Normal mechanic hours are posted directly to work orders and reflect the actual working time of the mechanic. But mechanics also spend time working on indirect jobs that aren't necessarily billed to work orders. Such tasks include time spent running for parts, cleaning the bay, and road testing among other things. Tracking indirect labor keeps you informed on where time is spent when mechanics aren't working on vehicles. This data can be very useful and should be taken into consideration when evaluating the shop or flat labor rate.
The Setup:
The only thing that needs to be done is to review the Indirect Labor Codes in System Codes and make changes as needed (SSY). Refer to "Indirect Labor Codes." in Chapter 2Getting Started.
The Procedure:
- Record indirect hours.
- Review indirect labor reports.
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