Chapter
2
Chapter 2
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Time Tracking
37
Chapter
2
1.
2.
3.
4.
5.
6.
Objectives
Activate Time Tracking
Use QuickBooks timesheets to enter time for
each employee by Customer or Job
Pass timesheets onto paychecks
Pass billable time onto an Invoice
Track an Owner’s or Partner’s time
Create reports to analyze timesheet data
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37
Chapter
2
Objective
1. Activate Time Tracking
Chapter
2
1.
2.
3.
4.
Time Tracking Overview
By using the time tracking feature, you can track
how much time each employee, owner, partner or
subcontractor spends working on each Job, and
even which service the person performs on that Job
You can import timesheet information into your
employees’ paychecks and into your Invoices for
your Customers
QuickBooks provides detailed job cost reports that
include payroll expenses
QuickBooks also provides several time reports that
help you track the hours your employees worked
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37
Chapter
2
1.
2.
3.
4.
5.
Activate Time Tracking
Before you can use the Time Tracking
feature, you must turn on Time Tracking in
the Company Preferences
Select the Edit menu and then select
Preferences
Then scroll down to Time Tracking
Click Time Tracking and then click the
Company Preferences tab
Confirm that Yes in the Do you Track Time?
Section is already selected
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38
Chapter
2
Objective
2. Use QuickBooks
timesheets to enter time
for each employee by
Customer or Job
Chapter
2
Entering Time on Timesheets
An activity is the time spent by a single
person performing a single service on a
single date
2. To track your employees’ time, you’ll enter
activities on timesheets
1.

3.
Select the Employees menu, select Time
Tracking, and then select Use Weekly
Timesheet
Each activity is recorded on a separate line
of the timesheet and you can mark each
time activity as “billable” if you wish to pass
that activity through to a Customer’s Invoice
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38
Chapter
2
Printing Timesheets
Select the File menu, select Print Forms,
and then select Timesheets
2. Set the dates
3. Select Print full activity notes at the
bottom of the window, then click OK.
4. Click Print on the Print Timesheets window
1.
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39
Chapter
2
Objective
3. Pass timesheets onto
paychecks
Chapter
2
1.
2.
Timesheet Data Feeds Payroll
You can use timesheet information when creating
paychecks for your employees
Setup employee to use time data



3.
Open the Employee record from Employee List
Select Payroll and Compensation Info from the Change
Tabs menu
Select option entitled Use time data to create paychecks
Use timesheet in creating paycheck



Select the Employee menu and then select Pay
Employees
Select employees to pay
QuickBooks imports the timesheet information into the
Earnings section of the employee’s Paycheck
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40
Chapter
2
Objective
4. Pass billable time onto
an Invoice
Chapter
2
Invoicing Customers for Time
When you mark time activities as “billable,”
QuickBooks allows you to transfer the time
information onto the next Invoice for that Customer





Open the Create Invoices window and enter the Job, Class
and date
Click OK when QuickBooks displays the Billable
Time/Costs window
Click Time/Costs at the top of the Invoice to open the
Choose Billable Time and Costs window
Then click the Time tab
Click Select All to use all of the time activity for this
Customer, and then click OK to pass the time through to
the Invoice
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41
Chapter
2
1.
2.
Making Activities Billable Again
After you pass time (or items) through to an Invoice,
QuickBooks changes the Invoice icon to a gray
color to indicate that it has been billed
If you void or delete the Invoice, you’ll need to go
back to the original time activity and click the gray
Invoice icon to make the time activity billable again





Select the Employees menu, select Time Tracking, and
then select Use Weekly Timesheet.
Enter Customer name in the Name field.
Click Set Date in the New Date field. Then click OK
For the time passed through to an Invoice, QuickBooks
grayed the Invoice icon on the timesheet activity
Click the grayed Invoice icon to make the time activity for
the Window Replacement job billable again
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43
Chapter
2
Objective
5. Track an Owner’s or
Partner’s time
Chapter
2
1.
2.
3.
4.
5.
Tracking an Owner’s or
Partner’s Time
In some businesses, owners and partners do not
receive paychecks, but they still need to track their
time activity, record the labor costs to specific jobs,
and then pass the time through to their customers’
Invoices
Set up an Other Name record for each owner or
partner in the firm
Open the Weekly Timesheet window and enter the
timesheet activity for the owner or partner
Create an invoice to pass-through any billable hours
to customer
If you do want the “costs” for owner’s time reflected
on your Job Cost reports, you can pass owner’s
timesheet information onto a zero-dollar check
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44
Chapter
2
1.
2.
3.
4.
5.
6.
7.
Using Zero-Dollar Checks for Job
Costing
Create an Expense account called Payroll Cost
Edit each existing “Service” Item in your Item list, making them
two-sided Items, enter “Payroll Cost” in the Expense Account
field (do not edit Service Items for labor performed by nonemployees, e.g., subcontracted labor)
Create an Other Name record for each owner or partner
Enter daily time sheet information for each owner or partner
using the Other Name record you just created
Create checks for each owner or partner using Journal Entries
bank account and using time sheet data
Click the Expenses tab and then enter Payroll Cost in the
Account field and the amount of the check as a negative
number in the Amount field
Click Save & Close to record the zero-dollar check
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69
Chapter
2
Objective
6. Create reports to analyze
timesheet data
Chapter
2
Time Reports
There are several reports that help you
summarize and track time activities
 Time by Name Report
 Time by Job Detail Report
 Time by Item Report
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51
Chapter
2
Time by Name Report
The Time by Name
report shows how
many hours each
employee worked for
each Customer or
Job


Select Reports, select
Jobs, Time &
Mileage, and then
select Time by Name
Set the date range for
the report
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51
Chapter
2
Time by Job Detail Report
The Time by Job
Detail report
shows the detail of
each Service Item,
totaled by
Customer or Job


Select the Reports
menu, select Jobs,
Time & Mileage,
and then select
Time by Job
Detail.
Set the date range
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51
Chapter
2
Time by Item Report
The Time by Item
report shows the
detail of each
Customer, totaled
by Service Item


Select the Reports
menu, select Jobs,
Time & Mileage,
and then select
Time by Item.
Set the date range
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52
Chapter
2
1.
2.
3.
4.
5.
6.
Chapter Review
Activate Time Tracking
Use QuickBooks timesheets to enter time for
each employee by Customer or Job
Pass timesheets onto paychecks
Pass billable time onto an Invoice
Track an Owner’s or Partner’s time
Create reports to analyze timesheet data
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54