You may need to allocate overhead expenses to your customer jobs in addition to those expenses incurred directly for a particular job. This article will discuss both basic and advanced methods of allocating these overhead expenses to a customer job.
Weather you choose the basic or advanced method, it is highly recommended to backup your company file.
Since the net effect on the allocated expenses account is zero, it should not show on the Profit & Loss report.
Create the Job Profitability Detail report for one of the customer:jobs and you will see the allocated overhead expenses at the bottom of the report in the "No Item" row.
Note: The advantage of the advanced method is eliminating the "No Item" line on all of your Job Profitability Detail reports.
Set up a Clearing Account on which to draw the zero checks. This is going to be the source account of the zero check.
Note: You can run the report weekly, monthly, quarterly and yearly.
It is important to run the Job Profitability Detail report for each customer to verify that you have allocated the overhead correctly.