Job Costing provides the ability to track all related costs and revenues associated with an unlimited number of jobs within your organization. Each project or job can be tracked in the ERP system at various levels of detail, depending on the job. Essentially, Job Costing is a repository of information that is fed via the other integrated financial and operations windows. General Ledger, Accounts Receivable, Accounts Payable, Purchase Order, Inventory, Time & Billing and Payroll all play important roles in capturing complete job costing and revenue information.
Valid job levels include:
- Job (up to 32 characters)
- Sub Job (up to 32 characters, optional)
- Phase (up to 32 characters, optional)
- Task (up to 32 characters, optional)
- Cost Code (up to 32 characters)
- Cost Type (up to 32 characters)
The Job ID is mandatory and represents the highest level of detail where costs and revenue can be recorded. The Sub Job, Phase, and Task levels are optional, and represent optional increasing levels of detail. Cost Codes are categories of costs common to all jobs that make cross-job comparisons meaningful. Cost Types explain the type of cost. Examples of Cost Types include: Labor, Material, Overhead, Sub Contracting, and Equipment Rental.
Not only are actual and committed costs tracked at the various levels for each job, but also budgeted costs and budgeted revenues are tracked at separate levels within a job in Carillon ERP. A project manager may budget costs at the Task level and budget revenue at the Job level. The total costs incurred, total committed costs and total hours incurred are tracked at the lowest level of detail and rolled up to all higher levels for reporting.
Journal entries can be posted with valid jobs assigned at each line item in our Accounting/ERP system. When creating customer and vendor invoices, an unlimited number of valid jobs can be assigned to each line item of the transaction. The creation of purchase orders updates the committed costs of a job, while the vouching of vendor invoices move the costs from committed costs to actual costs. Issuing of inventory also increases the actual costs of a job. The planned issuance of inventory creates a demand that is shown in the ATS Dashboard within the inventory module. When utilizing the Time & Billing window, an employee’s cost of service can be recorded for the job(s) the employee worked on. Carillon's Payroll software provides actual costs to a job such as salary or hourly rates, and other indirect costs such as the employer’s share of taxes and other employer paid deductions. The work in process (WIP) account can be set up to default based on the Company, Cost Code, or Job. WIP accounts are tracked and updated on a transaction by transaction basis.
Revenue is recognized based on the Percentage of Completion or Completed Contract method. Each transaction that updates the costs of a job or any change in a budget amount will trigger the system to automatically recalculate the percentage of completion (including the recognizing of revenue) for you on a transaction by transaction basis. The online transaction processing and real-time processing capabilities of the Carillon ERP software allows for up-to-the-second cost and revenue information.