Customer does not have the Project module installed. So I can see how COGS gets posted to the GL by releasing the issue associated with an appointment invoice, but how does the cost of labor get posted to the GL? How is the cost determined and when does it get posted and is there something that needs to be done in order for this to happen? I have already added a time card for an employee and added a labor rate for same, enabled time tracking in Service Order Preferences as well and I am using a non-stock hourly labor item associated with a labor item class and choosing the above employee for the appointment, performing the appointment and closing, then run billing and release the invoice. Still can’t see the cost of labor posting. What am I missing?
How/When does Labor post to the GL without Project Module installed?
Best answer by Eric Ratté
It has changed in the newer version. In your version, it’s the Accrue Cost option that needs to be selected.
+1With the options you’ve selected, the appointments are creating time activities. These activities will be automatically added to time cards when the employees are creating them.
No associated GL entry to time activities
When project-related time activities are released (either individually or by releasing the corresponding time cards), they create a project transaction and optionally a corresponding journal entry depending on the Time Posting option of the Time & Preferences screen (screenshot attached)
This box is displayed only if the Payroll feature is disabled and the Projects feature is enabled.
To record an expense for the labour
Billing Rule - Time
If the billing rule of your appointments is Time, then the non-stock item (service) [Screenshot attached] you are using has to be changed in such of a way that in addition to the revenue, it will also be recording an expense for the labour. At the Price/Cost tab of the Non-Stock Items screen, select Sales as the Post Cost to Expense On option.
Billing Rules – Flat Rate or None
As for the Flate Rate, the Cost Based On option can have something else defined than the Standard cost, it won’t reflect exactly the real time spent and therefore, cost.
One alternative, would be to create a UDF on the Appointments screen as well as a business event that would create a journal entry for the labour for each appointment. Once the GL entry made, its batch number could then be assigned to the new UDF created.
With the options you’ve selected, the appointments are creating time activities. These activities will be automatically added to time cards when the employees are creating them.
No associated GL entry to time activities
When project-related time activities are released (either individually or by releasing the corresponding time cards), they create a project transaction and optionally a corresponding journal entry depending on the Time Posting option of the Time & Preferences screen (screenshot attached)
This box is displayed only if the Payroll feature is disabled and the Projects feature is enabled.
To record an expense for the labour
Billing Rule - Time
If the billing rule of your appointments is Time, then the non-stock item (service) [Screenshot attached] you are using has to be changed in such of a way that in addition to the revenue, it will also be recording an expense for the labour. At the Price/Cost tab of the Non-Stock Items screen, select Sales as the Post Cost to Expense On option.
Billing Rules – Flat Rate or None
As for the Flate Rate, the Cost Based On option can have something else defined than the Standard cost, it won’t reflect exactly the real time spent and therefore, cost.
One alternative, would be to create a UDF on the Appointments screen as well as a business event that would create a journal entry for the labour for each appointment. Once the GL entry made, its batch number could then be assigned to the new UDF created.
Thanks Eric! So the Projects module must be enabled to do this then?
+1I apologize if it wasn’t clear. The section To record an expense for the labour should have been named To record an expense for the labour without Project Accounting
I apologize if it wasn’t clear. The section To record an expense for the labour should have been named To record an expense for the labour without Project Accounting
No worries, when I look at my non-stock item, I don’t see “Posting of Item Costs”
+1It has changed in the newer version. In your version, it’s the Accrue Cost option that needs to be selected.
It has changed in the newer version. In your version, it’s the Accrue Cost option that needs to be selected.
Thank You!
Also refer to Idea,
By default, time cards do not post to the GL. They will create the PM transaction per the Time & Expense Preferences, but unless an actual project is on the time card, it won't create a GL Batch. Thus, time cards with project X won't create a GL batch, and won’t show on a project.
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