Time & Materials Labor Billing

Problem

Project Billing of a Labor Hour does not match T&M amount from the Labor Hour; T&M amount changes in Labor Hour when Write Payroll is executed in Goldenseal Accounting Software.

Diagnosis

These are correct behaviours when the Billing Rate entered in the Employee Record calculates using Net Wage.
If not sure about the calculation method, use *View This Labor Billing Rate* in the Billing Rate cv in the Employee Account window to see it.
The T&M amount is re-calculated when Write Payroll is executed.

Solution

The best way to handle billing for labor costs is to pay the Labor Hours first then bill the Project for them. This way the T&M amount is properly - and fully - calculated for the Project billing to pick up.
If billing for the labor must be done before paying the employee for it, then Write Payroll but don't select an account in the Bank Payment window. This will cause GS to re-calculate the T&M amount and generate a Pay Record that can be paid later w/ a bank transaction.

NOTE-- If the user frequently needs to do T&M billing before writing payroll, they should not base the T&M billing amount on net payroll. Instead, use "gross plus %" and add an estimated amount to cover payroll burden. Then they can bill for the correct amount as soon as they enter Labor Hours.

Comments

Entered 8/6/01 by Gor.