Precis

This procedure should be run, at a minimum, at the end of each month, before the period is closed for the Job System. Debtors being closed is OK. It can be run at any time during the month, you don’t have to wait.

If there is no income on any of the jobs, this procedure won’t actually post anything. Its purpose is to ensure that all jobs that have invoices have an associated cost. Until this Procedure is run, invoices from the Job system will have a zero cost.

If the job is completed, then the actual costs for that job are used. When a job is only partially completed then the cost will be estimated from the Job’s GP%, or the default value if missing.

For a multi period job, which has now completed, the actual costs are used, less any estimates during the proceeding months. It is therefore important to review the GP levels of all jobs. Failing to keep an eye on the GP’s can mean a big adjustment to the COS at the end.

It is normally run by the Project Manager and all other Job users should be out of the system.

1. Update the ‘Status’ of any jobs that have been completed.

• Jobs

• Maintenance

• Job Master

Open

Select the completed job.

Open

Change the ‘Status’ to ‘Y’, the period will automatically populate.

Click ‘OK’ to exit.

The Browse screen will show the updated status.

Go through & Update the ‘Status’ on each completed job.

2. Review current WIP GP % estimates.

The system will default to using 30% margin for all jobs. This can be changed when you first enter the job and can (and should) be adjusted as the job progresses over the months.

Here it has been changed to 31%. If it was zero, then the system will use the default value (set to 30% but can be changed if needed).

Job Comparisons Report

To better review the all the jobs it’s easier to use a report.

• Jobs

• Reports

• Job Comparisons

If we just single out 1 job.

This job is using the default margin on the Job Master (30%), however the system is suggesting that this should be closer to 38%.

It is desirable that you adjust the WIP margin on the job to reflect what you expect to happen. This avoids large adjustments to the WIP COS when the job is eventually finalised and provides a more accurate set of management reports in the interim.

For this example, we are going to have an each way bet and adjust job 731 to a GP% of 35%.

So back into the Job Master and we adjust the front screen.

Same report with the new GP% set at 35%.

Once you are happy with the adjustments, we are ready for the actual WIP posting.

3. WIP Monthly Posting

There are 2 methods available, Manual and Batch.

You would only use manual if you needed to finalise a Job mid-month. For example, it’s finished and you want to see the result reflected in the management reports.

For all other purposes, the Batch release is fine.

• Job

• Transactions

• Batch Release WIP

Firstly. ARE YOU IN THE CORRECT MONTH. Don’t post into October if you are working in September. Very bad for your zen if you do that.

In this case we are in Month 9, which is correct.

Enter a start Job ‘no’ and ‘to’ Job.

Click ‘Post’

That’s it.

So, that was a bit anticlimactic, what really happened.

A lot actually.

• A journal was written in the General Ledger which adjusted the WIP for the month for each job that’s still outstanding. The ensures that the P/L & Balance Sheet represent what is really happening as closely as possible.

• Completed jobs had their cost adjusted from the ‘estimate’ to the actual. A journal was written to handle that in the GL as well, if an adjustment was required that was made.

This is the entries for just a single, very small, Job which was completed.

Procedure Complete