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3 Table of Contents GETTING STARTED... 1 Technical Support... 1 Overview... 2 Classifications... 4 Stages... 6 Adding and Deleting Job Folders... 9 Setting Job Defaults JOBS Adding a New Job Changing Job Information Entering Job Stages Entering a New Proposal or Job Budget Applying an Existing Proposal or Job Budget Creating Change Orders Changing the Job Status Stock Manufacturing Jobs JOB COSTS Direct Job Cost General Ledger Accounts Allocating Costs from a Purchase Order or Expense Invoice Inventory Transfers Inventory Items and Direct Job Costs Payroll Expenses Sales Invoices Job Profit Projections and Percentages Evaluating Job Costs CONTRACT BILLINGS Invoicing Contract Billings Billing Time and Material Change Orders within a Contract Billing TIME AND MATERIAL JOBS Creating a Time and Material Job Billing Expenses for a Time and Material Job Undo Time and Material Sales Order Transactions PROGRESS BILLINGS Entering Billing Items for a Progress Billing Invoice Invoicing a Progress Billing Job Reprinting a Progress Billing Document Creating Change Orders within a Progress Billing Tab WORK IN PROCESS Selecting a Work in Process Viewing a Job's Work in Process Adjustments JOB OVERHEAD Adding a Percentage Overhead Globally Change Overhead Percentages Calculate Overhead Utility Using Profit Centers to Calculate Job Costs iii

4 Printed Documentation The Overhead Stage RETAINAGE Entering Customer Retainage Changing Retainage in a Job INDEX iv

5 Getting Started Technical Support Welcome to the instructional manual for Eagle Business Management System (EBMS). Eagle Solutions is pleased to provide you with instructions and tips regarding the Windows version of EBMS. An additional manual may be required to cover the details of the optional modules within EBMS such as Job Costing, Manufacturing, Multiple Warehouse, and Task modules. In the sections following, explanations and examples of the available features in the Eagle Business Management System will be explained for optimal use of the system. If you need to reach our staff for further help, contact us using the information below: Eagle Software 5351 Lincoln Highway, Suite 9 Gap, PA (717) x2 (717) fax Manual Revision 7.6 October

6 Printed Documentation Overview The Job Costing module of EBMS is used to analyze individual construction, manufacturing, or other types of jobs. This powerful tool is used by a manager that makes decisions based on the profitability of individual projects or jobs. Actual costs are compared to budgeted or estimated costs. These costs may include cost of materials, payroll costs, subcontractor billings, and miscellaneous costs. A job can be divided into stages so the user can properly analyze a portion of the job. For example, a building contractor may create a job for each building or project. The project may be divided into stages such as site work, foundation, framing, roof, electrical, plumbing, finishing, etc. The contractor may associate a job with the costs within a PO or vendor invoice as well as associate a job or jobs within an employee's timecard to allocate labor expenses. Each job contains a variety of job related information such as contact information, dates, status settings, site information and type of job. Each job may contain one or many different stages. Each stage contains budget totals, actual costs, committed costs, and overhead costs. Job retainage may be calculated and processed for each sales invoice as well as recording vendor retainage for the user's subcontractors. The EBMS Job Costing module allows custom tailored information to meet the needs of a building contractor or a manufacturing company. The job costing module of EBMS can be used for a variety of applications including some examples below: Construction Construction projects may include general contracting, mechanical, subcontracting, or specialty construction. Manufacturing: a. Contract projects Contract jobs may include T&M change orders and A.I.A. (American Institute of Architects) billings. Review the Contract Billing and Progress Billing sections of this manual for more details. b. T&M projects An entire job, change order, or a small project can be managed in a time and material (T&M) basis. Review the Time and Materials section for more details. a. Made to order projects Made to order jobs should be created using the contract job type. Follow the Job and Job Cost sections of this manual. These jobs are configured in a similar method as the contract construction jobs. b. Time & Materials projects An entire job, change order, or a small project can be managed in a time and material (T&M) basis. The Job Type setting of a T&M manufacturing job should be set as Time and Materials rather than manufacturing. Review the Time and Material Jobs section for more details. c. Stock products The job costing module of EBMS can be used to track the costs of a manufacturing batch of stock products. A job may consist of a single batch or an entire line of products for a specified period of time. Review the Jobs > Stock Manufacturing Jobs section for more details on using job costing for stock inventory manufacturing jobs. Equipment Cost Tracking: The job costing module can be used to track the expenses incurred for a specific piece of equipment. Labor, parts (inventory), and other expenses can be posted to an equipment job. The user can ignore the budget, billing, and work in process sections of this manual if job costing is used solely for equipment cost tracking. A company can use one or more of the job applications described above within the same company. Separate job folders should be created to separate the varied applications. Review the Getting Started > Adding and Deleting Job Folders section to create job groups or folders. The system includes powerful time and material tools to simplify billing jobs that are not contract based and jobs that contain T&M change orders. EBMS will conveniently report work-in-process totals and process appropriate monthly transactions to financial reporting purposes. Work in process transactions are generated using either the Completed Contract or Work in Process accounting methods. This feature will take the "headaches" out of the necessary work-in-process procedures. Company or profit center overhead costs can be distributed to jobs, groups of jobs, or stages based on the stage classification or profit center. This allows the user to properly report the profits (or losses?) for a job including overhead or hidden costs. Comparing the actual costs with job budgets is the primary goal of proper job costing. 2

7 Getting Started Job profits are determined by calculating committed and actual costs. Review the Job Costs > Committed Costs section for more details. Job entry will be greatly simplified if the job classifications, stages, folders, and defaults are properly organized. Review the following Classifications, Jobs > Entering Job Stages, Adding and Deleting Job Folders, and Setting Job Defaults sections before creating new jobs. 3

8 Printed Documentation Classifications The Stage Classification settings are used to classify different groups of expenses and to determine the source of these expenses. The most common classifications include labor, materials, rentals, and subcontractors. The source of the expenses (payroll, expense invoice, or inventory) for each stage is restricted by the stage classification. A few different classifications are sufficient for most companies. It is important to create the most common classifications before stages are created and to properly design the classes since classifications cannot be deleted if a stage is using the unwanted class. To add or edit stage classifications, go to Job Costing > Options > Stage Classifications tab: 1. Click the New button to add additional classifications and the following dialog will appear: 2. Enter the Classification description. 3. Enter the classification Source. The classification Source determines which source documents will contribute to the actual cost of the job stage. 4

9 Getting Started o o o o A classification with no source settings is considered an overhead classification. Review The Overhead Stage section for more details about the overhead stage. Switch the Labor source option ON if any stage within this classification contains payroll costs. All stages classified with a classification that has this option OFF cannot be used within an employee's timecard. Additional hour totals show on the Totals tab of the stage window if the stage is classified with a Labor source. The Inventory switch should be turned ON for stages that contain inventory item costs. This switch must be turned ON to allow perpetual inventory items (Track Count Items) within a stage. This applies to Track Count inventory items in both the expense invoice and the inventory transfer. Turn on the Other source option ON if the stage with this classification may be used within an Expense Invoice. 4. Turn all Source options ON (Labor & Other) to allow the stage to be used within any entry window. o The Add Overhead To Budget option should be OFF unless you wish to apply the overhead percentages to the budget amounts and the actual costs. This switch is normally turned OFF since the overhead costs is normally included with the budget amount entered by the user. Review the Job Costing Overhead section for more details on job overhead costs. 5. Click the OK button to finish creating the classification. In the Stage Classifications tab, click on the Properties button to change the classification name or source settings. The classification can be renamed at any time and all classification labels within a job stage will be changed immediately. Click the Delete button to remove a classification. A classification can not be deleted if any one stage exists that is classified with the highlighted entry. Click OK to save the list of classifications. 5

10 Printed Documentation Stages A stage is defined within EBMS as a group or category of expenses that can be analyzed as a unit. By using stages, a manager can summarize a portion of a project or job. For example, a contractor may wish to analyze a job's labor costs regarding the framing of a building or the material costs required for the electrical stage. A stage must be defined in the Master Stage List found in the Job Costing > Options dialog before it can be used within a job. This allows the manager to report and summarize costs for a certain work type (stage) between multiple jobs. Stages can be grouped in user defined stage folder groups. For example, a building contractor may divide a building project into the following folder groups: General Site Work Framing Roofing and Siding Windows and Doors Insulation Plumbing Electrical and Heating Drywall and Trim Furnishings Each stage group may contain additional folder sub-groups. For example, the Site Work group may contain the following sub-groups: Driveway Site Excavation and Drainage Building Excavation and Backfill Building Stone Site Utilities Sewer System Import / Export Fill Landscaping Each folder group or sub-folder group will be subtotaled on cost analysis reports. The user should not create subfolder groups if that level of detail is not desired when analyzing the job. A stage must be defined in the Master Stage List found in the options dialog before it can be inserted into a job. The user will be able to organize jobs and stages much more effectively by properly entering the standard stages for all general jobs within the Job Costing options dialog. EBMS includes a number of master stage lists. Contact your EBMS consultant for details on Master Stage Lists for different vertical markets. To create or change the master stage list go to Job Costing > Options > Stages and the following window will open: 6

11 Getting Started The stage group folders are used to organize job stages. To add group folders, highlight the parent folder and click the Add Folder button. Type the new folder group's name to label the new folder. Use the Rename Folder or Delete Folder buttons to change the folder label or to remove it from the list. Create new stages after the standard stage folder groups have been created. A folder group does not contain any job stage information such as budgets or costs but contains multiple stages. To add new stages, highlight the folder in which the new stage is to reside. Click on the New Stage button and the following dialog will appear: 7

12 Printed Documentation 1. Select a folder for the stage and click Next. 2. Enter a Stage Id code used to identify the stage throughout the job costing system. This Stage Id must be unique for the entire system even if the stages are in different folder groups. Use a coding method that contains the identifiers of the stage's group or parent group. 3. Enter a stage Description that is descriptive of the type of costs that will be entered into this stage. 4. Enter the stage Classification. The Hours fields contained within the Totals tab of the job stage will be affected by the Classification. Review the Jobs > Classifications section for more details. Click Finish to create a new stage. Master stages can be added to the list at any time. The Add Stage wizard within a job allows the user to add master stages "on the fly". Master stages should be created so they can be used within other jobs whenever possible rather than being unique for a single job. The new stage can now be used within any job to record the budget, a group of expenses, and revenue. Go to File > Reports and print the Reports > Job Costing > Stages > Master Stage List report to print a complete list of master stages. Review the Entering Job Stages section for details in creating stages within a job. 8

13 Getting Started Adding and Deleting Job Folders The folder feature allows the user to organize jobs by the type of job. A folder should be created for each job group that contains a considerable different stage list. By grouping jobs properly and creating a standard stage list for each group will simplify the step of creating new jobs. For example a construction company may group jobs labeled Commercial, Agricultural, and Residential. Sub-folders labeled as New Construction and Remodeling may be added under each one of the main job groups. To setup the job folder groups go to Job Costing > Options > Job Folders tab. Adding a Folder To add a Job Folder, highlight a parent folder and click the Add Folder button. 1. Enter the new Folder Name describing the contents of the folder. 2. Toggle Allow only subfolders switch ON if you do not want any jobs placed into this folder but only wish to allow other subfolders. 9

14 Printed Documentation Deleting a Folder Click the OK button to create new folder. Click the Delete Folder button and a message asking the delete function to be verified will appear. A folder cannot be deleted if there are any jobs within the folder. To delete the folder the jobs will need to be moved to another folder. To move jobs, review the Changing Job Information section for details. Changing Folder Names To change the name of a folder, click the Properties button. Change the folder name or edit the subfolders toggle button of the highlighted folder as necessary. Review the Features > Folder Groups section in the main manual for more details on adding and changing folder lists. 10

15 Getting Started Setting Job Defaults Job defaults should be entered before creating new jobs, especially default job stages. If the user is not familiar with editing defaults, review the Change Defaults, Filtering Down Data and Globally Changing Data section in the main manual. To continue with entering job defaults, go to Job Costing > Options > Job Folders tab, click on the desired job folder, and click on the Edit Defaults button. The job window appears very similar to the job entry window, but it is used only to set default values. Some default values that you may wish to set are listed below: General Tab Set the default Payroll Tax Location. Review the Taxes and Deductions > Taxes for Multiple Locations section of the Payroll manual. Set the Progress-billing switch ON if most jobs are contractual jobs and are billed multiple times based on the progress of the job. The Progress-billing switch will be disabled if the Job Type is set to Time and Material. The Job Type should be set to Manufacturing only if job is used to record expenses for manufactured stock products. Review the Jobs > Stock Manufacturing Jobs section for more on the Manufacturing job type. Enable the Progress-billing switch if most jobs will be based on an A.I.A. contract or other progress-billing jobs. Review the Progress Billings > Entering Billing Items for a Progress Billings Invoice section for more details. Set the Status to Tentative or any other desired default setting. Site Tab Set the Contact Information field labels to reflect the most common contact information obtained from the job. Click on the right arrow button to the right of each of the five entry fields and select a variety of labels. Job Stages Tab 11

