Microsoft Dynamics® NAV 2009

Job Costing

Introductions

Course Description

• Audience– Microsoft Dynamics Certified Partners’

employees selling, implementing, and supporting Microsoft Dynamics NAV® 2009

• Training Goal:– Become proficient in Job Costing

• Process:– Remote training (Live Meeting), self-study, Test

Your Knowledge questions, labs

Course Outline

• Jobs Overview• Jobs Setup• Usage Posting• Invoicing Jobs• WIP Concepts• Advanced Facilities

Course Objectives

• To provide an overview of the job costing workflow

• To instruct on how to set up, manage, monitor, and analyze jobs in Microsoft Dynamics NAV 2009.

Session 1

Outline:• Jobs and their elements• Data workflow• Setting up Role Center• Setting up job posting groups• Setting up a job and planning a job• Job Usage• Invoicing• Monitoring and Analysis

What are jobs?

• Job – a specific task that is performed at a work center and is part of a scheduled operation.

• Purposes:– Planning a job– Handling job task(s)– Monitoring progress– Analysis: planned costs and revenues, versus

actual costs and revenues

Workflow

Planning(expected usage and revenue)

•Job Card•Job task lines•Job planning lines (Schedule/Contract)

Execution andMonitoring

(actual job usage and revenue)

•Job Usage (job journal, job G/L journal, purchase lines)•WIP calculation and posting•Invoicing

Finalizing andAnalysis

(final job usage and revenue)

•WIP entries•G/L entries•Recalculation of WIP and posting WIP to G/L

General Setup

• What must you set up before working with Job Costing?– Role Center– Job posting groups

Role Center

• Role Center Setup• Typical roles: – Program manager– Accountant

Job Posting Groups

Jobs

Job posting groups•WIP accounts•Cost/sales applies and adjustment accounts

•G/L expense sales accounts

G/L:•WIP cost accounts•WIP sales accounts

Job Setup and Planning

Job Card

Job Task

Job Planning Line

Job Planning Line

Job Planning Line

Job Task

Job Planning Line

Special Prices (items, resources, G/L accounts)

Job Card

• General information• Posting Setup:– Job Posting group– WIP Method

• Job Status• Job Duration• Foreign Trade• WIP and Recognition• Copy Job Function

Job Tasks Lines

• Job task lines define the tasks to be performed for the job

• Similar structure to Chart of Accounts• Job Task Types:– Posting– Heading– Total– Begin-Total– End-Total

Job Planning Lines

• Job planning lines contain the expected consumption and sales for the job

• Line Types:– Schedule– Contract– Both Schedule and Contract

Job Usage

• Job usage is consumption of materials, resources, and other expenses

• Posting job usage:Posting Job Usage

Job Journal- items

- Resources- Extra usage

Job G/L Journal- Additional expenses

Purchase line- Items not available on stock

Job Task

Job Ledger Entry(Sales/Usage)

Sales Invoice

Planning Line (Contract or Both Schedule and

Contract)

Invoicing a Job• Jobs can be invoiced after the job is finished or at certain intervals during

the job progress, depending on the invoicing schedule

• Usage ledger entries result from posting the job journal, job G/L journal, purchase invoice, and purchase credit memo.

• Sales ledger entries result from posting the sales invoice or sales credit memo

Job Analysis and Statistics

• Job task lines• Statistics:– Job statistics– job task lines statistics

• WIP and recognition statistics• Job Actual to Budget Report• