Job Costing provides the
ability to track all related costs and revenues associated
with an unlimited number of jobs within your organization.
Each project or "job" can be tracked at various levels of
detail, depending on the job. Valid job levels include:
- Job (up to 32 characters)
- Sub Job (up to 32 characters, optional)
- Phase (up to 32 characters, optional)
- Task (up to 32 characters, optional)
- Cost Code (up to 32 characters)
- Cost Type (up to 32 characters)
The job id is mandatory and represents
the highest level of detail where costs and revenue can be
recorded. The Sub Job, Phase, and Task levels are optional,
and represent optional increasing levels of detail. Cost
Codes are categories of costs common to all jobs that make
cross-job comparisons meaningful. Cost Types explain the
type of cost. Examples of Cost Types include: Labor, Material,
Overhead, Sub Contracting, and Equipment Rental.
Not only are actual and committed costs
tracked at the various levels for each job, but also budgeted
costs and budgeted revenues are tracked at separate levels
within a job. A project manager may budget costs at the Task
level and budget revenue at the Job level. The total costs
incurred, total committed costs, and total hours incurred
are tracked at the lowest level of detail and rolled up to
all higher levels for reporting.
Essentially, Job Costing is a repository
of information that is fed via the other integrated financial
and operations modules. General Ledger, Accounts Receivable,
Accounts Payable, Purchase Order, Inventory, Time & Billing
and Payroll, all play important rolls in capturing complete
job costing and revenue information.
Journal entries can be posted with valid
jobs assigned at each line item. When creating customer and
vendor invoices, an unlimited number of valid jobs can be
assigned to each line item of the transaction. The creation
of purchase orders updates the committed costs of a job,
while the vouching of vendor invoices move the costs from
committed costs to actual costs. Issuing of inventory also
increases the actual costs of a job. The planned issuance
of inventory creates a demand that is shown in the ATS Dashboard
within the inventory module. When utilizing the Time & Billing
module, an employee's cost of service can be recorded for
the job(s) the employee worked on, while Payroll provides
actual costs to a job such as salary or hourly rates, and
other indirect costs such as the employer's share of taxes
and other employer paid deductions. The work in process (WIP)
account can be set up to default based on the Company, Cost
Code, or Job. WIP accounts are tracked and updated on a transaction
by transaction basis.
Revenue is recognized based on the Percentage
of Completion or Completed Contract method. Each transaction
that updates the costs of a job or any change in a budget
amount will trigger the system to automatically recalculate
the percentage of completion for you (including the recognizing
of revenue) on a transaction by transaction basis. The "on-line
transaction processing" and "real time processing" capabilities
of Carillon allows for up-to-the-second cost and revenue
information. |
