## Entering Contract-Specific Labor Categories for Subcontract Management

This chapter provides an overview of contract-specific labor categories for subcontract management, lists prerequisites, and discusses how to enter contract-specific labor categories for subcontract management.

### Understanding Contract-Specific Labor Categories for Subcontract Management

The U.S. federal government requires the reporting of contract-specific labor categories for service lines on subcontract orders. The U.S. federal government dictates the definition of the labor categories used for costing, billing, and reporting on the contract, and the categories can apply to both internal and subcontracted labor. The labor category flows from the subcontract master to all released purchase orders for the contract. Labor categories do not apply to inventory based purchase order lines. The categories are only applicable to services lines with associated labor.

Subcontract labor billing requires hours and contract-specific labor categories be entered and validated for all associated transactions such as accounts payable and general ledger. Then the billing system calculates and bills the government based on the contract-specific labor categories.

If you have selected the Project and Gov Contract Accounting Used option in the Service Billing Constants program (P48091), the system enables the Job Typ field. Government contracting uses the Job Typ field from the JD Edwards EnterpriseOne Payroll system to specify the type of labor category or job of the person who performs a service. You associate pay and benefit information with a job type and apply that information to the employees linked to that job type.

The Job Typ field displays in the detail grid of the Enter Subcontract Orders (P4310), Voucher Match (P4314), and PO Receipts (P4312) programs. Thus, if you have selected the Project and Gov Contract Accounting Used check box in the Service Billing Constants program (P48091), the system displays and enables the Job Typ field on the following forms:

- Contract Detail (W4310A)

- Voucher Match (W4314A)

- Account Distribution Entry (W4316A)

- Purchase Order Receipts (W4312A)

The labor categories apply to C3 (Funding Level) contracts only. You activate the Contract Labor Categories and Subcontract As Labor features on the Billing/Revenue tab of the Edit Funding Level form (W52G01MB) from the Create/Edit Project and Government Contracts program (P52G01M).

The settings of the Contract Labor Categories and Subcontract As Labor fields on the C3 contract determine if the job type is required at subcontract order entry. The setting in these fields also determine if hours and quantities are required during voucher match and receipts. If neither of these fields are selected, then contract-specific labor information is optional.

The Contract Labor Categories check box indicates whether a contract utilizes contract-specific labor categories. If a contract uses contract-specific labor categories, then hours and job type are validated for all associated transactions. The job type is validated against the Contract Specific Labor Categories table (F52G20).

The Subcontract As Labor check box indicates whether subcontractor labor is treated as labor on a contract. If subcontractor labor is treated as labor on a contract, then hours and contract-specific labor categories are validated for all associated transactions. The job type is validated against the Contract Specific Labor Categories table (F52G20).

You use the Contract Specific Labor Categories program (P52G20) to define valid labor categories. If the system finds that the job type is required but there is no value in the Job Typ field, then the system uses the default value from the Service Billing Constants form. The visual assist on the Job Typ field calls either the UDC 06/G or Contract Specific Labor Categories Search and Select (P52G20S).

Note. If a quantity is required based on the C3 contract settings for contract-specific labor categories, the Subcontract As Labor check box is selected, the object account is within the SL AAI range, and items on a subcontract order have an inventory interface of A or B, then you must enter hours in the Service Quantity and Service UoM (service unit of measure) fields.

Hours and quantities tie in to the general ledger and the JD Edwards EnterpriseOne Contract and Service Billing system. The account number, object account, and job type information pass to the F0911 table. Hours are also stored in payroll. The JD Edwards EnterpriseOne Contract and Service Billing system uses transactions from the F0911 table in order to bill the government based on the contract.

See Setting Up Contract-Specific Labor Categories.

Subcontract Order Entry

When entering a subcontract order using the P4310 program, the Contract Specific Labor Categories program supplies the contract-specific labor category on the Contract Detail form (W4310A) based on system setup. Labor categories apply to items with an inventory interface of A and B only.

If the labor category is required and no job type is entered, the system searches the Contract Specific Labor Categories table for a valid labor category. If no valid labor category is found, the system issues an error.

If the labor category is required and a job type is entered, it must be a valid labor category for the contract or the default labor category defined in the Service Billing Constants program (P48091).

If labor categories are not required, the job type is validated to the UDC 06/G.

For a multiple account distribution line, the job type for each distribution line is displayed and enabled on the Account Distribution Adjustment form (W43146A). The job type value in the Purchase Order Multiple Account File table (F4316) is passed to the F0911 table.

