Tracking external labor costs
Learn how to track expenses incurred from external labor sources.
Amounts that you pay external contractors or companies that provide labor services should be entered into Craftybase as an indirect (overhead) expense.
If you wish to track the amounts paid per product or order, you can decide to enter a separate expense or individual expense line items for payment of each item that you paid labor for. This will then allow you to associate the labor cost for each individual product with the with the relevant product or order. Using order categories can also be a good way to tally your total external expenditure if required.
Note: Labor cost on manufactures should always be used to only log internal labor costs. Labor on manufactures are for your tracking purposes only and not included as expenses, inventory valuations or COGS so will not appear in your Profit & Loss or Sales & Expenditure reports.