Labor Items: To Configure a Labor Item

This activity will walk you through the process of configuring a labor non-stock item that will then be used for billing employee labor within projects.

Attention: This activity is based on the U100 dataset. If you are using another dataset, or if any system settings have been changed in U100, these changes can affect the workflow of the activity and the results of the processing. To avoid any issues, restore the U100 dataset to its initial state.

Story

Suppose that you, as an implementation manager, are updating the system configuration for the SweetLife Fruits & Jams company. To be able to bill the customers for the provided labor within the projects, you need to create a labor item that will represent the repair service for juicers provided by a particular employee, Eric Killian, for SweetLife customers who have purchased juicers.

Process Overview

You will create a non-stock item representing the repair labor on the Non-Stock Items (IN202000) form and specify the item’s settings, including the expense account that has been mapped to an appropriate account group. You will also specify the default price for the item. Then on the Employees (EP203000) form, you will assign this labor item to the employee who will perform the repair work.

Configuration Overview

In the U100 dataset, the following tasks have been performed for the purposes of this activity:

  • On the Enable/Disable Features (CS100000) form, the Project Accounting feature has been enabled to support the project accounting functionality.
  • On the Chart of Accounts (GL202500) form, the 54600 – Repair Expense account has been defined and mapped to the MAINTSERV account group, which has been defined on the Account Groups (PM201000) form.
  • On the Posting Classes (IN206000) form, the NONSTOCK posting class has been defined.
  • On the Employees (EP203000) form, the EP00000006 – Eric Killian employee record has been created.

System Preparation

To prepare to perform the instructions of the activity, launch the MYOB Acumatica website, and sign in to a company with the U100 dataset preloaded; you should sign in as system administrator by using the gibbs username and the 123 password.

Step 1: Creating the Labor Item

To create the labor item that will be used to represent repair services, perform the following instructions:

  1. On the Non-Stock Items (IN202000) form, click Add New Record on the form toolbar, and specify the following settings in the Summary area:
    • Inventory ID: JUICERREPAIR
    • Description: Juicer repair (at the customer's place)
  2. On the General tab, specify the following settings:
    • Type: Labor
    • Posting Class: NONSTOCK

      Based on the settings of the NONSTOCK posting class, the system will use the GL accounts specified for the inventory item.

    • Tax Category: EXEMPT
    • Base Unit: HOUR
    • Sales Unit: HOUR
    • Purchase Unit: HOUR
  3. In the Default Price box on the Price/Cost tab, enter 80.
  4. On the GL Accounts tab, specify the following accounts:
    • Expense Accrual Account: 11010 (AR Accrual Account)
    • Expense Account: 54600 (Repair Expenses)
    • Sales Account: 40000 (Sales Revenue)
  5. On the form toolbar, click Save.

Step 2: Assigning the Labor Item to an Employee

To assign the labor item you have created to the employee who will perform the labor, perform the following instructions:

  1. On the Employees (EP203000) form, open the EP00000006 – Eric Killian employee record.
  2. In the Labor Item box on the General tab, select JUICERREPAIR.
  3. Save your changes to the employee record.

You have created the labor item to be used for repair service and specified an expense account that is mapped to a particular account group. You also have associated this labor item with the particular employee who will perform this work.

Now you can proceed with specifying labor cost rates for the employee, as described in Labor Items: To Define Labor Cost Rates,