17 Nov Job Costing Basics
The job-costing feature in QuickBooks permits tracking income and expenses by a particular job. By assigning a customer:job as entering transactions, the information is captured throughout the data entry function on various forms. For more sophisticated job costing features such as items with income and expense coding, estimates and time tracking QuickBooks Pro or higher is required.
The customer:job field accumulates the expenditures to be “charged” to the job on various forms such as checks, bills, or timesheets. If the invoice icon next to the customer:job’s name is clicked, a red “X” appears over it designating it as an expense for the particular customer:job for profitability purposes, but not billable to the customer. If the line has a white invoice icon next to the name, without an “X” it is considered “billable” and will appear on the time/cost detail for future invoicing. If the line has an invoice icon that appears gray or dark, that means the “billable” item has been invoiced to the customer:job.
TRICK: In QuickBooks 2002 and prior, certain items are not assigned to a cutomer:job when they are entered such as discounts when paying bills or receiving payments, bank charges and interest on the bank reconciliation screen, etc. For a work around, for discounts when entered on the pay bills screen there are two possible solutions. The first is to let the software calculate the discount as you are paying the bill and then create a journal entry to reclassify the amount for job costing purposes (i.e. one line will have “no name,” and the dollar amount in the debit column. The second line will have the dollar amount in the credit column and will have the customer:job name. Both will have the same discount general ledger account.) The second is to enter a credit memo for the amount of the discount and assign the customer:job on that form then apply the credit to the bill.