Cost Management

Dassian Actual Labor Costing (ALC)

The challenge in achieving actual labor cost is a daunting task faced by many companies which perform actual job costing or that must comply with U.S. Federal and local regulatory requirements such as total time accounting and CAS compliance.

Dassian Actual Labor Costing augments standard SAP® functionality to track and record an actual labor rate on final cost objectives which can include both base labor and associated burdens on separate elements of cost. It provides the capability to capture, calculate, and post all elements of labor over the actual hours worked on the final cost objective. The actual labor cost and the original work date of the labor charge are maintained on the final cost objective even after retro-active payroll changes or off-cycle payroll adjustments. This functionality coupled with highly flexible configuration provides a solution to handle actual labor across varying contractual requirements such as Davis-Bacon Act, Service Contract Act, Project Labor Agreements, Prevailing Wage laws, contract specific labor & burden rates, as well as country specific rules.  Blended labor rates do not have to be a source of problems anymore.

Business Benefits

  • Improve your bottom line with actual profitabliity via true actual labor costs
  • Increase revenue by bidding on CAS compliant government contracts (Cost Accounting Standards)
  • Segregate labor premiums like overtime so they can be reclaimed and billed
  • Rely on accurate labor costing data to improve operational efficiency
  • Eliminate ‘guestimate’ pricing models and achieve more accurate bids with better insight
  • Standard reporting to easily identify and focus on the exceptions without the need for manual reconciliation

Compliance Benefits

  • Pass DCAA audits
  • Achieve CAS compliance and total time accounting
  • Automatically reconcile payroll to labor distribution with audit reports
  • Supports Davis-Bacon Act, SCA, CBA, PLA, as well as other prevailing wage determination
  • Retro-active (retro) payroll changes, off-cycle payroll, and adjustments are fully supported
  • Flexible labor cost distribution detail

IT Benefits

  • Eliminates the need for custom development of complex regulated requirements
  • Seamless integration with SAP ERP
  • Works with any payroll system
  • Runs on SAP ERP application server with no additional hardware requirements
  • Proven low risk COTS offering
  • Fully supported solution with lower TCO

Key Features

  • Total time accounting for salary, hourly, and contractor personnel
  • Cost Accounting Standards (CAS) compliance
  • Supports retro-active payroll changes, off-cycle payroll, and adjustments
  • Davis-Bacon Act, SCA, CBA, PLA, as well as other prevailing wage determination requirements
  • Reconcile and evaluate labor distribution actual cost absorption by person
  • Known labor cost by employee, by work day, by final cost objective
  • Maintains original work date on the final cost objective for all labor postings enabling accurate billing and reporting
  • Cost distribution based on actual payroll whether it comes from SAP payroll or a third party payroll.
  • Flexible labor cost distribution by detail element of cost, by fully loaded base labor with fringes, or summary postings
  • Out of the box reconciliation reporting which provides person level labor cost distribution validation

Easy Labor Cost Distribution and Pay Reconciliation

Costs analysts often spend an enormous about of time reconciling the costing activity of the past. Dassian ALC provides a convenient reconciliation report which reduces reams of labor data into a concise display of just the exceptions to be addressed. Reduce the time and expense of performing labor reconciliations and improve accuracy and confidence in your labor dollar base.