16 Printed Documentation Enter the standard stages for the jobs within the selected job folder. To import all stages from the master stage list, complete the following steps: 1. Delete all stages and folders using the Delete Stages and Delete Folders buttons. 2. Click on the New Group button. 3. Select the root folder Stages. 4. Toggle both the Include Subfolders and Add Stages switches ON. 5. Click the OK button. For more details on creating new stages or changing stages, review the Jobs > Stages or Jobs > Entering Job Stages sections. Advanced Tab 12

17 Getting Started The Work in Process method should be set with company's standard method. Review the Work In Process > Selecting a Work in Process section before continuing with this section. It is important that the Work in Process method is set properly within the Edit Defaults section. The Customer Retainage G/L account should be set to a General Ledger asset account that contains the job retainage withheld from a customer. The General Ledger account must be classified as Customer Retainage. The following three General Ledger account options will be hidden if the Work in Process method option is configured as Work in Process disabled. Cost in excess of billing G/L account should be set to a general ledger asset account that is classified as Job Cost in Excess that records the amount of the job that has been completed but not billed. If the job completed percentage is greater than the percentage that is billed, the adjustment will be posted to the Cost in excess of billing G/L account. If the percentage billed to the customer is greater than the completed percentage, the adjustment will be posted to the Billing in excess of cost G/L account. Review the Work in Process > Processing Work in Process section for more work in process details. Set Billing in excess of costs G/L to a general ledger liability account that is classified as Job billing in excess. The Work in Process variance G/L account is used as the offsetting account for work in process. When the Cost in excess of billing G/L account is debited, the Work in Process G/L is credited; furthermore, when the Billing in excess of costs G/L is debited the Work in process variance G/L is credited. This account must be classified as Work in Process. Progress Billing Tab This tab will show only if the Progress-billing switch, in the General tab, is toggled ON. The amount of time it takes to enter Progress-billing levels can be drastically reduced if the defaults are properly entered. 1. Toggle the Calculate scheduled value from quote switch ON if the budget costs and A.I.A. categories are entered at the same time. This switch should be ON if the A.I.A. billing levels are similar to the job stages. If the Progress-billing levels and the job stages are not equal and the user wishes to enter the Progress-billing levels completely separate from the stage costs, turn the Calculate scheduled value from quote switch OFF. 13

18 Printed Documentation 2. Enter the standard progress-billing description lines. Enter the ID, Description, and general ledger G/L Account; do not complete the other columns. Review the Progress Billings > Entering Progress-Billing Levels section for more details on the other columns. 3. To copy the default values from the root folder into the subfolders, filter down the default value for each entry field within each tab. Review the Features > Change Defaults, Filter Down Data, and Globally Edit Data section from the Main Documentation for detailed instructions on this copy process. Click the OK button to return to the options window. Repeat the steps above if you wish to set different default settings for job subfolders. 14

19 Jobs Adding a New Job It is wise to enter job defaults before creating new jobs and default job stages. By properly setting job defaults for each type of job in different folders, time-consuming settings such as General Ledger Accounts, Stages, and Options can be preset. Review the Setting Job Defaults section for more information on default values. Complete the following steps to create a new job: 1. Open the job list by selecting Jobs from the Job Costing menu (Job Costing > Jobs). 2. Select Edit > New from the main menu. A new job wizard will guide you through the following steps: 3. Highlight the folder in which you want to place the new job and click Next. Review the Getting Started > Adding and Deleting Job Folders section for more details on creating new folders. 15

20 Printed Documentation 4. Enter the job Description as well as other miscellaneous job information within the Note field. 5. Set the Job Type to Time and Material if the entire job will be billed on a T&M basis. Select Contract if part of the job or the entire job is contractual. It is possible to have time and Material stages within a contract job. 6. The Progress-billing switch should be turned ON if the contract job is billed in stages based on the progress of the job rather than a single invoice. (Review the Progress-Billings section of this manual for more details on progress-billing.) The Progress-billing option will be disabled if the Job Type is set to Time and Material. 7. The Due Date should reflect the date in which a job needs to be completed. The Due, Begin, and End Date fields should all be used in scheduling a job. A job's description and date may be changed at any time. Click the Next button to continue. 16

21 Jobs 8. Enable the Copy stages from existing job option if you wish to copy information from another job. Keep switch OFF to use default stages. Ignore steps 9 and 10 if the Copy from Existing Job switch is OFF. 9. Enter an existing job that you wish to copy. To view all existing jobs click on the lookup button. 10. Select the Create a new customer account option if this is the first job for this customer or select Use an exiting customer option for a customer whose account has previously been established within EBMS. 11. Click the Site Address is the Same as the Customer's switch ON to copy the customer's address to the site tab. To view the customer's address, right click on the customer code and select the Lookup option from the context menu. Click Next to continue. 17

22 Printed Documentation 12. Enter a Job ID to identify the job. This code can be automatically be created by setting the appropriate naming setting within the folder. Go to Job Costing > Options > Job Folders, highlight the job folder, and click on the Properties button. Click on the naming tab to set option. Click Finish to complete the new job wizard. 18

23 Jobs Changing Job Information General Job Information may be changed at any time after a new job has been created. Additional information such as Job Notes, Budgets, Stage Detail, Site and Architect Information may be added in this window. The main job window is also useful to view job history, process progressive billings, create budgets, and enter change orders. Go to Job Costing > Jobs, select an existing job and the following window will open: The job ID code is a unique code that is entered at the time the job is created. Right clicking on the job ID field and selecting the Change Id option can change this code. The Change Id selection will start a possible lengthy process of changing the job Id through out the job history. Clicking on the down arrow button to the right of the current folder name and selecting a new folder can change the job Folder. General Tab The Customer ID code identifies the customer that will be billed for this job. Multiple jobs may have the same customer code. To view customer information such as the full address or history, right click on the Customer ID code and select Look-up from the context menu. Enter job Description. Enter the jobs Tax Location of the job. This setting will overwrite the tax location of the employee within the timecard. Review Taxes and Deductions > Taxes for Multiple Locations section of the payroll documentation for more details. The Date fields are necessary for any scheduling functions or reports based on the schedule date. The Due Date should reflect the deadline of the project. The Begin and End date and.times are used to schedule the project's duration. These dates are important if the Warn if a job costing transaction date is not within the job's begin and end dates option is enabled. You can view or change this setting by going to Job Costing > Options 19

24 Printed Documentation The Job Type option should be set to Time & Material if the entire job is being billed based on the cost of material and labor rather than a contract. The Job Type for a progressive billing job such as an A.I.A. job must be set to Contract. A job that consists of both contracts and Time and Material agreements should be set to Contract. The Job Type option cannot be changed if any progress billing invoices have been created. The Progress Billing switch should be toggled ON for all progressive billing jobs such as A.I.A. contracts. The Progress Billing tab will show only if this switch is ON. For more details on progressive billing and A.I.A. contracts review the Progress Billing section. The Entered By value should contain the name of the person who initially created the job within EBMS. This value will default to the EBMS login name at the time the Job is created. The Status option is used to group jobs for reports or list purposes. If the Status is set to Closed the job cannot be entered into an invoice, proposal, or timecard. The work-in-process calculations are affected by a job's status. The Completed By entry should reflect the user who was responsible to close the job. The user's login name who set the job status to completed or closed will be copied into the Completed By entry if the entry is blank at the time a job's status is set as completed. An optional job Type will allow the user to print reports or query jobs in specified groups. Example: If a job is part of multiple groups, list all the types in the Type field and separate them with a space or comma. Grouping jobs only by using folders is limited since a job can only appear in a single folder. By entering a group of keywords or types, the user can query the jobs by any type or combination of types. The Priority setting is for scheduling purposes. The Note field is used to describe job details. The job window may be resized to enlarge the visible note area. Site Tab 20

25 Jobs The site Address and Directions are optional fields used to enter the location of the Job. The Architect field may contain a Customer Id code. Create a customer folder labeled Architect and enter all the architect's contact information in a similar way as a new customer is created. Enter a customer code within the Contractor entry in a similar manner as the Architect entry. The site Contact fields are similar to customer and vendor contact fields. Clicking on the right arrow can change the labels of each one of these entries. 21

26 Printed Documentation Entering Job Stages Overview A job may be divided into stages or sub groups so the user can analyze a portion of the job. For example, a building contractor may create a job for each building or project. The project may be divided into stages such as site work, foundation, framing, roof, electrical, plumbing, finishing, etc. The contractor will need to associate a job with each of the direct costs as well as a stage. Each job has its own list of stages. The stages within a job may be very similar to other jobs or may vary dramatically. A stage must be created in the master stage list before it can be entered into a job. Go to Job Costing > Options > Stages tab to create new stages within the master stage list. Review the Getting Started > Stages section of this manual for more instructions on Stages. Click on the Job Stages tab of the main Job Window (Job Costing > Jobs > Job Stages tab) to view the stage list for a job. Change the way you view the stages by selecting from the list of options under View. When a new job is created, the Stage List is either copied from another job (review the Adding a New Job section for details) or from the default settings (review the Getting Started > Setting Job Defaults section). Entering a number of stages within each job can be time consuming. This step can be greatly simplified by entering a default list of stages within each job folder. Go to Job Costing > Options > Job Folders tab and click the Edit Defaults button to enter the default list of stages. Stage folders and stages should be set before job budget amounts or expenses are entered. Adding a Group of Stages Stages can be added in groups or individually. Highlight the parent folder and click on the New Group button to insert a folder or folder group and the stages within those folders. The following dialog will appear: 22

27 Jobs Select the folder you wish to insert. Toggle the Include Subfolders switch ON to insert any subfolders of the folder that is selected. Toggle the Add Stages switch ON to all add stages within the selected folder(s). Click OK to add a stage. To insert a list of folders the user must highlight each folder and click the New Group button for each folder. An alternative to inserting each folder individually is to delete the parent folder and re-insert it with the Include Subfolders switch turned ON. The default stage's general ledger account must be set within each stage when a group of stages is inserted using the Add Group button. Highlight a stage within the newly inserted group of stages and click the Stage Properties button. Click on the Advanced tab as shown below: 23

28 Printed Documentation Enter the appropriate General Expense G/L Account. The stage's general ledger account (Expense Account + Department) is used in the following documents: 1. The account is copied into the expense invoice or purchase order when an inventory item code is not present on the PO. Note that this overrides the vendor's default general ledger account. 2. The G/L is inserted into the timecard if the Timecard General Ledger Account option is set to Use Job Stage Account within payroll's work code. For more details, refer to the Payroll Expenses section. Enter an Inventory Expense Account if the stage is classified with a source of inventory. This entry will not exist if the Determine direct job cost accounts option found in Job Costing > Options is disabled. Review the Job Costs > Inventory Items and Direct Job Costs section for more details on the Inventory Expense Account entry. Review the Getting Started > Stages section for details on the other stage entries. Changing a Job's Stage Folders 24

29 Jobs To create a new stage folder only, highlight the folder in which the new folder will be placed and click the New Folder button. A new folder will appear labeled New Folder. Enter the new folder's label and press the enter key. Click the Properties button after a folder has been highlighted to rename the folder label. Click the Delete Folder button to remove a folder or an entire group of folders and stages. Folders may be moved from one parent folder to another by clicking on a folder with the mouse and dragging it to the new parent folder. See a Windows manual for more details on dragging and dropping objects. Adding Individual Stages 1. Click on the New Stage button to launch the new stage wizard. 2. The following dialog may appear depending on the view setting within the job's Job Stages tab. Continue with step 3 if the following dialog does not appear since the folder was selected on the Job Stages list. Select the job's folder group as the location for the new stage and click the Next button to view next page. 25

30 Printed Documentation 3. Select a new stage from the dialog shown below. A stage must be created within the master stage list before it can be added to a job. Click on a master stage group to view the available stages in the right pane. 26

31 Jobs 4. Click the New Stage button to create a new stage within the Master Stage list. Review the Getting Started > Stages section for more details on creating and organizing the Master Stage List. Use the New Folder, Rename Folder, Delete Folder, or Delete Stage buttons to change the master stage list. 5. Select a stage from the list. Click Next and the following window will appear: The stage Description may be altered for this job but will not affect the description within the master stage list. Go to Job Costing > Options > Stages to permanently change the stage description. The stage Classification cannot be changed within a job but must be set within the master stage list. For details on this setting see the Getting Started > Classifications section. The Status of each stage may be changed individually; it will also change as the job status is changed. This optional setting is used for scheduling purposes. Enter miscellaneous information concerning the stage within the Note field. Click the Next button to continue. 27

32 Printed Documentation 6. Enter the appropriate General Expense G/L Account. The stage's general ledger account (Expense Account + Department) is used in the following documents: The account is copied into the expense invoice or purchase order when an inventory item code is not present on the PO. Note that this overrides the vendor's default general ledger account. The G/L is inserted into the time card if the Timecard General Ledger Account option is set to Use Job Stage Account within payroll's work code. For more details refer to the Job Costs > Payroll Expenses section. 7. Enter an Inventory Expense Account if the stage is classified with a source of inventory. This entry will be disabled if the Determine direct job cost accounts option found in Job Costing > Options is disabled. The Inventory Expense Account and the General Expense Account may be identical if the stage is used for general materials and inventory. Review the Job Costs > Inventory Items and Direct Job Costs section for more details on the Inventory Expense Account entry. Click the Next button to continue. 28

33 Jobs 8. Enter the Percent of Cost value. Review the Job Overhead > Adding a Percentage Overhead section for more details on this entry. Both of these entries are used to calculate overhead and can be ignored and left blank if no overhead calculation is required. 9. The Profit Center field will not appear if the profit center option is not enabled. For more details about profit centers and job costing, review the section entitled General Ledger > Departments and Profit Centers, from the Main Documentation. Click Finish to insert the new stage. Viewing and Changing Stage Information Stage settings can be edited by clicking on the Stage Properties button within the Job Stages tab of any job. For more information on the Totals tab, review the Job Costs > Evaluating Job Costs and Job Overhead > Adding a Percentage Overhead sections. Deleting Stages The Delete Stage and the Delete Unused buttons may be used to remove unwanted stages from the Job Stage List. The Delete Stage button will remove stages one at a time while the Delete Unused button will remove all stages that do not contain any budgeted income or any budgeted, actual, or committed cost amounts within the stage's Total tab. Highlight the root folder to remove all the unused stages within a job or highlight an individual sub-folder to remove only the stages within a folder. Click on the Delete Unused button and click Yes to the warning message after the desired folder has been selected. 29

34 Printed Documentation Entering a New Proposal or Job Budget A job's budget is an important element of job costing especially with contact jobs. The budget is the guideline that is used to compare the costs of a job. This feature should be used for jobs that include quoted items or price contracts. The contracted billing price of the job is entered at the same time as the budget. All budget totals are found and entered within the Budgets tab of the job. If the budget and contract have already been entered into a proposal, leave this section and review the Applying an Existing Proposal to a Job section; otherwise continue with this section. All job stages and Progress-billing detail should be entered into the job before entering a budget. Review the Entering Job Stages section for details on entering the job stages and the Progress Billing > Entering Billing Items for a Progress Billing Invoice section for more on entering Progress Billing items. 1. Open the job and go to the Budget tab. The Budget list should be blank because the job is new. 2. Click on the New button to the right of the Budget list. This will launch the new budget or proposal as shown below: 30

35 Jobs 3. Select the first option, Create a new blank proposal. For details on the second option review the Creating Change Orders section. Select the 3 rd option if the quote has already been created. Review the following Applying an Existing Quote to a Job section for details. Select the Make a copy of an existing proposal option to copy a proposal from another job. Click the Next button to continue. 4. The following dialog will appear if the Progress-billing option is toggled ON. The Progress-billing option is found on the General tab of the job window. Continue with step 4 if this page does not appear. 31

36 Printed Documentation Select Yes so the Progress-billing values are updated from the new quote. Select the No option only if this is a time & material change order. Click the Next button. Review the Progress Billing section of this documentation for details on progress billing. 32

37 Jobs 1. Set the auto-format options listed below: The Create proposal lines from job stages option should be toggled ON. This option will create a quote line for each job stage, making it convenient to enter budget costs for each job stage. The Enter Billing Amounts by options should be selected according to the method used to enter the budget billing amounts. Individual budget costs are always entered into a quote on a line-byline basis. The contracted price amount can be entered in three different ways: a. A single contract price can be entered for the entire Job as shown above. This option will prorate the contract total to each stage according to the amount of the budgeted cost of each stage. b. A contract price can be entered for each Folder or group of stages. The total will be distributed to each stage within the folder according to the stage's budgeted costs. This option is useful when a contract price is based on a group of stages. c. A contract price may be entered for each individual Stage in a similar manner as the budgeted cost. Choose one of the 3 methods of entering the contract-billing amount. The All Stages option should be selected to copy all stages to the quote; otherwise only a portion of the stages will be copied into the quote window. 2. Click Next to open the last page of the wizard. 33

38 Printed Documentation 3. The wizard automatically assigns a proposal number. Enter a description of the proposal. 4. Enter the Revenue G/L account. The revenue account will be copied to the detail line. The account can be changed for specific lines within the budget list of the proposal. 5. Click Finish to open the budget or proposal window. The Job Proposal window will be opened as shown below. The contact list will be grouped based on the Enter Billing by option selected in the new proposal utility. The example above grouped all the stage lines into a single billing line. 34

39 Jobs 6. Hide any unnecessary columns such as inventory ID, unit of measure, etc. The columns that should be visible are the Quantity, Description, Unit, Amount, Job Stage, Cost, and Total Hours. The Progress Billing column may be visible if the job does is configured with progress billing. The Taxable, G/L Account may not be visible based on the job settings. Review the Features > Column Appearance section of the main documentation for detailed instructions on hiding columns. 7. Enter contact amount into the Unit column of the budget list. If the Progress-billing option within the job is toggled ON, a Progress-billing column will be present on the Proposal window. If this column is present a progress billing ID must be entered on each line with the contract amount Click on the lookup button to list all available Progress-billing Ids. Review the Progress Billings > Entering the Billing Items for a progress Billing Invoice section for instructions on entering progress-billing ID's within a job. 8. Expand the stage list by clicking on the expand list [+] button as shown below. 9. Enter the budgeted cost of each stage into the Cost column. In the example above, the billing amount is entered on the header line and is distributed to the individual stages. The cost must be entered on each detail line and is totaled to the header. 10. If this stage involves budgeted hours then enter the hours in the Total Hours column. The Total Hours amount will not be able to be entered if the stage classification does not allow expenses from a payroll source. Review the Getting Started > Classifications for more details on setting stage classifications. 11. Enter the contract billing price in the Unit column of every heading line or group. Repeat the detail line instructions for each stage detail line within the proposal. 12. A inventory transfer ticket can be created directly from the job budget/proposal list. Select Progress > Create Inventory Transfer Ticket from the Proposal menu to create a transfer ticket that contains all the inventory items that contain an inventory code and are not classified as Service. Review the Job Costs > Inventory Transfers section for more details. 13. A proposal or budget must be applied to a job by selecting Process > Apply to a job before the budgets are applied to the job 13. The Apply to Job wizard gives the user an option to create a sales order for billing (if the job is not a progress billing job) and also allows the user to create an inventory transfer ticket (if the proposal contains inventory items). Review the Contract Billings > Invoicing Contract Billings section for more details on using the Create a sales order option or the Job Costs > Inventory Transfers section for more details on the Create an inventory transfer ticket option. 14. Click next and enter the Acceptance Date and Accepted By entries and click the Finish button. A budget can also be applied to a job by highlighting the budget and clicking on the Apply to Job button on the Budget tab of the job. 35

40 Printed Documentation Review the Getting Started > Creating and Printing Proposals section of the proposal manual for more details on creating proposals. 36

41 Jobs Applying an Existing Proposal or Job Budget An existing proposal can be attached to a job using either of the following different methods: 1. A proposal can also be attached to a job directly from the proposal window. Go to Sales > Proposals and open an existing proposal. Enter a Job Id into the job and stage Ids into the Stage column. Enable the Change Order option if the existing proposal is a change order. The changed quote will now show in the Budget tab of the job and the Stage Budgets will reflect the totals on the details lines that contain the stage. 2. The second option to apply a proposal to a job is to open the main job window. Load the Job and click the load button on the Budget tab to open the proposal list. a. Select a proposal and the existing proposal will open with the current job within the Job Id entry. b. The user must enter a Job Stage for each detail line that contains a budget cost. Note that the job stage can be populated within a stage before the job id is entered. This option is useful for quote templates that may contain job stage information but is not associated with any job. c. If the Progress-Billing option within the job is enabled, a Progress-Billing column will be present on the proposal window. If this column is present, a Progress-Billing ID must be entered on every detail line that contains a unit price. d. A proposal or budget must be applied to a job by selecting Process > Apply to a job before budgets are applied to the job stages and progress billing list. Review the previous section - Entering a New Proposal or Job Budget section for more details on processing a proposal or budget to a job. Review the Getting Started > Creating and Printing Proposals section of the proposal manual for more details on the proposal window. 37

42 Printed Documentation Creating Change Orders A Change Order is a change to the original contract or budget. A job normally has a single job contract or budget but has many change orders. Change orders are entered in a similar manner as a job contract or budget and affect the cost budgets in a similar manner. Change orders for a progress-billing job differ from a change order within a standard contract job. Review the Creating Change Orders within a Progress Billing Tab section for details on Progress-billing change orders. Continue with this section for all other change orders. 1. Go to the Budget tab within the main job window. Click on the New button to create a new change order and the following wizard will appear: 2. Select the fourth option Create a new change Order and click the Next button. 38

43 Jobs The New Reference Number will default to the next proposal number. This number can be changed to any desired change order number or code. 3. Enter a brief change order Description. Click the Finish button to create a change order. 39

44 Printed Documentation The details of a change order should be entered in way similar to the original contract. A Job Stage should be entered for each detail line that contains a Unit Price or Cost. Review the Entering a New Proposal or Job Budget for more details on the Proposal window. A proposal or budget must be applied to a job by selecting Process > Apply to a job before budgets are applied to the job stages and progress billing list. Change orders may be changed or deleted by highlighting the desired change order within the Budget tab and clicking the View button. If the job Status on the General tab is set as Closed a change order or contract cannot be changed. Review the next section for more information on Changing the Job Status. 40

45 Jobs Changing the Job Status The Status of a job can be found in the General tab of the main job window. The job Status is used particularly for scheduling or reporting purposes and can be changed at will. Additional status entries can be added to the current list. Contact an EBMS support technician if you wish to add to the existing list. The following status settings are standard features: The Tentative status indicates a job that has not yet been sold. It may be useful to enter the job information at the time of the quote or possible sale; however, the user may not prefer to have a tentative job listed on some job reports. The Confirmed job is sold but not in progress. A job should not be listed In Progress until the job is active or in process. The In Process setting affects the Work in Process procedure. A job is considered started but not completed when the Status is set to In Process. When the job Status is changed from In Process to any other setting (such as Completed) the job is considered one hundred percent complete. The Billings in Excess and the Costs in Excess will be zeroed the next time the Work in Process procedure is launched. Review the section entitled Work in Progress > Selecting a Work in Process for more details. The In Process status settings should never be changed or removed. The Status should be set to Completed when a job is completed even though not all of the expenses have been processed. The Adjusted % Complete value displayed within the Work-in-Process tab will be set to 100% if the job status is set to Completed. The job Status should be set to Closed after all expenses have been entered and the job is complete. The Closed setting will prevent anyone from changing or creating a quote or change order. A closed job cannot be used within any invoice, timecard, or any other entry window. The Closed status settings should never be changed or removed from the status database (JCSTATUS.DBF). Changing the Status from Closed to Completed or any other status may re-open a job. 41

46 Printed Documentation The status of each stage of a job is able to be set individually if so desired. The stage status can be set within the General tab of the Stage window. The stage Status will automatically be changed to the job status if the job status is changed to a setting greater than the stage status. 42

47 Jobs Stock Manufacturing Jobs A stock manufacturing job is a job that includes inventory, labor, and general A/P expenses but is not billed directly to a customer. The value of the finished goods created using the manufacturing window is the only "revenue" for the job. Do not use the instructions within this section to create a job that is billed directly to a customer. A made-to-order (MTO) or time-and-materials (T&M) job should be created and processed in a similar manner as any contract or T&M job. Use the following guide: If the manufacturing job is a custom project and the customer is being billed for the completed job then review the Contract Billings > Invoicing Contract Billings section. Review the Entering Billing Items for a Progress Billing Invoice if the project is being invoice multiple times for a single job. If the manufacturing job is a customer project and the customer is being billed for the job on a time-andmaterials (T&M) basis then review the Time and Material Jobs > Creating a Time and Material Job section. If the project is to create inventory items that are stocked in inventory then complete the following steps. A manufacturing batch should be created for all inventory items that are manufacturing even if some of the stock items are made-to-order (MTO). 1. Create an inventory folder for stock manufacturing projects as shown below: Review the Getting Started > Adding and Deleting Job Folders section for more details on creating folders. 2. Highlight the manufacturing folder and click the Edit Defaults button. Make the following entries into the general tab of the window: 43

48 Printed Documentation a. Create a fictitious customer and enter the customer into the Customer ID entry. All jobs should contain a customer Id for pricing and other related information. Since the manufacturing job is not created for a customer's job, a fictitious ID (MAN in example above) should be used. Review the Sales > Customers > Adding a New Customer section in the main manual for more information on creating customers. b. Set the Job Type to Manufacturing. Review the Getting Started > Setting Job Defaults section for more details on other job defaults. 3. Click on the Advanced tab. 44

49 Jobs The Work in Process method setting must be set to Manufacturing or Work in Process disabled for all stock manufacturing jobs. Notice that the Customer Retainage G/L setting disappears since no billings or customers are associated with a manufacturing job. The Costs in excess of billings G/L and the Billings in excess of costs G/L settings are combined into a single Work in Process G/L. This should be a general ledger asset account. 4. Select the Job Stages tab as shown below: The job stage list may be detailed or may consist of only the basic stages. Review the Entering Job Stages section for more details on adding or changing stages. 45

50 Printed Documentation 5. Enter optional budget information within the Budget tab. The budget for a stock manufacturing job is not required for WIP processing or other internal EBMS processes. The budget may be very useful for cost management purposes. Click on the New button and create a blank proposal. Enter the quantity of products that are budgeted to be used within the job. The cost amount is derived from the last Cost field within the pricing tab of the inventory item and does not reflect the current costs of the components. Review the Entering a New Proposal or Job Budget section for more details on creating budgets using the proposal window. 6. Save the proposal and apply the proposal to the job. Note that the proposal or budget will not affect the job till the budget is applied to the job. A budget can be applied to a job using the Process > Apply to Job option within the proposal or clicking on the Apply to Job button on the Budget tab of the job. 46

51 Jobs 7. Expenses can be applied to a stock inventory job using the following options: a. Using a PO or expense invoice. Review the Job Costs > Allocating Costs from a Purchase Order or Expense Invoice section for more details. b. Payroll timecard. Review the Payroll Expenses section for more details on applying payroll expenses to a job. c. The Inventory Transfer screen can be used to apply stock inventory or raw materials. Review the Inventory Transfers section for more details. Raw materials or components can also be listed within the manufacturing window which is discussed within the next option. d. The Manufacturing window is used to list the Finished Goods created as a result of the job but can also be used to identify the Items Consumed within the job. Continue with the next step for more details. 8. A stock manufacturing job includes a Manufactured Items tab which replaces the billing step. This is the most significant difference in comparison to a standard job. a. Click on the Manufacturing Items tab of the job. b. Click on the New button to open a new manufacturing batch. 47

52 Printed Documentation c. List the Finished Goods items that are manufactured as a result of the job. A stock manufacturing job generates credit transactions as a result of new inventory rather than income generated from billing a customer. Any items listed in the Items Consumed list will generate costs for the job in the same manner as an inventory transfer. 9. A manufacturing batch may contain one or more batches per job. 48

53 Job Costs Direct Job Cost General Ledger Accounts EBMS allows the user to determine which general ledger accounts require a job code and which do not. If this optional feature is activated, only general ledger accounts that are identified as direct job cost accounts can be used to post job costs. Any invoice or timecard line that does not contain a job code must contain a general ledger code that is NOT set as a direct job cost account. This restriction is active within a purchase order, expense invoice, timecard, and inventory transfer windows. This optional feature allows the user to divide all the company expenses into two groups: 1. Direct job costs Accounts with Direct Job cost account option ON. This option is found within the Advanced tab of each expense general ledger account. Go to General Ledger > Chart of Accounts and select any expense account. See example in following page. Direct costs are managed within a job since the manager knows that ALL costs are allocated directly to a job. Direct costs such as materials, direct labor, subcontracts, rentals, etc are compared to the job budget for these items. 2. Indirect job costs - Accounts with Direct Job cost account option OFF Indirect costs must be managed differently. These costs can NOT be posted to a job since they are managed by using an overhead percentage. The management of indirect costs changes substantially since they are not included in the job cost amounts. The examples below may be some possible ways to manage and budget indirect costs. a. Indirect labor costs such as clerical and support labor, taxes, benefit pay, and insurances: The total cost of the indirect general ledger accounts (indirect costs) can be totaled and divided by the direct labor costs (direct costs) to equal the overhead cost ratio entered into the job costing system for labor classified stages. (Labor overhead percentage = indirect labor cost / direct labor cost) b. Indirect administrative costs such as general overhead costs A ratio should be established using the costs of all indirect GL accounts (excluding labor) and the costs of all direct GL accounts (excluding labor). (General Overhead Percentage = all indirect accounts with exception of accounts used in section i / all indirect accounts with exception of accounts used in section i) Enter the overhead percentage within each classification to add the overhead costs (indirect) to the actual costs (direct). Review the Job Overhead > Globally Change Overhead Percentages section for detail on setting overhead percentages for stages. Continue with the next section to set or change this optional feature. 1. To activate the direct job cost account feature go to Job Costing > Options > General tab as shown below: 49

54 Printed Documentation 2. The Determine Direct Job Cost Accounts option must be toggled ON to activate this feature. Click the OK button to save the option settings. 3. All general ledger accounts that record direct job costs will need to be identified. A general ledger account cannot be entered within a stage, an invoice, a timecard, or an inventory transfer detail line unless it is set as a direct job cost account. 4. Click on the Advanced tab of a general ledger account. This can be accomplished by selecting the General Ledger > Chart of Accounts menu option and choosing the specific general ledger account. 50

55 Job Costs 5. Turn the Direct Job Cost Account option ON and click the OK button. Repeat the steps for each general ledger account that will record direct job costs. Multiple labor accounts must be created if the user wishes to post direct job costs such as manufacturing labor used in a specific job into the same account as miscellaneous labor costs that are not allocated to a job. The labor G/L Account should be divided into two accounts named Direct Labor Costs and Indirect labor Costs. The same account CANNOT contain both direct job costs and miscellaneous costs that are not allocated to a job when the Determine Direct Job Cost Accounts option is turned ON. Inventory transactions created within the expense invoice, inventory transfer, and sales invoice are affected by this switch. Review the Inventory Items and Direct Job Costs section for more details. 51

56 Printed Documentation Allocating Costs from a Purchase Order or Expense Invoice Any direct job costs such as materials should be associated with a job and job stage at the time of purchase. All expenses listed on a purchase order that contain a job code are listed in the job as committed costs until the purchase order is processed. The job and/or stage can be changed until the time the expense invoice is processed. Enter job cost expenses as follow: 1. Enter the purchase order information as explained in the Main Documentation, Expenses > Purchases Orders > Entering a New Purchase Order section with the following exceptions: a. Enter a Job code for each detail line that should be expensed directly to a job. Keep the Job code blank for all other expense lines. b. A Job Stage must be entered on every line that contains a Job code. Click on the lookup button to list all available stages for the current job. A stage must be classified with a source of Other to be used within a purchase order or expense invoice. Review the Getting Started > Classifications section for more details. 2. If an Inventory code is entered as well as a job code, the job stage must be classified as inventory. Review the Getting Started > Classifications section for more details on the inventory switch. Inventory purchases and sales amounts will be inserted at the time the expense invoice is processed. Inventory items on a P.O. that are allocated to a job will be considered sold to the job immediately causing the inventory count to stay constant. Entering a job and inventory code at the same time is similar to purchasing inventory without a job code and transferring the inventory to the job using the Inventory Transfer utility. All purchase order costs are considered committed as soon as they are entered. Review the Committed Costs section for more details on committed costs. 3. The G/L Account must be configured as a Direct Job Cost Account when an inventory item is entered and the Job Cost > Options > General > Determine Direct Job Cost Accounts option is toggled 52

57 Job Costs ON. Review the Direct Job Cost General Ledger Accounts section for transaction details on inventory items and direct job costs. Job costs will be moved from committed costs to actual costs at the time the expense invoice is processed. Review the Expenses > Invoices > Processing an Invoice for details on processing an expense invoice. 53

58 Printed Documentation Inventory Transfers Inventory should be transferred to a job at the time it is removed from inventory and delivered to the job. Transfers are not necessary if the inventory items were purchased for a specific job and the job and job stage were entered into the expense invoice. Inventory transfers can be created by manually entering product lists when a materials list is determined for a job. Transfer tickets can also be created from the jobs budget (Proposal) dialog. Review the Jobs > Entering a New Proposal or Job Budget section for more details. 1. Select Inventory Transfer from the Job Costing menu to open the following window: 2. Enter a Ticket Id or tab to automatically insert the Next Inventory Transfer Ticket. The Next Inventory Transfer Ticket can either be viewed or changed by clicking the Job Costing > Options > General tab. This ticket number is incremented each time the Next Inventory Transfer Ticket number is displayed. 3. Enter the Date of the transfer. All general ledger transactions generated by this transfer ticket will contain this date. The Memo entry can be used to describe the transfer or to record miscellaneous information. The User will default to the user's login name. 4. Enter the Job ID. 5. Enter the inventory transfer detail using as many lines as needed. a. Enter the Quantity that is needed for a job. The quantity Ordered is recorded in the Count tab of the inventory item and affects committed costs. Review the Committed Costs section for more details. b. The Transferred field should be empty if the product is needed on the job but has not been transferred from inventory. Keeping the Transferred field blank has the same effect on the inventory counts as having the shipped value zero within a sales order. The net inventory count is affected only in the Transferred column. The Transferred amount must equal the Quantity before the Inventory Transfer ticket can be processed. c. Enter the inventory Item that is being transferred. The Description field will be filled from the information entered in Inventory > Inventory Items. An inventory Item must be entered on each line of the ticket. If an inventory Item has been entered with a classification of No Count or Service, a debit and a credit transaction is created using the same inventory variance general ledger code. The general ledger balance is unchanged but the cost is added to the job since the debit transaction contains the Job and Job Stage codes. d. The Unit of Measure field is an optional field that identifies the unit of measure being used for this inventory item. Review the Tracking Counts > Unit of Measure section of the Inventory documentation for more details. If multiple units of measure are not used for inventory items, this field can be removed from the invoice by right clicking on any column title and hiding the Measure column. 54

59 Job Costs e. Enter the Job Stage that is receiving the inventory. You must include these values for every line of the transfer ticket. A stage must be classified with a source of Other or Inventory to be used within the inventory transfer window. Review the Getting Started > Classifications section for more details. f. The Cost amount will be inserted from the perpetual or last cost method depending on the Inventory Method setting within Inventory > Options. The last cost will be used if the inventory item is not set to track counts. This cost can be changed to reflect the cost the user wishes to apply to the job. 6. Select Process > Process from the Inventory Transfer menu to transfer the contents from inventory to a job. The costs will not be posted to a job until the ticket is processed. Review the Inventory Items and Direct Job Costs section for details on the transactions created from this process. 7. Select File > Save (Ctrl + S) from the Inventory Transfer menu to save the transaction details without processing the ticket. The inventory count is not decreased until the ticket is processed. 8. Select File > New or press the Ctrl + N keys to create a new inventory transfer ticket. 9. Select File > Close to exit the window or press the Esc key. 55

60 Printed Documentation Inventory Items and Direct Job Costs The Determine direct job cost accounts option has an affect on the job costing transactions when inventory codes are used within an expense invoice, inventory transfer, or sales invoice. This option is set within the general tab of Job Costing > Options as shown below: The additional G/L transactions are created for the individual processes listed below. Note that the standard purchase, sales, accounts payable, and accounts receivable transactions are not listed. Inventory Transfer in the Job Costing menu If the inventory item within the transfer list is classified as track count then the following transaction is created: Inventory Asset Account found in the inventory item's advanced tab Credit Transactions are only posted to this account if the Inventory Method is set to Perpetual within Inventory > Options window. Otherwise the inventory item is classified as no count and the following transaction is created: Inventory Variance Account found in the inventory item's advanced tab Credit Review the Inventory > Tracking Counts > Inventory Variance section of the main EBMS manual for more details on the inventory variance account If the Determine Direct Job Cost option is enabled within Job Costing > Options then the following transaction is created: Inventory Expense Account found within the advanced tab of the stage Debit The advanced tab graphics on the following page shows an expense account. Otherwise the following transaction is created: Inventory Variance Account found in the inventory item's advanced tab Debit 56

61 Job Costs Expense invoice details lines that contain job information. The transactions created from an expense invoice detail with job costs are identical to the standard expense invoice transactions (with no job) and the Inventory Transfer transactions listed above. If the inventory item within the transfer list is classified as track count then the following transaction is created: Inventory Asset Account found in the inventory item's advanced tab Debit Inventory Asset Account (Standard purchase transaction Credit The following transaction is created for all inventory items, both track count and no count items: Inventory Variance Account found in the inventory item's advanced tab Credit Review the Inventory > Tracking Counts > Inventory Variance section of the main EBMS manual for more details on the inventory variance account If the Determine Direct Job Cost option is enabled within Job Costing > Options then Inventory Expense Account found within the advanced tab of the stage Debit See the following advanced tab graphics depicting the inventory expense account. Otherwise the transaction is posted to the Inventory Variance Account found in the inventory item's advanced tab Debit The Inventory Expense Account is only visible when the Determine direct job cost account is enabled. Open any job stage and click on the Advanced tab as displayed below: 57

62 Printed Documentation Review the Entering Job Stages section for more details about stages. 58

63 Job Costs Payroll Expenses Allocating payroll expenses to a job is an important element in proper job costing. An employee's gross pay is directly expensed to a job and the payroll overhead is added to a job through the overhead feature of job costing. Review the Job Overhead > Adding a Percentage Overhead section of this chapter for detailed instructions in processing payroll overhead. The job information is entered within the timecard window as shown below: Enter timecard information as explained in the Payroll > Processing Payroll > Entering Employee Timecard Information section with the following exceptions: 1. Enter a Job code for each detail line that should be expensed directly to a job. Keep the Job code blank for all other pay such has holiday, clerical, maintenance, and other general pay. 2. A Job Stage must be entered on each line that contains a Job code. Click on the lookup button to list all available stages for the current job. A stage must be classified with a source of Payroll to be used within a timecard. Review the Job Costing > Classifications section for more details. A G/L Account is normally copied from the General Ledger Account entered within the work order. The work order can be set to use the stage's G/L Account rather than the general ledger account set within the work order. Go to Payroll > Work Codes to open the following window: 59

64 Printed Documentation An additional field labeled Timecard G/L Account appears within the work code window when the Job Costing module is being used. This setting has three options: The Use Work Code G/L Account option will copy the General Ledger Account shown within the work code window to the timecard column. The Use Job Department option will copy the 5-digit General Ledger Account from the work code extended with the last 3 digits of the General Expense Account setting found within the stage's Advanced tab. The Use Job Stage G/L Account option will copy the G/L Account from the General tab of the job stage. Set all work codes that are not associated to use the Use Work Code G/L Account option. All other work code settings are optional. The general ledger account must be configured as a Direct Job Cost Account to be used within a timecard if the Job Costing > Options > General > Determine Direct Job Cost Accounts option is toggled ON. Review the Direct Job Cost General Ledger Accounts section for more details on this option. Labor costs are considered as committed payroll costs until the timecard is processed. Review the Committed Costs section for more details on actual committed costs. The user can post a week's payroll to job costing at the end of the first week even if the payroll is processed on a biweekly basis. Review the Payroll > Processing Payroll - Advanced > Posting Expenses section for details. 60

65 Job Costs Sales Invoices Inventory can be expensed or transferred to a job at the same time it is being billed in a sales invoice. This is done whenever an inventory item is listed on a sales invoice along with an inventory item code. This is useful for small jobs with one-time billings rather than progress billings or other contracts. Do not list inventory items within a sales invoice to transfer inventory to a job in the following situations: When inventory items have already been transferred via the Inventory Transfer window. The inventory was expensed directly to a job when purchased from the vendor. Any costs for a progress-billing job with the exception of a Time & Material stage within a contract job. Review the Contract Billings > Billing Time and Material Change Orders within a Contract Billing. Any costs for a contract job with progress-billings. Review the Progress Billings section for details. List inventory items within a sales invoice for a job in the following situations: The Job and Job Stage were not entered into the expense invoice at the time of purchase. The items have not been transferred to a job using the Inventory Transfer window. Committed costs will be created when FIFO inventory items are entered into a sales invoice. Review the Committed Costs section for more on committed costs. Go to Sales > Invoices and S.O.'s and enter a sales invoice as shown below: Enter a sales order as explained in the Main Documentation > Sales > Invoices > Entering a Sales Invoice section with the following exceptions: 61

66 Printed Documentation 1. Enter a Job Id in the sales order. It is not possible to expense or bill sales invoice items to different jobs. An entire sales invoice is posted to a single job's actual billings total. Go to Job Costing > Jobs > Billings Tab to view the Billing Totals. 2. A Job Stage code is required for any detail line that contains an inventory item. It is not necessary to enter a Job Stage for any detail lines that do not contain an inventory id since job billings are not posted into stages. The Job Stage is used only to expense the cost of an inventory item to a job in the same manner as an inventory transfer process. A stage must be classified with a source set as Inventory to be used within a sales order. Review the Getting Started > Classifications section for more details on job cost transactions. A Job Stage can also be entered within the materials list. Review the Sales > Materials List section for more details on materials list. The sales invoice billing amounts and stage costs will not be posted to a job until the invoice is processed. 62

67 Job Costs Job Profit Projections and Percentages The general profit of a job can be monitored by the Projected Profit value found in the Budget tab of a job. The Projected Profit amount is calculated using the following formula: Whichever is greater (budgeted income total OR actual billings) whichever is greater (Total budgeted costs OR actual Costs + Overhead + Committed). Review the Committed Costs section for more on committed and actual costs. The Projected Profit label will change to Profit when the status of the job is set to Completed or Closed. The job status setting is found on the General tab of the job. The Job Profit report is a useful job list to compare the projected profits of a group of jobs. This report is found in the Job Costing > Details section of the main report menu. 63

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69 Job Costs Evaluating Job Costs The goal of a job costing system is to record and evaluate job costs, compare costs to budgets, and calculate job profits. Job costs are recorded within EBMS in detail and are summarized by stages and jobs. The summary totals of each stage within a job are summarized within the stage record. Complete the following steps to view the stage costs: Open a job and click on the Job Stages tab as shown below: The summarized totals of each column are shown for each stage. The totals or columns shown on the list can be determined by the user. Review the Features > Column Appearance section of the main manual for detailed instructions on hiding or showing specific columns on a list. Review the Committed Costs section for more details on committed costs. The folder group on the left side of the Job Stages list can be hidden to allow more totals to be shown on the stage list. Change the View setting on the lower left side of the window to All or Classification. 65

70 Printed Documentation If the user selects the Classification option, a Classification group can be selected. Highlight a specific stage and click on the Stage Properties button to open the stage. Click on the Totals tab to view the stage total summary as shown below. 66

71 Job Costs Right click on any of the summary totals and select Drill Down to view the detailed transactions. Highlight any transaction record and click the Source button to view the creating document. Review the Features > Drill Down section of the main manual for more details on viewing detailed transactions from summary totals. 67

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73 Contract Billings Invoicing Contract Billings This section will explain how to invoice contract jobs that are not billed based on the progress of a job. Review the Invoicing a Progress Billing Job section for details on progress-billing jobs. Review the Time and Material Jobs section if the job is not based on a contract. All invoices will appear on the Billings tab of the job no matter if it is a T&M, a progress-billing or a standard invoice. Retainage percentages should be entered before any billings are entered and processed. Review the Retainage > Changing Retainage in a Job section for details. A sales order or invoice can be created for a contract job in three ways: 1. created directly from a quote, 2. manually created and associated to a job, or 3. created from the billing tab but manually entered. Creating a Sales Order from a Quote 1. Load a job that contains a proposal or budget information by selecting a job from Job Costing > Jobs list. Open the Budget tab of the job as shown below: 2. Highlight the quote or change order and click the View button to open the quote the user wishes to invoice. 69

74 Printed Documentation 3. Click on the Process menu of the proposal. If the proposal has not been applied to a job, click the Apply to Job option and enable the Create Sales Order option. If the proposal has been applied to job (Apply to Job option is disabled) then select Create Sales Order option. Either process will create a sales order from the contents of the proposal. 4. Complete the Create Sales Order wizard options. Review the Processing Proposals > Creating a Sales Order section of the proposal documentation for more details. Manually Entering and Associating a Sales Order A sales order can be entered within the sales order screen using the following steps: 1. Select Sales > Invoices & S.O.s from the main menu. 2. Enter the Customer Id. 3. Enter the Job Id so the sales order is associated with a job. 4. Select View > Advanced Options > Job Costing tab. 5. Turn the Calculate retainage on this invoice option ON if the contract requites retainage to be withheld from this sales invoice. Review the Retainage > Changing Retainage in a Job section for more details on withholding retainage. 6. Enter sales order detail as usual. 7. Save or process the sales order. Creating a Sales Order from the Billing Tab An alternate method of entering a sales order is by opening the job you wish to bill and selecting the Billings tab as show below: 70

75 Contract Billings 1. Click on the New button and the following dialog will appear: 71

76 Printed Documentation 2. Select the Blank Sales Order option. 3. Click the Finish button and a blank sales order will be opened with the proper Customer Id and Job Id entered into the sales order. 4. Enter the sales order information as described in the Sales > Sales Order section. Save or process the sales order and exit the sales order window to return to the job window. 72

77 Contract Billings Billing Time and Material Change Orders within a Contract Billing At times a change order is billed on a T&M (Time and Material) basis when the job is based on a contract amount. A T&M change order requires a different setup and process method than a contract change order. Follow the steps in this section for details on creating and billing a T&M change order. Review the Jobs > Creating Change Orders section for details on creating change orders for contractual jobs. All job expenses that require billing on a T&M basis should be listed in separate stages. Do not mix contract and T&M expenses within the same stage. Go to Job Costing > Jobs > Job Stages tab to setup additional stages within the job for T&M change orders. 1. Create a stage group named T&M change orders. Insert all T&M stages into the folder. The user can arrange the T&M folders and stages to accommodate the job. No budgeted costs or billings will be added to the T&M stages since they are not based on a contract or budget. Quotes will not need to be added to the Budgets tab for T&M changes. 2. Enter costs from the Purchase Order / Expense Invoice window, inventory transfer, or timecard window the same as any job costs are entered. Enter the job code and the T&M stage for each cost as the costs are incurred. 3. Click on the Stage Properties button and set the T&M stage Status to Closed after the change order is complete and all costs have been entered. This will bar any user from adding additional costs to the T&M stage after billing is completed. 73

78 Printed Documentation Complete the following steps to bill costs accumulated in a T&M stage(s). 1. Open the Billings tab of a T&M job and click on the New button; the following wizard will appear: 2. Select the Time and Material Sales Order from Expense Transactions option. Click the Next button. 74

79 Contract Billings 3. Enter a billing date so that all expenses accumulated to date will be billed; click Next. 4. All job-costing expense general ledger accounts will be listed in either list. The list on the left side of the window will display all accounts that will be scanned for expenses; the right window lists all accounts that will be ignored. If the Determine Direct Job Cost Accounts option is turned OFF within the Job Costing > Options > General tab all general ledger expense accounts will be listed in either pane. If 75

80 Printed Documentation the option is turned ON only the general ledger expense accounts that are direct job cost accounts will be listed. Use the Remove and Add buttons to shift general ledger expense codes from one list to the other. Click the switch to the left of the Use price level for inventory items option ON to use a specific price level for all inventory items. Click the option OFF if you wish to either markup all items based on a percentage value or manually set the price on the sales order. Enter the Markup percentage value to be used for all other items such as non-inventory materials. If the Use price level for inventory items switch is OFF all inventory will be priced using the Markup all other items percentage. This markup value will not affect any labor costs. See the next wizard page to process labor. Click the Next button to continue in the wizard: 5. All labor work codes that need to be billed must be displayed on the include list and all the work codes to ignore should appear in the right window. All codes displayed on the include list are also required to contain a Labor Rate. Enter the Labor Rate that a customer is billed for the T&M labor. Click the Next button to continue. 76

81 Contract Billings 6. Select only the T&M stages since all other stages are based on a contract and should not be affected by this billing. Select a folder if all T&M Change Orders are within the same folder. Otherwise select a range of stages by selecting the Range option. The wizard can be activated multiple times for a single sales order if the T&M Stages are not in sequential order and are not in a common folder. Click the Finish button. The following dialog will only appear if an existing sales order exists. Skip the next step if this dialog does not appear. 7. Click the Create a new sales order option to create a sales order for the T&M change order items. Select the Add to Sales Order option and highlight a sales order if you wish to append to an existing T&M sales order. Do not mix the billing of contract items and a T&M change order to minimize confusion. Click Finish to view the sales order. 77

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83 Time and Material Jobs Creating a Time and Material Job A T&M job differs from a contract job since it does not contain budgeted costs or revenue. The customer is billed based on the materials used and the amount of labor required for the job. Entering a T&M job into EBMS is similar to entering a contractual job except the Time and Material option should be selected within the new job wizard. See example below. Create stages within a T&M job in the same manner as a contract job. No quotes or change orders are needed since the job is billed on a T&M basis. Job expenses within a T&M job are entered in the same way as a contract or progress-billing job. Review the Job Costs section for details. Stock inventory should be transferred using the Job Costing > Inventory Transfer window to a job as materials are used. The T&M job code should be entered within all POs and timecards. These expenses can be analyzed for billing purposes while the job is in process or at the time the job is completed. Review next section for details on billing a T&M job. 79

84 Printed Documentation Billing Expenses for a Time and Material Job Open a Time & Material job and click on the Billings tab. Click on the New button to create a new billing. Select the Time and Material Sales Order from Expense Transactions option. Click Next to continue. Enter the date that is to be used to scan transactions. If this T&M billing is for the end of last month, enter the last day of last month in the date field. Click on the Next button to continue. 80

85 Time and Material Jobs All general ledger accounts that are identified as Direct Job Cost Accounts will be listed. Go to General Ledger > Chart of Accounts > Advanced tab to identify the Direct Job Cost Accounts. Note that all accounts will be listed if the Job Costing > Options > Direct Job Cost Account option is turned OFF. 1. Highlight an account within the include list and press the Remove button to move an account to the ignore list. If you wish to move all accounts from the include list click the Remove All button. If you wish to include an account that is listed in the right window and has been ignored, click the Add button. 2. Click the switch to the left of the Use price level for inventory items option ON to use a specific price level for all inventory items. Click the option OFF if you wish to markup ALL items (including inventory items) based on a percentage rate. 3. Enter the Markup percentage rate to be used for all other items such as non-inventory materials. If the Use price level for inventory items switch is OFF all inventory will be priced using the Markup all other items percentage. This markup value will not affect any labor costs. Click on the Next button to continue to the next page: 81

86 Printed Documentation 4. All labor work codes that should be billed to the customer must be displayed in the left window and all the work codes to ignore should appear on the right side. Highlight any work code on the include list and click on the Remove button to move the work code to the ignore list in the right window. Highlight and click the Add button to move a work code from the ignore list back to the left window. 5. All work codes displayed on the include list must also contain a Labor Rate. Enter the unit Labor Rate used to bill a customer. If the labor for this T&M job is billed at the same rate, enter the rate within each work code. Click the Next button to continue. 82

87 Time and Material Jobs 6. Select the All Stages option to invoice all expenses. Select the second option and set the range of stages to scan only the expenses allocated to a limited list of stages. This option is useful to invoice the customer for a specific stage. Click Next or Finish button to continue. The following dialog will only appear if an existing sales order exists. 7. A new billing can be added to either an existing sales order or a new sales-order. To Create a new sales order select the first option; select the second option to Add to sales order and choose the desired sales order to append to an existing order. 83

88 Printed Documentation Click the Finish button to add transactions to a sales order. Note: Inventory items previously purchased or transferred to a job will be listed on the sales order but the inventory codes will not be listed. Items are removed from Inventory at the time they are allocated to a job instead of the time a sales invoice is processed. The inventory history found in the Inventory > Inventory Items > year tabs window will reflect the transfer from inventory to a job. Do not use an inventory item code on an invoice for an item that was previously transferred to a job using the Job Cost > Inventory Transfer window. This would cause the inventory count to be deducted twice, once when it was transferred to a job and again at the time it was sold. Delete the sales order if mistakes were detected. The wizard can be activated again to create another sales order. Exit the sales order window and the following prompt will appear: Click YES to mark the transactions as billed so they will not appear when the wizard creates future billings for a job. This selection should be used if the sales order that was created or appended is correct. Click NO if you wish to run the wizard again and ignore the current sales order. THE TRANSACTIONS THAT WERE CREATED WITHIN THE SALES ORDER WILL NOT BE DELETED by selecting NO. The sales order must be deleted by selecting File > Delete from the sales order menu. If the transactions were appended to an existing sales order, the new sales order lines must be deleted individually. Follow the steps listed within the next section if the transactions were marked billed but the user wishes to rerun the Create Sales Order wizard. 84

89 Time and Material Jobs Undo Time and Material Sales Order Transactions The steps explained within this section are used to void or undo the process that is explained in the previous section, Analyzing and Billing Expenses for a T&M Job. The utility will cause the transactions that were marked as billed to appear again when the Create Sales Order button is selected within the job window. NOTE: THIS UTILITY WILL NOT VOID OR DELETE ANY PART OF THE SALES ORDER that was created using this utility. 1. Go to Job Costing > Utilities > Unmark Expenses Transactions Included in T&M Billings to begin the undo process. 2. Enter the Job that you wish to bill and click the Next button. 85

90 Printed Documentation 3. All the T&M processes for the selected job will be listed, along with the process dates. If multiple processes contain the same date, the transactions for each one of the processes will be marked as not billed. 4. Check the desired process date(s) by clicking on the Select column. Check all dates off to undo all transactions for the selected job. Click Next to process transactions and the following dialog will appear: Click Finish to complete the un-marking of the T&M transactions. 86

91 Progress Billings Entering Billing Items for a Progress Billing Invoice Progress billings are used to invoice the customer in stages rather than a single invoice. Many large contractual jobs or A.I.A. jobs are billed weekly or monthly. This section explains the necessary steps to accomplish this task. A.I.A (American Institute of Architects) contracts are common in the construction industry but are not the only type of progress billings supported by the Job Costing module of EBMS. The Progress-billing tab is used to enter progress-billing items including A.I.A. items. The Progress-billing switch on the General tab of the job screen must be toggled ON to cause the progress-billing tab to appear. Progress-billing items must be entered before any billings can be processed for a job. Additional items such as change orders can be added during the progress of the job. Review the Creating Change Orders within a Progress-Billing Job section for details on entering change orders. 1. Select the Progress-billing tab within a progress-billing job to open the following table: 3. Enter the billing Item and Description for each line of the Progress-billing list. See your job architect or job cost consultant for description details. These lines need to be entered before any billings are processed. 4. Enter a general ledger revenue account within the G/L Account column for each progress-billing line. This general ledger account will be used when a progress-billing invoice is created. Review the Invoicing a Progress-Billing Job section for more details on creating a progress-billing sales invoice. 5. The Scheduled Value amount of each detail line can be entered one of two ways: A. The recommended method of entering the Scheduled Value totals is to associate each quote line with a progress-billing ID line. Go to the Budget tab and highlight a proposal and click the View button. Enter a Progress-billing ID on each quote line that contains a unit price. Proposal lines with a type of Materials List or Both Invoice and Materials List can be ignored. Review the Jobs > Entering a New Proposal or Job Budget section for more details on entering proposals or contracts. When the proposal is saved the Scheduled Value amounts found within the Progress-billing tab will be populated from 87

92 Printed Documentation the prices found on the quote. The Calculate Scheduled Value from Proposal switch must be toggled ON for this option. B. The alternative way of entering Scheduled Value amounts is to manually enter them into the Progress-billing table. The Calculate Scheduled Value from Proposal switch must be toggled OFF to allow manual entry of each Scheduled Value amount. The user should make certain that the total of the Progress-billing matches the Budgeted Billings total found within the Budget tab. 6. The other column values are entered at the time of billing. Review the next section for more details. 88

93 Progress Billings Invoicing a Progress Billing Job A progress-billing job can be billed with subsequent invoices. 1. Go to the Progress-billing tab of a job to invoice the customer or contractor for a specific job and the following window will appear: 2. Enter Progress-BIlling details as explained below: A. Item a unique code for each line of the progress-billing table. This code may be used within different jobs but cannot be duplicated within the same job. B. Description Should describe the progress-billing line. C. G/L Account This account is used in the sales invoice to allocate the revenue within the general ledger. D. Scheduled Value Reflects the total contracted amount for each progress-billing item of the job. This value should not change after the initial billings have been processed. Adding additional change order lines will reflect any changes made to the scheduled value. E. Previous Application Contains the total amount that has been billed. Note: The number of billings is contained on the header part of the window and is labeled Number of Billings. F. Select The progress billing line will show on the invoice if the Select option is enabled. This option will be enabled by the system when a new line is created or if the user enters a value in the This Period, Materials Stored, or % Complete columns. These columns will be cleared if the Select option is disabled by the user. This column may be hidden. See the Features > Column Appearance section of the main manual for details on showing hidden columns. G. This Period Enter the billing amount for the current invoice excluding any unused materials. This Period amount can be calculated by entering a percentage within the % Complete column. Both amount (This Period or % Complete) can be edited and the other column will be changed accordingly. 89

94 Printed Documentation H. Materials Stored Enter the total materials costs that are to be billed but have not been used for the current job. Note that the total will be added to the This Period amount and posted to the Previous Application column at the completion of the billing. The Materials Stored amount should reflect the Total amount of materials stored to date. For example, if the job contained $ 1,000 of materials stored at the time of the last billing and a total of $ 1,500 is being stored currently, $ 1,500 should be entered as materials stored rather than $ 500 (the additional materials this month). I. Total Completed Reflects the total billings, including the current billing. This total can by altered by changing the previous two column amounts or by entering a percentage in the following column. Total Completed = Previous Application + This Period + Materials Stored. J. % Complete This period amount will be changed to reflect the percentage entered within this column. For example, if 50 percent is entered than This Period will reflect the balance to bill this period to total 50 percent of the Scheduled Value amount. This Period = (Scheduled Value * 50%) Previous Application Materials. K. Balance Reflects the balance that needs to be billed after the current billing is completed. Balance = Scheduled Value Total Completed. L. Previous Retainage Reflects the retainage that is withheld from the customer's invoice to date. This total does not include the amount shown in the Retainage column. M. Retainage Total retainage withheld from the progress-billing invoice can not be entered within this column. Review the Retainage section for details on withholding retainage on a customer's invoice. 3. Enter the desired amounts for each line of the billing table. Click on the Bill Now button to process the progress-billing invoice and the following dialog will appear: The process will create a sales invoice for a customer listed within the job. A progress-billing document will be printed instead of the standard sales invoice. The progress-billing document is set within Job Costing > Options > Progress Billing tab. 4. Enter the appropriate billing date and click the Finish button. 90

95 Progress Billings 5. Click the Print button on the print dialog to print the progress-billing document. Go to Job Costing > Options > General tab to change the Progress-billing Report document setting. The Number of Billings value located on the Progress-billing tab will be incriminated each time a billing is completed. 91

96 Printed Documentation Viewing or Voiding a Progress Billing Invoice Progress billings can only be voided in the reverse order in which they were processed. For example, if a total of four billings have been processed to date, the fourth invoice must be voided before the third invoice is voided. Go to the Billings tab of the main job screen to view or void a progress-billing invoice. Highlight the desired invoice and click the View Invoice button to view any invoice on the list. View the most recent invoice to void a progress-billing invoice. Select Process > Unprocess to void and delete the invoice. The Unprocess step will delete the invoice whenever the invoice is a progress-billing invoice and is voided or unprocessed. 92

