Use Job Costing to track detailed cost information on large projects, such as pool construction or renovation. This detailed information gives you the ability to quickly determine job profitability, cost cutting opportunities, and areas for improvement. This topic outlines the entire Job Costing process, everything from contacting lead to completing and closing the job.

Step 1: Lead Contact

The customer's information is recorded in the application using the Add Lead or Customer button on the Customer tab of the main menu.

Step 2: (optional) Customer interview and Evosus Quote

Create a quote for the job requirements using the Quotes tab on the Customer screen.

Step 3: Site survey

Visit the potential construction site. The information gathered during this visit helps you create a more accurate final bid for the customer.

Step 4: Create bid/proposal

The bidding process can be done in the application, or outside the application.

Create the job if you are going to generate the bid using the application

  1. Create the job using the New Job screen. You can open this screen using the Jobs tab on the Customer screen, or the Administration tab on the main menu.
  2. Use the Budget tab on the Job screen to generate a bid amount.
  3. Use the bid amount to update the quote.
  4. Print the quote using the Print button on the Quotes tab of the Customer screen.

The application does not print a formal bid or proposal for the customer. This must be done externally if you are not using Quotes in Evosus.

Step 5: Customer accepts bid

The customer accepts the bid.

Step 6: Create job in Evosus

Create the job if it hasn't already been created using the Jobs tab on the Customer screen, or the Administration tab on the main menu.

Step 7: Enter phases

Phases are the steps that you take to complete the job - for example, excavation, plumbing, and electrical. Use the Phases tab on the Job screen to add phases to the job.

Step 8: Enter materials

Add the materials that you expect to use on the job using the Materials tab on the Job screen. There are four ways to add materials to a job:

  • Add items manually by entering the item code
  • Copy items from another job
  • Copy items from an existing order or quote
  • Import job materials from spreadsheet

Step 9: Finalize budget & bid figures

Finalize the job budget using the Budget tab on the Job screen.

We recommend that you add the inventory that you expect to use on the job to the Materials tab of the Job screen. This allows you to quickly copy the cost of those materials into your budget.

Step 10: Make job active

Change the status of the job to active using the Change Status tab on the Job screen.

Step 11: Enter subcontractors, job team, and additional information

You can add information to the job at any time, even after the status of the job has been changed to active.

Step 12: Schedule work orders

Once the job is active, you can created work orders using the Work Orders tab on the Job screen.

Use work orders to schedule and assign employees to complete specific tasks related to a job. This is an easy and efficient way to manage all of the tasks performed on a job.

Once work orders are scheduled, they appear on the Service and Delivery calendar.

Step 13: Record and track costs (timecards, AP invoices, checks)

Once the job is active, you can record costs and allocate them to the job. These costs can include materials that you've used on the job, employee labor, and AP invoices for subcontractor expenses. You can see the costs that have been allocated to a job using the Cost Log tab on the Job screen.

What is the Jobs in Progress GL account?

The Jobs in Progress GL account is debited when costs are posted to the job. It is an asset holding account that retains all expenses and profit while the job is active and until final revenue recognition occurs. At the end of the job, all money is moved out of this account so the balance is zero.

The Jobs in Progress GL account is set up on the job type using the Jobs In Progress field on the Job Type screen (Administration > Job Costing > Job Types).

Deliver Job Materials

GL Account
Debit
Credit
Journal
Jobs in Progress
XXX


Job Journal
Inventory


XXX
Job Journal

Approve Timecards

Timecards must be marked as Approved to post as a cost on the job. You must setup a pay rate in Timekeeper setup in order to apply employee time to a job.

GL Account
Debit
Credit
Journal
Jobs in Progress
XXX


Job Journal
Applied Direct Labor


XXX
Job Journal
Applied Labor Burden


XXX
Job Journal
  • Applied Direct Labor - A contra-expense account that captures all Labor Burden overheard. Labor burden is percentage figure that represents general overhead expenses such as payroll taxes, insurance and benefits.
  • Applied Labor Burden - A contra-expense account that captures all labor expenses (as recorded on timecards).

