Charging for Workers Compensation insurance on invoices
About setting up accounts for posting payable invoices
Sage 100 Contractor uses the accounts indicated in the Payables section of the Posting Accounts tab in the 1-8 General Ledger Setup window to post payable invoice transactions.
It also uses accounts in the Use Tax section, when uses taxes are applied to a payable invoice.
Workers’ Compensation. Enter the ledger account to which you are posting the charge to subcontractors for Workers’ Compensation insurance.
Discounts Earned. Enter the ledger account to which you are posting discounts taken on payable invoices.
PO Sales Tax Expense. When using the 12-4 Purchase Order Receipts window to enter materials received, Sage 100 Contractor posts sales taxes to the account indicated in the PO Sales Tax Exp. box.
Freight
WIP Cost Account. Enter the WIP cost account to which you are posting freight costs.
When posting the invoiced costs against a job, Sage 100 Contractor looks at the WIP Posting checkbox in the job file. If you selected the WIP Posting checkbox, Sage 100 Contractor posts freight costs to the account in the WIP Cost Account box.
Direct Cost Account. Enter the direct cost account to which you are posting freight costs.
When posting the invoiced costs against a job, Sage 100 Contractor looks at the WIP Posting checkbox in the job file. If the WIP Posting checkbox is clear, Sage 100 Contractor posts freight costs to the account in the Direct Cost Account box.
Overhead Costs Account. Enter the overhead cost account to which you are posting freight costs.
When posting the invoiced costs to overhead (posting the invoice without a job number), Sage 100 Contractor posts costs to the account in the Overhead Cost Account box.
Note: When posting the invoiced costs against a job, Sage 100 Contractor assigns the total of the freight costs to the first job cost record.
Variance
Variances in materials costs are posted to the Overhead Costs Account.
Note: Freight costs and the variance in materials costs each appear as separate lines in the journal transaction.
Use tax
If you plan to post use tax to specific use tax accounts, set up the accounts to which you will post use tax payable and the associated WIP, direct, equipment, and overhead expenses.
Note: Use tax accounts cannot have subaccounts or departments.
For more information about setting up 'use tax' expenses, see About Allocating Use Taxes