This activity is used to define how any prevailing wage shortfall should be allocated.
When the Rate Agreement is prevailing wage enabled this means that the employee's rate agreement (union or specific) is compared to the prevailing wage rate agreement. The larger direct rate is always applied, but any surplus from the summarized indirect or fringe benefits needs to then be applied to the overall job cost and should be assigned to a Job Cost Type as a shortfall.
If shortfall exists and there is no allocation defined for the specific company in Fringe Shortfall Allocation, no Job Cost Details at all will be created for the specific transaction. An error will be logged in Job Cost Calculation Log, and the Job Costing Updated flag will be set to Error at the transaction.
It is only possible to have one shortfall allocation per company, Job Cost Type is mandatory, whilst Wage Class and Wage Code is not.
None
When shortfall exists, a detail will be created for that amount with the Job Cost Type, Wage Class and Wage Code that is defined in Fringe Shortfall Allocation.