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Phases with just a “P” do not use cost codes.
10 Double-click Phase 02-Permits to select it.
The invoice total should display $75.00.

11 Post this purchase.

12 Press q to close the window.


Job Cost and Payroll
To simplify this example, we™ll assume that one employee performed the
landscaping work. He spent 20 hours on the project.
1 From the Tasks menu, select Payroll Entry. The Payroll Entry window appears
with the cursor in the Employee ID field.

2 Click the Employee ID lookup button and select AKORNYLAK-01 (Alex
Kornylak).

3 In the date field, type 22 to change the date of the check to March 22,
2003 and press e.




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4 Select the Jobs button.




5 Select the Add button to add a distribution line.

6 Click your mouse pointer in the Job field of the line that was just added,
and then click the lookup button.
The Job ID lookup list appears.




7 Double-click the TORRANCE-01 job folder.
We will use another phase to record the labor of the landscaping project.
8 Scroll down and double-click the 03-Nursery phase folder, and then double-
click 010-Labor. You return to the Labor Distribution to Jobs window.




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Type 20.00 regular hours worked on this job and press e.
9




You could select the Add button again to add another distribution line if,
for instance, the employee worked on another job during this payroll
period.
10 Select OK to return to the Payroll Entry window.

11 Post the paycheck.

12 Press q to close the window.


Job Costing and Sales
We™re going to invoice Torrance Country Club for the landscape work so far.
1 From the Tasks menu, select Sales/Invoicing.
The Sales/Invoicing window appears.
2 In the Customer ID field, use the lookup button to select TORRANCE-01
(Torrance Country Club) as the customer.

In the date field, type 25 and press e to display Mar 25, 2003.
3
There are two methods for entering sales transactions and applying
them to jobs. You can enter each transaction line individually and select
the job ID, phase, or cost code that applies to the item. This is similar to
the method we used in Purchases.
Peachtree Accounting offers another method which is faster and more
efficient”Reimbursable Expenses.




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4 Select the Apply Tickets/Reimbursable Expenses button, and then select the
Reimbursable Expenses tab.



Reimbursable Expenses display for this customer, Torrance Country
Club.




All purchase and payroll transactions that have been applied to the
selected customer™s job display in this window. All transactions for other
jobs using this customer will also display.


You must select a customer ID in the Sales/Invoicing window before you can
select the Apply Tickets/Reimbursable Expenses button.
Note
Notice that the expenses for the permit and the nursery labor display.




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5 Select the Use button to display the Select Reimbursables to Use window.




You could select a series of reimbursable transactions by job, item, or
date range to apply to this invoice. For our example we will select All.
6 Accept the All option in the Select Reimbursables to Use window by
selecting OK.
You could change the invoice amount of each transaction to apply your
own markup. However, there is an easier way to accomplish this.

7 Select the Write Up button.




You have several options for writing up/down items”you filter which
items should be written up, you can write up/down by a fixed amount,
or you can write up/down by a fixed percentage.
We do not want to write up all the items, so we will select only items for
a particular job.
8 Select the Job option.


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9 Click the lookup button in the Job field.
The Job ID lookup list appears.




10 Double-click the TORRANCE-01 job folder.

11 Scroll down and double-click the 03-Nursery phase folder, and then double-
click 010-Labor.
You return to the Select Reimbursables to Write Up/Down window.
12 Select the “Write lines up/down by percent” option.

13 Type 75.0 in the % field for a 75% markup and select OK.
You return to the Reimbursable Expenses window. The $280.00 labor
item displays the markup amount as $490.00. The total amount to
invoice displays as $565.00.
14 Select OK to return to the Sales/Invoicing window.
The two transactions are included in the invoice. You could optionally
type alternate descriptions for the items that will print on the invoice.
15 In the transaction line for the labor expense, enter the description Labor
for landscape work and press e three times. The cursor moves to the
Tax field.

16 Type 2 for sales tax exemption and press e.
In some states, labor and service items are exempt from sales tax.
The Invoice Total now displays as $569.50.

17 Post the invoice.

18 Press q to close the window.




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Job Cost Reports


Job Cost Reports
Now let™s look at a report that will tell us how we™re doing with our job. Note
that the job is still incomplete.
1 From the Reports menu, select Jobs. Peachtree displays the Select a Report
window.

2 Single-click the Job Profitability Report, and then select the Screen button.
The Job Profitability Report window appears with the filter tab selected.
3 To set a range so that only information about this particular job will appear,
click your mouse in the From field of the Job ID line. Then select
TORRANCE-01 from the lookup list.

4 Select TORRANCE-01 again from the lookup list in the To field, and then
click OK.




The report breaks down each job according to what was spent or earned
for each affected general ledger account. Finally, it shows the profit or
loss for each job.
5 Notice the profit margin for our new job, TORRANCE-01.

Press q two times to close both report windows.
6




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Review of Lesson VIII
Let™s review some of the things we learned in this lesson:
• Peachtree Accounting helps you track job costing with easy options
that can be used at a simple or detailed level. Before setting up a job,
you have to determine how you want to use your job costing process.
Peachtree Accounting offers the following options to track in job
costing:
Jobs only: You require simple jobs in which you intend not to

track stages or specific kinds of cost.
Jobs with Phases: You want to divide your job into stages of

completion.
Jobs with Phases and Costs Codes: You want to assess cost of

each item, its type/group, its time of usage in each stage of your
project.
Typing over the existing ID record and pressing e automatically

copies the record information to the new ID including all fields. All
you have to do at this point is change the description and other
information that uniquely applies to the new record. You can use this
method to copy any ID in the Maintain windows.
• To track job cost, enter a different line on each purchase or invoice
for each job-related item or service.
• There are several ways to enter purchases as costs to a job:
• through the Purchases/Receive Inventory or Payments windows
• through Sales/Invoicing as a cost of goods sold entry from
inventory
• through inventory adjustments.
• Employee hours can be charged to jobs through the Payroll Entry
window, using the Jobs button.
• Peachtree Accounting tracks income and expense per job, for each
applicable Income Statement account, per transaction line item.
Now that you have been introduced to the job costing module of Peachtree
Accounting, you are ready to proceed to Lesson IX”Company
Administration.




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