Integrating Job Cost with Other Modules

The Job Cost module can operate on a stand-alone basis, or other modules can be integrated with Job Cost to take full advantage of the information stored in the system. When integrated, each accounting module shares common information with any related modules. Sharing eliminates any double entry of information already stored within the system.

The following modules can be integrated with the Job Cost module:

General Ledger

The General Ledger module is the key to integrating all financial information from the Job Cost module, and from the other accounting modules. The General Ledger module provides complete, timely financial reports that consistently reflect current information.

When the Work-in-Process accounting method is used in the Job Cost module, financial reports can be produced on demand that reflect the current work-in-process figures and accurate revenue and profit information.

All journal entries generated from the Job Cost module are posted directly to the general ledger following the printing and updating of the Daily Transaction Register. The financial statements and other General Ledger reports printed after the completion of the Daily Transaction Register reflect postings on the register.

Accounts Payable

If the Accounts Payable module is installed, all job-related costs are posted directly to multiple jobs as invoices are entered. Retention amounts and invoice payments are also tracked for subcontractor vendors.

Note Job Cost postings are made during the update of the Daily Transaction Register.

Job cost distribution information entered for invoices in Accounts Payable Invoice Data Entry and Manual Check and Payment Entry can be posted to multiple jobs and cost code and/or cost type entries. A comment can be entered for each distribution entry, along with unit, cost, and retention amounts.

Retention amounts can be calculated automatically for subcontractor vendors. Retention is calculated separately for each job distribution for an invoice. Retention amounts are posted to a separate retention payable general ledger account, and the Accounts Payable Aged Invoice Report, Trial Balance Report, Cash Requirements Report, and Open Invoice by Job Report list the retention balance, which is included in the invoice balance.

Partial invoice payments can be applied to specific job cost distribution entries, allowing you to pay a portion of an invoice related to a specific job. You can also automatically select payment for invoices costed to a specific job and specify whether to pay off retention balances.

Accounts Payable Postings Example 1

The following illustration shows a typical general ledger posting for a $1000.00 invoice with 15 percent retention.

	G/L Account	Debit	Credit
Material Cost Distrib.	WIP - Material	750.00
Subcontract Distrib.	WIP - Subcontract	250.00
Net Invoice Amount	Accounts Payable		850.00
Retention Amount	Retention Payable	_______	150.00
		1000.00	1000.00

When the same invoice is paid in full, including the retention balance, the following posting is made.

	G/L Account	Debit	Credit
Net Invoice Balance	Accounts Payable	850.00
Retention Balance	Retention Payable	150.00
Cash Amount	Cash	_______	1000.00
		1000.00	1000.00

For more information, see Account Maintenance.

Accounts Payable Postings Example 2

For an invoice amount of $100.00, of which $20.00 is retention, the following adjustments are made to the invoice and retention balance as payments are made.

	Invoice Balance	A/P Balance	Retention
Original Invoice	100.00	80.00	20.00
$50.00 payment	50.00	30.00	20.00
$40.00 payment	10.00	0.00	10.00
$10.00 payment	0.00	0.00	0.00

For more information, see Account Maintenance.

Accounts Receivable

When the Accounts Receivable module is integrated with Job Cost, the Job Billing function can be used. The Job Billing options post fixed contract and time and material invoices directly to the Accounts Receivable files. You can also use Accounts Receivable Repetitive Invoice Entry and Invoice Data Entry to record job-related invoices.

Note Invoices originating from the Accounts Receivable module do not relieve the work in process for the job and do not generate general ledger work-in-process postings.

Retention amounts can be calculated and tracked for each invoice. Invoice payments entered in Accounts Receivable Cash Receipts Entry are recorded in the Job Billing History file.

The retention balance, which includes the invoice balance, is listed on the Accounts Receivable Aged Invoice Report, Cash Expectation Report, and Trial Balance Report. In addition, the job number prints for each invoice on the Aged Invoice Report and Cash Expectation Report.

Accounts Receivable Postings Example

The following illustration shows a typical general ledger posting for a $1000.00 invoice with $200.00 retention that is fully paid.

	G/L Account	Debit	Credit
Cash Amount	Cash	1000.00
Net Invoice Balance	Accounts Receivable		800.00
Retention Balance	Retention Receivable	______	200.00
		1000.00	1000.00

For more information, see Account Maintenance.

Payroll

When the Payroll module is integrated with Job Cost, you can directly post all job-related labor costs to the Job Cost files as you process your normal payroll. Each employee can be costed to multiple jobs and cost code entries.

Burden can be calculated on all labor costs based on a standard rate per hour or percentage of wages. A separate burden rate can be assigned to each job type. You can also assign a burden rate for each labor code. Labor codes can be entered in Payroll Data Entry to specify the burden rate to use.

The employee number, wage information, and hours are posted in detail to the Job Cost files to provide a complete audit trail.

Inventory Management

When the Inventory Management module is integrated with Job Cost, all direct costs associated with materials allocated to a job can be posted directly for any sales or issue transactions entered in Inventory Management Transaction Entry. Inventory Management allows you to maintain stock records for materials stored at multiple sites, including job sites. As materials are actually used for a job, the inventory is relieved and the associated cost is applied to the job.

Purchase Order

If the Purchase Order module is integrated with Job Cost, job number and cost code information can be entered. Purchase Order Receipt of Goods Entry, Receipt of Invoice Entry, Return of Goods Entry, and Material Requisition Issue Entry post the costs associated with materials allocated to jobs directly to the Job Cost files.

The Purchase Order Open Purchase Order Report and the Open Orders by Job Report can be printed to analyze outstanding purchase order commitments for each job. The Purchase Order Receipt History Report can be printed for a job to help audit material costs for a specific job.

Sales Order

If the Job Cost module is integrated with Sales Order, you can track inventory costs and sales order invoice billings using Job Cost. Job cost information can be entered in Sales Order Entry and Sales Order Invoice Data Entry, and printed on sales orders, invoices, and sales journals. During the update, costs are updated to the Job Cost file and Transaction Detail file.

Before selecting the Post Invoice Costs to Job Cost check box in Sales Order Options, verify that costs are not also being posted to the Job Cost module from the Purchase Order or Accounts Payable modules. If the Post Invoice Costs to Job Cost check box is selected and the Job Cost module is integrated with the Purchase Order or Accounts Payable module, costs can potentially be double-posted to the Job Cost module. If the Post Invoice Costs to Job Cost check box is cleared and the Job Cost module is not integrated with the Purchase Order or Accounts Payable modules, costs are not posted to the Job Cost module from any of these modules. For more information, see Update FAQs.

Additionally, billing information processed in Job Billing Data Entry can be posted to the Accounts Receivable module.