The Job Typ field is displayed and enabled when releasing subcontract orders from the Purchase Order Workbench program (P43101).

You must also enter a total amount in the Extended Cost field.

See Forms Used to Enter Subcontract Order Detail Information.

See Entering Detail Lines by Item Number.

Voucher Match

When performing voucher match using the P4314 program, the Voucher Match form (W4314A) displays the job type for the subcontract order line. Labor categories apply to items with an inventory interface of A and B only.

If the labor category is required and no job type is entered, the system searches the Contract Specific Labor Categories table for a valid labor category. If no valid labor category is found, the system issues an error.

If the labor category is required and a job type is entered, it must be a valid labor category for the contract or the default labor category defined in the Service Billing Constants program (P48091).

If labor categories are not required, the job type is validated to the UDC 06/G.

If a quantity is required, then the voucher transaction can not be accepted without a quantity. You enter the quantity in the Service Quantity field and the system validates it.

The system also displays the Job Typ field on the Select Orders To Match form (W4314C). Since the Select Orders To Match form is a select form, you will not be able to modify the job type. You must use the P4310 program to update the Job Typ field.

The account number, object account, job type, and quantity are sent to the F0911 table.

The system supports the following functionality:

- Progress payment (two- and three-way match).

- Log vouchers (two- and three-way match).

The system validates three-way match, release retainage, and adding a new line. However, the recost voucher and freight to match processes are not supported.

See Creating Subcontract Vouchers.

See Entering Detail Lines by Item Number.

Purchase Order Receipts

You can override the Job Typ field on the Purchase Order Receipts form for items with an inventory interface of A and B only.

If the labor category is required and no job type is entered, the system searches the Contract Specific Labor Categories table for a valid labor category. If no valid labor category is found, the system issues an error.

If the labor category is required and a job type is entered, it must be a valid labor category for the contract or the default labor category defined in the Service Billing Constants program (P48091).

If labor categories are not required, the job type is validated to the UDC 06/G.

If a quantity is required, then the receipt transaction cannot be accepted without a quantity. You enter the quantity information in the Service Quantity and Service UoM fields and the system validates it.

Since the system writes receipts to the general ledger, the system validates the job type and passes it to the F0911 table.

See Processing Receipts.

See Also

Setting Up Service Billing Constants for JD Edwards EnterpriseOne PGCA

Entering PGCA Contract Master Records

Entering Contract-Specific Labor Categories

Adding the Contract Labor Category Field to Self-Service Time Entry

Entering Detail Lines by Item Number

### Prerequisites

Before entering contract-specific labor categories, you must:

1. Select the Project and Gov Contract Accounting Used check box in the Service Billing Constants program (P48091).

2. (Optional) Set up the Default Job Type on the Service Billing Constants form (W48091A) .

3. Enter invoice and funding levels for a contract.

4. Select the Contract Labor Categories and Subcontract As Labor check boxes for the contract on the Billing/Revenue tab in the Create/Edit Project and Government Contracts program (P52G01M).

5. Attach a job to a C3 (Funding Level) contract.

6. Set up labor categories using the Contract Specific Labor Categories program (P52G20).

7. Set the Display Service Units processing option on the Display tab of the P4310, P4312, and P4314 programs.

Note. If the labor category is required and no job type is entered, the system searches the Contract Specific Labor Categories table for a valid labor category. If no valid labor category is found, the system issues an error.
If the labor category is required and a job type is entered, it must be a valid labor category for the contract or the default labor category defined in the Service Billing Constants program (P48091).
If labor categories are not required and entered by the user, the job type is validated to the UDC 06/G.

### Entering Contract-Specific Labor Categories for Subcontract Management

This section discusses how to enter contract-specific labor categories for subcontract management.

#### Entering Contract-Specific Labor Categories for Subcontract Management

Access the Enter Subcontract Orders - Contract Detail form.

Records 1 - 2

Job Typ (job type) | Displays the job type from the JD Edwards EnterpriseOne Contract and Service Billing system. You may override the job type on the purchase order line. If you override the job type, enter a value that defines a job within your organization. You can use a value from UDC 06/G. You associate pay and benefit information with a job type and apply that information to the employees linked to that job type. The Job Typ field appears in the grid and is enabled on the Order Detail (W4310A) and Contract Detail (W4310A) forms if you selected the Project and Gov Contract Accounting Used check box in the Service Billing Constants program (P48091). The Job Typ field can represent the job descriptions that are internal or external to the organization. External job descriptions represent the job types used by a contractor. Internal job descriptions are those used by the organization and may appear in UDC 06/G.