Buu-Linh Tran, Raffa Technology
There are a number of Intacct configurations that cannot be changed by the business user once it has been set or configured. Changing these configurations might require resources from the Intacct engineering team and there is usually a fee. One of these configurations that must be set correctly during the system configuration phase of implementation is the “Number of workday hours” in the Timesheet settings. We have seen in a couple of implementation, as well as the demo companies, where the “Number of workday hours” is not configured correctly.
Be aware that there is additional information needed beyond the Intacct explanation on how the “Number of workday hours” is used in the system. Below is the information from the Intacct help screen:
Workday hours is used to calculate the number of work hours in a year. The work hours in a year are then used to calculate the hourly labor rate for salaried employees.
Workday hours * 5 * 52 = work hours / year in this case:
- The system assumes 5 workdays in a week – this is not configurable.
- The system assumes 52 weeks in a year – this is not configurable.
Based on the calculation above, 8 workday hours = 2080 hours in a year.
Raffa uses 8 for workday hours unless we have a good reason to do otherwise. Workday hours cannot be changed after the first timesheet is posted. This hourly rate is used when you want the system to calculate the actual project costs based on an employee’s salaried hourly rate.
For example, if an employee has a salary of $48,000 a year and the pay period is semi-monthly, the salary for each pay period is $2,000. If the employee works 90 hrs on 1 project for that pay period and the Intacct system is configured to calculate labor costs based on actual labor costs (for true project costing), then the labor cost charged for that project is $23.08 (48,000/2080) *
Please contact Buu-Linh Tran if you have any additional questions about this setup feature.
If you’d like to learn more about Intacct, please join us for a free Raffa Learning Community seminar on February 25th: Accounting Systems Seminar Featuring Intacct.