I have some difficulties understanding account groups and labor rates. Could anyone please help to explain my thoughts below? Thanks!
- For account groups, I couldn’t really get why it’s necessary. To track the cost of a project task, if I could appoint an expense account directly to it, why do I have to configure an account group for this expense account?
- As for labor rates, suppose that we have an employee who receives a fixed ammount of salary, 500 dollars every month. But we still need her to clock the time card for the projects she’s working on, so that we could bill our customer based on the hours. How should we set the labor rates then?
- I’m also worried about the impact on our accounting book. Since there’s a link between the non-stock item of labor type and this employee’s time card, and the non-stock item has a certain expense account, will it affect the balance of the expense account in the accounting book on release of the time card? Furthermore, if the employee’s time card is not billable, will it make any difference?
Best answer by Laura02View original