(How to create new Job?)

Transcription

1 (How to create new Job?) Creating process Job list is placed on Jobs->Lists->Jobs. If you want to open new Job, you need use New command and you get Job Card. Job Card shows information about jobs, such as the job number, job name, and information about job posting. There is one card for each job. First tab is General tab. This tab represent specifies basic information about a job, including customer information and resources associated with a job. Considering we want to create new one, we can use automatic No. Series or manually put the job No. I have chosen manually method and put CONSTRUCT as No.. If you want to know on which project you are working, you need to put Description and put the Bill-to-Customer No.. If you work on external project, you need to choose who your customer is, but if you work on internal project you have not a choice. Solution is to create system internal customer and set the posting groups to have posting on correctly G/L Accounts (you need to have some accountant s knowledge). Other Bill-to- fields will be filled automatically validating data from your customer card. If we are using time sheets with our job, we must also designate a Person Responsible. This person can approve time sheets for the employee tasks associated with the job. Next tab is Posting tab. This tab represent specifies information about the posting of a job. In this tab, some of the options are already filled in, based on the defaults set up in your application (see Job Setup). There are some important fields:

2 Status: Represent current status of Job. We can change the status for the job as it progresses. Final calculations are possible on completed jobs. The options are: o Planning: The job is just planned. The purpose of this step is to undertake preliminary calculations and to set up the job's structure. Job schedules can be used to estimate resources, items or general ledger accounts. o Quote: A special kind of sales quote. This step lets you make preliminary calculations. The job is offered to a customer. You can set up or change the job's structure and schedule. o Order: A special kind of sales order. Every control feature can be maintained. You can use sales invoices and credit memos to customers for various posted job entries and to invoice the cost. o Completed: The purpose of this step is to close the job. You can use the statistics on a completed job for comparison purposes and for the planning of future jobs. The actual costs of the completed job can be compared to the scheduled figures. Be sure to keep this information not only for comparison, but also for use as a guideline or template for future jobs. Job Posting Group: Here we can assign a job posting group code to a job. Job posting groups determine which G/L accounts we post to. The Job Posting Group that you set up on the Job Card will be used as default Job Posting Group on the Job Tasks. WIP Method: Contains the name of the work in process (WIP) calculation method that is associated with a job. Work in process (WIP) is used to match expenses with revenues. Microsoft Dynamics NAV supports multiple ways to calculate WIP and recognition of sales and costs (see the Job WIP Methods). WIP Posting Method: Indicates whether WIP Posting Method is per job or per job ledger entry. When we select Per Job, NAV uses total WIP costs and sales to calculate WIP. When we select Per Job Ledger Entry, NAV uses the accumulated values for WIP costs and sales. The default value is Per Job: o Per Job: Default. If there have been no general ledger or WIP entries, you can modify this field. You can also modify this field if all existing entries are reversed. o Per Job Ledger Entry: WIP is posted per job ledger entry. This option can be selected only if there are no existing WIP entries or WIP G/L entries, or if all WIP G/L entries have been reversed. Allow Schedule/Contract Lines: Place a checkmark in this field if you wish to create Both Schedule and Contract Planning Lines for this job. Apply Usage Link: Select this check box if you want to be able to track the quantities and amounts of the remaining work needed to complete a job and to create a relationship between demand planning, usage, and sales. On a job card, you can select this check box if there are no existing job planning lines that include type Schedule that have been posted. The usage link only applies to job planning lines that include type Schedule. Other fields which started with %... are calculated fields and there are explained later with posting results.

3 On Duration tab represent specifies information about the start date and end date for the job. The information helps determine the duration of the job. There are placed Creation Date, Staring Date and Ending Date. Foreign Trade tab represent specifies information relevant to how to calculate job invoices, depending on currency settings. There are next fields: Currency Code: This is the currency code for a job. By default, the currency code is empty. If we enter a foreign currency code, it results in the job being planned and invoiced in that currency. Invoice Currency Code: In this field we can select the currency code we want to apply when creating invoices for a job. The Invoice Currency Code field can only be modified when local currency (LCY) is entered in the Currency Code field. We can change the Invoice Currency Code at any time during the job if we want to change the currency code for new invoices. The Invoice Currency Code is applied when we create a sales invoice or a sales credit memo. Exch. Calculation (Cost): Specifies how job cost values should be calculated if we change the Currency Date field on a planning line manually, if we change the exchange rate in the Currency Code field on a Job Planning Line, or if we run the Change Job Planning Line Dates batch job this depends if we have set up a job in a foreign currency by entering a code in the Currency Code field. The option are: o Fixed (LCY): The job costs in local currency are fixed. Any change in the currency exchange rate will change the value of job costs in foreign currency. o Fixed (FCY): The job costs in foreign currency are fixed. Any change in the currency exchange rate will change the value of job costs in local currency. Exch. Calculation (Price): Specifies how job sales price values should be calculated if we change the Currency Date field on a planning line manually, if we change the exchange rate in the Currency Code field on a Job Planning Line, or if we run the Change Job Planning Line Dates batch job this depends if we have set up a job in a foreign currency by entering a code in the Currency Code field. The options are: o Fixed (LCY): The job prices in local currency are fixed. Any change in the currency exchange rate will change the value of job prices in foreign currency. o Fixed (FCY): The job prices in foreign currency are fixed. Any change in the currency exchange rate will change the value of job prices in local currency. If Exch. Calculation (Price) is set to Fixed FCY and job specific prices are set up for Resources, Items, or G/L Accounts based on unit cost factor, we need to also select Fixed FCY for the Exch. Calculation (Cost) field to make sure that the value of job prices in foreign currency (FCY) are fixed. WIP and Recognition tab represent up-to-date information about the calculation of work in process (WIP). We will detailed describe this fields in part of WIP Calculation.

