This is a food catering business. If I buy items for a job (identified by customer name in the system) - how do I attribute cost of items to this job so I can create a profit and loss for every job (customer)?
Eg. Customer XYZ - if I take on a job for $1000 - issue an invoice for $1000 to XYZ. Buy ingredients for this job for $300. How do I attribute the $300 to the $1000 so I can have a P&L for this job with a profit of $700?
Manager doesn’t have job costing. The closest you can get is to use Tracking codes which will allow you to generate P&L per each tracking code.
You could create each job as a tracking code under Settings tab.
When recording transactions, you can select tracking code for which transaction related to.
When generating P&L, you can filter out by tracking code.
Thank you for your reply, Since I’m a new user, I’ve been going through all the accounts. Can I put all my purchases under “Billable Expenses” And attribute this expense to a specific customer? I notice that “billable expense” appears on the “Income” section but this will not affect the accounts cos all post to “billable expense” will be reversed out via cost attribution to specific customers. Is this viable or possible?
Where do I create the tracking code? (specifically under which account) -
eg. If I buy some items for a job - can I put this under purchases and create a tracking code under the purchase invoice? Or should I put the tracking code under “customer” a/c?
Billable expenses are only when you are going to re-bill the expense to client. I’m not sure this is what you are doing unless your agreement with client is that they reimburse you for all your costs. I’d assume in catering business, clients don’t reimburse you for your expenses. You quote them price you can do the job for, you deliver, you get paid.
Tracking codes can be created under Settings tab. (there is Tracking codes option). When you purchase items, you can then allocate the purchase price to tracking code.
So am I right in doing the following
(1) When I set up my customer base, I will allot a no. for each customer and for each job under this customer a separate job no. eg. customer no. 001 and job no. is 5 - full account code will be 001/5.
(2) When I purchase anything that is used for this job I will allocate this 001/5 under entries “purchases”? So 001/5 is my tracking code?
Also, does this accounting system allow me set up tracking code under “Purchases Invoices”?
Tracking codes are global in a sense they can be applied to any transaction. It’s really a mechanism to slide & dice your P&L by some dimension (e.g. job).
Thank you so much for your help. Will try setting up my basic account structure and come back to you if I have any problem.
The whole system is not working anymore - i.e. I cannot click on anything - why is this so? what can I do?