Recording "Engineering Service", labor charges and other billings

Overview

Many agencies bill for services or as a simple “profit split” between the rep and the distributor. This document shows several ways to log “labor charges” in OASIS allowing for proper payment to the associated sales person. The method includes:

1. (Basic) Resell PO method
2. (Best) Full resell PO method
3. Using Commissioned orders
4. (Complex) Mixing Resell and internal “Work order profit”

The first method is easiest but is somewhat manual. The second method is what we recommend for most users as it allows for the mixing of material (e.g. a control system) and labor (e.g. the startup).

The third method is to help users wanting to utilize business processes and method from older software systems.

The fourth method is most complex, but allows for the splitting of the sales process and the technicians performing a startup. This is accomplished using a “work order” and the technician is paid a portion of the overage profit.

Setup

The resell options will create a vendor order for the labor. Unless an internal “work order” is required, or option #4 is utilized, the vendor order is of little use. For this reason, the manufacturer entry for “labor” may be setup for billing only. The result is no vendor order is created, but the labor charge may be billed as required.

To set the “for billing only”, open the manufacturer entry used for billing labor entries and set the corresponding flag:

Resell PO method

The easiest method is to simply create a resell order for the value required. To start the process on the quote, simply key the labor manufacturer ID, record any comments, and key the required amount. DOUBLE CHECK that the Resell check box is set – this ensures the item will convert to a resell order:

Once the item is converted to an order, ensure the sell price and the profit are the same and are for the amout required for billing:

If your labor manufacturer entry is setup for invoicing only, printing the order will not cause OASIS to show the order as released. To immediately mark the order as released (removing the yellow warnings), simply select “Complete Changes” from the “Action” menu.

If your labor manufacturer entry is not setup for invoicing only, simply print the order. Some groups use the resulting order as an internal work order, passing the document physically (as a printed document) or electronically in OASIS to the technician that might be performing the labor.

Paying Salesmen

The commissions for account report will release money to salesmen as resell margin (profit) when customer invoices (for this order) are paid.

Full resell PO method

The full resell PO method is almost identical to the previous method (Resell PO method). The only difference is the order has material and labor charges combined.

(NOTE: it is possible to create one resell order for labor in OASIS and another for the material. This is essentially a user preference in most cases.)

Start with the quote and record the labor charges as one would another fixture. DON’T FORGET THE COST! When ordering material for resell, not recording the cost on the quote just before creating the order usually results in errors.

Consider this quote:

When converting to a resell order, the labor charges move to the order with the material. When printed, the material is separated out by vendor.

If your labor manufacturer entry is setup for invoicing only, printing the order may not cause OASIS to show the order as released. If this happens, you are able toy mark the order as released (removing the yellow warnings), simply select “Complete Changes” from the “Action” menu.

If your labor manufacturer entry is not setup for invoicing only, simply print the order. Some groups use the resulting order as an internal work order, passing the document physically (as a printed document) or electronically in OASIS to the technician that might be performing the labor.

Paying Salesmen

The commissions for account report will release money to salesmen as resell margin (profit) when customer invoices (for this order) are paid.

Using Commissioned orders

One option is to simply use a commissioned order to record the labor charge as overage. We do not recommend using this method if you need to invoice from OASIS or create more than a few labor charges per year. (Distributors do not have this option.) The method is only presented for users converting from older systems and would like to keep data entry process consistent for the few labor orders performed per year.

Begin by recording the labor charge as you would another fixture in OASIS, showing the amount required:

Once the order is created, set the net cost to zero and the overage values as required. Also set the overage split to 100%. (Some groups just record the item as 100% commission – which is also acceptable.)

Print the order as any other commissioned order. The printed document may be used as an internal work order.

Paying Salesmen

The commissions for account report will not automatically release money to the salesmen until an invoice is created against the order and a payment is posted against the invoice. This is typically done when the customer pays the labor charge. The money will appear as overage on the report.

Mixing Resell and internal “Work order profit”

This is the most complex option, but does have the option of recording different profit splits for the material and the labor charge. (Some users just split the labor and material into two different resell orders. This method works as well.)

Consider the following:

• Two outside salesmen splitting the material sell.
• A technician team where one of the technicians gets credit for the startup

 Begin by recording the material and the labor on the quote:

When the order is created, record on the customer order “General” tab the splits for any sales person splitting the profit on the order. In this case, the account 200 is credited with 25% of the profit and account 344 is credited with 75% of the profit:

On the items tab, show the following columns: Net, Overage, % Over, Cost, Profit and Sell (with experience, many reduce the number of columns that show). For the labor line, the “Net Price” must be zero and the “overage” must be the amount of the charge. The profit must also be set to zero and the sell price must match the required charge:

Next, switch to the “Vendor Orders” tab and press the “Update” button at the lower left of the screen (or just try to print – but press the cancel button on the print window). This allocates vendor orders for the material and labor work order. Click on the “Labor” entry and select the “Accounting” tab to the right:

Change the sales accounts to represent who gets credit for the labor charges.

 Print the vendor orders and the labor work order.

Paying Salesmen

The commissions for account report will release money to salesmen as resell margin (profit) when customer invoices (for this order) are paid. This will be for the material only.

To pay the technician for the labor, a separate (fake) invoice must be applied to the labor order and paid. The money will show as overage for the technician.