We recommend adding each of your building staff, or type of builder (apprentice, senior builder, project manager) as a product inventory item. This lets you easily create a Bill for Labour, allowing you to backcost and see if you are going over your labour budget. Labour is one of the most important categories to back-cost as this is often where leakage/overspend can occur.
Example: Your builder's name is Sam Ben. The SKU code can be his initials 'SB', the Description could be 'Senior Building Labour' (this is what the client can see) you add his hourly rate, as well as the % markup (what you charge him out at).
Tip - Markup Calculator:
This www.omnicalculator.com/finance/markup calculator can help you find the % markup required to get the right sell price.
If you pay several of your builders the same rate, you may want to add the type of builder instead i.e. apprentice, senior builder, labourer
Example: The SKU code could be 'Apprentice', the Description 'Apprentice Building Labour', the UOM (Unit of Measure) = Hours, the Cost is set to 'How much YOU pay them', the Markup % = The Percentage Markup required to get to the right sell price, then finally the Tax Rate - being 'No Tax' if they ARE on wages or NOT gst registered, or '15% GST' if they are registered.
i.e. Sam is paid $55 per hour, we charge him out at $65 per hour, so the required % markup to achieve this is 18.18%:
How to Add a Builder (or Builder Role) as a Product Inventory Item
To add a builder as a product inventory item:
- Go to your profile name drop-down - your name in black and white to the top right of your screen
- Select the 'Product Inventory' option
This will open the Product Inventory screen - Click the 'Add New Product' button
This will open the Add Product Inventory Item screen You will need to fill in the required fields of:
- SKU
- Unit of Measurement
- Price
We recommend filling in the other fields also:
- Description
- Cost Centre
- Tax Rate
- MarkupOnce done, click SAVE to confirm
