Labour Cost of Sale

Navigator has the ability to record a Labour cost of sale in line with every hour that is sold.

Each technician can be set up with an Hourly Labour Cost.  However, this isn't his "real" hourly pay, but the effective cost of every hour that he sells.  

So for example, if a technician is paid £10 per hour, and is 80% efficient, then the actual Hourly Cost of every hour he charges is 10 x 100/80 = £12.50

When a job is invoiced, an accrual for Labour Cost is made for the job by debiting the labour cost of sale account eg 1.20.30.20 (which is analysed in full by customer category, make, job type) and crediting the balance sheet account 1.20.70.20 (this is always department 20 even for internal jobs where the sale may go to department 21 or 22).

At the end of each month it will be necessary to balance this accruals account with the actual technicians pay.   The payroll cost of technician should be allocated to the x.20.70.20 account and any difference manually journalled to a Labour Cost of Sale adjustment (or simply back to labour cost of sale - though it won't be possible to analyse this by job type).

Alternatively, if the technician labour hourly cost is zero, the payroll cost can go direct to labour cost (x.20.30.20)  - though this will not analyse the cost by invoice type etc.