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

QTMEC
QTMEC Member Posts: 5 Novice Member Novice Member

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

Comments

  • Kris_Williams
    Kris_Williams Member Posts: 3,628 Reckon Accounts Hosted Elite Expert Reckon Accounts Hosted Expert

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

  • Bruce
    Bruce Member Posts: 442 Professional Partner Professional Partner

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

  • QTMEC
    QTMEC Member Posts: 5 Novice Member Novice Member

    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
    Bruce Member Posts: 442 Professional Partner Professional Partner

    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
    Acctd4 Accredited Partner Posts: 3,754 Reckon Accounts Hosted Elite Expert Reckon Accounts Hosted Expert

    @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:


    Shaz Hughes Dip(Fin) ACQ NSW, MICB

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