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AmandaV2
May 14, 2024
Question

Quickbooks time and Accounting entries

  • May 14, 2024
  • 1 reply
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Can someone please help with a question regarding the accounting behind the QB Time sync to QB Desktop?  Our employees today clock into a customer, then a service item.  I want to maintain the way they are clocking in as we want that data available for analysis.  However, my problem comes in with the accounting side of this.  I am trying to change our accounting standards to absorb at a standard labor and OH rate and right now, what comes through on the customer side is the actual cost of the employees payroll/taxes, etc.

 

There are two options to fix this, but I don't know how to make either of them happen.

 

1) Preferred option: When syncing to QB Desktop, time and payroll cost does not go to the customer, only to the assigned class.  Then we would do a month-end entry to do the absorption of labor overall to WIP.  Cost would go to the customer when we release from WIP to CGS.  

 

2) Absorb labor to the customer through the sync at the labor/Overhead rate combined instead of at the actual cost of the employee.  This feels like it will be more complex and potentially create other issues, but open to suggestions.

 

We are in the Contractor addition but are kind of a mixed business between contracting and manufacturing.  I am trying to deal with the manufacturing part of the business with this issue.

 

Thanks for any advice.

1 reply

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IrishNinoJ
May 14, 2024

I can suggest steps to make your preferred option achievable, AmandaV2.

 

In QuickBooks Time, you can assign pay rates to classes instead of customers if you want time and payroll costs to not go to the customer. 

 

  1. In QuickBooks Time, select the QuickBooks dropdown, then Preferences.
  2. Select Payroll Item Mapping Tool.
  3. Select the Map Customer (or Map Service Item) tab. 
  4. Place a checkmark for ALLOW OVERRIDES BY: drop-down list.
  5. Select Class.

 

Furthermore, you can check out this article to answer the most frequently asked questions about QuickBooks Time and QuickBooks Desktop integration: QuickBooks Time and QuickBooks Desktop Integration FAQs. It includes topics about integrating using the Web Connector and Windows.

 

I'll keep an eye out for your reply. If you have further questions besides QuickBooks Time, feel free to include them in the comments. We're here to assist you 24/7.

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AmandaV2Author
May 14, 2024

Thank you for the response!  This seems to make sense and I just made the change.  We'll run payroll in the next few days and I'll be able to see if it worked how I was hoping.  If not, I'll reach out again.  

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