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 cost items - items where the sales/cost value is not known at the start of the job.
Actual cost items - 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. 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 measures the Job Costs will be moved from the initial Posting Type to the Final Posting Type.
To add costs see Adding job costs. It should be noted that cost items rarely can be deleted from this page. If the cost has been generated from adding an activity then the activity will need to be deleted and the cost will then be removed (if at a status of estimate/expected) or reversed if it is at a posting status of actual (see Removing activities). If the cost has been generated from adding a work time in the resource tab, then the work time should be deleted to reverse the labour cost entry (seeAdding working time manually to a job). If the job cost has been added manually and has a posting type of actual then the reverse option will be displayed against the item.
Click the reverse icon and a contra entry will be created to reverse the cost at the correct financial date.
If a job cost has been added manually and it is off a posting type of estimate the edit (pencil icon) and delete (dustbin icon) will show and can be selected to amend the cost item.
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 as this will effect any reconciliation that may be required.
Please see Job Costs page for further info.