QuickBooks Tips & Tricks - Timesheet Allocation

Several questions have come up lately regarding work around procedures using the timesheet feature available in Pro and higher. More specifically the issue is using Timesheets to track time for equipment or salaried employees for job costing purposes in an automated way.

When using timesheets it is possible to use the feature for tracking time that will then be used for invoicing and payroll. Another way the time can be applied to a specific customer:job is via a bill or check. In the case of a salaried employee or equipment cost allocation, there is no need for actually paying the expense, but the bill or check form is useful as a way of automating the process. If the bill form will be used, the employee or equipment must be on the vendor list, for the procedure using the check form, any of the lists can be used.

First, set up the service items that will be used on the timesheet (For Pro and higher don't forget to check the box in the middle of the set up screen to use a different amount and account for purchases versus sales). The cost should be the amount to be allocated per hour to the job. Second, enter the time on the timesheet with the customer:job and service item.

The allocation will occur when the time is "pulled" onto the bill (or check). Open the form and enter the appropriate name. A message should appear that there is time that can be used on the form. Enter the date range for the time to be allocated. The time should automatically appear on the items tab of the form with the hours from the time sheet and the rate from the item itself. The next step is to balance the form to zero because nothing actually needs to be paid. Enter the account (same as is used on the item for purchases) and amount as a negative. The result will be a debit and credit that will offset each other in total on the Profit & Loss report while allocating the expense as appropriate on the Profit & Loss by Job.

Bonnie J. Nagayama, CPA (925-247-0100) has been featured by Intuit in their QuickBooks Advisor Spotlight and frequently teaches and consults on using QuickBooks to its maximum advantage. For a FREE weekly newsletter of QuickBooks tips and tricks, plus many free and low cost QuickBooks resources visit www.4luvofbiz.com.