How do I deal with sub-contract work in the workshop?

Summary

The following article explains how to deal with sub-contract work in Workshop.

More Information

When you sub-contract work out for a customer's unit, you will need a method to charge the customer for this work. This work will include certain specialist repairs or other types of work that you don't carry out yourself.

On the back of that work, you will receive an invoice from that supplier that you will need to post onto the Purchase Ledger. You will also need to charge the customer on their workshop job for the work undertaken.

Charging the Customer for the Work

• Create the workshop job in the usual manner.
• On the "Invoicing" tab, enter the stock code for sub-contract work to charge the work to the customer or press 'C-F1' to search for it.
• If a stock code for sub-contract work does not exist, create a non-moving item, ensuring that on the [Invoicing] tab you enter the sales centre for sub-contract work and set the "Update quantity?" flag to 'No'.
• Invoice the job out as normal.

Dealing with the Supplier Invoice

• Post on the purchase invoice in the usual way.
• At the "Centre:" field, enter a suitable centre for the sub-contract work e.g. a centre linked to a Profit & Loss Cost of Sale centre.

Accounting Entries

The non-moving item used to charge the customer allows the nett retail value of the sub-contracted work to be posted to sales on your Profit & Loss. Non-moving items do not post a cost so your Purchase invoice creates the cost on your Profit & Loss for the work.

See also

• Creating workshop jobs
• Posting purchase invoices
• How do I create a sales or purchase centre?
• How do I invoice a workshop job?
• Creating workshop jobs

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Keywords AND Misspellings

third, third party, external, work, sub, subcon, contract, contractor