@Dhivya Shyam Can you give us more information on what you mean by over/under costing labor?
I can tell you that I have a situation where I have more dollars in my GL for labor than I have time booked for labor. This is the result of contract labor based on pools. Meaning that I have credits in a pool of dollars meant for resources that essentially rolls throughout the year and flexes based upon who's on boarded.
This means that I have quite a few lines of labor allocation in my cost model. In the instances where I have an over/under allocation, I use a dummy line entry to mimic a journal entry that essentially takes dollars out of this pool or puts them in. I then allocate/distribute the dollars in that labor pool based on a secondary metric (i.e. in most cases it makes sense for me to flush the dollars remaining in the pool through the activities actually charging for labor in the month).
Not sure if that is in line with the type of thing you're asking?