Mascidon, LLC

SAP Business  One Add-on Products

Job Costing

The job costing module is intended for companies that want to track labor, material and purchase costs by job.  Job transaction costs are accumulated and reported.  There are no new general ledger requirements for this module.

Labor costs are entered as job costs using a labor entry document.  This screen uses the employee alternate id to designate the person performing the labor.   The rate per hour is defined using the standard cost of a ‘Labor’ type item in the inventory (non-stocking item).  Multiple labor items can be defined if departments within your company have different labor rates. Changes are allowed to the labor document until it is ‘posted’.  Adjustments to the labor costs can be made by entering negative hours.

Non labor costs are reported against the job using standard SAP documents for vendor related expenses. Different screens within SAP Business One can be used to report expenses.  The standard method of applying costs from vendors against a job is to create an A/P invoice.  Reducing these costs is done using an A/P credit memo.  Non labor costs are reported against the job if the PO goods receipt has been entered but the A/P invoice has not yet been processed.  Likewise, reductions to the cost of the job are reported when a vendor goods return has been made without an accompanying A/P credit memo.  Freight and miscellaneous charges can be charged to jobs on A/P invoices and credit memos.

Inventory costs are applied to jobs by issuing inventory against a job using the inventory issues screen in SAP Business One.  The job inventory charge is the quantity issued multiplied by the then current inventory cost.  Inventory cost adjustments use the inventory goods receipts transaction to reduce the inventory cost.

In addition to tracking the costs to a job, the Mascidon job costing module also tracks outstanding purchase requests and purchase quotes specific to the job.  This gives a more complete picture of the potential costs to be incurred against an open job.

In some, but not all cases it is possible to track sales related to a job.  For instance, if you create a job and then invoice your customer for a job, all the sales documents could reference the job and this module will report this activity.  This does not apply if the job is an internal tracking mechanism and is unrelated to the sales documents.

This module provides a simple means to track the costs related to jobs.  If you have already implemented SAP Business One and need this functionality it has been designed to have no effect on the G/L and posting of labor requires only the use of the employee file and at least one inventory item set up to define the rate / hour.