GL Account Allocations

Account allocation rules define how expenses are allocated to an expense type and optionally a cost center. eFAACT applies these account allocations when calculating indirect rates and generating invoices for government contracts. Account allocation rules associate each general ledger account, imported QuickBooks to one expense categories. We recommend consulting your eF Advisor or your DCAA knowledgeable accountant to review the purpose of each account and their allocations. Account allocations are integral to the DCAA indirect rate calculations.

An account starts out in eFAACT as 'unallocated'. An Account Allocation identifies what type of cost each account represents, and eF uses that information to organize cost pools and bases for your indirect rates. All active QuickBooks general ledger accounts must be allocated in eFAACT prior to beginning eF Period Processing.

Payroll earnings accounts should be allocated to their associated labor type, for example the payroll account that tracks direct labor should be assigned the “Direct Labor” expense type, overhead labor to the “Overhead Labor” expense type and so on. The accounts allocated as a type of labor determine which accounts are used for the payroll journal entries sent to QuickBooks. The eFAACT period processing schedule supports contract invoicing independent of the payroll period, therefore eFAACT calculates labor costs by evaluating the charge number labor type and using the employee timecard hours and their period specific pay rate.

To update multiple accounts at once, select/check the accounts, assign a type and cost center then click the update icon above the account allocation grid.

Account Posting Type-Setup the account to be used when sending the various transactions back to QuickBooks. Ex. accounts to be used to send expense reports and or journal entries back to QuickBooks.

Assign Accounts Receivable by Contract

If your QuickBooks file has more than one Accounts Receivable Account, it is necessary to assign either a default A/R account or assign an account per contract invoice level. The default account is used for all invoices if a contract specific account is not defined.

Facility Allocation

Facility expenses default as allocation by labor costs. Click square footage or head count to change the default allocation. For square footage enter the square footage measurement for the office space utilized by each cost center.