Say, I am taking a service from my labour for my business then how should be the entries in Chart of Accounts and how to show payments made to his service.
For example, I take contract of plumbing/painting from my customer and the same is fulfilled by rendering service from my labour. How enter this transaction in Manager
Create an account for Plumbing/Painting under the Expenses category.
When paying for the service by Spend Money transaction, select this account under the accounts column.
If I understand what you are asking, @madhusudan, you are referring to bartering. The customer is also a supplier and you want to offset the value of services provided for each other. Read this Guide: Manager Cloud.
Well, I misunderstood because you referred to fulfilling a contract from your customer by “my labour.” Apparently, you meant your laborers. Is that correct?
Assuming my new interpretation is correct, you can invoice your customer with a sales invoice. Read this Guide: Manager Cloud.
It’s possible the labourers aren’t direct employees, but contractors that come and go instead. In that case, it might not be worthwhile creating an Employee for someone that might only work for you once or twice.
I’m also wondering if the labourers send you (@madhusudan) an invoice for the work they do … or do you set the hourly rate to be the same for all – and simply pay them directly into their bank accounts?
Who decides how much they should be paid per day? Is this an agreement that you discuss with them beforehand, or do you just set the daily rate to be the same for all of them?
I’m assuming you don’t need to track superannuation payments etc for them, and that the labourers have their own business details registered with the tax authority, meaning that you’re just hiring their services.
If you do multiple payments each week, the simplest way would be to use ‘Spend money’ directly from a petty cash (or ‘cash on hand’) account.
Tut would be the best person to suggest an appropriate account to allocate it to, but I suspect an expense account named something like ‘Cost of labour’ would be suitable.
You would need to create it in the Chart of Accounts first: Manager Cloud
You are looking at posts more than 4 years old, @Abbas_Raad. URLs have changed. The thread included links to many Guides. You can find what you want in the Guides index: Guides | Manager.