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Level 3

Entering 'Billable Time" - when does the "Cost" show?

Probably a stupid question, but I need some clarification on 'Billable Time" billed to a customer.


The time billed, $150.00, appears in INCOME in the Profit & Loss Statement, but there is no COST associated with it in the COGS.




Also, is there a better way to bill for Labor?  (Inside and outside labor)


Using the Accrual Method.  Thanks

2 Comments 2
Community Champion

Entering 'Billable Time" - when does the "Cost" show?

Time records are not financial transactions and have no $$ associated with them.


When you pay your employees, their time shows as an expense.

Level 7

Entering 'Billable Time" - when does the "Cost" show?

You need to check you service item set-up.  When entering time and marking it billable, you need a two-sided item.  Click on the box in the item set up that reads "this service item is used in assembly, etc."  This splits your item screen.  Select your COGS account for the expense side and your revenue account for the income side.  


The expense will post on the payroll date.  Revenue will post on the invoice date. 

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