Two Companies, One Payroll, All salaried employees - How to allocate job costing correctly

Question

Sage only allows us to enter hours per employee per job. 
 Example: 
 Salary at 5,000/mo (paid through Company 'C') 
 Time sheet entered as 20 hours goes to Company 'C' and 40 goes to Company 'A' 
 Job costs is incorrect because 40 hours goes into Company 'A' 
 
 Sage is set to only read the Salary. 
 
 Then it takes the 5,000/mo and divides it by 20 (since the 20 is part of the Company 'C') 
 
 Therefore the amount of the 40 hours is posted through Sage to Company 'A' and cash is transferred from Company 'A' to Company 'C''s bank account. 
 
 This thereby reduces the "overhead salary" (in Company 'C') 
 
 How would we correctly job cost in each company if the (Salaried) employee is working in both Company 'A' and Company 'C'?

Char DeLange · Answer

I hope I understand the situation correctly so here goes. 
In order to get the salary to divide correctly you need to job cost the 20 hours for company C but also put 40 hours in the grid not costed to a job so it will hit overhead for company A. This way the 5000 gets divided by 60 hours not 20. 
Then when company A pays by debiting direct labor and hitting the jobs) you can credit company C overhead wages, taxes etc. 
You might want to just create a new GL account called contra wages for those credits to hit in company C.

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Two Companies, One Payroll, All salaried employees - How to allocate job costing correctly

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