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<< Click to Display Table of Contents >> Navigation: MLS 2026 Installation and System Setup > System Information Setup > Setup Values > Job Costing |
The Job Costing setup allows MLS 2026 to calculate the internal labor cost associated with work performed by each technician. This information is used for:
•Profit analysis
•Job costing reports
•Labor performance tracking
•Service department analysis
Job Costing does not control payroll calculations. It is strictly an operational and accounting analysis tool.
The setup is found under:
Tools → Setup → Job Costing
Each technician who performs labor on workorders should be entered into the system.
For each technician, you will provide:
•A Technician Code
•Full Name
•Cost Factor
•Cost Calculation Method
Only employees who actually perform billable service labor should be included in this list.
Each technician should be assigned a short code that is:
•Easy to remember
•Easy to recognize on workorders and reports
These codes become particularly important when:
•Reviewing previous repairs
•Tracking productivity
•Investigating customer concerns
•Analyzing warranty or comeback work
•JD
•TOM
•M1
•TECHA
Choose codes that remain meaningful over time.
Enter the technician’s full name exactly as you want it displayed on:
•Reports
•Worksheets
•Labor tracking screens
•Performance summaries
The Cost Factor represents the actual cost to the business for that technician’s labor.
This should include more than just hourly wages.
Typical additional costs include:
•Payroll taxes
•Workers compensation
•Insurance
•Benefits
•Vacation pay
•Retirement contributions
•Other employment expenses
As a result, the true labor cost is often:
•30% to 40% higher than base wages
Accurate costing provides more meaningful profitability reporting.
MLS 2026 supports two methods for calculating technician labor cost.
Using this method, labor cost is calculated using:
•A fixed rate per billed labor unit or hour
This method is simple and predictable.
It is commonly used when:
•Technicians are paid flat rate
•Labor efficiency is standardized
•Billing rates closely follow labor guides
Using this method, labor cost is based on:
•Actual technician clock time recorded on the job
This provides more precise costing analysis and may better reflect:
•Diagnostic work
•Complex repairs
•Delays
•Variable labor efficiency
This option is especially useful for detailed profitability analysis.
Accurate Job Costing helps management:
•Measure technician productivity
•Analyze true labor profitability
•Identify underpriced services
•Improve operational efficiency
•Track labor trends over time
Because the information affects reporting accuracy, technician rates and costing methods should be reviewed periodically and updated when employment costs change.