setting up a service item for agency hire labour, not paid through payroll

QTMEC

what is the best way to setup a service item when you hire extra labour from an agency and you pay the agency, so not going through payroll

COG

Sales Revenue

Kris_Williams

Just like any other supplier, account can be consultant’s fees e.g. maybe check with your accountant

Bruce

I would be setting it up as a separate expense line "Labour Hire expenses" or similar.

QTMEC

Hi

I do have COG - Sub Contractors -> Sales Revenue Subcontractors Income

So i capture any agency hire (we pay the agency) and keep an eye on the costs should i set the

Service Items - COG Hired Labour and the Sales Hired Labour income

this is what i have done in the past

Bruce

COG - Sub Contractors -> Sales Revenue Subcontractors Income suggests that you are able to attribute sales to be exclusively as a result of your labour hire arrangements (which is not something I have experienced before). This suggests to me that what you have described will work. In saying this, I think it only works if your use of labour hire can exclusively be attributed to COGS (and not some other functions within your business).

I'd bow to knowledge of others who have significantly more experience in this area than me, but totally agree that Labour Hire arrangements must be carefully scrutinised to ensure that you are getting value for money.

Acctd4

@QTMEC Is this a COGS account as it's name states " ...Sales ..." ????

For COGS/Expenses, it's essential you use an 'outgoings' type account (eg Expense/COGS account), not Income.

If you have this Item set up in your Item List (that you use to charge out on invoices) & you want to use the same Item - rather than just posting direct to the relevant account - you'd need to tick the checkbox & add in the Expense-side info (eg Account, Tax code etc) on it so it's correctly configured for both types of transactions. When you use the Item on a sales form, Reckon will then use the sales info, when you enter it on a purchase/expense transaction, Reckon will use the Purchase info: