This ledger account is used in the journal entry below, unless a different ledger account has a higher priority in the applicable financial search path.

Journal entry

Ledger account	Category	Type	D	C	Sum
Operations (costs or WIP)	200	10	X		Number of hours * Actual total rate
Labor costs	200	20		X	Number of hours * AC rate
Machine costs	200	30		X	Number of hours * AC rate
Overhead costs	200	40		X	Number of hours * AC rate
Indirect hours	201	10	X		Number of hours * AC rate
Labor costs	201	20		X	Number of hours * AC rate

Posting point

Process hours in the Time Registration module

Remark

The actual labor rate is based on the hour code or function group.

This ledger account is used in the journal entry below, unless a different ledger account has a higher priority in the applicable financial search path.

Journal entry

Ledger account	Category	Type	D	C	Sum
Indirect hours	201	10	X		Number of hours * AC rate
Labor costs	201	20		X	Number of hours * AC rate

Posting point

• Process hours in the Time Registration module

Remarks

• Indirect hours are posted when the Posting type for the hour code is set to 'Presence registration - indirect' and the Post to field is set to 'Cycle labor costs', 'Machine cycle costs' or 'Cycle labor and machine cycle costs'.
• You can still add different indirect hours accounts in the hour code settings.