Deltek Insight 2012: Contractor Timesheet Options with Costpoint and Time & Expense

Contractor Timesheet Options with Costpoint and Time & Expense

Art Shearon, Technology Consulting Manager, McGladrey LLPGC-84

2 CONFIDENTIAL ©2012 Deltek, Inc. All Rights Reserved

Overview of McGladrey

What is a contractor and why do contractor timesheets?

Summary of most common processing options

Selection criteria and overall setup steps

Timesheet period, Leave period and Employee setup

Detail of each of the most common processing options

Summary of considerations for processing options

Questions

Agenda


5th largest accounting and consulting firm in the US

Heavily focused on Government Contractors (GC) :

Implementation Services for GCs: Deltek Costpoint (CP), Deltek GCS Premier (GCS), Deltek Time and

Expense (T&E) Deltek Partner

Risk Management & Internal Controls Review of Current Policies and Procedures for FAR Compliance Implementation of Sarbanes Oxley Act (SOX) compliance programs applied

to contractor requirements for adequate internal controls

Government Contracting Consulting Services: Indirect Rates/Cost/Business Volume preparation Litigation support relating to cost realism and allowable cost

Tax & Audit Services

McGladrey Overview


After this session, you should be able to: Decide on the proper approach for your company to handle contractor

(vendor) timesheets Setup the necessary screens within T&E and Costpoint to implement

the appropriate processing option After implementation, be able to validate or adjust contractor (vendor)

invoices for work performed by contractor employees. Minimize time spent with manual activities processing the vendor

invoices

Key Take Away Items


What is a Contractor? Not an employee. May be an independent contractor or an employee of a vendor. As appropriate, gets a 1099, not a W-2.

Why have contractors do timesheets? Want to verify the vendor’s invoice amount and hours Want to accrue contractor labor cost based on timesheets Want to recognize actual contractor labor cost as soon as allowed

Can CP, T&E and GCS handle contractor timesheets? Yes, but the processing options are not a simple, built-in feature Several processing options are available Processing option depends on accounting environment, system

environment, Federal Government Contracting Officer and your objectives

Common Questions


1) Keep track of contractor time without posting labor cost

2) Keep track of contractor time and post labor cost with Accrued Wages account adjustment via GL Journal Entry adjustment

3) Keep track of contractor time and post labor cost with Accrued Wages account adjustment via Labor Settings

4) Keep track of contractor time and post labor cost with Accrued Contractor account adjustment via a T&E SQL Stored Procedure

5) Keep track of contractor time and post labor cost with Accrued Contractor account adjustment via a Costpoint SQL Script

6) Keep track of contractor time and post labor cost with Accrued Contractor account adjustment via a Costpoint Allowance

7) Keep track of contractor time & process the hours/labor cost to AP as Voucher via custom software & AP Preprocessor

Processing Options


Selection depends on accounting environment and objectives

Selection may entail one or more of the options depending on circumstances

Is no right or wrong way of doing this (as long as all steps are followed)

Presentation notes problems with certain options

Several setup steps are needed to enable each option

Some steps are common to most options, setup: Separate timesheet and leave periods Contractor employees Vendors Vendor employees (if AP Preprocessor functionality) TS/AP default information

Processing Options (cont.)


Setup Separate Timesheet Cycle


Setup Separate Leave Cycle


Setup Subcontractor Employees


Option 1 – Keep track of contractor time without posting labor cost

Contractor employee may be assigned an hourly rate equal to the amount to be paid to the vendor

Contractor employees enter hours worked using T&E Contractor employees enter into a separate Timesheet (TS) Cycle T&E Timesheets may be exported to Costpoint (or not) Timesheets in Costpoint are not posted for Labor Distribution Timesheets are used to reconcile to vendor invoices Problem: Costpoint Timesheets might get posted by mistake. Problem: Un-posted Timesheets in Costpoint will prevent GL

Accounting Period Closing. TSs will need to be deleted or marked as posted.

