The Job Setup Processing setup consists of three setup forms:
- The Setup Processing form is used to select default G/L Accounts that will be used when creating Installation Company records. This table also contains a control for locking a sales month. Setting up these preferences is an essential part of the setup process in order for the Job Management module to track Job Costing. This setup form determines how your Job Costing will be setup.
- The Custom Job Costing Buckets (optional).
- The Define Initial View form.
The four costing areas on the Setup Processing form are Materials/Parts, Labor, Overhead and Commissions. You may either expense at the time of data entry or use work in process accounts (WIP) for posting these job related expenses.
You may choose not to track any Job Costing by making certain all three flags (labor, overhead, commissions) are left unchecked. If you have not made selections on the Costing form of the Job Type or the Install Company, these accounts will be used to process Job costing transactions.
The Restrict Sales Month option provides control over the month and year in which a date may be entered as the sold date on a job. This allows you to capture accurate monthly sales data and not have it modified. If the Restrict Sales Month option is activated, no jobs or job change orders may be back dated into a closed sales month.
If a Sales month is closed using the Restrict Sales Month option, any Jobs that are currently open will be locked down; any changes that need to be made to a Job related to Install Charges, Parts, RMR, or Commissions, will require you to create a Job Change Order.
Definitions of each field contained on these setup forms is shown below.
Setup Processing Tab
Field Definitions
Materials
- Material WIP – Specify the G/L account that will be the default when creating Installation Companies.
- Job COGS – Specify the G/L account to be used as the default on Job Types.
- Approval Processing – Select this option only if you want to use Job Approvals on all or selected Job Types.
Labor to G/L
Specify the G/L accounts that will be the default when creating new Installation Companies. There are two options for posting labor to the general ledger; expense at the time of entry or expense through work in process (WIP).
- Expense at the time of Entry - If this button is selected, labor will be expensed as labor timesheets are posted to a job.
- Expense Through WIP - If this button is selected, labor will be posted to a Labor Work-In-Process account when labor timesheets are posted to a job.
Overhead
Overhead consists of the operating expenses including the costs of rent, utilities, taxes etc. Overhead does not include commissions or materials. In SedonaOffice, overhead is based on labor applied to a job from a timesheet entry. You may use the overhead to credit and debit a particular G/L account. You may choose an overhead percentage rate or use a flat dollar amount. If selecting the percentage option, for each labor dollar expensed when a timesheet is entered, this percentage or rate will be applied for overhead.
Commissions
Commissions are fees or percentages allowed to sales representatives or agents for services rendered to your company. Any employee of your company is allowed to receive commissions if commission rates have been setup in the employee setup table. If you choose not to track commissions as a part of Job Costing, make certain the Commissions to G/L box is left un-checked.
If you choose to track commissions through job costing, you have options;
- Expense the commission at the time of data entry
- Expense the commission through work in process
Restrict Sales Month
The Restrict Sales Month option provides control over the month/year in which date may be entered as the sold date on a job. This allows you to capture accurate monthly sales data and not have it modified. Once the sales period is advanced to the next month, a user will not be allowed to enter a job with a date prior to the month that is set as the current sales month. If you decide to activate this option, select the current month/year in which you are doing business. When you are ready to move forward to the next business month, you will need to update this field. This option may be turned on or off at any time.
Custom Job Costing Buckets Tab
Field Definitions
The Custom Job Costing Buckets are used if you want to break-down miscellaneous Job Expenses for up to three distinct labels.
Job Expense Types are then linked to the appropriate custom job costing bucket. These three custom buckets are designed to be used with entering the Job Costing estimate on the Job and for tracking the actual miscellaneous expenses as they are posted to job by receiving purchase orders or entering A/P Bills.
Define Initial View Tab
This setup option is to specify which form you want to initially view when opening any Job record. This is a system-wide setting that affects all Users. Prior to this option being available, the default view was the Sales Summary.
