USA Unbilled labor


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Hello...
For all of you professionals out there, appreciate any advice. So here is my dilemma, we have a commercial refrigeration company which deals with a major supermarket chain. The supermarkets are all under contract regarding service, maintenance and parts. When we get a work order we send the tech out and he diagnoses' the problem, fixes it and moves to the next job. If there are parts to be ordered he then "pauses" the work order until the part arrives then "finishes" the job. Some of the "pauses" last for a couple of weeks. Some of the labor is not billable to the supermarket because it falls in the criteria of our contract other labor is billable if it's caused by other conditions outside of our contract. My question is, I want to create a profit/loss for each service tech showing what we were able to bill and what is not billable, should the unbillable go into a COGS account and decrease the revenue? And what about all the "paused" work orders..should that be accounted for? I have all of their payroll in the expense portion but I feel like I'm overstating their labor? Thanks in advance, Heidi
 
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kirby

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Let's say you yourself made the contract with the supermarket chain. Next day you hire three techs to service the contract. Now, if you create a p&l for each tech, should the revenue from the service contract ("unbillable") be shown on the techs' p&l? No, because they had nothing to do with getting that contract. Putting the "unbillable" on the tech p&l just creates confusion.
 

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