Challenging Times in Job Costing Presenter: Anne Stevenson

AGENDA Committed Costs Progress Billing Job Progress Control Features Reversing a Billing Holdback Reporting

Challenging Times in Job Costing Understanding Committed Costs Committed costs are the total value of Purchase Orders and Subcontracts issued for a job, including tax – where tax is a cost There are several flags that control both the creation and reporting of committed costs. The decision to include labour as a committed costs is system specific while the decision to include costs not linked to a Subcontract or a Purchase Order are company specific. If all costs are committed, then committed cost and actual cost should tend towards each other over the life of your job.

Challenging Times in Job Costing Committed Cost Reporting There are several ways to review and assess your committed costs. Committed costs views, analysis, and report generator all provide an opportunity to assess your current position on a project. Committed Remaining is calculated as: Committed to Date – Actual

Challenging Times in Job Costing Progress Billing Whether you do AIA billing, Percent complete, or By Unit draws, a well managed billing cycle is key to a strong cash flow. Ensure that your billing lines are created at the time of the job setup so that any change orders result in the addition of a billing line.

Challenging Times in Job Costing Job Progress The Progress Status screen centralises your billing activities in one location, simplifying the process The addition of time and date stamps helps the user keep track of their current location in any billing cycle.

Challenging Times in Job Costing Progress Billing - Control Features With the addition of the Progress Status screen, Jonas added controls to the billing process. Once an invoice has been created, a new billing cycle can’t be created until the totals have been updated. Totals can’t be updated without an invoice being produced unless you know the password to bypass the requirement. The password is created in Job Costing > Files > Costing system Profile > User Options.

Challenging Times in Job Costing Reversing a Progress Billing Once an invoice has been posted and your totals updated, you will can do a reversal by selected REVERSE LAST in the Progress Status Screen This automatically creates a negative entry for each of the lines affected on your last billing. If you have to reverse multiple months, complete the first month, including the creation of a credit invoice, update your totals and then move on to the next month, carrying out the same process.

Challenging Times in Job Costing A Credit Billing Application is automatically created. This is then used to create a credit invoice. The steps to be followed are the exact same as a regular billing. The only difference is that a credit invoice is created.

Challenging Times in Job Costing Holdback Holdback, in both Accounts Receivable and Accounts Payable, needs to be well managed to maximize cash flow. Recording holdback accurately and invoicing for it as soon as possible is key to a good cash flow. In Both AR and AP, holdback is tracked in its own contra-account for ease of analysis. Revenue and Cost are recognized in full at the point of original entry. Holdback is not aged until such time as it is either a payable or a receivable.

Challenging Times in Job Costing Special Features-AIA Changes in Holdback sometimes occur mid-way through projects. These percentage changes may be applicable to the project moving forward, or they may be retroactive. By selecting the correct H/B Effect, Jonas will calculate the change and create a release if needed. All Lines HB was added to the Progress Billing program to assist those who use AIA billing. Rather than entering into and changing every line, a value can now be assigned to all lines in one screen

Challenging Times in Job Costing Special Features – Non AIA For non-AIA billing, selecting “A” in Display Holdback field of the invoice screen will allow you to select invoices with holdback over a period of time. The Holdback can be released calculating either GST or HST. The invoices to be included are filtered by date.

Challenging Times in Job Costing Reporting Solid reporting is key to strong project management. We will explore our most popular report generator reports The structure of all reports will be made available to participants via email after the session.