Capturing service related costs

good day all

Scenario …

a Project with some tasks and time sheets capturing time spent on those tasks. Tasks relate
to a service rendered to the customer.

When you invoice your customer, I can see only the Debtors, Sales and bank accounts in GL.
The cost of the labor, as captured in the time-sheets, is not accounted for.

All costs reflect in the project cost.

Just wondering what other ways there are to get those labor reflected somewhere in the COA.

One way I found was to do a payroll-run ( create salary component, salary structure, payslip )
Just thought there may be a short-cut to this ?

Hello @willspenc,

Have you tried to relate it to the Activity costs? Since that is being captured, there might be a way to also pass journal entries based on it. Or maybe this would be a small customization to do so based on a cronjob.

I have a client who is looking for the ability to pay different rates to the same employee based on project tasks… so each project task to have a different. I was also trying to setup payroll in such a way that the the salary component is related to activity types… I don’t see any builtin functionality for this… if you see anything please let me know.

If not, I guess it is a suggestion to be added in the future versions.

Look forward to hearing from you.


Thank you for your response @remoteresources

For the moment I am going with the payroll option, but there are also other problems. ANother problem
that I discovered, is that you cannot split time sheet entries on a payroll run between projects. The project setting on Payroll is for everything related to that payroll entry. For the expense account that captures these costs I am using a “Direct Expense” account. And to “fix” the fact that I cannot split timesheet entries on a payroll run between projects, I created a “temp” expense account and do the payroll run against that account. Then I journal that out the the actual "Service labour Expense " account on the various projects as Accounting dimensions.

There are a few things that require urgent attention on the Project side of ERPNext and i have raised an issue about one of them a few months ago but sadly, it hasn’t even been evaluated yet. The issue that I raised was the fact that , if you have a project with a customer in another currency, the project costs are totalled at the numerical value of the foreign currency but labeled with the local currency symbol. I even suggested the place in the code where I think the problem is.

I will also look at your thoughts aound “activity types”. If I find soemthing I shall let you know.

Thank you