Job Costing Frequently Asked Questions

Transcription

1 JOB COST FAQ Page 0

2 Job Costing Frequently Asked Questions This document is designed to provide you with a quick method of looking up the answers to frequently asked questions about Jonas Job Costing and its methods for accomplishing certain tasks. Page 1

3 Job Costing FAQ s Table of Contents Job Costing Frequently Asked Questions... 1 Job Cost: Kinds of Costs & Revenues Reported... 3 Job Cost: Other Data Recorded... 4 Job Cost Change Order Mngt: Change Order Number Assignment... 4 Job Cost Change Order Mngt: Coding Changes Differently... 5 Job Cost Change Order Mngt: Internal Change Order... 5 Job Cost Change Order Mngt: Owner Approved Changes... 6 Job Cost Change Order Mngt: Separate Costing... 6 Job Cost Estimates and Forecasts: Different Methods for Each Job... 7 Job Cost Estimates and Forecasts: Entering Estimates... 7 Job Cost Profile and Setup: Forecasted Final less than Cost Total to Date... 8 Job Cost Profile and Setup: Prevent Postings to Cost Items... 8 Job Cost Progress Billing: Amount to Date or Percent to Date... 9 Job Cost Progress Billing: Release Retainage AIA Form... 9 Job Cost Progress Billing: Reverse a Progress Billing Job Cost Progress Billing: Showing all C/O s without increasing Contract Amount Job Cost Time & Material Billing: T&M Profile Job Cost Time & Material Billing: T&M Billing and Manual T&M Billing Job Cost Report Generator: Summarize Cost Items by Category Job Cost Report Generator: One Project Manager s Jobs Page 2

4 Job Cost: Kinds of Costs & Revenues Reported What kinds of costs and revenues is the Jonas Job Costing system capable of recording and reporting? The Jonas Job Costing system records and reports the following kinds of costs and revenues: Estimated (Budgeted) Cost and Revenue Actual Cost and Revenue Committed Cost Forecasted Cost and Revenue Estimated Costs and Revenues include both the original estimate and the revised estimate. The revision to estimate is automatically updated by approved change orders. Actual Costs and Revenues may be recorded by processing transactions through the following fully integrated modules within Jonas: Accounts Payable system (to record materials and supplies) Accounts Receivable system (to record billings) Subcontract system (to record subcontract costs) Equipment system (to record equipment costs) Inventory system (to record parts and inventory charged) Payroll system (to record labor costs to the job) General Ledger system and the posting of journal entries (to record other charges and accruals) Committed Costs are recorded automatically on the setup of subcontracts, approved change orders or purchase orders. The system tracks total commitments as well as remaining commitments. Forecasting Costs can be calculated, recorded and reported in several different ways: Estimate to complete method (two available methods) Forecasted at completion method Percentage completion method Page 3

5 Job Cost: Other Data Recorded Besides costs and revenues, what other data is recorded and tracked within the Jonas Job Costing system? Besides costs and revenues, the Job Cost system allows the recording of quantities or units of production, labor and equipment hours and extensive descriptive job information such as name, address, customer etc. Job Cost Change Order Mngt: Change Order Number Assignment In the fast entry of Change Orders, how are the Change Order numbers assigned? Change Order numbers must be unique. In fast entry, pressing F9 in the Change Order number field automatically assigns a unique Change Order number. If no Change Orders exist, the number defaults to C If any Change Orders were previously on file, the largest Change Order number (increased by one) is assigned. Page 4

6 Job Cost Change Order Mngt: Coding Changes Differently For approved changes, can the revised estimate and commitment be coded to a different job cost item code than the code used to record the original subcontract? Yes. The Jonas change order management system allows you to choose whether you want to code the revised estimate and the commitment, for an approved change, to the same or different job cost item code as that used to record the related subcontract. When setting up subcontract changes, the Jonas system automatically defaults to the coding used to setup the related subcontract. However, you may override this item code. Job Cost Change Order Mngt: Internal Change Order How do I do an INTERNAL C/O only? There are often circumstances where you might have to authorize a Subcontractor to do an alteration that is not Billable. What you then want to do is to use the regular Change Order Management system to issue the Change Order, but not create an owner Change Order, nor alter the Progress Billing. To do this: Create a new Job request. When entering the reference, indicate INTERNAL. Indicate the Subcontract work required, with the appropriate amount. Go to the Quote window. You will see that the computer will take the total Subcontract quote, and indicate a negative fee, so the total owner quote is Approve the Request and create a Change Order. Make up an owner Change Order number (as no Change Order will be created). The computer will then just create the Subcontract Change Order, and print a Subcontract authorization. Page 5

7 Job Cost Change Order Mngt: Owner Approved Changes How are owner approved changes billed to the owner? If you are using the Jonas progress billing module, then approved changes are automatically included on the progress-billing certificate and related job invoices. Approved changes will appear on the related job progress billing on a sequentially numbered line, either starting at line '9000' of the progress billing or on a line number equivalent to the change order number that you designate during approval of the change order. The choice between using the '9000' series or the designated change order number is determined by your option selection on the change order management profile screen. Job Cost Change Order Mngt: Separate Costing How do I separately cost a Change Order? Usually, companies do not separately cost change orders because it is often difficult to track change order costs in the field. For example: Change Order # 7 for an additional 3 feet of retaining wall on the original contract of 350 feet. Most times, the site superintendent will not know how (or couldn't be bothered) to split out the additional time and materials used for the additional 3 feet of retaining wall to the special change order. Those companies who do wish to cost each change order, setup a range of cost items ie to be utilized. Then, for each change order they set up a new cost item to charge revenue and costs. Page 6