4 Job Task We must have at least one task for every job, so that we can have posting. To define tasks for the job, on the Home tab, in the Process group, choose Job Task Lines. In the Job Task Lines, window, add the tasks that make up the job. First, we must set Job Task No. and Description. This is the small parts of job (positions of work). I will use that for division of labor in two parts (material transport and building). Filed Job Task Type can be: Posting: for posting. Heading: a heading for a group of job tasks. Total: Total is used when you want the program to total a series of job tasks that do not immediately precede the Total account. You use Total when job tasks from many different job task groupings should be totaled. If you use the Total type, you must fill in the Totaling field manually. Begin-Total: A marker for the beginning of a series of job tasks to be totaled that ends with an End-Total. End-Total: A total of a series of accounts that starts with the preceding Begin-Total account. The total is defined in the Totaling field. To assign a job posting group to a task, select a code in the Job Posting Group field for the task. If we do not select a code, the value from the Job Posting Group that is specified on the Job card will be used.

5 In next post, I will describe Job WIP Methods, Job Setup, Setup Job Posting Groups and Job Planning Line Job WIP Methods As I said in my last post, we need to choose WIP Methods in the same-name field on Job Card. We have linked table from where we choose method, but on this table different WIP methods are configured. If we want edit them we need to press Advanced on window, but if we want to create new we need to press New on window. We can create a new Job WIP methods that reflects the needs of our organization. After we have created it, we can set it as the default Job WIP calculation method that will be used in our organization. NAV supports multiple ways to calculate WIP and recognition of sales and costs: Completed Contract: No sales or costs are part of the calculation. Cost of Sales: Recognizes WIP when the customer is invoiced. Cost Value: Recognizes WIP when the customer is invoiced. Percentage of Completion: Recognizes costs as they are reported. Sales Value: Recognizes costs as they are reported. In addition, it is possible to create our own formula for calculating the WIP associated with a job, but not now about this. Create a code for the method, add a description, and then select the appropriate values for the Recognized Costs and Recognized Sales fields. By design, the System Defined check box is not selected, but three others are selected. There are next fields: WIP Cost: For this field, the following applies: Cost Amount (WIP) = Usage (Total Cost) - Recognized Cost. For system defined WIP methods, the WIP Cost field is the default and is checked. For WIP methods that we create, we can only clear the check box if we set

6 Recognized Costs to Usage (Total Cost). When we do this, Job Costs Applied and Recognized Costs are not posted to the General Ledger. WIP Sales: For this field, the following applies: Sales Amount (WIP) = Contract (Invoiced Price) - Recognized Sales. For system-defined WIP methods, the WIP Sales field is the default and is checked. For WIP methods that we create, we can only clear the check box if we set Recognized Sales to Contract (Invoiced Price). When we do this, the contract (invoiced price) is not posted to the general ledger. Valid: Indicates whether a WIP method can be associated with a job when we are creating or modifying a job. If we select this check box in the Job WIP Methods window, we can then set the method as a default WIP method in the Jobs Setup window. Once set, we cannot clear this check box if the WIP method has been specified as the default WIP Method in the Jobs Setup Window. System Defined: Indicates whether a Job WIP Method is system-defined. We cannot change the contents of this field. We are wrote about Recognized Costs and Recognized Sales fields. These fields has very complex methods to configure and I describe that in the following: Detail description about WIP method Cost Value: Cost value calculations start by calculating the value of what has been provided by taking a proportion of the estimated total costs based on percentage of completion. Invoiced costs are subtracted by taking a proportion of the estimated total costs based on the invoiced percentage. This calculation requires that the Contract Total Price, Schedule Total Price, and Schedule Total Costs be correctly entered for the whole job. Cost of Sales: Cost of Sales calculations begin by calculating the recognized costs. Costs are recognized proportionally based on Schedule Total Costs. This calculation requires that the Contract Total Price and Schedule Total Costs be correctly entered for the whole job. Sales Value: Sales value calculations recognize revenue proportionally based on Usage Total Costs and the expected cost recovery ratio. This calculation requires that the Contract Total Price and Schedule Total Price be correctly entered for the whole job. Percentage of Completion: Percentage of Completion calculations recognize revenue proportionally based on the percentage of completion, that is, Usage Total Costs vs. Schedule Costs.

