Setting Up Subcontracted Work in SingleOps
For work that your business subcontracts out to other companies, it is best to set up separate Items and create Purchase Orders to record these as expenses. To record Subcontracted Services and/or Materials, follow these steps:
1. Create or edit Item that is going to be subcontracted with these Settings:
- Price - The Price you will charge your client for this Item
- Cost - The estimated cost of this item, which will be charged to you by the subcontractor/vendor
- Category - Material or Service
- Subcontracted - Check this box. In doing so, the associated costs for this item will only affect the job's estimated margins. To update the Actual Cost that the subcontractor/vendor charged to your company, create a Purchase Order.
2. Create a Job with the Items that are Subcontracted
- Add the Items to a Job in the same way as other Items.
- Mark them Billable and Actual if you are going to Bill them to the Client using your Item default pricing (common application).
- Mark them only Actual if you are going to Bill the Client using the Purchase Order sent to you by the subcontractor/vendor
3. Create a Purchase Order to record the Expense on the Item(s) with these settings:
- Operation must match the Operation on the Visits associated
- Visit should be marked and selected for association
- Add the Item(s) for the PO
- Actual - yes, to record the cost
- no if you have charged the customer as a billable on this Item on the Job/Visit
- yes if you did not mark the item billable on the Job/Visit and you want to use this PO to charge the client for this Service/Material
- Creating the PO and associating it with a Visit will update the Actual Expense on the Visit
- Approve the PO as well (go to module Purchases > Approve POs to access and approve)
Subcontracted Work and Reporting
Completing these steps will provide data on Estimated vs. Actual profit margins on Jobs and Visits with subcontracted materials or services. This information can be viewed on the Job/Visit pages themselves, as well as in profit and costing reports such as the Visit Profit Margin Report.
Example Job with Subcontracted work updating the Actual Margin