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Can SupaJack Construct allocate payroll cost to projects?

Last updated

Yes. When a payroll run posts to the general ledger, each employee's cost can be split across cost centres and projects by weights, and the journal entry carries the split. Labour cost then shows against each job in project costing, and the trial balance still balances.

On this page
  1. Accounts used
  2. Why it matters for tax
  3. Where it shows
  4. Related tools and guides
  5. Questions people ask

Accounts used

Each pay component posts to its account through a three-step lookup: the component's own account, its mapping type, then the company default. The monthly gratuity provision is posted with the payroll, and final settlements are split across cost centres and projects in the same way.

Because the split is by weight, an engineer who moves between projects mid-year can have the weights changed from the next run, and earlier runs keep the split they were posted with.

Why it matters for tax

Corporate tax starts from accounting profit. Labour cost posted to the right project makes project profit, and the revenue recognised against it, defensible.

Where it shows

Project costing sheets compare cost by head against budget and subcontract commitments, with labour from payroll alongside materials and subcontractors.

Related tools and guides

See payroll and WPS, time and attendance, interim payments, finance and VAT, approvals, the construction ERP overview, the buyer's guide and the answer on scheduling, BIM and safety.

Worked example

A site engineer costing AED 22,000 a month works 60% on Tower A and 40% on a villa project. The March payroll posts AED 13,200 to Tower A and AED 8,800 to the villa, and both projects' labour costs update.

Questions people ask

Is the split by hours or by weight?

By weights set for the employee.

Do final settlements follow the split?

Yes, they are split across the same weights.

Does the ledger stay balanced?

Yes, each entry has equal debits and credits.

Sources

  1. Federal Decree-Law No. 33 of 2021 on the Regulation of Employment Relationship (MOHRE, consolidated)
  2. FTA Corporate Tax General Guide (CTGGCT1)

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