7 This calculation requires that the Contract Total Price and Schedule Total Costs be correctly entered for the whole job. Completed Contract: Completed Contract does not recognize revenue and costs until the job is complete. You may want to do this when there is high uncertainty around the estimates of costs and revenue for the job. All usage is posted to the WIP Costs Account (asset) and all invoiced sales are posted to the WIP Invoiced Sales Account (liability) until the job is complete. Calculation formulas for WIP method Cost Value: Recognized Revenue = Contract Invoiced Price Estimated Total Costs = Contract Total Price x Schedule Cost Ratio WIP Costs = (Percentage of Completion -Invoiced %) x Estimated Total Costs Percentage of Completion = Usage Total Costs/Schedule Total Costs Invoiced % = Contract Invoiced Price/Contract Total PriceRecognized Costs = Usage Total Costs - WIP Cost of Sales: Recognized Revenue = Contract Invoiced Price Recognized Costs = Schedule Total Cost x Invoiced Percentage Invoiced % = Contract Invoiced Price/Contract Total Price (Invoiced % exists as column in Job Task Lines) WIP Costs = Usage Total Costs Recognized Costs Sales Value: Recognized Costs = Usage Total Costs Recognized Revenue = Usage Total Price x Expected invoicing ratio Cost Recovery % = Contract Total Price/Schedule Total Price WIP Sales = Recognized Sales - Contract Invoiced Price Percentage of Completion: Recognized Costs = Usage Total Costs Recognized Revenue = Contract Total Price x Percentage of Completion Percentage of Completion = Usage Total Costs/Schedule Total Costs (Referred to as Cost Completion % in Job Task Lines) WIP Sales = Recognized Sales - Contract Invoiced Price Completed Contract: WIP Amount = WIP Cost Amount = Usage (Total Cost) WIP Sales Amount = Contract (Invoiced Price)

8 Job Setup Job Setup is placed on Jobs->Administering->Job Setup. This setup specifies the setup of jobs and the treatment of work in process (WIP) in our organization. We have few field and there are their description for configure: Automatic Update Job Item Cost: Specifies update behavior for cost changes. Apply Usage Link by Default: Specifies that all jobs in your organization will have a link between usage and job planning lines. Default WIP Method: Specifies which WIP method is the default for your organization. You can select one of the methods provided by Microsoft Dynamics NAV, or create a customized WIP method. To see the list of available options, choose the drop-down arrow to the right of the Default WIP Method field. You can also create a customized method. Default WIP Posting Method: Specifies the application of the default WIP posting method. Default Job Posting Group: Specifies the default WIP posting group. Set Up Job Posting Groups In my last blog I wrote about Job Posting Group configuring on Job Card and on Job Task Card. There are details about Setup Job Posting Groups. One aspect of planning jobs is deciding which posting accounts to use for job costing. To be able to post jobs, we need to set up accounts for posting for each job posting group. We can use different posting groups for each job (or each job task) if we need it. This is rarely needs, but if someone need, he can do this. Job Posting Groups are placed on Jobs->Administering->Job Posting Groups. Fill in the account fields as described in the following: Code: A code for the posting group. You can enter up to 10 characters, including spaces.

9 WIP Costs Account: The WIP account for the calculated cost of the job WIP, which is a balance sheet capital asset account. WIP Accrued Costs Account: An account for the Cost Value or Cost of Sales method of WIP calculation, which is a balance sheet accrued expense liability account. This will be posted to when the WIP adjustment requires that usage costs posted to the income statement be increased. Job Costs Applied Account: A balancing account to the WIP Costs Account, which is a contra for a negative expense account. Item Costs Applied Account: A balancing account to the WIP Costs Account, which is a contra for a negative expense account. Resource Costs Applied Account: A balancing account to the WIP Costs Account, which is a contra for a negative expense account. G/L Costs Applied Account: A balancing account to the WIP Costs Account, which is a contra for a negative expense account. Job Costs Adjustment Account: The balancing account to the WIP Accrued Costs account, which is an expense account. G/L Expense Acc. (Contract): The sales account that will be used for general ledger expenses in job tasks with this posting group. If left empty, the general ledger account entered on the job planning line is used. WIP Accrued Sales Account: The WIP account for the calculated sales value of the WIP, which is a balance sheet Accrued Revenue account. This is posted to when the WIP adjustment requires the recognized revenue to be increased. WIP Invoiced Sales Account: The account for the invoiced sales value of the WIP that is not able to be recognized. It is a balance sheet Unearned Revenue account. Job Sales Applied Account: The balancing account to the WIP Invoiced Sales account, which is a contra income account. Job Sales Adjustment Account: The balancing account to the WIP Job Sales Account, which is an income account. Recognized Costs Account: The expense account that contains the recognized costs for the job. It is a DR expense account ordinarily. Recognized Sales Account: The income account that contains the recognized income for the job. It is a CR income account ordinarily.