Use Other Direct Costs in pricebook

Overview

Use the Other Direct Costs feature in pricebook to categorize non-material costs like rentals, permits, subcontractors, and other direct costs. This improves job costing by providing greater visibility and more accurate estimates and invoices.

Benefits

• Improved accuracy and transparency: Separate other direct costs to ensure clearer financial reporting and more accurate job costing.

• Enhanced operational efficiency: Easily add these costs to estimates and invoices, reducing manual adjustments and streamlining operations to save time for technicians and office employees.

• Better financial control: Distinct tracking of other direct costs allows businesses to monitor expenses closely, improving budget management, cost control, and informed financial decision-making.

• Compliance and audit: Proper expense categorization simplifies tax preparation, ensures compliance with accounting standards, and reduces audit and review errors.

Add other direct costs

1. Go to the navigation bar and click Pricebook .

2. In the side menu, click Other Direct Costs. The Other Direct Costs screen opens.

3. Click + Add Other Direct Cost.
   

4. On the Add an Other Direct Cost screen that opens, add the relevant other direct cost details in the Details and Commission tabs as needed.

Add other direct cost details

Note: The other direct cost is activated in your pricebook by default. To deactivate the other direct cost, turn off the Active toggle.

• Code: Other direct cost or part code.

  Note: Use a unique code for each item in your pricebook.

• Name: Name of the other direct cost as it appears on customer estimates and invoices.

  Note: Do not use a colon (:) in the name.

• Description: Description of the other direct cost item as it appears on customer estimates and invoices. Use the style toolbar to format text.

• Price: Standard price of the other direct cost item.

• Member Price: Price that members are charged when this other direct cost item is sold. If this field is $0.00, the standard price applies. If a customer's membership includes discounts, the customer is charged either the discounted price or the member price, whichever is lower.

• Add On Price: Price charged if the other direct cost item is sold as an add-on. If this field is $0.00, the standard price applies.

  Note: When adding this other direct cost to an invoice or estimate, be sure to indicate that it’s an add-on to apply the add-on price.

• Member Add On Price: Price that members are charged when this other direct cost item is sold as an add-on. If this field is $0.00, the standard add-on price applies.

• Cost Type: The cost type of the other direct cost.

• Hours: Sold/billable hours for this item.

• Income Account: General ledger account name that this other direct cost item is tied to. For more, see Set up general ledger accounts.

• Expense Account: This other direct cost item is tied to the cost of sale account.

  Note: Use the account name, not the account code or account number.

• Business Unit: The business unit is tied to the other direct cost.

• Categories: Categories this other direct cost item is grouped under in your pricebook.

• Unit of Measure: Unit of measure for the other direct cost.

• Taxable: Select if the item is taxable.

• Deduct as job cost: Select to deduct the cost of this other direct cost item from the technician’s base commission.

• Automatically replenish this item as it is used on invoices: Select if this item is automatically replenished as used on invoices.

• Images/Videos and Assets: Upload image, PDF, and MP4 files, such as product brochures, warranty certificates, dimensional drawings, and instructional videos that may help your technicians when presenting estimates. For more, see Add images, PDFs, and video to your pricebook.

  Note: If you don’t have a unique image, you can set a default image to display for all items without an image within a specific category or subcategory.

• Videos: Upload YouTube videos to your pricebook, which are viewable in ServiceTitan Mobile.

• Conversion Tags: Select tags if you want to track the sale of this specific item in your reporting. For more, see Create conversion opportunity tags.

• Vendor section: Click Show/Hide Inactive Vendors to see a list of replenishment vendors that have been set up in Vendor Settings. You can add any vendors that you typically source this other direct cost from. You can have multiple active vendors for the same direct cost but only one primary vendor. Enter each active vendor’s specific part number and cost. For more, see Set up vendor list and primary vendor for pricebook items.

Add other direct cost commission information

If your account is configured to use this feature, you can set bonuses and commissions to be paid to technicians who work on jobs that include this other direct cost . Bonuses and commissions are prorated depending on the technician split. For more, see Enter technician commission, job splits, and spiffs for a job or project.

On the Other Direct Cost Commission tab, enter bonus and commission details as needed.

• $ Bonus: Flat rate spiff/bonus paid out to technicians on the job invoice.

  Note: When you run the Payroll (Detail) Report, this amount appears in the Bonus section.

• % Bonus: Percentage of the item price paid to technicians on the job invoice.

  Note: When you run the Payroll (Detail) Report, this percentage appears in the Bonus section.

• Pays Commission: When selected, the system pays a commission to the technician's on-the-job invoice based on the commission rate set in the technician’s payroll settings in Settings > People >Technicians. See Enter technician commission, job splits, and spiffs for a job or project.

• Pay tech-specific bonus: Bonus paid to the technicians on the job invoice based on the default adjustment rate set in the technician’s payroll settings in Settings > People > Technicians.

Add inventory settings

If your account is configured to use this feature, see Identify and serialize inventory.