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Feature Guide - Job Costing (3.25MB)

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Writing checks for job costs is similar to writing checks to vendors.  

But checks for job costs don’t pay outstanding A/P invoices. Otherwise, everything you’ll enter about a check is the same for all checks -- account number, check number, date, amount, accounting period, and a memo to describe the purchase.

A check can be written to anyone; they don’t have to be vendors, either.

A single check can have dozens of job costs, using any combination of job numbers and tasks. Any line item on a check can include a markup and a gross amount -- which will be billed to clients. The markup is copied from the task to the check. These checks appear on job cost reports.

Writing checks for job costs saves you the step of entering the vendor’s invoice into Account Payable. If you pay job costs directly with checks, no invoice is necessary -- make sure no one adds the invoice by mistake (it has happened before).

To write a job cost check

1 Choose Edit > Write Check > Job Cost.

The Write Job Cost Check window opens.

Writing checks for one-time vendors. Checks can be written for one-time vendors without adding a vendor account. When adding the check, leave the vendor field blank then enter the paid to name.

2 Enter the checking account’s G/L number.

The G/L account number determines from which bank account this check will be written. You can manage many bank accounts, writing checks and making deposits by entering a different G/L account number.

3 Enter the check number.

Checks are numbered automatically based on the cash account’s G/L number. You can change the number by typing in a new number over the old. Changing the check number doesn’t affect the next check’s number -- it will be the next check number in sequence.

For better accountability, the check number entered on the check should match the pre-printed number on the check stock.

To change the next sequential check number, you can change the check number in the cash account. Once you’ve saved this check, choose Chart of Accounts from the Setup menu. Find the account you wish to change, then double-click on it. The next check number for this account appears at the bottom of the Edit Account window. Changing it here will affect the next check to be added.

4 If the check is handwritten and shouldn’t be printed, click the Hand-written check option.

The handwritten check option keeps the check from being printed. It should be checked only for checks that shouldn’t be printed. It can be changed later, if needed.

5 Enter the check date and accounting period.

This is the date the check was added. It is entered as today’s date automatically, but can be changed. The date appears on the printed check. It does not affect posting or the General Ledger (unlike the period). Cash reports can be printed by check date, showing all of the checks that were written for a range of dates. The accounting period determines how this check will affect your financial statements. The current period is copied from Agency Information, but can be changed. A check can be posted into any unlocked accounting period.

6 Enter the vendor number and payee name.

If the vendor has an account in Clients & Profits X, its name, address, and tax information will be copied to the check. If not, you’ll need to add the payee name, mailing address, and tax ID number manually.

7 Enter the check amount.

This is the amount you’re paying for the job cost. Tabbing past the check amount displays the written amount, which can’t be edited. When the check is posted, this amount will be applied to jobs and tasks (if applicable) and will debit a cost or expense G/L account.

8 Enter the check memo.

The memo describes what is being purchased by this check. It appears on cash reports and G/L reports.

9 Enter the vendor’s payment address and tax ID, then click Save.

The check is saved, then the Job Cost Distribution window opens. You’ll be prompted to distribute the check’s amount to many jobs, tasks, and debit G/L account numbers.

10 Check or Uncheck the "Include on year-end 1099 report" checkbox

This checkbox controls if this check will be included in the total amount printed on the 1099 for this vendor.  It will be checked by default if this vendor is set to include checks on the 1099 (Setup > Vendors, then select this option setting in the Account Info window).  However, not all checks for a vendor must be included on the 1099, so C&P provides the flexibility to include or exclude certain checks on the 1099 total via this checkbox.

Distributing a job cost check

1 Enter the first job number and task.

The job and task are essential for accurate cost accounting. Tabbing past the job number verifies that the job number exists; if it isn’t correct, the job Lookup List opens listing open jobs. Information from the job task, such as the markup and billable status, will be copied automatically to the check’s line item.

2 Enter the cost amount. The net cost is the amount the agency will pay. It is what this work cost the shop, before markups, fees, or commissions.

3 Enter a markup.

Enter the markup as a number (i.e., 17.65, not .1765). You can use any markup percentage. The gross amount is calculated automatically as the net times the markup percentage.

4 Enter the gross (i.e., billable) amount.

The gross amount can be changed to a higher (or lower) amount.

 

Mix billable and unbillable costs on the same check. The same check can be split between any combination of billable and unbillable jobs and tasks. To enter an unbillable amount, simply leave the gross amount as zero.

To make this check line item unbillable, enter the gross amount as zero. The invoice’s cost amount will update the job task, but it will not have an amount to bill the client. Also, if the job task is unbillable, the billable amount will be zero -- and can’t be changed.

5 Enter the debit G/L number, then press Tab to save this cost.

The debit G/L (i.e., dGL) is a job cost or expense account. It is copied from the job task, but can be changed.

6 Repeat these steps for the check’s remaining job costs, then click Save.

You can enter dozens of jobs and tasks onto a check’s distribution. The cost amounts on the line items are totaled, and must equal the invoice’s net amount. If the line item cost doesn’t equal the invoice cost, then the distribution cannot be saved.

Once the job cost check is saved, it can be proofed, changed, or deleted anytime before it is posted. The check doesn’t update jobs or the General Ledger until posting. Posting creates journal entries. Job cost checks don’t affect the vendor balances, since they’re not paying off invoices. Unposted checks don’t appear on job, cost, or accounting reports.