Job Costing - Billable and Non-Billable Hours Guide

Overview

The Job Costing Report now shows billable and non-billable unit cost based on service ticket timecards. Product invoices show labor hours without a unit price for non-billable hours.

Setup Requirements

Step 1: Access Employee Profiles

Go to Utilities > Employee Profiles > (Select a Technician) > Billing Rates Tab

Note: Requires the "Employee Employment Data"=YES permission on Security Admin profile > Miscellaneous tab.

Step 2: Enter Hourly Salary Rates

Enter Hourly Salary for:

• Standard Rate
• Overtime Rate
• Travel Rate

Understanding the Rates:

• Hourly Salary - Considered the dealer's 'unit cost' for labor
• Service Rate - The 'unit price' the dealer charges for labor

Important: It is not necessary to set up default labor rates under the employee profile. As long as Hourly Salary is populated, the unit cost will be calculated based on the labor rate and amount of time selected on the timecard.

Entering Labor for Billable and Non-Billable Hours

Method 1: Using Timecard

Step 1: Access Timecard

1. Create or open a service ticket
2. Select a technician
3. Click Time

Step 2: Set Billable Status

1. On the timecard posting window, click on the dropdown box for Billable
2. Select NO for non-billable labor charge
3. Select a rate or use the default rate code
4. Enter time in and time out OR total number of minutes
5. Click OK > CLOSE

Method 2: Using Quick Timecards

Step 1: Access Quick Timecards

1. Create or open a service ticket
2. Select a technician

Step 2: Enter Labor Details

1. Select the rates for Standard, Overtime, Travel, or any combination
2. Enter the number of minutes for each rate selected
3. Click on the BILLABLE dropdown
4. Select YES for Billable Hours OR NO for Non-Billable Hours

Billing the Service Ticket

Step 1: Generate Invoice

To generate the invoice from the service ticket, click Invoice.

Step 2: Configure Invoice Options

On the Create an Invoice from A Ticket window:

Calculate Labor Charges And Add To Invoice - Check this box to show labor charges

Detail Labor Charges - Check this if you would like the invoice to display a separate line item for Standard, Overtime, Travel labor

Click OK to create the invoice.

Invoice Display Options

Detail Labor Charges

Shows separate line items for:

• Standard hours (billable and non-billable)
• Overtime hours (billable and non-billable)
• Travel hours (billable and non-billable)

Summary Labor Charge with Non-Billable Hours

Shows:

• One line item for total labor
• Displays non-billable hours without a unit price
• Shows total billable hours with unit price

Summary Labor Charge with Billable Hours

Shows:

• One line item for total billable labor
• Unit price and extended total

Running the Job Costing Report

Step 1: Access Reports

Click Reports.

Step 2: Select Job Costing Report

Click Job Costing Report.

Step 3: Configure Report

On the Job Cost Report window:

1. Enter the date range
2. Click Run Report

Understanding the Job Costing Report

Detailed Report View

The detailed report shows:

• Unit cost for labor - Broken down by type
• Unit price charge - For billable and non-billable labor
• Net Profit - Calculated profit margin

Summary Report View

The summary report shows:

• Total unit cost for labor
• Unit price charge - For billable and non-billable labor
• Net Profit - Overall profit margin

Key Differences: Billable vs. Non-Billable

Billable Hours

• Show unit price on invoice
• Charged to customer
• Included in revenue calculations
• Contribute to profit margin

Non-Billable Hours

• Show hours worked but no unit price
• Not charged to customer
• Included in cost calculations
• Reduce profit margin
• Common uses: warranty work, rework, training time

Benefits of Tracking Both Types

• Accurate Job Costing - See true labor costs vs. revenue
• Profitability Analysis - Understand which jobs are profitable
• Time Management - Track non-billable time to identify inefficiencies
• Customer Transparency - Show work performed even if not charged
• Performance Metrics - Measure billable vs. non-billable ratio

Need Help?

Still have questions? Contact Cornerstone Holding Co. 847-405-9517 or email us customer.success@alarmbills.com