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Labor columns on jobs/orders

Understand how forecast labor costs, actual labor costs and labor pricing are calculated on jobs and orders, and how to charge by hours worked.

The approach Zigaflow takes is that if you sell your products or services with a labor element, you have given a fixed price, instead of an estimate where the final price is based on the actual hours worked. This means that if you over-run or under-run the forecast hours, you will not pass that saving or cost to the customer. There is a work-around to this.

Explaining the Calculations

Forecast Costs

These are calculated by multiplying the hours by the labor cost rate, with the result shown in the 'Labour Total' column.

Item row in the Forecast Costings table with Hours/Unit 2.00, Labour Cost Rate 30.00 and Labour Total 60.00 highlighted

Actual Costs

These are calculated by multiplying the actual hours by the labor cost rate (to the left), with the result shown in the 'Actual Costs' - 'Labor Total' column.

Forecast and Actual Costings table with Labour Cost Rate 30.00, actual Hours 3.00 and actual Labour Total 90.00 highlighted

Pricing

Job costing table with red boxes on Forecast Labour Total, Actual Margin % and Item Pricing Labour Charge Rate values

This is calculated by multiplying the Forecast Labor Hours by the 'Labor Charge Rate', deriving the 'Labor Total' that is used in the price.

Based on Hours Worked

If your jobs/orders are based on the hours done, put these actual hours into the forecast hours. You can change the naming of this column in Settings -> Rename Line Item Fields.

Learn more: jobs in Zigaflow

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