Payroll & Job Estimate vs. Actual Report

galaxy builders · ‎November 29, 2018

Is there a way to have payroll transactions (that are already being job costed/tracked - including Workers Comp) show up on a Job Estimates vs. Actual Report? I already have my Items List set up for two-sided items...

AldrinS · ‎November 30, 2018

Hi galaxy builders,

It's nice to hear from you again. Allow me to jump in and elaborate that part of qbteachmt's awesome answer.

It is referring to the columns you can find on our Timesheet feature. The following steps below will lead and guide you on how to use it:

From the Employees menu, select Enter Time and then Use Weekly Timesheet.
- You'll be routed to the Timesheet page where you can find the Service Item and Payroll Item columns.
Click the Name drop-down menu, then choose the correct employee.
Enter the appropriate details in the Customer:Job, Service Item, Payroll Item, Class (if necessary), and the Hours.
Hit Save & Close.

I've attached a couple of screenshots below to show you how it looks like. Also, check out our detailed guide on how to create timesheets and time data report in QuickBooks for additional information.

Keep in touch with me here and let me know what else I can do to help you succeed with QuickBooks. Thanks for reaching out, wishing you and your business the best!

View solution in original post

qbteachmt · ‎December 01, 2018

The pay rate is from paychecks and as long as you have both Columns, then it reveals itself as the Service Item Cost in the Job reporting, such as Job Profitability Detail (I show that side-by-side with the P&L for the same one job). It also gives you the info for Est Cost vs Actual Cost. This is all provided for, as long as you Job Track payroll starting from the Timesheet.

"However, the only section that allows me to select "Per Earnings Item" is the "Assign one class per" section."

If you also have Class Tracking enabled, the reason to select the radio button "Per Earnings Item" for both Job and Class, is so that the timesheet has all the cross-reference data on each Row.

"We have some employees who are paid on a job rate basis (they're paid a set amount per job instead of an hourly rate)."

Cost still comes from the Paycheck.

"Thus, I don't enter time for these employees."

If you don't start with the timesheet, you have to put these details in Paycheck Details view, which is much harder to do. You have to include Service Item and pay attention to the following info:

Paycheck Details as Billable:

Here is why it happens:

If you create a Paycheck with Customer:Job names but without service items, it will be included in the Unbilled Costs by Job report.
If you create a Paycheck with Customer:Job names and with service items, then the Paycheck is not included in the Unbilled Costs by Job report. If you then edit the Paycheck and remove the Service Items, it still is not included in the Unbilled Costs by Job report.

The best thing to do is start from Timesheet entries, for good Job Tracking, and include the Service Item column and set your employees to be Paid from Time Data, so that you also see the Payroll Item here. Set your Payroll Preferences to Job Track per Earnings Item, for purposes of allocation, as well.

Then, everything reports correctly.

"How would I go about tracking their pay for the Job Estimate vs. Actual report?"

The same: You need the details to be on Paycheck Details, to have it report. You need to see Per Job lines, with both Payroll item and Service Item. That's how Cost is passed to the Service Item in Job reporting.

View solution in original post

qbteachmt · ‎December 03, 2018

You enter the Payroll item and the Service item on the same row for the task as the customer name, in the timesheet. Quantity is used to compute the Cost rate against that quantity, such as hours. That also can be any Unit, such as a salary person might have 1 and 3 = 1/4 of that week's tasks were one job row and 3/4 for a different job row. That would allocate the Salary as Cost as 1/4 one job and 3/4 the other job for that weekly timesheet. If you were doing only a Commission Pay item, then each row might be quantity 1, of course. That unit is part of your allocation. The Cost for the payroll item is not entered here; that is part of Payroll Setup, and/or overridden/entered in Paycheck Details.

View solution in original post

qbteachmt · ‎November 29, 2018

For this: "I already have my Items List set up for two-sided items..."

That's only one step.

You need to mark Payroll Preferences to Job Track, and Per Earnings Item.

You need to set the Employee Default and edit each current name, and set them to Pay From Time Data.

Now you use Timesheets and see Two Columns. Payroll Item controls the data flow for costing. Service Item controls the Reporting on job reports. They need to be used Together.

The same item is in use in the Estimates, of course.

Now you can run Time based reports for Est and Actual, as well as Cost reports for that same activity, but Cost is from Paycheck Date. Time is from Task date.

Please see my attachment.

galaxy builders · ‎November 30, 2018

Payroll Preferences is marked to Job Track. The "Job Costing, Class, and Item tracking for paycheck expenses" check box is selected. However, the only section that allows me to select "Per Earnings Item" is the "Assign one class per" section.

We have some employees who are paid on a job rate basis (they're paid a set amount per job instead of an hourly rate). Thus, I don't enter time for these employees. How would I go about tracking their pay for the Job Estimate vs. Actual report?

Can you elaborate on "Now you use Timesheets and see Two Columns. Payroll Item controls the data flow for costing. Service Item controls the Reporting on job reports. They need to be used Together."?

AldrinS · ‎November 30, 2018

Hi galaxy builders,

It's nice to hear from you again. Allow me to jump in and elaborate that part of qbteachmt's awesome answer.

It is referring to the columns you can find on our Timesheet feature. The following steps below will lead and guide you on how to use it:

From the Employees menu, select Enter Time and then Use Weekly Timesheet.
- You'll be routed to the Timesheet page where you can find the Service Item and Payroll Item columns.
Click the Name drop-down menu, then choose the correct employee.
Enter the appropriate details in the Customer:Job, Service Item, Payroll Item, Class (if necessary), and the Hours.
Hit Save & Close.

