Job Billing - Example 1 - Daily Job Billing Overtime Rule Setup

The simplest Job Billing Overtime rule setup is at a daily level as the system calculates the adjusted quantity for each job for each day entered in the posted Payroll timesheet with the following logic:

First, the daily REG (Regular) billing quantity is calculated. Depending on whether it is a weekday/weekend, the total hours for the job on the day (across all hour types) is compared with the daily REG hourly limit in the Job Billing Overtime Rule setup.

In a given day,

  1. If Total Daily Payroll Quantity ≤ Daily REG Hour Limit, then

    Payroll Job Billing Adjusted Quantity = Total Daily Payroll Quantity − Daily REG Payroll Quantity and

    Daily REG Billing Quantity = Daily REG Payroll Quantity + (Total Daily Payroll Quantity − Daily REG Payroll Quantity) so that

    Daily REG Billing Quantity = Total Daily Payroll Quantity

  2. If Total Daily Payroll Quantity > Daily REG Hour Limit, then

    Payroll Job Billing Adjusted Quantity = Daily REG Hour Limit − Daily REG Payroll Quantity and

    Daily REG Billing Quantity = Daily REG Payroll Quantity + (Daily REG Hour Limit − Daily REG Payroll Quantity) so that

    Daily REG Billing Quantity = Daily REG Hour Limit

Next, the Daily OT (Overtime) Billing Quantity is calculated. Depending on whether it is a weekday/weekend, the total hours for the job on the day (across all hour types) is compared with the daily OT and REG hourly limits in the Job Billing Overtime Rule setup.

In a given day,

  1. If Total Daily Payroll Quantity ≤ Daily REG Hour Limit, then

    Payroll Job Billing Adjusted Quantity = 0 − Daily OT Payroll Quantity and

    Daily OT Billing Quantity = Daily OT Payroll Quantity + (0 − Daily OT Payroll Quantity) so that

    Daily OT Billing Quantity = 0

  2. If Daily REG Hour Limit < Total Daily Payroll Quantity ≤ Daily OT Hour Limit, then

    Payroll Job Billing Adjusted Quantity = Total Daily Payroll Quantity − Daily REG Billing Quantity − Daily OT Payroll Quantity and

    Daily OT Billing Quantity = Daily OT Payroll Quantity + (Total Daily Payroll Quantity − Daily REG Billing Quantity − Daily OT Payroll Quantity) so that

    Daily OT Billing Quantity = Total Daily Payroll Quantity − Daily REG Billing Quantity

  3. If Total Daily Payroll Quantity > Daily OT Hour Limit, then

    Payroll Job Billing Adjusted Quantity = Daily OT Hour Limit − Daily REG Hour Limit − Daily OT Payroll Quantity and

    Daily OT Billing Quantity = Daily OT Payroll Quantity + (Daily OT Hour Limit − Daily REG Hour Limit − Daily OT Payroll Quantity) so that

    Daily OT Billing Quantity = Daily OT Hour Limit − Daily REG Hour Limit

In the end, the Daily DOT (Double Overtime) Billing Quantity is calculated. Depending on whether it is a weekday/weekend, the Payroll DOT quantity is compared with the daily REG, OT, and DOT hourly limits in the Job Billing Overtime Rule setup.

In a given day,

  1. If Total Daily Payroll Quantity ≤ Daily OT Hour Limit, then

    Payroll Job Billing Adjusted Quantity = 0 − Daily DOT Payroll Quantity and

    Daily DOT Billing Quantity = Daily DOT Payroll Quantity + (0 − Daily DOT Payroll Quantity) so that

    Daily DOT Billing Quantity = 0

  2. If Total Daily Payroll Quantity > Daily OT Hour Limit, then

    Payroll Job Billing Adjusted Quantity = Total Daily Payroll Quantity − Daily OT Hour Limit − Daily DOT Payroll Quantity and

    Daily DOT Billing Quantity = Daily DOT Payroll Quantity + (Total Daily Payroll Quantity − Daily OT Hour Limit − Daily DOT Payroll Quantity) so that

    Daily DOT Billing Quantity = Daily Total Payroll Quantity − Daily OT Hour Limit

Consider the following Job Billing Overtime Rules setup, where only daily hour limits are entered for the two jobs including limits for weekends:

Sample of the Billing Overtime Rules screen

Pgm: JBOVTMRU – Billing Overtime Rules; standard Treeview path: Job Billing > Setup > Local Tables > Billing Overtime Rules

For Job – PYJOB1,

  • The daily limits for weekdays are:

    • Up to 8 hours for REG

    • Greater than 8 and up to 10 hours for OT

    • Greater than 10 hours for DOT

  • The daily limits for weekends/holidays are:

    • Up to 4 hours for REG

    • Greater than 4 and up to 8 hours for OT

    • Greater than 8 hours for DOT

For Job – PYJOB2,

  • The daily limits for weekdays are:

    • REG = Up to 9 hours

    • OT = Greater than 9 and up to 11 hours

    • DOT = Greater than 11 hours.

