Step by Step:

Use Job Materials flags to assign a status to materials. For example, Waiting for Parts, Change Order Pending or Reschedule Install. 

 - Material flags are useful when dealing with large lists of job materials in varying stages of delivery or install. 

 - You can assign material flags from the line item update screen in the Materials menu of each job.

Step 1: Go to Administration > Job Costing > General Setup > Job Material Flags.

Step 2: Click Add to create a new job materials flag.

Step 3: Description - Enter the description of the job materials flag.

Step 4: Is Default - Check this box if by default this flag should be assigned to all job materials that are added to jobs.

Step 5: Click OK.