Skip to main content
P
putnamlandscape
November 23, 2024
Question

Capture Employee Labor Costs for Facility Improvements and Repairs in QuickBooks Desktop without Payroll

  • November 23, 2024
  • 1 reply
  • 0 views

We used several of our employees to provide the labor needed to do various improvements and repairs to our facility and would like to capture those labor expenses with the corresponding accounts.  We use Quickbooks Desktop Pro Plus 2024 but do not use the Payroll component.  We have set up jobs that correspond with the improvements and repairs.  Goods/expenses from our vendors that are used for the improvements and repairs have been recorded to the accounts through bill entries and tied to the respective jobs. 

In addition, we have defined our business as a vendor so we can enter labor time and amount as an item through bill entry but struggle with linking it to the right accounts including the account to "zero" out the labor amount.  Suggestions welcomed

1 reply

Rainflurry
Rainflurry
November 25, 2024

@putnamlandscape 

 

Just to confirm, you're trying to reclassify the labor previously recorded as wage expense through payroll to these jobs, correct?  If that's the case, see if this works for you: 

 

1) Create a bank account in QB called 'Clearing Account'.

2) Create a journal entry (JE): debit the newly created bank Clearing Account and credit the wage expense account used to record the previously paid wages for the amount you want to reclassify to the specific job.  Don't enter any name/job on this JE.

3) Create another JE: debit the wage expense account that you want to reclassify the labor costs to (it can be the same or different wage expense account) and credit the bank Clearing Account for the labor costs.  Make sure to include the job on this JE.  

 

You should now have the wage expense showing under the job.  It's necessary to use two different transactions to reclassify the labor costs (hence the need for the Clearing Account) because if you try and do it on one transaction, the job will show both an increase and decrease in labor costs, thereby cancelling each other out.  

Terms & ConditionsAccessibility statement