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Experienced Member

Need labor costs to be included in job profitability reports

We are general contractors/remodelers. We use weekly time sheets to track each employee's labor for each customer:job. We invoice based on an estimate that does not include the actual time our employees spend on the job, but is based on an initial estimate that includes a flat fee for the work to be completed. So we do not bill labor (or materials for that matter) directly to the customer.

 

I want to be able to include our employees' labor in a job profitability report or profit and loss report for a job.

 

How can I include our labor costs (COG) in the total cost of the job to determine a jobs' profitability without directly billing the customer for their time?

4 Comments
QuickBooks Team

Re: Need labor costs to be included in job profitability reports

Greetings, @RedRenovations.

 

I'd like to provide some resources on how you can charge your customer for the actual time and costs for a job and include this in your jobs' profitability report.

 

If you have been tracking billable hours or expenses for a particular job, you can invoice your customer for your costs.

 

Here's how:

  1. Go to Customers.
  2. Choose Create Invoices.
  3. Select the name of the of the job from the Customer:Job list.
  4. Click Time/Costs at the top of the window.
  5. Go to the tab for the kind of cost you want to include on the invoice:
    • Items
    • Mileage
    • Expenses
    • Time
  6. In the Use column, click next to each cost you want to include on the invoice.
  7. Click Ok.

 

That should do it! You can now run your Job Profitability report.

 

Please don't hesitate to visit us here in the Community if you have other questions about generating job related reports in QuickBooks Desktop. I'm always here to help.

Established Member

Re: Need labor costs to be included in job profitability reports

The original poster and I are in need of the exact same thing! I have done what you suggested, however; importing it to an invoice does give you the total cost, but it shows up as income on the report, therefor making it look like the job made more money than it did. Clearly, you can just subtract amount of said invoice, but then its still not showing on a report as an expense?

Established Member

Re: Need labor costs to be included in job profitability reports

The original poster and I are in need of the exact same thing!

I have done what you suggested, however; when importing the time cost to an invoice, it shows up as income on the report, not an expense. So, clearly we can deduct that amount to get the over all bottom line, but it still doesn't show up on the report as an expense. I tried to put it on a bill, but there's no option to import the time to a bill, so I was not manually entering 1000+ hours between 5 guys manually. I cannot believe that this software doesn't reflect labor cost in a job P&L?

QuickBooks Team

Re: Need labor costs to be included in job profitability reports

Hi @RedRenovations,

 

Thank you for sharing the steps you've already tried.

 

I tried replicating this on my test company and found that this option you're looking for isn't available.

 

I suggest for you to export your Job Profitability report to Excel and include your labor cost.

 

Follow these steps when you have the Job Profitability report open:

  1. Click Excel on the report toolbar.
  2. Select Create New Worksheet or Update Existing Worksheet.
  3. Click Export.

I understand that the feature you mentioned is quite useful for you, as well as most of our users. With that said, we've taken note of this.

 

If you'd like to customize customer, job, and sales reports, take a look at the link I provided. Options like taxable customers and sales receipts that show check number for the payment are some of the steps you'll see on the page.

 

Feel free to drop me a comment below if you have any other questions. I'll get back to you as soon as I can.