Job Costing

How to Setup and use the Job Costing Overview Report

The Job Costing Overview Report was created for a quick review of your cost on a particular job. This single page report will show you everything you need to know from open purchase orders, unbilled reimbursables, a breakout of the type of COGS and expenses you have spent on the job, pending estimates, the job’s accounts receivable and job profitability.

Access the Report Options

• From the main menu, click Reports| Contacts & Jobs| Jobs| Job Costing Overview Report, or use the Report Navigator.

Report Options

The following options are available on this report:

• Date Range – Choose a date range that includes that date of the transaction affecting the cost of a job.
• Customer:Jobs – Choose a Customer:Job that has Invoices, Credits, Sales Receipts and is assigned to any purchase related transaction within the Cust/Vend column.
• Salesperson – Filter by the Sales Rep from the Sales Rep field within the Additional Info tab of the Customer:Job account.

Addition Report Options

• Include Children – Includes all Job Costing related transactions for both the parent and all of its “children” or Sub Accounts.

Other Controls

• Cancel – The cancel button closes the window.
• Preview – The preview button will show an on-screen display of the report, from which a hard copy can be printed. The preview screen is also capable of exporting the report into a PDF format for email use.
• Close Window on Preview – Selecting this checkbox will have the options window automatically close when the preview button is clicked.

Report Setup

In order for your information to display in the proper fields on this report you will need to do the following:

Go to Banking| Chart of Accounts List. Edit Chart of Account types of COGS and Expenses that may be related to the cost of a job. You will want to edit any chart of accounts used for Material Purchases, Equipment Purchases, and Sub Contractor costs.

• When editing the account, you will see the Job Costing Type drop down which will allow you to select the proper type.

Report Information

Job Information

Billing Address – This displays the Bill To Address as it is filled out within the Customer:Job account. The Customer:Job Display Name is listed first followed by the Bill To Address, Address 2, City, State/Province, Zip/Postal, Phone/Ext and Fax Number.

Work Address – This displays the Work Address as it is filled out within the Customer:Job account. The Work Address is listed first followed by Work Address 2, City, State/Province, and Zip/Postal.

Job Description – This displays the Job Description from the Description field within the Job Info tab of the Customer:Job account.

Account # – This displays the Account Number from the Account # field within the Payment Info tab of the Customer:Job account.

Job # – This displays the Job Number from the Contractor’s Job No. field within the Job Info tab of the Customer:Job account.

Job Type – This displays the type of job from the Job Type field within the Job Info tab of the Customer:Job account.

Salesperson – This displays the Salesperson from the Sales Rep field within the Additional Info tab of the Customer:Job account.

Job Status – This displays the status of the job from the Job Status field within the Job Info tab of the Customer:Job account.

Date Started – This displays the date that the job was started from the Start Date field within the Job Info tab of the Customer:Job account.

Projected End Date – This displays the projected date of when the job is projected to be completed from the Projected End field within the Job Info tab of the Customer:Job account.

Completion Date – This displays the date that all work was completed on the job from the Job Completion Date field within the Job Info tab of the Customer:Job account.

Alerts and Warnings

Alerts and Warnings are current job activities that you may want to pay close attention to. This shows you the total open purchase orders and the number of items from those purchase orders that have not yet been received. This also shows a total of reimbursable items that have not been invoiced to the Customer:Job.

Note: You can double click on the open purchase order alert to see the Purchase Orders by Customer:Jobs report. You can also double click on the reimbursable items alert to see the Reimbursables Report.

Time Sheet Hours

Time Sheet Hours includes the total amount of hours worked on the job based off the date range selected. This may assist with ensuring the proper amount of labor was charged for all of the work performed on the job.

Note: You can double click on the Time Sheet Hours to see the Time Sheet by Customer:Job report.

Budgeted Hours

Budgeted hours is calculated by totaling the labor minutes on any service item (with the Labor Only box check on the item’s accounting tab) included on an estimate with a status of awarded, in progress, or closed that fall in the defined date-range.

Summary of Transactions

The summary of transactions will show you the totals for the different transactions that you have entered. This is where some of the setup information discussed earlier will be displayed. Most of this information is pulled directly from the General Journal within Total Office Manager which allows a precise total for each of the reported categories. Below is a detailed explanation of what each category includes:

Total Income from Sales and Invoices: This will display any increase in the chart of account types Income and Other Income that are assigned to the Customer:Job (from within the Assign Commissions form in the invoice).

