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Adding a labor charge to an assembly item

In a manufacturing environment you may want to capture the labor cost of assembling a group of items into a finished product without overstating or understating your costs.

How to fix it

Tracking the expense for labor by time sheets is one way, but then you have to mark it as billable to bring it in on an invoice and this may be cumbersome or not appear as the user desires. Use the steps below instead of billable time/costs:

  1. Setup a Non-Inventory part or Other Charge item and map it to payroll expense.
  2. Add this item to the Bill of Materials in an assembly item with the appropriate dollar figure for the time it would take.

 

  • When the assembly item is sold, a negative expense (income) is posted to the payroll expense account.
  • When the employee is paid, the true expense offsets the negative expense (income) that was posted previously.
  • This puts the transaction in balance and does not overstate your expense.

 

 

KB ID# SLN77952
12/3/2016 7:58:09 PM
QYPPRDQBKSWS07 9138 Pro 2017 1f41f9