As an example in applying labor at the standard labor rate using the Labor Hours screen, let's assume we are applying 40 hours of employee John Doe's time to the 20' pleasure boat job for customer Smith. Since this is labor costs, we will charge Activity Id number 8900.100l which we set up previously for labor costs in constructing the steel hull. The entry screen looks like this:
General Ledger Distribution
The general ledger distribution of this labor transaction is created when the payroll process, Apply Labor, is run. The specific entry again is a debit to the expense account listed on the Enter or Change Activities screen. The Payroll System credits the overhead accumulation account.
After the payroll process, Apply Labor, has been run the activity screen looks like this: