Introduction: Sale Pending Method 1B

Overview

Sale Pending Work Orders Method 1B is used for long-term installation jobs that require multiple trips to the customer’s business or residence.

With this method, multiple Non-Inventory Interface Items are included on the DD transaction–one for each job (pre-wire, install, cleanup). This allows you to create a separate work order for each job and attach it to the corresponding interface item on the DD transaction. When this happens, parts and labor costs are written from the work order to the interface line on the DD transaction. Multiple labor lines with multiple technicians are allowed on each work order, along with multiple parts lines. Routing, with start and stop times, is also available.

Revenue and costs of merchandise inventory, labor, and parts are captured as they incur. This maintains a streamline of revenue versus costs for both financials and marginal sales reports. It can also help when booking costs for payroll within the same time period (for jobs and trips being completed).

Since this method assumes that your company knows the amount of revenue required to cover costs and profit, money is collected from the customer upfront. If necessary, you can accrue additional charges after the fact.

Summary

With Method 1B:

  • All parts and labor costs from the job(s) are captured on the DD transaction’s interface item line(s).
  • Both labor and parts inventory costs are written to the interface items’ product type in Sales Analysis.
  • All parts inventory costs are interfaced to the General Ledger.

The Method 1B Process

The following steps must be completed in order when using Method 1B:

  1. Set up the Non-Inventory Interface Item, Work Order Labor Item, and review the G/L settings.
  2. Enter the DD transaction.
  3. Create the work order for the first job.
  4. Enter parts and labor for the first job.
  5. Audit and update the work order for the first job.
  6. Repeat steps 3-5 for all jobs on the DD transaction.
  7. Ship and update the DD order.
  8. Review G/L Postings and Sales Analysis Reports.
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