Sage Timberline Office a.k.a. Sage 300 Construction and Real Estate allows construction and real estate firms an opportunity to streamline workflow and processes between departments to improve accounting efficiencies. This blog will provide a brief overview of the Job Cost module.
The Job Cost module allows you to track costs and profitability of each job. This is basically the job central which provides a quick and easy way to set up a job and its related contract items. There is a job central wizard that will lead you through each step of creating a job from entering general information and setting up the contract to creating the contract items and recording costs.
There is a set up function that allows you to set up cost codes and categories to help track costs and compare them to performance over the life of the job. There is also a function that allows you to set up or enter estimates into the job cost module to provide the baseline to forecast the profitability of a particular job.
The “enter direct costs” feature allows you to enter costs directly against the job without affecting Accounts Payable or Payroll. These could be costs like additional fees that can be added on top of the vendor invoices and payroll timesheets.
Commitments or Purchase Orders can be entered or imported from other project management software into Timberline through the job cost module. This will allow you to see what’s been committed on the job to subcontractors.
Change orders can be entered in order to evaluate the change order costs and there is also an approval system built in before the change order is recorded. Commitment change orders can also be recorded or changed if there is a change in the scope of the commitment as well.
Job cost entries are usually set to automatically post so they are recorded and reflected on the general ledger. However, on occasion, due to internet interruptions or other system or network issues, you will have to check the post entries section to ensure there are no job costs that have not been posted. If there are costs, make sure to post them in the job cost module.
The job cost module must be closed each month and rolled forward to the next month. The job cost module will only allow costs to post to this current period and the next period. If you are looking to post costs to October but the job cost module is still in August, these costs will not show up until the month of August is closed. The modules should be closed as soon as the month end cut-off dates have come and gone in order to preserve the information reflected in the financial statements.
There are many reports that can be generated in job cost to help you evaluate whether a job was profitable or not whether it’s a contract based or cost based contract. Please feel free to reach out to me should you have any questions on this topic.Written by: Annie Terracciano TGG Accounting