), you will need to add paid leave accounts for each cost center, as shown in the screenshot below. The reason for this will become evident later on in the setup.

 

2. Add the new fringe accounts to the AWD Fringe Accounts (Go to >System, >Accounting, >AWD Fringe Accounts)

If you added AWD Fringe Expense accounts in step 1, you will need to set up those accounts by department. The system uses the account setup from the AWD Fringe Accounts form to know where to record the fringe expense in the labor journals.

 

3. Add the AWD information to Billing Setup on the appropriate tasks. (Go to >Projects, >Billing Setup)

  • First, locate the task that your SCA employees use to record their time, and then click on Bill Rate by LC/FP Item
  • Next, for each SCA labor category, type in the minimum AWD hourly wage to be paid to the employee in the AWD Base $/Hr. When the system creates the labor journal transaction, it will compare the minimum rate for the labor category in the Billing Setup, to the employee’s hourly pay rate in their Personnel record. The system will use whichever rate is higher to record the amount due to the employee.
  • If you are also paying employees an amount for fringe per hour worked, type in the appropriate fringe dollar amount in the AWD Fringe $/Hr. box for the labor category (see the screenshot below.) When the system creates the labor journal transaction, it will add a line of detail to record the fringe expense to the accounts you set up in Step 2.

 

4. Update employee work authorizations. (Go to >Projects, >Work Authorization by Task)

Setting up the direct work authorization for a SCA charge code is no different than setting one up for a non-SCA charge code. However, if the SCA employees also earn a fringe amount on their paid leave hours, there is a specific setup required for the system to include the fringe earned on those hours in the labor journal transaction.

Notice in the screenshot below, Sarah Porter has a standard direct charge code for task 10003.001.00.105 using the 5000105 account and AA labor category. In addition, Sarah has a paid leave charge code for the same task and labor category. This is where the fringe account you set up in Step 1 is needed. Since the task uses cost center 105, the fringe account also needs cost center 105. So, instead of using the 6100000 account that non-SCA employees use, Sarah will be using the 6100105 account.

 

Here's what Sarah’s timesheet looks like after recording her time to the SCA direct charge code we set up for her. She only needs to record the hours worked.

 

And the screenshot below shows what Sarah’s labor journal transaction looks like. Lines 1 and 2 are for the 88 hours of direct work that Sarah recorded on her timesheet. Note that while her regular pay rate is $10/hour (as highlighted in the header), the system recorded the $12 hourly rate from the AWD information in the billing setup. The system also added the last 2 lines of detail to record the $3.80/hour fringe expense earned for the 88 hours worked and the associated liability. Since the system will record the fringe automatically, there’s no need for Sarah to record her AWD fringe “hours” on her timesheet.

 

Although there are several steps, the AWD setup is not difficult. Once that part is done, then the system will do the rest whether you are creating the labor journal transactions automatically, or manually creating them.

 

Fixing a "You are not authorized to charge" Error author avatar

Have your timekeeping users ever received an error message in timekeeping that says they’re not authorized to charge time, when you know they should be? The error looks like this:

This error message can come up when adding a new charge code or when adding time to a charge code listed on your timesheet that you have already charged time to. This is a common error many timekeeping users receive. To allow them to charge against a certain charge code, you must make sure that they’re set up correctly in the accounting system. Sometimes charge codes can be deleted, changed, or made inactive during an active timesheet period. An example of this is shown below.

It is the end of the day on Friday the 18th, and Cindy, a timekeeping user, must enter her time so she can submit her timesheet.

 

When trying to add two hours to Operations Support OY2, the “You are not authorized to charge” error has appeared. She has come to you confused as to why she is receiving this error when she had entered time to this charge code the previous day.

This is because on her work authorization in the accounting system, the Operations Support OY2 line was deleted, modified, or unchecked in the Active column. Someone then imported in timekeeping, which brought this change over. The Operations Support OY2 line is still visible on the timesheet since Cindy had previously charged time to this charge code before the change.

 

Authorizing timekeeping users to charge

To verify that they are authorized to charge to a specific charge code, open “Work Authorization by Person.”

 

You can either hit F5 to search for their employee ID, in this example Cindy’s is 100008, or page down until you get to their work authorization, which should have their employee code and username listed at the top of the screen. Once you get to this screen, you should verify that the charge code is on the work authorization. Since we know they are receiving this error, it most likely is not and will need to be added.

 

Scenario #1:

You may notice that the line is listed, but the box is just unchecked in the Active column. In this case, all you will need to do is check the box then import.

 

Scenario #2:

If any part of the charge code is changed, such as the task, labor category, or pay code, the original charge code will no longer exist, causing the timekeeping user to receive the error. For example, the screen below illustrates Cindy’s work authorization before a change was made (what it should look like).

 

However, the following day, she is trying to enter time on her timesheet against the Operations Support OY2 charge code (associated with task 10003.001.02.105), and she is receiving the error. When looking at her work authorization now, we can see that the pay code has been changed (from “R” to “O”), creating a new charge code, and making the original one nonexistent (as if it was deleted).

 

If this was done accidentally then all you need to do is change the pay code from “O” back to “R”, and then import. If Cindy needed a similar charge code but with a different pay code, a new line should have been inserted to create this new charge code with the different pay code. Once the pay code is changed back to what it should be, or recreated, you may import.

 

Scenario #3:

In the picture below we can see that the Operations Support OY2 line does not exist on Cindy’s work authorization, so it will need to be added back in for her.

 

To start, you will hit "Insert” and enter in the correct account, which is highlighted in yellow below (the highlighted fields mean they are required fields). You can hit F6 to see a list of the options you may pick from. Next, you should verify the task, which is highlighted in pink below, if there is one, as well as the labor category and pay code. It is also very important that the box is checked in the “Active” column because simply leaving this unchecked will make the charge code inactive, which in effect will not let the timekeeping user charge to this code (back to scenario #1).

Once the charge code has been re-entered, as you see below, you may import.

 

 

Importing the changes to timekeeping

To import in timekeeping, from the “Administration” menu, choose the first option by clicking “Go” next to “Import Data from the Accounting System.”

 

Once you click “Import” you will see the status of the import above the Import button you just clicked. Once the status says “Import Successful,” the charge code(s) that were added should now be available for Cindy.

Although this error may seem difficult, if you follow these steps, the timekeeping user will be authorized to charge again in no time! Just remember, there are three different possible scenarios: (1) either the “Active” box was unchecked for this charge code, (2) a piece of the charge code was changed, or (3) the charge code line was deleted completely. The fix for these are straightforward. Once in work authorization, check to make sure the line exists, and if it does, that the “Active” box is checked. Lastly, verify that all pieces of the charge code are correct because one piece being changed overwrites that original charge code (creating a new one). Once everything looks good in the work authorization, you’re ready to import, and the timekeeping user will again be able to charge time to the charge code with no errors.