Option 1


Option 2 – Keep track of contractor time and post labor cost with Accrued Wages account adjustment via GL Journal Entry adjustment

Contractor employee are assigned an hourly rate equal to the amount to be paid to the vendor

Contractor employees enter hours worked using T&E Contractor employees enter into a separate Timesheet (TS) Cycle T&E Timesheets are exporteded to Costpoint Timesheets in Costpoint are posted for Labor Distribution JE is made to move the posting amounts from the Accrued Salaries

account to the Accrued Contractor Payable account at the Org Balance Sheet level – TS Edit report may be used to determine the JE.

Problem: offset is to Accrued Wages (used for employee posting)

Option 2


Option 3 – Keep track of contractor time and post Labor cost with Accrued Salaries account adjustment via Labor Settings

Contractor employee are assigned an hourly rate equal to the amount to be paid to the vendor

Contractor employees enter hours worked using T&E Contractor employees enter into a separate Timesheet (TS) Cycle T&E Timesheets are processed to Costpoint Timesheets in Costpoint are posted for Labor Distribution\ However, immediately before posting change the Accrued Salaries account

to the Accrued Contractor Payable account in the Labor Settings screen Post the timesheets (offset is to the proper account) Change the Accrued Salaries account back to the Accrued Salaries

account in the Labor Settings screen Problem: forget to change the account before or after

Option 3


Option 3 (cont.)


Option 4 – Keep track of contractor time and post labor cost with Accrued Contractor account adjustment via a T&E SQL Stored Procedure

Custom Software Program (SQL Script) Program is executed in Costpoint after TSs are imported from T&E Program sums all the timesheet line hours for the appropriate TS cycle Program adds one additional timesheet line with negative hours for the

total hours on the timesheet Additional line references the Accrued Contractor Payable account The total net hours on the timesheet is zero after procedure. Additional SQL script is needed to delete added line for re-processing Problem: Requires custom stored procedure routine (software)

Option 4


Option 5 – Keep track of contractor time and post labor cost with Accrued Contractor account adjustment via a Costpoint SQL Script

Custom Software Program (SQL Script) Program is executed in Costpoint after TSs are imported from T&E Program sums all the timesheet line hours for the appropriate TS

cycle Program adds one additional timesheet line with negative hours for

the total hours on the timesheet Additional line references the Accrued Contractor Payable account The total net hours on the timesheet is zero after procedure. Additional SQL script is needed to delete added line for re-

processing Problem: Costpoint has different timesheet data from T&E

Option 5


Option 6 – Keep track of contractor time and post labor cost with Accrued Contractor account adjustment via a Costpoint Allowance

Allowance is a standard feature of Costpoint Normally used to add additional labor costs items to CP timesheets Program sums all the timesheet line hours for the appropriate TS cycle

in accordance with parameters Several setup screens involved Allowance has to be assigned to each contractor employee Problem: process has to be run before posting labor (no forgiveness)

Option 6


Option 6 (cont.)


Option 6 (cont.)


Option 6 (cont.)


Option 7 – Keep track of contractor time and process the hours/labor cost to AP as an AP Voucher via custom software & AP Preprocessor

AP Preprocessor is an optional additional cost module of CP (and GCS) Normally used to create AP Vouchers from an outside system Program loads a Voucher Header, Line and Line Account records Several setup screens involved, including Vendors & Vendor Employees Vendor Workforce and defaults may need to be setup, if needed Posting happens when the AP Vouchers are posted. Problem: requires a custom program to stage the data in the format that the

AP Preprocessor needs it in from the source system Problem: edits happen at time of import – may have to go back to source

system to fix inaccurate data

Option 7


Many options available

Selection depends on environment

Amount of money to spend on a solution

Number of Timesheet Cycles

Number of contractors

Okay to bill Government for contractors before paying vendor

Ability of staff to perform necessary steps

Current Time Collection system

Check Out Version 9 of T&E and Costpoint 7

Conclusion


Q&A


Interested in McGladrey Services, email me at [email protected]

If you are interested in providing feedback and requirements for upcoming productized version, email me at [email protected]

Learn More…

mailto:[email protected]

mailto:[email protected]

Thank You!