What numbers are used to figure unapplied time for service. How is it applied when you look at the final end of month figures? Does anyone count it as an actual dollar loss? When a tech is working on a shop RO doing assigned work that is not a vehicle should that be counted as unapplied time? By the way we are a nonflat rate, union shop so that puts strange twist on it.
Basically unapplied time is anytime a Technician works on anything that does not produce a billabe amount to a Customer. It is an expense and should be listed as such on your financial. It is counted everytime a Technician is being paid and does not charge the Customer for the time they worked.
Hope that helps. Any further questions, shoot me an email at firstname.lastname@example.org.
Stop kidding yourself. Unapplied time should always be a debit to COS (generally customer pay) and
therefore a reduction of gross profit. Everyone wants it to be something else...book it like it is and
move on. You can move it around, put it to an expense account or ignore it, but it needs attention
just like work in process account.
Bert there is a place on every makers FS for unapplied labor. No need to move it around. Book it to the proper account,it is a debit to gross in every instance.