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https://help.myob.com/wiki/x/p5CO
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In manufacturing, labour costs associated with the production of an item are usually included in the cost of the finished goods. For example, if you own a car repair shop and and an employee of yours spends 30 hours repairing a car, you'll want to transfer that payroll amount onto the cost of the finished, saleable car.
To include labour in the cost of an item, you first need to setup your company file with a new expense account, labour Item and Direct Wage Category. Then, using an Inventory Adjustment, this expense is allocated to the newly created Labour Item. Finally, a Build Items transaction is recorded to transfer the cost of the Labour Item to the inventoried finished good.
Before you begin
Before transferring labour costs to your item, you first need to setup your company file with the right account and item that accurately tracks the movement of money from payroll to finished goods.
Your first step in setting up your company file is creating a Direct Wages expense account. All expenses associated with production will be allocated to this new account.
Create a new account (Accounts > Account List > Expenses > New). Give the account a unique number that suits your account list (we chose 5300 for our example) and name the account Direct Wages.
Click OK when finished.
Next, Create a new item (Inventory > Item List > New) with the name Labour. Enter an item number that suits your item list.
Select the option I Inventory This Item. Click the Asset Account for Item Inventory drop down arrow and select your inventory asset account. See our example below.
Your final setup step is to create a new wage category for your labour hours. This will differentiate those paid hours from the other wage categories.
Create a new payroll category (Payroll > Payroll Categories > Wages > New). Enter Direct Wages in the Name field and then select the Hourly option. Check that the Regular Rate Multiplied By option is selected and that 1.0000 is entered in the adjacent field.
Select the option Optional Account then select the Direct Wages account (as set up in Task 1) in the Override Account field.
Click Employee and select the employees whose labour will be factored into the finished product.
FAQs
Click Reimburse to see a list of all the job purchases and expenses you have assigned a job number to, that can now be reimbursed on the sale.
You should enter the credit limit you've assigned in each customer's card. If you want to stop sales from being recorded for customers who have exceeded their credit limit, you can place them on hold.
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