Job Costing – R12

Job Costing Considerations

The Job Costing module is a powerful toolset, but its ultimate usefulness depends on the setup.

Before beginning the setup procedures for the Job Costing module, it is a good idea to assess the requirements and go through many of the different setup options with a consultant. Some of the questions to ask are:

• Does the current costing structure provide adequate detail within the Job Costing sub-ledger?

• Does the current reporting provide the sub-totals and totals for different costs that the company wants?

• Are the necessary General Ledger accounts set up for the costs that will be tracked in this application?

• Which Accounting Method will be used? This application currently provides three methods: billings and costs (allowing for the percentage of completion method), T&M WIP accrual, and completed contract.

• Are inter-branching charges being used?

• Is it known what units the job’s costs will be measured in? Each weight or measure required for cost components on the jobs must be individually set up on the Weight Measure screen (see Global Tables found in System Data).

• Should costs against bid jobs be tracked?

• How are costs currently budgeted? At what level? Is there a plan to change the current method?

These questions should all be considered before beginning the formal Job Costing training session. Contact a CMiC business consultant for further information.

NOTE: If a new company is being created that requires the identical setup as a previously defined one, the Job Costing Setup tables may be copied instead. Please refer to Utilities for more details.