Equipment repair records: close the parts loop before billing

Use the work order throughout the repair

Record the machine or equipment identifier, reported problem, approved scope and customer instructions. Parts issued from stock and items purchased specially need the same job reference. Technician notes should identify work performed without forcing the bookkeeper to infer the task from an hours total.

When scope changes, retain the approval separately from the original estimate. The owner can then see whether a cost increase belongs to authorized work, an internal correction or an unresolved customer decision. Those situations have different implications for billing and future estimates.

Worked example: an extra cost before approval

An illustrative repair is quoted at $6,100 before tax. Expected parts cost $2,480, direct technician labour $1,560 and outside testing $360. Direct costs total $4,400, leaving $1,700 contribution before workshop overhead and financing.

If an additional $300 of direct cost is incurred before a price change is approved, contribution at the original selling price falls to $1,400. A request for an extra customer charge does not restore the margin until the appropriate approval and accounting facts support it.

Reconcile unused and returned parts

A part ordered for the repair but not installed needs a documented destination. It may return to available stock, remain reserved for another job or go back to the supplier. Link any supplier credit to the return and original purchase rather than treating it as unrelated income.

Review tax using the actual equipment and service. Saskatchewan’s farm and petroleum bulletins contain specific rules; neither an agricultural customer nor an energy-sector customer makes every repair exempt. Retain the descriptions and evidence needed to resolve the applicable treatment.

Finish with one completion checklist

Compare installed parts, labour, outside invoices and approved changes with the draft customer bill. Confirm delivery or collection documentation, customer advances and any amount still due. For subcontracted work, retain the applicable Saskatchewan WCB payment clearance and follow its instructions.

After invoicing, review the job again when material credits or customer deductions arrive. A recurring shortage, excessive testing cost or weak approval process should become a discussion point for the next quote. The aim is a reliable cost history that the workshop can use, not a large collection of uncategorized receipts.

Put this into practice

• Repair job costing →
• Equipment service businesses →
• Job costing tools →