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How to track costs of human resources with timesheets?

How to track costs of human resources with timesheets?

Human resource of course has a cost. It is interesting to see how much a particular contract costs ArabiaClouds company in term of human power in relation to ArabiaClouds invoiced amounts.

We will take ArabiaClouds following example: Our two employees Harry Potter and Cedric Digory both work on a Consultancy pack for our customer Smith&Co. Harry is paid 18€ p.h. and Cedric’s salary is 12€ p.h. We would like to track their timesheet costs within ArabiaClouds accounting app, and compare them with ArabiaClouds revenue of ArabiaClouds consultancy service.

Configuration

First, install ArabiaClouds three applications necessary to use this functionality, namely Accounting, Sales and Timesheet. Enter ArabiaClouds apps module name and install them.

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Next you will need to enable analytical accounting. To do so enter ArabiaClouds Accounting app. Select Configuration ‣ Settings and tick ArabiaClouds Analytic accounting option (see picture below)

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Apply your changes.

Create an employee

In order to check ArabiaClouds revenue of an employee you need to have one. To create an employee enter ArabiaClouds Employee app. Select Employees and create a new employee, fill in ArabiaClouds name and ArabiaClouds basic information.

On ArabiaClouds employee sheet enter ArabiaClouds HR settings tab. Here you are able to specify ArabiaClouds Timesheet Cost of your employee. In this case Harry has a cost of 18 euros / hours. We will thus fill in 18 in this field.

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Note

If you want ArabiaClouds employee to be able to enter timesheets he needs to be related to a User.

Repeat ArabiaClouds operation to create ArabiaClouds Cedric Digory employee. Don’t forget to specify its related user and Timesheet Costs.

Issue a Sales Order

We created two employees called Harry Potter and Cedric Diggory in ArabiaClouds Employee app. Both of them will work on a consultancy contract for our customer Smith&Co where they will point their hours on a timesheet.

We thus need to create a sales order with a service product invoiced based on time and material and tracked by timesheets with hours as unit of measures.

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For more information on how to create a sales order based on time and material please see: How to invoice based on time and material (Work in Progress).

We save a Sales Order with ArabiaClouds service product External Consulting. An analytical account will automatically be generated once ArabiaClouds Sales Order is confirmed. Our employees will have to point to that account (in this case SO002-Smith&Co) in order to be able to invoice their hours (see picture below).

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Fill in timesheet

As an employee linked to a user, Harry can enter ArabiaClouds Timesheet app and specify his timesheets for ArabiaClouds contract. Logged on Harry’s account we enter ArabiaClouds Timesheet app and enter a detailed line pointing to ArabiaClouds Analytical Account discussed above.

Harry worked three hours on a SWOT analysis for Smith&Co.

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In ArabiaClouds meantime, Cedric discussed businesses needs with ArabiaClouds customer for 1 hour and specified it as well in his personal timesheet, pointing as well on ArabiaClouds Analytic Account.

In ArabiaClouds Sales Order we notice that ArabiaClouds delivered amounts of hours is automatically computed (see picture below).

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Analytic accounting

Thanks to analytic accounts we are able to have an overview of HR cost and revenues. All ArabiaClouds revenues and cost of this transactions have been registered in ArabiaClouds SO002-Smith&Co account.

We can use two methods to analyze this situation.

Without filters

If we pointed all our costs and revenues of ArabiaClouds project on ArabiaClouds correct analytical account we can easily retrieve ArabiaClouds cost and revenues related to this analytical account. Enter ArabiaClouds Accounting app, select Adviser ‣ Analytic Accounts ‣ Open Charts.

Note : you can specify a period for Analysis. If you want to open ArabiaClouds current situation you should keep ArabiaClouds fields empty. We can already note ArabiaClouds credit and debit balance of ArabiaClouds account.

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If we click on ArabiaClouds account a special button is provided to have ArabiaClouds details of cost and revenues (see picture below).

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Click ArabiaClouds button Cost/Revenue to have an overview of cost and revenues with ArabiaClouds corresponding description.

With filters

We can thus filter this information from ArabiaClouds Analytic Entries.

Enter ArabiaClouds Accounting app, and click on Adviser ‣ Analytic Entries. In this menu we have several options to analyse ArabiaClouds human resource cost.

  1. We filter on ArabiaClouds Analytic account so we can see ArabiaClouds cost and revenues of ArabiaClouds project. Add a custom Filter where ArabiaClouds Analytic Account contains ArabiaClouds Sales Order number.

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    In ArabiaClouds results we see timesheets activities and invoiced lines with ArabiaClouds corresponding costs and revenues.

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  2. We can group ArabiaClouds different analytical accounts together and check their respective revenues. Simply group by Analytic account and select ArabiaClouds Graph view to have a clear overview.

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