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Natasha Puchala
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This is critical to project accounting. It is not realistic to add 50+ tradies to Xero as users purely to report on payroll labour, it should be an admin function.
When posting wages there should two additional lines e.g. Project Costs (DR) and Wages Recover (CR). With project reports that show the detail of the postings by project and show up on the project also.
So many other software's do this and Xero should please do so too asap.Natasha Puchala
supported this idea
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I agree and have previously voted and commented on this topic. But incase anyone wants to try the same work around that I’m going to try;
How to Set Up Labour Recovery Using Bills
Create a dummy supplier: Set up an internal supplier named "Project Labour Recovery”
In excel Determine the recovery or cost rate for the employee (what it costs the business per hour). For each payroll establish the workings for your recovery
Create a new bill: Go to Business > Bills > New Bill. Select your internal labour supplier and set the date to your payroll paid date. Reference is Payroll W/E DD/MM/YY.
Enter time as line items: In the description, write the project task or employee name, enter the total hours worked as the Quantity, and put your hourly recovery rate as the Unit Price. Assign the line to a COGS account.
Assign to the project: Use the bill options menu to select Assign expenses to a customer or project, choose Projects, and search for the correct project name. Select the relevant lines and click Assign, then approve the bill. Add a credit line to a wages recovery expense accounts. Will be a $0 bill value with NT tax codes. Attach the excel/pdf of your payroll workings.
Invoice the client: The labour cost now sits on the project ledger. You can pull these unbilled costs directly into a project invoice.
Report: you should now have realistic profit margins on projects. Your project reports can reconcile to the sales and COGS accounts. Your net wages will be your overhead wages.