Our company offers installation services, for which it uses a mix of it’s own salaried employees, and also subcontracts outside companies that provides the service. So basically our company’s employee(s) may work together with the employee of the subcontractor during the installation, or our own employee can do the installation, or maybe just the subcontractor is the one to install.
The subcontractors bill us sometimes hourly at a pre-specified hourly rate, or other times a negotiated total dollar amount for the project in question.
How should we set this up in our ERPNext system?
Is it possible to keep track of the hours they spend in each project, regardless of the billing method (hourly or by project)?
Example case 1: Install 10 doors at $100 dollars per door.
Example case 2: Install 10 doors at $800 dollars for the job.
Do we set the subcontractor as an employee, in the payroll system, with a salary? Or how should we do it?
You can sort this by using timesheet in ERPNEXT.
So far I see that Timesheet relates to the income side of the accounting. We need to track the hours of our subcontractor workers so that we can then pay them.
When we try to generate a Purchase Order, or Sales Order, there is no way to import the timesheet into the DocType.
In timesheet there’s an option for billable amount
Thank you @shakeel_viam1
I thought the billable function was to bill customers. I need to pay suppliers (subcontractors) whom I pay by the hour.
Once you do the billable thing you have figure which can be pulled in the sales invoice
That’s exactly my point; I have to pay my suppliers via a Purchase Invoice since it’s an expense for my company.
What you are suggesting is the exact opposite; pulling the timesheet into the Sales Invoice would be done to bill a customer, thus generating income.
What I need is a way to track the hours that my subcontractor workers spend working for our company, so we can then generate some kind of report with the amount we need to pay them for those hours, and also that such expense be linked to the project in question so we can later assess profitability of the project.
Can hours labour be a Item , with variants to be bought and sold per a pricing rule? Bought from the subcontractor/supplier and sold to the customer. In the case where a subcontractor sells you a complete job, the Item would have to be created by itself, maybe using a BOM , PO etc.
https://docs.erpnext.com/docs/v13/user/manual/en/manufacturing/subcontracting
In that case you’ll have to create the same sub contractor as customer as well