Costs can be entered against a job in several different ways and are controlled tightly to ensure correct cost management.
In addition, estimated sales and cost values can be held against activities. This means that when an activity is added to a job, the cost items are automatically added to the cost tab. Multiple cost items can be associated to an activity if required. This is useful for managing and measuring expected job costs against actual job costs or sales values.
As a job progresses the status or posting type of the cost item can be automatically updated and certain costs will have specific posting types.
Cost Posting Types are used to control whether the cost has actually been applied to the job. As a job progresses, the status or Posting Type can automatically be updated.
Posting Types are displayed next to each cost item in the
Est/Act field. There are three posting types:
- Estimated - items where the sales/cost value is not known at the start of the job.
- Actual - costs that have already been incurred and are known.
- Expected - a cost you need to measure against and one that will remain on the job for this purpose. For example, at the start of a job you have an item you are expecting to undertake. You will assign an estimated sales value but until the work is completed you do not know the true value. If the work is completed you will add the actual costs against the Job. By having these two costs - expected and actual - you can measure the two against each other.
A sales value can be moved automatically from an estimated cost to an actual cost and at a defined point in the Workflow of the Job by using a measured status. This feeds into the invoicing process because when an actual activity is agreed, the cost assigned to it converts to an actual sales value. This is then directly passed into the invoicing process. At this point no further changes can be made by normal users to the Activities or the Job Cost page, although a high level commercial user may be granted the rights to do this if they fully understand the consequences.
Against each Cost Type you state what the initial and final Posting Type will be. When a Job is measured, the Job Costs will be moved from the initial Posting Type to the Final Posting Type.
Job costs can easily be added to a job. However, for audit purposes costs are rarely removed from a job.
When removing activities from a job, only costs that are at a posting type of estimated or expected will be removed. If the posting type is actual, the cost will instead be reversed, leaving a negative value equivalent to the original cost. The same will be true of working time records, which will be deleted from the costs tab only if they are at an estimated/expected status and reversed if at an actual status.
For costs added manually to the job, any actual costs can be reversed by selecting the three dot menu next to the cost and selecting "Reverse Cost".
If posting periods are activated and are being controlled it should be noted that financial dates will be set accordingly so that correct period accounting is maintained. This is also why actual costs cannot be deleted and only reversed as these may have already been accounted/invoiced and should not be removed