  • The daily limits for weekends/holidays are:

    • Up to 4.5 hours for REG

    • Greater than 4.5 and up to 9 hours for OT

    • Greater than 9 hours for DOT

The following weekly Payroll timesheet is posted for the two employees, ID-EMP-01 and RV-WK-HR-02, against two jobs, PYJOB1 and PYJOB2, after going through the Payroll Job Overtime Rules processing:

Sample of the weekly Payroll timesheet posted for the two employees, ID-EMP-01 and RV-WK-HR-02

Pgm: PYTIMSTM – Timesheet Entry; standard Treeview path: US Payroll > Timesheet > Timesheet Entry

The hours by type are distributed as follows:

Date PYJOB1 PYJOB2
ID-EMP-01 RV-WK-HR-02
REG (Hours) OT (Hours) DOT (Hours) REG (Hours) OT (Hours) DOT (Hours)
24-JUN-2024 8 0 0 9 2 0
25-JUN-2024 9 0 0 9 2 0
26-JUN-2024 9 3 0 9 0 0
27-JUN-2024 9 2 0 9 3 0
28-JUN-2024 5 5 0 4 8 1
29-JUN-2024 0 0 0 0 0 7
30-JUN-2024 0 0 0 0 0 0
Weekly Total 40 10 0 40 15 8

The resulting CSV file extract of the Job Costing Transaction Detail Log showcases how the JCDT_PYJB_BILLING_ADJ_QTY is used to calculate the Billing Quantity column and the resulting Unbilled Revenue Amount column (JCDT_UNBILLED_REV_Amt).

Sample of the CSV file extract of the Job Costing Transaction Detail Log

NOTE: The Billing Quantity, Qty Per Wage Code, Billing Qty Per Job, and Rate Calculated columns were added manually for better understanding. The Billing Quantity column value can be obtained by adding Quantity (H) and JcdtPyjbBillingAdjQty (I). JcdtPyjbBillingAdjQty is hidden by default in the log and can be selected from the column list.

Below are the detailed calculations for one of the jobs and the same logic applies for the other job as well.

Job – PYJOB2

Date: 24-JUN-2024 (Weekday)

11 hours are posted for the day from Payroll, where REG = 9, OT = 2, and DOT = 0.

Since the total hours exceed the weekday REG limit of nine hours, but not the OT limit of 11 hours, the Billing Quantity column only includes REG and OT hours.

REG Billing Quantity = 9 + 0 = 9, where 9 hours is the Daily REG Payroll Quantity and 0 hours is the Payroll Job Billing Adjusted Quantity

REG Unbilled Revenue Amount = 9 × 68.2 = $613.80

OT Billing Quantity = 2 + 0 = 2

OT Unbilled Revenue Amount = 2 × 99.2 = $198.4

DOT Billing Quantity = 0 + 0 = 0

DOT Unbilled Revenue Amount = 0 × 130.2 = $0

Date: 25-JUN-2024 (Weekday)

11 hours are posted for the day from Payroll, where REG = 9, OT = 2, and DOT = 0.

Since the total hours exceed the weekday REG limit of 9 hours, but not the OT limit of 11 hours, the Billing Quantity column only includes REG and OT hours.

REG Billing Quantity = 9 + 0 = 9

REG Unbilled Revenue Amount = 9 × 68.2 = $613.8

OT Billing Quantity = 2 + 0 = 2

OT Unbilled Revenue Amount = 2 × 99.2 = $198.4

DOT Billing Quantity = 0 + 0 = 0

DOT Unbilled Revenue Amount = 0 × 130.2 = $0

Date: 26-JUN-2024 (Weekday)

9 hours are posted for the day, where REG = 9, OT = 0, and DOT = 0.

Since the total hours doesn’t exceed the weekday REG limit of 9 hours, the Billing Quantity column only includes REG hours.

REG Billing Quantity = 9 + 0 = 9

REG Unbilled Revenue Amount = 9 × 68.2 = $613.8

OT Billing Quantity = 0 + 0 = 0

OT Unbilled Revenue Amount = 0 × 99.2 = $0

DOT Billing Quantity = 0 + 0 = 0

DOT Unbilled Revenue Amount = 0 × 130.2 = $0

Date: 27-JUN-2024 (Weekday)

12 hours are posted for the day, where REG = 9, OT = 3, and DOT = 0.

Since the total hours exceed the weekday REG limit of 9 hours and also the OT limit of 11 hours, the Billing Quantity column includes REG, OT, and DOT hours.

REG Billing Quantity = 9 + 0 = 9

REG Unbilled Revenue Amount = 9 × 68.2 = $613.8

OT Billing Quantity = 3 + (-1) = 2

OT Unbilled Revenue Amount = 2 × 99.2 = $198.4

DOT Billing Quantity = 0 + 1 = 1

DOT Unbilled Revenue Amount = 1 × 130.2 = $130.2

Date: 28-JUN-2024 (Weekday)

13 hours are posted for the day, where REG = 4, OT = 8, and DOT = 1.

Since the total hours exceed the weekday REG limit of 9 hours and also the OT limit of 11 hours, the Billing Quantity column includes REG, OT, and DOT hours.

REG Billing Quantity = 4 + 5 = 9

REG Unbilled Revenue Amount = 9 × 68.2 = $613.8

OT Billing Quantity = 8 + (-6) = 2

OT Unbilled Revenue Amount = 2 × 99.2 = $198.4

DOT Billing Quantity = 1 + 1 = 2

DOT Unbilled Revenue Amount = 2 × 130.2 = $260.4

Date: 29-JUN-2024 (Weekend)

7 hours are posted for the day, where REG = 0, OT = 0, and DOT = 7.

Since the total hours exceed the weekend REG limit of 4.5 hours, but not the OT limit of 9 hours, the Billing Quantity column only includes REG and OT hours.

REG Billing Quantity = 0 + 4.5 = 4.5

REG Unbilled Revenue Amount = 4.5 × 68.2 = $306.9

OT Billing Quantity = 0 + 2.5 = 2.5

OT Unbilled Revenue Amount = 2.5 × 99.2 = $248

DOT Billing Quantity = 7 + (-7) = 0

DOT Unbilled Revenue Amount = 0 × 130.2 = $0