97 Progress Billings Reprinting a Progress Billing Document Only the most current progress-billing document can be reprinted. All invoices processed since the desired billing must be voided before any previous billing document can be reprinted. To reprint or view the most recent progress billings, go to the Billings tab of the main job screen. Highlight the most recent invoice (the first invoice shown) and click the View button to open the invoice. Select File > Print and select the progress-billing document that is listed on the top of the document option list. NOTE: You can NOT reprint any progress-billing invoices except for the most recent. The print selection of the menu will be disabled for all other invoices. 93

98 Printed Documentation Creating Change Orders within a Progress Billing Tab A change order is a change to the original contract or budget. A job normally has a single job contract or budget but has many change orders. Change orders for a progress-billing job, with exception of Time and Material change orders, will create a new billing line or increment an existing billing line within the Progress Billing tab. (Review the Contract Billings > Billing Time & Material Change Orders Within a Contract Billing section for details on Time & Material change orders within contract jobs). You cannot distribute the value of a change order to multiple progress-billing lines. 1. Go to the Budget tab within the main Jobs window and click on the New button to create a new change order and the following wizard will appear: 2. Select the fourth option Create a new change order; click the Next button to continue. 94

99 Progress Billings 3. Select Yes to apply the change order costs to the progress-billing's scheduled value. The No option should be used only in Time & Material change orders that do not effect the progress-billing amounts. Review the Contract Billings > Billing Time & Material Change Orders Within a Contract Billing section for details. Click Next to continue. 4. Select the Create a new progress-billing line for this change order option to create a new line within the Progress-billing table. A change order should create a new line or be added to another 95

100 Printed Documentation existing progress-billing change order line rather than changing the original quote amounts. The system does not bar the user from posting to an item created from the main quote if this is required in rare occasions. Select the Add the change order to an existing progress-billing line option if you wish to add to an existing progress-billing line that was created by a previous change order. This option will be disabled if the current job does not contain any existing progress billing change orders. Click the Next button to open the next page of the wizard. 5. The New Reference Number value will default to the next available proposal number. 6. Enter a short Description of the change order and the text will copy to the Progress-billing Description field. The Progress-billing Description text will be inserted into the new Progress-billing item. 7. The Progress-billing Item ID will default to the change order (New Reference Number) code and will be copied into the progress-billing form's ID column. This item Id can be changed to any other value that identifies this progress-billing item but is required to be unique within the current job. 8. Enter a Revenue G/L account to be used when billing a change order. This account will be used when the progress-billing invoice is created. See the G/L Account column within the Progress-billing tab of the job. Click the Finish button to open the new change order. Enter the change order information in the same way as any other quote or proposal. Review the Jobs > Entering a New Proposal or Job Budget section or the Proposal documentation for more details on entering budgets and proposals. 96

101 Work In Process Selecting a Work in Process The Work in Process feature of EBMS is used to create monthly general ledger adjustments to compensate for the billing vs. cost relationship differences. For example, if the user incurred $ 70,000 of costs for a job and only billed the customer $ 28,000 of it to the job, the P&L statement would show a loss. The work-in-process procedure creates a monthly adjustment to correct this problem. The work in process adjustment can be calculated in three ways: the Percent Complete Method, Job Complete, or Manufacturing method. The Job Complete and Manufacturing methods create similar transactions. Contact an accountant or an EBMS consultant for advice on the appropriate setting. The work-in-process adjustments will not appear until the process launched by selecting Job Costing > Work-in-process option is completed. Go to Processing Work in Process section for more details on the process. EBMS allows the Work in Process method settings to vary based on job. The most common situation is to configure all the jobs with the same method. Complete the following steps to set the default job within a company: 1. Go to Job Costing > Options and click on the Job Folders tab 2. Highlight the root folder labeled Jobs and click on the Edit Defaults button 3. Click on the Advanced tab 4. Click on the Change Method button and select one of the 3 options: 97

102 Printed Documentation Click OK to change the default Work in Process setting for new jobs. Note that this process will not change existing jobs. The Work in Process setting must be set individually within each existing job. Review the following options to determine the best Work in Process option. Disable work in process Select the Disable work in process option to disable all work in process functions as well as hide the Work in Process selection from the Job Costing menu. Use percentage complete method Select this option if the profits should be distributed throughout the duration of the job. This method will only affect the contract jobs that have billing and cost budget amounts entered into the job. T&M jobs will always be calculated using the Job Complete method because no budget amounts are available. The percent complete method will create general ledger transactions and show a percentage of the profits within each month. For example, if a job is 50% complete and it has a budgeted cost of $100,000 and a budgeted income of $140,000, the P&L (income statement) report should reflect 50% of the profit. $ 28,000 Billings - $ 70,000 Costs = Loss of $ 42,000. Since the ledger may include 70% of the costs ($ 70,000) and only 20% of the billings ($ 28,000), an adjustment must be made for the margin to reflect 50% of the job. The problem in this situation is not a loss in the current job but the user has not invoiced the same percentage of the billings in comparison to the costs that have been incurred. Total Costs = Actual Costs + any Actual Overhead. Review the Job Overhead > The Overhead Stage section for details on setting overhead costs. 50% percent of the profit would equal $ 20,000, requiring a revenue adjustment of $ 62,000. $ 70,000 (50% of billings) - $ 50,000 (50% of costs) = $ 20,000 (50% of profit) The amount of the adjustment will debit the Cost in Excess Billings G/L account and credit the Work in Process G/L account found within the Advanced tab of a job. If the billings were greater than the costs of the job, the adjustment would need to decrease the revenue amount. This process would credit the Billings in excess of cost G/L account and debit the Work in process G/L account. Use job complete method 98

103 Work In Process With this option selected, the system will make an adjustment so the total costs (actual & overhead) equal the total billings. This will cause the profit of a job to equal zero until the job is completed, causing all profits to appear in the month that the job was completed. This method does not require that the job contains budget amounts. If the job costs and overhead costs equal $ 70,000 and the billings equal $ 28,000 the adjustment would equal $ 42,000. $ 28,000 Billings + $ 42,000 Adjustment = $ 70,000 Costs The total reflects the actual cost and overhead total. The percent complete percentage does not affect the equation if the Work in Process Method is set to Job Complete. Use manufacturing method With this option selected, the system will make an adjustment in work in process to off-set costs (actual & overhead) within the income statement. This will cause any costs posted to this job to be off-set by the variance so that job costs do not affect the profits until the job is completed, causing any profit margins to appear in the month that the job was competed. This method does not require that the job contains budget amounts. If the job costs and overhead costs equal $ 70,000 the adjustment would equal the same amount. The work in process procedure will debit the Cost in Excess of Billings G/L account and credit the Work in Process G/L account the amount of the adjustment (costs billings). If the total billing amount is greater than the costs the procedure will credit the Billings in Excess of Cost G/L account and debit the Work in Process G/L account (billings costs). Review the Processing a Work in Process section for transaction details and equations. 99

104 Printed Documentation Processing Work in Process The Work in Process Method setting should be set to the correct method before the Work in Process step is activated. Review the previous section - Choosing the Work in Process Method for details on setting the method option. Note that all work-in-process adjustments including the reversing transactions when a job is completed are created when this process is launched. 1. Select the Job Costing > Work in Process option that is used within job costing. Note that each Work-In- Process (WIP) type must be processed individually if multiple WIP types are used. 2. Select the desired type and the following dialog will open: 3. Set the appropriate monthly period in which the adjustments should be created. It is best to run this utility after all the job expenses have been posted to a particular month and before the month is closed. The adjustments can be posted to a monthly period multiple times if expenses have been allocated to a job after the work-inprocess adjustment was created. The utility will recalculate the work in process adjustment for each monthly period that is open. For example if the period is set for the month of August and the job has been in progress for 6 months, the utility will recalculate the adjustments for any of the past 6 months that are not closed. If the month of May is closed but June is not, the utility will recalculate June, July, and August. Go to General Ledger > Fiscal Year Controls to view the open monthly periods. Only jobs with a job status of In-Process or greater but are not Closed are listed in the Work-In-Process list. A job's status is set in the General tab of the main job window. 4. If the Process Type is set to Job Complete Method then skip this step and move to the next step of the process. The % Complete is the only user-defined value within this window and only appears if the Process Type is set to Percent Complete Method. This value must be populated before the process is completed. The % Complete entry is dependant on the % Complete At column value. a. If the % Complete At column is set as Job Level then complete the following Steps The % Complete value is entered at the job level. Copy the % of Budget amounts into the % Complete column if the computer calculated percentage is accurate. The user can conveniently copy the % of Budget values for all the jobs with a % Complete At setting of Job Level contained within the list by clicking on the Default Adjusted % button. Otherwise a user defined percent complete value into the % Complete column. b. If the % Complete At column is set as Stage Level then some additional steps must be taking to complete the % Complete value. 100

105 Work In Process Click on a job with a % Complete At setting of Stage Level. 5. Click on the Stage % Complete button to open the following window: 6. Copy the % of Budget amounts into the % Complete column if the computer calculated percentage is accurate. The user can conveniently copy the % of Budget values for all stages by clicking on the Default Adjusted % button. Otherwise a user defined percent complete value into the % Complete column. 7. Repeat the previous steps for each job with a % Complete At setting of Stage Level. The % Complete At setting can be changed from job level to stage level or vise versa within the Work In Process tab of the job. Click on the Calculate % Complete from Stage Level option to change settings. 8. The user can highlight any job and click the View Job button to view job details. The Work in Process window includes a number of variables that are used in the process. 9. Click the Process button to create the work-in-process transactions as described below. The Work in Process column labels is listed below with the equations that are used to calculate the adjustments. Variable Explanation: PC Adjusted % Complete The % Complete column is a value that is calculated but is not used in calculating the adjustment value. This column is used to assist the user in manually entering the Adjusted % Complete value. % Complete = (AC + AO) / (BC + BO) BC Budgeted Costs BO Budgeted Overhead AC Actual Costs AO Actual Overhead 101

106 Printed Documentation AB Actual Billings PR Projected Profit Review the Job Costs > Job Profit Projections and Percentages section for details on this value. The following two methods can be set up within Job Costing > Options. Percentage Complete Method: Excess = AB - (AC + AO) PR Job Complete Method: Excess = AB - (AC + AO) If (Excess > 0) else Billing in Excess of Cost = Excess Cost in Excess of Billing = Excess. There will never be a value in both the Billing in Excess or Cost and the Cost in Excess of Billing columns for the same job. Time and material jobs and stages will calculate the same results in both equations since the PR value will be zero. This will allow a mixture of T&M stages within a contract job. Any T&M stages within a contract job will be calculated using the Job Complete method since no budget amounts are entered for T&M stages. The following general ledger adjustment transactions will be created in the process. Adjustment #1 = Billing in Excess of Cost - Last billing in excess of cost. Adjustment #2 = Cost in Excess of Billing - Last cost in excess of billing. Click the Process button to create general ledger adjustments for the current month and post them to the job. Adjustments may be created for prior open months if additional expenses or billings have been processed since the last instance that this utility created work-in-process adjustments. 102

107 Work In Process Viewing a Job's Work in Process Adjustments The monthly work in process adjustments can be found within the Work in Process tab of a job. The Cost in excess of billings and the Billing in excess of cost amounts are the work in process balances as of the Last process date. The monthly Cost in excess of billing and Billing in excess of cost adjustments are listed for each monthly process. The total of each monthly adjustment will equal the Cost in excess of billing and Billing in excess cost amounts listed on the lower part of the window. Additional information such as the % Complete and Adjusted % Complete values will be visible if the Work in process method within the Advanced tab is set to Percent Complete. The % Complete value will reflect the adjusted % complete value as of the Last process date. If the Auto switch is turned ON the Adjusted % Complete will be calculated from the stage's Adjusted Percent Complete found within the Totals tab of each stage. If the Auto switch is OFF the adjusted percentage can be edited within this window. This value is copied from the Job Costing > Work in Process window when work in process is calculated. All work in process adjustments are created by opening the Job Costing > Work in Process list. 103

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109 Job Overhead Adding a Percentage Overhead Overhead costs such as administrative costs, labor overhead, miscellaneous supplies, or other costs should be considered in a job costing system to report accurate cost comparisons. The most common method of allocating overhead costs is to add a percentage to the actual direct costs. For example, a company may add a 30% overhead cost to the gross payroll to cover payroll overhead such as company taxes, benefit pay, and insurances. The payroll overhead percentage allocates costs that are not directly posted to a job. Material cost stages may add a percentage to cover company administrative costs. An additional method of allocating overhead is to budget a specific dollar amount for administrative costs, miscellaneous supplies, or other indirect costs. Review the The Overhead Stage section for details using the fixed dollar method. Complete the following section to apply a percentage overhead to a stage. Open a stage from a job and click on the Totals tab as shown below: The Profit Center entry may not appear if Profit Center options are not enabled. Review the Using Profit Centers to Calculate Job Costs for more details regarding profit centers. Enter a Percent of Cost value. The Budgeted Overhead value should be blank unless the Add Overhead to Budget switch is ON within the stage's classification. Review the Getting Started > Classifications section for instructions on setting the Add overhead to Budget switch. 105

