Default Labor Sale Accounts and Rates

Refer to these notes to help understand how labor rates work in the IntelliDealer Service module:

Defaults

The defaults for the cash codes are:

  • Customer (cash code 5)—The work order rate per hour as set up for each technician in the Work Order Rate Per Hour field of the Service Information tab of their employee profile.

  • Warranty (cash code 7)—Can be one of:

    • The work order rate per hour on the segment

    • The labor rate per hour as set up in the Cash Codes for code 7

    • If the cash code 7 rate is 0.00, the work order rate per hour as set up for each technician in the Work Order Rate Per Hour field of the Service Information tab of their employee profile.

  • Internal (cash code 8)—Can be one of: 

    • The labor rate per hour as set up in the Cash Codes for code 8

    • If the cash code 8 rate is 0.00, the work order rate per hour as set up for each technician in the Work Order Rate Per Hour field of the Service Information tab of their employee profile.

Regardless of the work order status or cash code, you can override the default labor rate/hour by manually entering the rate when adding labor hours to the work order. Also, any Premium Codes associated to your location are added to the labor rate/hour when generating an invoice for the work order. Premium code amounts do not appear when adding labor hours to a work order and are configurable on the Premium Codes screen.

Rate Codes

Rate codes can be set up on the Labor Pricing screen. These codes can be keyed on the repair screen to set the default labor rate for the repair in question. This then becomes the default base rate for any hours keyed to the repair on the labor hours screen.

In addition, a flat rate multiplier can be added to the code which will be automatically applied to the hours entered.

Premium Codes

Premium codes can be set up on the Premium Codes screen. These codes display on the labor hours screen so that the labor entry person can select the proper code for the situation. These codes work from a base rate (either the default rate or a rate code) and add a percentage or dollar amount to the base rate. Examples would be overtime at 150% or a $10.00 bonus per hour. Keep in mind that if you use an add on amount on the PREMIUM code the add on will ONLY show once the entry has posted to the work order - it will not show at the time the labor is keyed. The amount that shows at the time you key the labor is the base rate only.

Note:  If you are using rate codes, the rate code becomes the base rate from which the premium code calculates.

Labor Rate

When labor is sold to a work order these steps are used in calculating the labor rate:

Cash Code 5 - Customer Labor

  1. The system looks at the repair to see if a default rate or rate code is used.

  2. If there isn't a rate found, it then moves on to the payroll file and will use the default rate loaded on the technician. The system now has a BASE RATE to start with.

  3. The system then looks Labor Pricing and looks for a matching labor pricing record. If it finds one, then it calculates a new BASE RATE.

  4. The premium code now takes over. When selling labor it will use the BASE RATE and then any add ons the premium code might have.

    For example, If the BASE RATE calculated is $75 / hour, and the premium code has an add on of $5 then $80 / hour will be the rate used.

Tip: In cases where the labor should always be sold at cost, ensure there is no default labor rate set on the work order repair and that premium code is set to use the payroll rate (the Use W/O rate/hr or payroll rate/hr field is set to Payroll on the Premium Codes screen). This ensures that the payroll rate on the technician is always used.

Cash Code 7 - Warranty Labor

  1. The system looks at the repair to see if a default rate or rate code is used.

  2. If a rate isn't found it then moves on to the Cash Codes and will use the default rate loaded on cash code 7.

  3. If a rate isn't found it then moves on to the payroll file and will use the default rate loaded on the technician. The system now has a BASE RATE to start with.

  4. The system then looks Labor Pricing and looks for a matching labor pricing record. If it finds one, then it calculates a new BASE RATE.

  5. The premium code now takes over. When selling labor it will use the BASE RATE and then any add ons the premium code might have.

    For example, If the BASE RATE calculated is $75 / hour, and the premium code has an add on of $5 then $80 / hour will be the rate used.

Cash Code 8 - Internal Labor

  1. The system looks at the repair to see if a default rate or rate code is used.

  2. If there isn't a rate found it then moves on to the Cash Codes and will use the default rate loaded on cash code 8.

  3. If there isn't a rate found it then moves on to the payroll file and will use the default rate loaded on the technician. The system now has a BASE RATE to start with.

  4. The system then looks to Labor Pricing and looks for a matching labor pricing record. If it finds one, then it calculates a new BASE RATE.

  5. The premium code now takes over. When selling labor it will use the BASE RATE and then any add ons the premium code might have.

    For example, If the BASE RATE calculated is $75 / hour, and the premium code has an add on of $5 then $80 / hour will be the rate used.

Tip: In cases where the labor should always be sold at cost, ensure there is no default labor rate set on the work order repair and that premium code is set to use the payroll rate (the Use W/O rate/hr or payroll rate/hr field is set to Payroll on the Premium Codes screen). This ensures that the payroll rate on the technician is always used.

In the Labor Pricing system, List is referring to:

  • Cash Code 5 (Customer Labor)—Either the rate/hr on the Work Order repair or if a rate/hr is not on the Work Order repair, then the default work order rate of the technician as specified in the Work Order Rate Per Hour field of the Service Information tab of their employee profile.

  • Cash Code 7 (Warranty Labor) - Cash Code rate

  • Cash Code 8 (Internal Labor) - Cash Code rate

For example. Rate on the repair is $75 / hour. It then finds a matching labor pricing record that is set as List plus 5%. The BASE RATE would be calculated at 75 * 1.05 = $78.75

If you override the labor rate when selling any type of labor, this rate will always be used as the BASE RATE.

Labor Sale Account Defaults

Work Order Segment G/L Labor Defaults

The customer labor sale account default should be set up for each technician in the Work Order Account field of the Service Information tab of their employee profile.

The default warranty and internal labor sale accounts (Default Service Charge Account) should be set on each of the customer labor sale accounts beside cash code 7 or 8 in the corresponding account section through the Accounts Receivable - Cash Codes configuration screen.

If you have different types of labor that need to be tracked under other sale accounts you must use different premium codes. Once these are set up you can load the new sale accounts through the Work Order Premium Code G/L Defaults (Option 9 under - 19. Additional Control Files on MENU CNFI01).

If you want to have the system to edit what labor sale accounts are loaded on the work order screen then setup the Work order G/L defaults through CNFIGPFW and setup L - Labor code. This is helpful in the cases where someone loads the wrong account in the labor G/L account by mistake.

When calculating what sale account to use when posting labor, the system uses these steps:

  • If the labor sale account is loaded on the actual work order repair, this is used as the BASE LABOR SALE ACCOUNT. If there is no labor sale account loaded on the work order repair, then the BASE LABOR SALE ACCOUNT is retrieved off the employee technician file when the labor is keyed.

  • If the premium code used has a default sale account loaded under Work Order Premium Code G/L Defaults (Option 8 under - 19. Additional Control Files on MENU CNFI01) then this becomes the new LABOR SALE ACCOUNT.

  • Lastly, if you override the LABOR SALE ACCOUNT when you are keying your transactions this sale account will be used.

Labor Costing

  1. The system uses the Work Order Rate Per Hour field of the Service Information tab of the technician's employee profile to get the base cost.

  2. If there is no cost there then it uses the "Cost of Sale%" from the Sale account to get a cost amount.

  3. The system then checks the Premium codes and uses the "% of employees cost/hr" to affect the base cost per hr on a labor transaction.

  4. In all cases the system also checks for alternate warranty / internal labor sale accounts loaded through chart of accounts maintenance during the billing run. These accounts are always used if they are loaded.

Revision: 2025.06