I've attached a couple of screenshots below to show you how it looks like. Also, check out our detailed guide on how to create timesheets and time data report in QuickBooks for additional information.

Keep in touch with me here and let me know what else I can do to help you succeed with QuickBooks. Thanks for reaching out, wishing you and your business the best!

galaxy builders · ‎November 30, 2018

That makes sense. I remember doing this same thing for another company; but, couldn't remember exactly how it was done. Thank you!

Would recording the time in this manner also track the associated Workers Comp expense for Job Estimates vs. Actual Reports?

galaxy builders · ‎November 30, 2018

Any suggestion(s) on how to track job rate pay for Estimate vs. Actual Reports?

HoneyLynn_G · ‎November 30, 2018

Hi there, galaxy builders.

Thank you for getting back into this thread. I can share some information about the Estimate vs. Actual Reports in QuickBooks.

You can customize the Estimate vs. Actual Report but the option to track the Job rate is currently unavailable. However, you have other options to track job costs. For detailed information, please check this article: Track job costs in QuickBooks Desktop.

I'd like to make sure this suggestion gets to our product developers. I encourage you to send us feedback to possibly include this to our future QuickBooks updates. I'll do the same in my end.

Here's how you can send your feedback:

Click the Help menu bar.
Scroll down to Send Feedback Online.
Select Product Suggestion.
Select Product Suggestion for the Type of Feedback.
Product Area is optional.
Enter your suggestion.
Click Send Feedback.

And of course, you are more than welcome to visit the Community again if you have any other questions in the future. We'll be happy to answer them for you.

qbteachmt · ‎December 01, 2018

The pay rate is from paychecks and as long as you have both Columns, then it reveals itself as the Service Item Cost in the Job reporting, such as Job Profitability Detail (I show that side-by-side with the P&L for the same one job). It also gives you the info for Est Cost vs Actual Cost. This is all provided for, as long as you Job Track payroll starting from the Timesheet.

"However, the only section that allows me to select "Per Earnings Item" is the "Assign one class per" section."

If you also have Class Tracking enabled, the reason to select the radio button "Per Earnings Item" for both Job and Class, is so that the timesheet has all the cross-reference data on each Row.

"We have some employees who are paid on a job rate basis (they're paid a set amount per job instead of an hourly rate)."

Cost still comes from the Paycheck.

"Thus, I don't enter time for these employees."

If you don't start with the timesheet, you have to put these details in Paycheck Details view, which is much harder to do. You have to include Service Item and pay attention to the following info:

Paycheck Details as Billable:

Here is why it happens:

If you create a Paycheck with Customer:Job names but without service items, it will be included in the Unbilled Costs by Job report.
If you create a Paycheck with Customer:Job names and with service items, then the Paycheck is not included in the Unbilled Costs by Job report. If you then edit the Paycheck and remove the Service Items, it still is not included in the Unbilled Costs by Job report.

The best thing to do is start from Timesheet entries, for good Job Tracking, and include the Service Item column and set your employees to be Paid from Time Data, so that you also see the Payroll Item here. Set your Payroll Preferences to Job Track per Earnings Item, for purposes of allocation, as well.

Then, everything reports correctly.

"How would I go about tracking their pay for the Job Estimate vs. Actual report?"

The same: You need the details to be on Paycheck Details, to have it report. You need to see Per Job lines, with both Payroll item and Service Item. That's how Cost is passed to the Service Item in Job reporting.

galaxy builders · ‎December 03, 2018

Correct me if I am wrong...

If I enter "1" (for example) for the employees who are paid based on job rate (instead of hourly rate) on the Timesheet for the corresponding job/customer, Service Item, and Payroll Item, this will track the costs and report it on the Job Estimate vs. Cost Report...

qbteachmt · ‎December 03, 2018

You enter the Payroll item and the Service item on the same row for the task as the customer name, in the timesheet. Quantity is used to compute the Cost rate against that quantity, such as hours. That also can be any Unit, such as a salary person might have 1 and 3 = 1/4 of that week's tasks were one job row and 3/4 for a different job row. That would allocate the Salary as Cost as 1/4 one job and 3/4 the other job for that weekly timesheet. If you were doing only a Commission Pay item, then each row might be quantity 1, of course. That unit is part of your allocation. The Cost for the payroll item is not entered here; that is part of Payroll Setup, and/or overridden/entered in Paycheck Details.

galaxy builders · ‎December 04, 2018

Thank you!

mtshoberg · ‎September 11, 2019

If my employees are all salaried, but I would like to track their time for job costing/billing purposes only (not necessarily for payroll), can I still use this method as mentioned above?

PreciousB · ‎September 11, 2019

Thanks for joining this conversation, mtshoberg.

For salaried employees, once you tick the Use time data to create paychecks button on their profile, QuickBooks Desktop will populate the billable hours on their paycheck and use the salary rate. However, if you have multiple items on the timesheet, QuickBooks will spread out the salary amount according to their number of hours on each item.

If this works for you, please follow the steps below to turn on the feature:

Select Employees at the top menu bar, then choose Employees Center from the drop-down.
Double-click the employee's name.
Hit the Payroll Info tab.
Check the Use time data to create paychecks button.
Tick the OK button to close the screen.

Once done, follow the steps above shared by my colleague AldrinS on how to create a timesheet.

Lastly, run the Time by Job Detail report to view the time activity of each salaried employee.

Here's how:

Go to the Reports at the top menu bar.
Under Jobs, Time & Mileage, select Time by Job Detail.

Visit these articles to learn more about the hourly rate of salaried employees and tracking payroll expenses:

Please leave a comment below if you need any further information. I'm always here if you need anything else.

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