This article will cover the two options of how Blackpurl deals with the costing of Technician Hours.




Option 1


When Labour Codes are created, a labour cost rate is entered

When the Labour Code is used on a Customer Order Service Job, the Technician's cost is calculated using that Labour Codes labour cost rate


This means that all Technicians would use the same labour cost rate. For example:

  • If we added Labour Code - Labour Test (see below) to a Customer Order Service Job, it doesn't matter which Technician job clocks onto the Labour Code, the cost rate would be $55.00 per hour
  • This is the labour cost rate that would be used to calculated the profitability

  

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Option 2


This is the current default for the Costing of Technician Hours for new Blackpurl Dealers.



With option 2, Blackpurl allows Dealerships to indicate on each Technician what their true labour cost rate is


For example:

  • The Dealership pays Master Technician Frank $42.50 per hour / Technician Sam is paid $30.00 per hour
  • Depending on which Technician job clocks on the job will determine which labour cost rate will be used to calculate profitability on a completed Customer Order Service Job


For Option 2 setup, you would need to:


  1. Set the Default technician costing rate in System Settings > Systems & Controls - Shop Settings 


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  • This default rate is required because when the user first processes a Customer Order Service Job and adds a Labour Code, the user will be unaware which Technician will ultimately be job clocking onto the job
  • By having a default rate Blackpurl can still give an estimate (Est.) of the profitability by using the default rate as a base


  1. Add in the Labour cost per hour for each Technicians under System Settings > Users - Time Clocking Staff


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A.  Time Clocking Staff tab

B. The indicator must show that they are Technicians

C.  Where you Edit & Manage the Technician's details
  • Click into Edit & Manage the Technician's details will pop up
  • Add in the Technician's Labour Cost (how much it costs for them to be on site ie wages) For example you may pay them $50 per hour so this is the amount you should indicate and then click on User-added image

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  1. For any of our older Blackpurl Dealers that are currently using Option 1 but decide to go with Option 2 - you will need to contact your Blackpurl Support Team and request for this option to be enabled


  • Blackpurl will enable option 2 and also run a script in the background to ensure that all open Customer Order Service Jobs will now use the new Labour Costing option


  • Any Customer Order Service Jobs that have already been closed will not be changed



Other Information - Changes:

  • Once Option 2 is enabled, you will notice that the Cost Rate field on any Labour Code Record will drop off.
Remember you are no longer using Option 1 for the Costing of Technicians Hours so it no longer required

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  • Once the Customer Order Service Job has been marked as complete, Blackpurl will assume that no further job clocking will be entered
This is when Blackpurl will recalculate using each Technicians actual labour cost rate and how many hours they job clocked onto the job to calculate the profitability of labour


Other information - Accounting Integration


Option 2 will also allow you to have the technician's clocked hours recorded as work in progress (WIP) in your accounting package

  • To enable this to occur we have introduced two new Labour WIP Control Accounts in Accounting Integration:
    • WIP Labour Inventory (usually a other current asset GL account)**
    • WIP Labour Expense (usually an expense GL account)**
**If you are unsure what GLs you need to enter in these Control Accounts, we would recommend you discuss your options with your Accountant.   

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For further information regarding Option 2, please review our article - Costing of Technician Hours - Option 2 Explained Further