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Depending on how the POS integration is setup, labor on the flash report may not equal labor on the P&L report.  Here are some tips to understand possible reasons they differ:

Possible Reason #1 (and most likely reason): Actual payroll differs from daily POS imported labor accruals

The Flash Report is based on daily imported data from the POS.  It doesn’t include other adjusting journal entries made directly to GL accounts.  One journal entry most companies enter that hits payroll accounts is the actual payroll journal entry.  Most companies import labor daily from the POS which creates a daily labor accrual entry (which is reflected on flash report) but then do their actual payroll on an interval such as every 2 weeks.  They then enter the journal entry of the actual payroll totals and R365 compares the actual entry vs the POS imported daily accrued amounts and makes adjustments where there are differences so that the GL balances reflect actual payroll.

Since the P&L is based on the GL balances and will reflect the actual payroll while the Flash Report reflects the daily imported numbers from the POS, this is most often the reason for a difference in the 2 reports.

Possible Reason #2: POS import mapping setup to incorrect GL Accounts

During the POS import, the accounts that labor for different job titles post the daily labor accrual entry to are determined by Job Title setup.  Review the GL Accounts that job titles are posting to under Accounting – Administration – Job Titles, filter by the location you want to review and then verify the GL Account column to be sure they’re posting to the right accounts.

Possible Reason #3: Labor estimates

During POS import, to get more accurate daily labor numbers, you can enter labor estimates to be added to the labor imported from the POS for things not tracked in the POS such as Daily Manager Salary, Payroll Taxes, Benefits, and Other.  These are set on the Location form on the Labor Estimates tab.  Of these estimates, only the Daily Manager Salary is shown on the Flash Report in the Labor Other column.  Payroll tax, benefit, and other estimates are not part of the flash report calculations.

Open the Location form (Accounting – Administration – Locations) and review the Labor Estimates tab to be sure those are set properly.

 

 

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