Job Cost
DCision ERP Financial and Accounting Management software offers an optional Job Costing control function. The function is so well integrated with the basic functions of the software that its use requires very little additional work for the data entry manager. As a bonus, all project reports are immediately available.
It has the following characteristics:
- Following reporting structure: Super Project / Project / Activity / Sub-activity
- Reports available for cross-sectional analyzes. Ex: Supervision costs in all projects of a chosen site manager
- The budget can be expressed in money and in quantity and can be defined at the level of the activity or at the level of the sub-activity: you choose the precision
The Job Costing Management is a very specific application. One doesn't become an expert in Job Costing Management overnight.
Three essential elements must be respected:
- Perfect integration between the GL system, the accounts payable system, the accounts receivable system with the contract cost subsystem
The profitability of the company for a given period must correspond (and the software must give you proof of this) to the sum of the profits or losses made by the projects for the same period. This, even if the life of the projects is independent of the company's reporting periods. If the software does not allow you to make this reconciliation, you simply do not have a method of validating the Job Costing Management subsystem!
- Planning
The system must provide a project planning method, either by activity or by expenses nature as well as reporting according to completion percentages.
Well managed, this feature allows you to forecast surpluses or deficits before it is too late to correct them.
- The accounts payable subsystem and the accounts receivable subsystem must allow you great flexibility.
In fact, you must be able to enter invoices as soon as you receive them without releasing them for payment before you wanted it. It should be very easy to change the invoices payment terms , divide and re-divide them into several installments with specific terms and deductions, while avoiding handling errors.
In an environment where financing costs are often significant, it is important to have a tool that allows you to properly manage cash outflows. Our software allows great flexibility in determining disbursements and includes a payment deferral feature based on the relative importance of the supplier and on the number of days of the invoice.
Job Cost Management in an Inventory and Production Management Environment
As mentioned previously, the Job Cost Management function of the Financial and Accounting Management software allows you to manage the activities associated with each project. However, one of these activities in a manufacturing environment is the use of products (and resources) related to the products purchased (raw material) and manufactured (finished / semi-finished goods). The Operations Management software is therefore designed to transfer the costs relating to products and resources to the Job Cost Management function of the Financial and Accounting software.
You will thus control:
- The quantity and location of your stocks attached to projects by the Operations Management software.
- The costs (materials and other activities) and the work in progress through an activity linked to stocks on projects in the Job Cost Management function of the Financial and Accounting Management software.
In other words, the amount corresponding to stocks in inventory and in production to support projects presented in the Financial and Accounting Management software always balances with the detail of the inventories attached to projects in the Operation Management software.