8 Job Cost Estimates and Forecasts: Different Methods for Each Job For different jobs, can I use different methods to forecast final costs / revenue? Yes. The default method for forecasting final cost / revenue is identified when setting up cost types (or resource codes) in Jonas job costing. This default selection can be overridden on a job-byjob, cost type-by-cost type basis within the G/L Integration for each job setup. For any job, after integrating a cost type to a general ledger account and department code, select the Method field and type desired forecasting method (i.e. enter E, C, F or P to select the desired forecasting method to override the default method selected when setting up cost types). Job Cost Estimates and Forecasts: Entering Estimates How do you enter the original bid estimate into the Jonas Job Costing system? You may enter the original bid estimate manually using the comprehensive or fast entry methods (setup / print original estimate). Alternatively, you may upload your estimate from Excel, Lotus, Timberline or ISS. (See Upload From Estimating System under Job Costing within Jonas Notes for a complete description). Page 7

9 Job Cost Profile and Setup: Forecasted Final less than Cost Total to Date How can I make Forecasted Final Costs less than the Cost Total to Date? Choose Allow Estimated Final -> Cost to-date in the Costing System Profile, Options -> User. Job Cost Profile and Setup: Prevent Postings to Cost Items How do I prevent postings to Cost Items that do not have an estimate setup? In the costing system profile, select Estimate under Data Entry Control. Page 8

10 Job Cost Progress Billing: Amount to Date or Percent to Date Which method allows you to post either Amount to Date or Percent to Date? When using the Enter Progress to Date program, choose Amt. $$ to date, then you can enter the amount and press enter, or enter the percentage and press F9. Job Cost Progress Billing: Release Retainage AIA Form How do I release retainage when using the AIA form? Simply reduce the retainage amount on each billing line item to the new retainage percentage. The previous retainage amount in excess of the new percentage will be released. Page 9

11 Job Cost Progress Billing: Reverse a Progress Billing How do you reverse a progress billing that has already been updated? This is accomplished by entering negative values in the Enter New Progress to Date screen. Make sure you know what the values in the progress-to-date column should be before you proceed. Use the previous month s progress billing application as your starting point. Proceed to take the difference between last month s progress values (per line) and the current month s progress values per line and enter that dollar figure as a negative value. For example, if last month s progress for line 1 was $8,000 and now it reads $10,000 then you must enter minus $2,000 for line 1 when you enter new progress to date in order to get back to last month s value. Once all the negative values have been entered then proceed to merge the invoice to Accounts Receivable to create a Credit Note then update Totals. You are now ready to create the progress billing. Page 10

12 Job Cost Progress Billing: Showing all C/O s without increasing Contract Amount How do you show all Change Orders on the Progress Billing Application without increasing the Contract Amount? The easiest way to show all Change Orders without increasing the Contract Amount would be to create a Contract Addition line with a negative value. Label the line Change Order Balancing Line and give it a line number that will appear at the bottom of the Progress Billing Application. This line will contain negative values that will maintain the Contract Value at its original price. This is often used when the Original Contract Price contains a Contingency Allowance Change Order value. For example, if the Contingency Allowance is $500,000 and the total Change Orders approved to date is $100,000 then enter minus $100,000 on your Change Order Balancing Line in order to keep the Contract Value unchanged. Job Cost Time & Material Billing: T&M Profile Are you required to define all four Billing Groups found within the System Profile/Terminology screen of the Time & Material Billing Application? No. Each Billing Group identifies one set of labor, equipment, material, and subcontract markup tables. Normally, most jobs will only have one set of labor, equipment and material markup tables applicable to the entire project. Therefore, you would only be required to define one billing rate group. However, some projects utilize different labor, equipment and material / subcontract rate tables for different activities within the project. If this situation occurs, you may define up to four different billing rate groups within the System Profile / Terminology screen. Page 11

13 Job Cost Time & Material Billing: T&M Billing and Manual T&M Billing There are two T & M menu items. What is the major difference between the T & M Billing Application and the Manual T & M Billing? The T & M Billing Application menu item is fully integrated to other Jonas modules. It primarily bills actual labor hours, equipment hours, material and subcontract costs which have been processed through job cost. It does, however, have the ability to manually add labor hours and costs, equipment hours and costs, and materials that have not been processed through job cost. This T & M Billing module utilizes occupation codes that have been predefined in the Payroll system and equipment unit numbers that have been pre-defined in the Equipment Management system. The Manual T & M Billing module is not integrated to other modules within Jonas. It is not connected to the costs processed within jobs. The user can bill any labor, equipment, material or other costs that are pre-defined in the rate tables within this module. Job Cost Report Generator: Summarize Cost Items by Category How can I design a report that will summarize my cost items by a specified category? Use the Group with Cost Item feature when setting up cost items and designing your cost report. Page 12

14 Job Cost Report Generator: One Project Manager s Jobs How can I get a report that shows all the jobs for one project manager? Setup your project manager as a job sort category in the Job Cost Profile. Ask your report to either sort by project manager or condition your report to provide a selected project manager. Page 13

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