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Handling labor prices and costs

Show the labor rate columns on quotes, jobs and invoices, add labor hours and rates to an item's price, or set up labor as a separate item.

In order to recognize that labor costs and prices are included in an item's price there are special labour columns. This means you can include them in an item's default set-up. Alternatively, you can add labor as separate items.

Show the labor columns

These labour columns only exist in the Quote, Jobs and Invoice modules. To see them:

  • Click on the Cog at the top right

  • Select Quotation (or another tool) Settings

  • Click on 'Show/Hide Line Item Columns

  • Make sure that 'Labor Rates' is set to 'Show'

Add labor to an item's price

When you edit a quotation or invoice you will see these columns:

Labour columns on a quote or invoice: Labour Name, Labour Hours, Labour Charge Rate, Labour Total, Labour Cost Rate, Labour Cost
  • Labor Name - whatever you want to call the rate (optional)

  • Labor Hours - the expected hours to complete the task

  • Labor Charge Rate - the rate per hour you are charging the client

  • Labor Cost Rate - the cost rate per hour cost (to you)

The labor columns on jobs are slightly different and covered separately

The total labor price is then added to your sales price, so in this example, 2 hours x £35 per hour = £70. This is added to the initial price of £50 to give the final price of £120.

Line item table showing Labour Hours 2.00 at Labour Charge Rate 35.00, Labour Total 70.00, and Net Total £120.00

This is shown in the quote summary:

Quote summary showing Labour Charge Price £70.00 (2 hrs) and Labour Cost Price £0.00, with Net £120.00 and Profit £120.00

If you have 2x this item, the labor value will be increased 2x so the total price will be £240.

Line item table with Labour Hours 2.00, Labour Total 140.00, List Price 50.00, Quantity 2.00 and Net Total £240.00

Giving this summary:

Pricing summary showing Labour Charge Price £140.00 (4 hrs), Labour Cost Price £0.00, Net £240.00 and Profit £240.00

Set default labor charges

You can set up the default labor charges on the item edit screen and this will be automatically included on your quotes when you add the item:

Item edit screen labor fields: Labour Name Installation, Labour Hours 2.00, Labour Charge Rate 35.00, Labour Cost Rate 0.00

Separate Labor Charges

You don't have to have labor directly against a product, but can set it up as its own item. This is useful where you want to clearly list the labor element of a quote. In this case, add a new item, with a meaningful name (in this case, 'Installation') and add the values to the labour rates but keep the price at 0.

Item form with Price at 0.00 and Labour Name "Installation", Labour Hours 2.00, Charge Rate 50.00 and Cost Rate 40.00

When it is added to the quote it will look like this:

Quote line item for Installation labor showing 2.00 hours at 50.00 charge rate, 100.00 labor total and 80.00 labor cost

And the summary will still show the labor component correctly:

Quote summary showing Labour Charge Price £100.00 and Labour Cost Price £80.00 (2 hrs), Net £100.00, Profit £20.00

Learn more: quotes in Zigaflow

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