Write Manual AP Check

GL Account
Debit
Credit
Journal
Jobs in Progress
XXX


Purchases Journal
Bank Account


XXX
Purchases Journal

AP Invoice Other

Only AP Invoice-Other can be applied to a job. Inventory invoices cannot be applied to a job. Evosus obtains material costs from the delivery of items on the Materials Manager in the job.

GL Account
Debit
Credit
Journal
Jobs in Progress
XXX


Purchases Journal
Accounts Payable


XXX
Purchases Journal

AP Debit Memo

GL Account
Debit
Credit
Journal
Jobs in Progress


XXX
Purchases Journal
Accounts Payable
XXX


Purchases Journal

Step 14: Bill customer

You will send the customer bills (invoices) for the current balance due on the job. This amount could be based on the percent complete or a pre-determined amount based on date or phase accomplishments. The frequency and amount of job bills are up to you. Change orders are also available to track adjustments to the original bid amount through changes in the job, such as customer requests or unexpected environmental issues (buried rocks). Use the Billing tab on the Job screen to invoice the customer.

What is the Job Billings GL account?

The Job Billings GL account is credited when you bill the customer. It is a contra-asset account that captures all amounts billed to the customer.

The Job Billings GL account is set up on the job type using the Job Billings field on the Job Type screen (Administration > Job Costing > Job Types).

GL Account
Debit
Credit
Journal
Accounts Receivable
XXX


Job Journal
Job Billings


XXX
Job Journal

Step 15: Recognize Revenue

Revenue is not recognized when the job bill is created. You manually recognize revenue either as the job progresses (percent complete) or at the completion of the job (completed contract).

  • Percent Complete - You recognize revenue as the job progresses. This means that you creates revenue, costs, and profit postings as the job progresses.
  • Completed Contract - You wait until the job is 100% complete before recognizing any revenue. This means you will see no revenue, cost or profit postings until the final revenue recognition has occurred.

Percent Complete Revenue Recognition

Use the Revenue tab on the Job Screen to recognize the revenue as the job progresses. Earned revenue and actual costs are posted based on the current percent complete. This is calculated based on actual costs and budgeted costs.

Percent complete = Actual Costs / Budgeted Costs

Recognizing revenue will create the following journal entry.

GL Account
Debit
Credit
Journal
Jobs in Progress (Profit)
XXX

Job Journal
Job Revenue

XXX
Job Journal
Job Expenses (Costs)
XXX

Job Journal
  • Jobs in Progress - The Jobs in Progress GL account is credited when costs are posted to the job, and debited as revenue is recognized. This account is zeroed out when the job is completed.
  • Job Revenue - The Job Revenue GL account is the revenue recognized on the job. This account is set up on the job type using the Job Revenue field on the Job Type screen (Administration > Job Costing > Job Types).

Job Revenue = (Percent Complete * Adjusted Bid) - Previous Recognized Revenue

  • Job Expenses - The expense account is determined by the default expense account selected for the cost code on the original transaction (such as AP Invoice or Timecard). Several expense accounts could be affected during a single revenue recognition if multiple cost codes were used. The job expense GL accounts are set up on cost codes using the Job Expense field on the Job Cost Code screen.

Final Revenue Recognition/ Completed Contract

Check the Is Final Posting for Jobs box when using the Revenue tab on the Job Screen. The following journal entry is created.

GL Account
Debit
Credit
Journal
Final revenue recognition to clear Jobs in Progress and Job Billing:
Job Billing
XXX


Job Journal
Jobs in Progress


XXX
Job Journal
Any remaining unrecognized costs, revenue or profit:
Jobs in Progress (Profit)
XXX


Job Journal
Job Revenue


XXX
Job Revenue
Job Expenses (Costs)
XXX


Job Journal
  • Jobs in Progress, Job Billing - Clears out the Jobs in Progress and Job Billing accounts, bringing the balance back to zero.
  • All unrecognized revenue, costs and profit is recognized at this time.

Step 16: Close job

Change the status of the job to closed using the Change Status tab on the Job screen.

All revenue must be recognized before you can close the job.