Less Credits and Refunds: This will display any decrease in the chart of account types Income and Other Income that are assigned to the Customer:Job.

Labor Costs: Labor Costs consist of Time Sheet entries, payroll liabilities and commissions assigned to the Customer:Job.

Important Notice for Labor Costs

Total Office Manager will store the wages and liability rates based off when the time sheet entry was created. If a time sheet entry is deleted, the rate information stored for that entry will also be deleted. If the entry is then entered back into the system and the current rate has changed, this will change the labor cost calculated for the job.Total Office Manager used to calculate labor costs based off paychecks created from the time sheet entries assigned to the Customer:Job. Paychecks are no longer used which allows you to job cost labor by the day rather than the pay period. The job costing type, “Payroll and Labor Only” is no longer used for the Labor Costs section on Job Costing Overview Report. “Payroll and Labor Only” now affects the Summary of Transactions sections COGS or Expenses with no Job Costing Type. This information changed in June of 2012. Historical Time Sheet entries will use current wage and tax rates to calculate labor.

Time Sheet Entries: Time sheet entries are split out by each earning assigned to the Customer:Job. This includes earning calculations of Hourly, Salary and Fixed Amount. Hourly takes the employee’s hourly wage multiplied by the amount of hours worked in a single time sheet entry. Salary is figured into an hourly wage based off the annual salary amount divided by 2080 which is then multiplied by the amount of hours worked in a single time sheet entry. Fixed Amount earnings can be setup for job costing with an assigned hourly wage which is then multiplied by the amount of hours worked in a single time sheet entry. Note: For more information on using Fixed Amount earnings, see the instructions below.

In order to use Fixed Amount Earnings on Time Sheets you will need to do the following:

1. Go to Employees| Lists| Payroll Items List.  Right click to create a New Earning or double click to edit an existing Earning with a calculation type of Fixed Amount. Select the check box “Used for Job Costing” and then click OK to save.

2. Once the Earning is setup for Job Costing you will need to assign the earning and enter the rate by going to Employees| Employee List. Right click on the Employee and select, “Employee Payroll Items”. Click the Earnings tab, within the Item drop down select the Earning. Click the Save button. The Job Costing Rate field will be available to enter the hourly rate.

Payroll Liabilities: Payroll Liabilities are calculated using the combine current rates for FICA Med and FICA SS as well as the rate selected for FUTA and the rates entered for SUTA within Employees| Unemployment Tax Rates. This combined rate for the four major liabilities is then multiplied by the hours worked within a single time sheet entry.

Commissions: Commissions come from the Assign Commissions feature on Invoices/Sales Receipts. The Assign Commissions feature allows you to select an employee with a commission method which figures a commission amount. Each commission entry has a “Job Cost” check box that will include the commission amount in the labor cost. Note: For more information about assigning commissions, see the help topic on Commissions.

Equipment: This will display both an increase and decrease in the chart of account types Cost of Goods Sold and Expense that have a Job Costing Type of Serialized Inventory and is assigned to the Customer:Job.

Parts and Materials: This will display both an increase and decrease in the chart of account types of Cost of Goods Sold and Expense that have a Job Costing Type of Parts and Material and is assigned to the Customer:Job.

Sub-Contractors: This will display both an increase and decrease in the chart of account types of Cost of Goods Sold and Expense that have a Job Costing Type of Sub Contractor and is assigned to the Customer:Job.

Cost of Goods Sold (no job costing type assigned): This will display both an increase and decrease in the chart of account type of Cost of Goods Sold where no job costing type has been assigned and the Customer:Job is selected. This excludes COGS assigned to the job costing type “Payroll and Labor Only” since labor is now figured off timesheets.

Expenses: This will display both an increase and decrease in the chart of account type of Expense and Other Expense where no job costing type has been assigned and the Customer:Job is selected. This excludes Expenses assigned to the job costing type “Payroll and Labor Only” since labor is now figured off timesheets.

Additional Overhead: This will display if Additional Overhead has been assigned in the Additional Overhead field within the Job Info tab of the Customer:Job account. Additional Overhead can be assigned as a Percentage of the Final Amount or as a straight Dollar Amount. Additional Overhead is typically included for any miscellaneous overhead that must be accounted for. Note: For more information on using Additional Overhead, see the instructions below. See the bottom of the page on how to set this up.

Labor Burden: This will display an amount if a Labor Burden percentage has been applied within the Labor Burden field of the Customer:Job Company Preferences tab or as a different percentage to a specific job in the Labor Burden field within the Job Info tab of the Customer:Job account. A Labor Burden can be applied within the main preferences to assign a default percent to all jobs or on an individual basis to a specific Customer:Job if percentages of Labor Burden differ. The Labor Burden percentage calculates on the total of Labor Costs multiplied by the percentage entered on the Customer:Job. Note: For more information on assigning a Labor Burden, see the instructions below. See the bottom of the page on how to set this up.

Net Profit: This is the overall income of the job. Net Profit is figured by the total of Income minus credits/refunds and all cogs and expenses.

Summary of Transactions Percentages

% of Net Profit  – The Percentage of Net Profit is calculated based on the following formula: SummaryOfTransactionField / NetProfit

% of Total income – The Percentage of Total Income is calculated based on the following formula: SummaryOfTransactionField / Income. Total Income can be found in the “Profitability” section of this report.

Additional Info

The Additional Info section is used to examine additional information on the job. Some of the information contained in this section is the same information you would gather using the Job Estimates vs. Actual report and is mainly for Progressive Invoicing.

Estimates Awarded: This displays the total of all Estimates with a status of Awarded, In Progress or Closed assigned to the Customer:Job.

Total Estimates Invoiced: This displays the total of all Invoices that are created from an Estimate with a status of Awarded, In Progress or Closed that is assigned to the Customer:Job. Note: If this amount is less than the Total Income from Sales and Invoices above it typically indicates that the Invoice was not created from the Estimate.

Remaining Estimate Balance to Invoice: This displays the amount left on the Estimates to Invoice.

Total Funds Received: This displays the total of funds received from the Customer:Job. This section will not include any Discounts or Credits that have been given to the customer.

Accounts Receivable: This displays the total amount of funds that the Customer:Job owes.

Profitability

The Profitability section will show you exactly what was made on the job. This should provide a clear picture of all costs, expenses and the net profit.

• Income: This is the total amount of income from the “Total Income from Sales and Invoices” section of the summary of transactions minus the total of “Less Credits and Refunds section of the summary of transactions.
• Cost of Goods Sold: This is the total amount of COGS assigned to the job. COGS can come from the following sections of the summary of transactions; Equipment, Parts and Materials, Sub-Contractors and Cost of Goods Sold with no job costing type assigned.
• Gross Profit: This is the total amount of Income minus the total amount of COGS.
• Labor Costs: This is the total amount of Labor from the “Labor Costs” section of the summary of transactions.
• Expenses: This is the total amount of Expenses assigned to the job. Expenses can come from the following sections of the summary of transactions; Equipment, Parts and Materials, Sub-Contractors and Expenses.
• Overhead (additional): This is the Additional Overhead amount from the summary of transactions section.
• Labor Burden: This is the Labor Burden amount from the summary of transactions section.
• NPBT: This is the Net Profit Before Taxes. This is figured by taking the Gross Profit minus Labor Costs, minus Expenses, minus Overhead, minus Labor Burden which equals the NPBT.

Profitability Percentages

% of Net Profit  – The Percentage of Net Profit is calculated based on the following formula: Profit / Income

% of Total income – The Percentage of Total Income is calculated based on the following formula: NPBT / Income. Total Income can be found in the “Profitability” section of this report.

Assigning Additional Overhead and Labor Burden

Overhead

In order to assign Additional Overhead to a Customer:Job you will do the following:

Go to Customers| Customer:Job List and lookup the specific job you are working on. Once the job is found double click to edit the Customer:Job account. Click on the Job Info tab and select the method in which you would like to assign Additional Overhead. When finished, click Save and Close

Labor Burden

In order to assign a Labor Burden to the Customer:Job you will do the following:

Go to Edit| Preferences| Customer:Jobs| Company Preferences (tab) and enter a percentage to apply a labor burden to Job Costing for all jobs. This percent will auto populate within the Labor Burden field of each Customer:Job account.

To change the percentage on an individual job go to Customers| Customer:Job List, lookup the customer:job account and double click to edit. Click on the Job Info tab and change or enter the Labor Burden percentage for the Customer:Job.

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