110 Printed Documentation The Actual Overhead value is calculated by multiplying the Percent of Cost by the Actual costs found in the Totals tab. Complete the following steps to change the Percent of Cost within multiple stages in the same job. 1. Right click on the Percent of Cost entry and select Filter Down from the context menu to open the following dialog: 2. Set the Stage option. a. Select the All stages with the same classification option to copy the Percent of Cost value to stages within the job that contain the same classification. b. Select the All stages option to copy the Percent of Cost value to all stages within the current job. The other options are disabled since the dialog was opened within an existing job. Review the Globally Change Overhead Percentages section to change the Percent of Cost value within multiple jobs. 3. Click on the OK button to complete the changes. Repeat the steps for each stage within a job. 106

111 Job Overhead Globally Change Overhead Percentages The overhead percentage is set within each stage of the job. The most common method when allocating overhead is based on the classification of the stage. The EBMS Job Costing system gives the user 2 different options to globally change overhead percentages. A. Calculate Overhead utility This utility allows the user to set the overhead percentage for jobs based on the classification of the stages. Review the Calculate Overhead Utility section for details about calculating overhead using this utility. B. Filter Down from Edit Defaults dialog Complete the following steps: 1. Go to Job Costing > Options and click on the Job Folders tab. 2. Select the root Jobs folder to edit the overhead percentage for all jobs or select a specific job folder group. 107

112 Printed Documentation Calculate Overhead Utility The Calculate Overhead utility is used to globally change the overhead percentage. Review the Adding a Percentage Overhead section to change the overhead percentage for a specific job. Select the Calculate Overhead option from the main Job Costing menu to open the following option: 1. Select the jobs that are to be affected by the overhead calculation process. a. Select the job folder group. Select the Jobs root folder and turn the Include Subfolders option ON to select all jobs. b. Select one of the job status options: i. All Jobs with Exception of Closed Jobs option will select all open jobs. Note that this selection includes jobs that are marked completed by not closed and tentative jobs. ii. iii. Click on the Jobs with This Status drop down to select jobs with a specific status. Select the Set Folder Defaults option to set the overhead percentage within the default stages. This option does not affect any existing jobs. Review the Setting Job Defaults section for details regarding job defaults. The user will need to run this utility twice to set overhead percentage within both existing jobs and the job defaults. Review the Jobs > Changing the Job Status for details on the job status options. 108

113 Job Overhead c. Enter a Range of job IDs. Enter an identical job ID in both range fields to change all the stages within a specific job. 2. Click Next to open the next page of the utility as shown below: 3. Select the first option - Manually assign percentages according to job stage classifications to set the overhead based on the stage classification. This is the most common method used to allocate job overhead costs. The 2 nd option will be disabled if the following 2 options are not enabled: The Use Profit Centers option within General Ledger > Options The Determine direct job cost accounts within Job Costing > Options Review the Using Profit Centers to Calculate Job Costs for more details on this utility. 4. Click the Next button to continue to the next page. 109

114 Printed Documentation 5. Enter the overhead percentage for each classification. This percentage may include administrative costs as other costs as listed below: a. The overhead percentage for a labor stage should include any indirect costs such as taxes, benefit pay, or insurances. b. The materials stages may include miscellaneous materials that are not directly expensed from the expense invoice or inventory transfers. c. The overhead percentage for subcontractor, rental, and other similar stages would be used primarily for administrative overhead costs. d. An overhead stage may include additional administrative overhead if the overhead stage is used to record the cost of miscellaneous material or other indirect costs. The example above does not add any additional overhead percentage to the overhead stage since the budgeted costs normally include any overhead. Review the The Overhead Stage section for more details on using a stage classified as overhead. 6. Enter a Range of stages to limit the overhead percentage utility to one or more stages. 7. Click on the Finish button to update all stages. Note that the actual overhead costs are calculated from the percentage within the Totals tab of a stage. This utility can be used to change the overhead percentage anytime during the progress of a job. The actual overhead costs will be recalculated whenever the percentage value is changed. Review the Adding a Percentage Overhead section to manually change the percentage within a single stage or job. 110

115 Job Overhead Using Profit Centers to Calculate Job Costs Profit center options within job costing are used primarily to determine overhead costs within a job. The profit center options within the job costing module is only available if the Use Profit Center option is turned ON within General Ledger > Options as shown below: The overhead percentage value is populated within each stage based on the profit center setting within the stage as shown below. Open any stage within a job and click on the Totals tab. 111

116 Printed Documentation The Profit Center option must be set within the Totals tab of a stage. Profit Center option within a stage will show only if the Use Profit Center option is ON within General Ledger > Options. Clear the Profit Center setting for stages that should not have an overhead percentage applied. Right click on the Profit Center field and select the Filter Down option as shown below: 112

117 Job Overhead This utility will populate the Profit Center setting within multiple stages or jobs. Many of the options are disabled in the example shown above since the utility was launched within an actual job stage. Complete the following steps to filter down a Profit Center setting within multiple jobs and stages: 1. Go to Job Costing > Options and click on the Job Folders tab. 2. Select a job folder and click on the Edit Defaults button. 3. Click on the Job Stages tab and open a stage. 4. Click on the Totals tab within a stage. 5. Set the Profit Center setting to the profit center ID you wish to filter down to other jobs and stages. 6. Right click on the Profit Center entry and select Filter Down. 7. The same utility as shown above will open with more options. The user must enable the Check this box to change option to change the overhead percentage within any existing jobs. Repeat these steps to globally change any other profit center settings. Launch the Job Costing > Calculate Overhead utility to set overhead percentage within the stages of a job. 113

118 Printed Documentation 1. Select the jobs that are to be affected by the overhead calculation process. a. Select the job folder group. Select the Jobs root folder and turn the Include Subfolders option ON to select all jobs. b. Select one of the job status options: i. All Jobs with Exception of Closed Jobs option will select all open jobs. Note that this selection includes jobs that are marked completed by not closed and tentative jobs. ii. iii. Click on the Jobs with This Status drop down to select jobs with a specific status. Select the Set Folder Defaults option to set the overhead percentage within the default stages. This option does not affect any existing jobs. Review the Getting Started > Setting Job Defaults section for details regarding job defaults. The user will need to run this utility twice to set overhead percentage within both existing jobs and the job defaults. Review the Changing the Job Status for details on the job status options. a. Enter a Range of job IDs. Enter an identical job ID in both range fields to change all the stages within a specific job. Click Next to open the next page of the utility as shown below: 114

119 Job Overhead Select the Calculate percentage from profit center option to complete the following calculations within the Totals tab of each stage within the specified job criteria: Percent of Cost value = indirect costs for the Profit Center / direct costs for the Profit Center. o o The indirect costs equals the total of all general ledger expense accounts that are identified as indirect job cost accounts for a specified period of time. Review the Job Costs > Direct Job Cost General Ledger Accounts section for instructions on the direct job cost account setting. The direct costs equals the total of all general ledger expense accounts that are identified as Direct job cost accounts for a specified period of time. The Direct Job cost account setting can be found in the Advanced tab of an expense general ledger account. o The ratio is derived from the peroid of time set within Job Costing > Options. Set the Average overhead period setting in months. This setting should be a substantial period of time that reflects the overhead ratio for the profit center. 115

120 Printed Documentation The overhead percentage calculated from the ratio described above is copied into the Percent of Cost based on the Profit Center setting. View the Totals tab of any stage within a job that was processed within the parameters indicated on the first page of the utility. 116

121 Job Overhead Review the Adding a Percentage Overhead section to se the Percent of Cost value based on a fixed percentage. 117

122 Printed Documentation The Overhead Stage An overhead stage is a stage classification that allows the user to enter a fixed cost in the budget of the stage. Unlike all other stage classifications, the overhead stage does not calculate actual costs from transactions. The actual cost calculation of an overhead stage is calculated from the budget amount. The actual cost (calculated from budget) of the overhead stage shows in the Actual Cost columns and summary fields in lists and reports rather than the Overhead column. The overhead stage is useful in the following situations: Additional miscellaneous supply costs are to be added to the job cost. These costs are not direct job costs from invoices but consist of a fixed amount entered by the user. The administrative overhead costs are added to the job cost based on a fixed dollar amount rather than a percentage. Review the Adding a Percentage Overhead section for details on percentage overhead costs. The user adds a fixed amount to the budget for administrative or other overhead costs. Some rules to consider when using the overhead stage: The overhead stage can not be used to post transactions from any expense entry window such as an expense invoice, timecard, or inventory transfer window. The overhead stage must contain a budget amount. Otherwise the stage has no affect on job cost reporting. The user can add multiple stages classified as overhead for different groups of miscellaneous or overhead costs. The actual cost within an overhead stage is calculated each time costs are posted to a given job. The actual cost = budget amount * the percentage of the job that is completed. Percentage complete = ratio between the total actual costs of the entire job / budgeted costs of the entire job. The overhead stage's actual costs will show in the Actual Cost columns within each screen and report rather than the Overhead column. Complete the following steps to create an overhead stage: 1. An overhead classification must be configured before an overhead stage can be created. Review the Getting Started > Classifications section for detailed instructions on creating an overhead classification. 2. Create an overhead stage within the master stage list. Review the Getting Started > Stages section for detailed instructions on how to create a new stage. 3. Insert the new stage within a job. Review the Jobs > Entering Job Stages section for details. Do not confuse the stage classified as Overhead with the overhead totals and columns listed on job costing reports. The overhead stage will list the actual costs in a similar manner as actual cost transaction within any stage. The overhead column shown on reports and list is the overhead calculated from the Percent of Cost calculation within the Totals tab of a stage. 118

123 Retainage Entering Customer Retainage Customer retainage is defined as monies the general contractor or architect withholds from the subcontractor until the project is completed or a warranty period has expired. A customer's contractual retainage agreement is set and changed within the job screen. Go to the Job Costing > Jobs > Billings tab to view the following window: The Retainage percentage and totals are displayed on the lower side of the Billings tab. The Work retainage total and percentage records the total retainage withheld from customer billings. The Materials Stored retainage is only visible if the Progress-billing option on the General tab of the job is turned ON. For more details on the Materials Stored Retainage see the Job Costing > Progress Billing > Invoicing a Progress-billing Job section for more details. The retainage percentage(s) may be entered until there are sales orders or invoices entered for the job. The retainage percentage is the same rate for all invoices within a specific job with the exception of specific invoices that may not have retainage withheld. A manually entered sales order (not progress-billed) or a T&M sales order can be exempt from retainage withholding. Viewing or Changing Retainage within a Sales Order Complete the following steps to view or change the retainage option setting within a sales order. The retainage option is set when the sales order is created and cannot be changed after the sales order is processed. 1. Open a sales order or invoice by highlighting an invoice on the billing tab and clicking the View button. 2. Open the advanced options window by selecting View > Advanced Options from the invoice menu. 3. Click on the Job Costing tab to open the following window: 119

124 Printed Documentation If the Calculate Retainage on this Invoice option is turned ON retainage will be withheld from the invoice. This option will be disabled if the sales order has been processed into an invoice. The Retainage amounts cannot be changed within this dialog but will be recalculated based on the Calculate Retainage on this Invoice option when the sales order is saved. An invoice with retainage generates the following G/L transactions: Debit Accounts Receivable GL asset account = Total of Invoice Retainage Amount Customer Retainage Asset Account = Retainage Amount Credit Detail Line G/L account = Amount of each Detail Line Tax, Freight, Discount, and Finance Charge The retainage amount is posted to the Customer Retainage G/L account set within the Advanced tab of the job. The Work Retainage withheld from each invoice can be viewed from the invoice list on the Billings tab of the job. Review the next section to change the retainage percentage for the job, which affects the Work Retainage and Materials Stored Retainage (for progress-billing jobs) amounts for each invoice. 120

125 Retainage Changing Retainage in a Job Open a job and click on the Billings tab: The Work Retainage and Materials Stored Retainage percentages cannot be changed directly after a sales order or invoice is entered but must be changed by clicking on either the Change Work Retainage or the Change Materials Retainage button. 121