How do i invoice labour so that the costs appear in the profitability report. When i invoice customers, there are labour ours that we bill a customer. Now these labour hours also have other production overheads that i would want to reflect as my costs because i have put an overhead absorption rate as the cost of labour. When we charge a customer, we put a markup on the labour costs to make a profit as my installation charge. now the double entry that i expect to see is:-

DR          Installation labour and Overheads expense account

       CR                      Sales

This is not the case because nothing is posting to the cost account hence my Job profitability will be wrong.

Regards

Pardon