Job Costing Setup and Administration

 

Job Costing provides estimated profit/loss data to those responsible for work on an order, including estimating, coordinator, dispatching, invoicing, revenue entry, etc. Job costing is a tool that provides a general idea of the profitability of an order through the Job Costing window.

 

Setup listed here is divided into two categories: Job Costing Setup and Job Costing Rating Setup.

 

 

Job Costing Setup

 

The setup for job costing involves updating various records associated to expenses on a Local Services.

 

Setup

Description

Labor Type Setup

Personnel Setup

 

 

The Job Costing screen computes labor expenses based on what is entered for the Average Hourly Wage set for a Labor Type or the Regular Hourly Wage, Overtime Hourly Wage, or Double Time Hourly Wage set on a personnel record. If the application encounters amounts being set in both setup areas, then the application references the Regular Hourly Wage, Overtime Hourly Wage, or Double Time Hourly Wage within the Accounting tab on the Personnel Setup record for expense calculations.

The application references the wage information for crew assigned to a service through Dispatch Center in Local Dispatch.

Labor expenses in Job Costing are computed using the following formula:

[ Hours ] x ( ( [ Cost/Benefit % ] x [ Wage ] ) + [ Wage ] )

 

Wage is either the Average Hourly Wage set the Labor Type or the Regular Hourly Wage, Overtime Hourly Wage, or Double Time Hourly Wage set on the personnel record

Hours is the number of hours of assigned service for the labor type

Cost/Benefit % is pulled from the branch record assigned to the service

 

Branch Setup

Also affecting the labor expenses is the Cost/Benefits Percentage optionally set for each branch. When set, the application adds the percentage set here to the wages associated to labor, i.e. an average rate of $10 per hour would have an additional $3 included based on a cost/benefit percentage of 30%.

The Cost/Benefit Percentage is used to factor into cost calculations items such as insurance, benefits, and other cost related to employees.

Equipment Type Setup

Equipment assigned to a service through the Dispatch Center in Local Dispatch is included in job costing expenses. The application references the Average Cost set for equipment assigned to a service.

Equipment expenses in Job Costing are computed using the following formula based on the quantity assigned or the time of service:

[ Hours ] x [ Average Cost ]

 

Material Type Setup

Containers, Packing, and Unpacking items associated to an order or service factor into Job Costing through the Item Cost (each) setting on material items. Update the setup records to include appropriate costing.

Material expenses in Job Costing are computed using the following formula:

[ Quantity ] x [ Item Cost (each) ]

 

Security Profile Setup

Update user profiles to access the Job Costing screen. Assigning one branch to the “Job Costing” security modules grants access to all functionality for all branches.

The Cost column within Single Order and Compare Orders is only visible to personnel that have the Allow Manager Privileges flag set for the Job Costing module within their Security Profile Setup record.

See Security Modules for additional information.

 

 

Job Costing Rating Setup

 

If you wish to setup rating to display for associated expense items listed within Job Costing, then utilize the information in the following table.

 

Setup

Description

Rate Plan Setup

Verify that rating for each item exists for equipment, labor, and materials referenced for Job Costing. Item Codes associated to Equipment Type Setup, Material Type Setup, and Labor Type Setup may need to be defined for each plan you intend to use. The Rate Plan(s) may need to be updated to accurately reflect the actual type of rated expense for services.

Set Rate (regular), OT Rate (overtime), and Double Rate values accordingly. Important: OT Rate and Double Rate values apply to only Labor Type Setup records.

Effective dates can be utilized as well. The application compares the effective date on the rates to those of the service date range to determine which rate is in effect. The service dates compared to vary depending on where the service is processing. Refer to Planning, Dispatch, and Actuals phase descriptions with the Job Costing Rating topic for more information.

Labor Type Setup

Personnel Setup

 

 

Set the Item Code for each Labor Type you wish to have Rated Amount data display. For each person associated to the Labor Type, verify the Labor Type is set for the employee within the General tab of their Personnel Setup.

Additionally, if you wish to reference overtime and/or double time rates set within a Rate Plan, define a Rate Schedule for Labor. The schedule determines what rate to reference for costing based on the service dates.

Rate Schedule for Labor

Define schedules to determine whether regular, overtime, or double time rates apply for the Labor related revenue. The application utilizes this setup to determine whether a regular, overtime, or double time rate applies based on what is set for the item (Rate Item) within Rate Plan Setup.

If you wish to apply holidays to the rating schedule as well, then define them using the Holiday Setup.

Account Profile Setup

Branch Setup

Set the Rate Schedule for Labor accordingly to which schedule you want in effect for each supported branch. Alternatively, you can set the for each appropriate Account Profile record as well. The application checks to see if the rating schedule is setup for the Account Profile first. If it is not, then checks the branch of the order to determine the schedule in effect.

Equipment Type Setup

Set the Item Code for each Equipment Type you wish to have Rated Amount data display. Verify that this Item Code is associated to the desired rates and rate plans through Rate Plan Setup.

Material Type Setup

Set the Item Code for Container, Packing, and Unpacking items associated to each Material Type records you wish to have Rated Amount data display. Verify that these Item Codes are associated to the desired rates and rate plans through Rate Plan Setup.