The Job Costing module provides a flexible and efficient way for managing projects in Microsoft Dynamics NAV 2016. It provides a comprehensive picture of job profitability and progress.
The budgeting and costing feature ensures efficient management of item consumption, time usage (timesheet) and general costs; as well as resource allocation against jobs. The invoicing feature allows customer invoicing against jobs based on time and materials or at job completion. And the Work in Progress (WIP) feature allows accurate cost reflection at GL on job progress.
In this blog, I will take you through some of the key features of the Job Costing module in Microsoft Dynamics NAV.
Setups
1. Job Card
The job card needs to be created first. You need to define the bill to customer, WIP method, posting groups etc. just naming the few key fields.
2. Job Task.
At least one task needs to be defined for the job. It is a mandatory field. This is essentially different phases of the project.
3. Job Planning Lines
Here you specify the resources, items, and general ledger expenses associated with a job task. The jobs budget and invoicing details are specified on this table. This is differentiated by line type tags.
– Schedule: Provides estimated usage and costs for the job. Planning lines of this type cannot be invoiced.
– Contract: Provides estimated invoicing to the customer, typically in a fixed price contract.
– Both Schedule and Contract: Provides scheduled usage equal to what you want to invoice.
4. Job prices
Here you define the agreed/contract prices for the job against the resource, items and GL. The set prices (as well as the costs) defaults on job (g/l) journal and invoices, maintaining data entry integrity for accurate costing.
Process
1. Record Usage
You can record the usage from the job planning line page using the ‘Create Job Journal Line’ function. The planning lines will get automatically updated with the usage details; showing quantity transferred and quantity remaining to be transferred. Usage can also be posted straight away using a job journal or job g/l journal.
Usage details can also flow in from timesheet lines entered against jobs.
2. Invoicing
You can invoice the customer from job task page using the ‘Create Sales Invoice’ function.
After executing this function, you will need to open the created sales invoice and post it.
3. Work in process (WIP)
You can track the work in progress at gl level throughout the project life. You can create a Job WIP method that reflects the needs of your organization. After you have created it, you can set it as the default Job WIP calculation method that will be used in your organisation.
4. Job Completion
Once a job is complete, you can change the status on the job card to complete and then run WIP for the last time to post the completion entries.
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This post was written by Jonathan Martin, COO at Evolution Business Systems.
His expertise extends to software development, support, implementations and project management, he can envisage potential problems and identify them to improve the client experience and outcomes, like a mad scientist, behaviour, statistics and data are where he gets his insights from and lives by a golden rule to always start at the beginning as there are no shortcuts. Jonathan’s passion is to make a difference by assisting clients with their business problems.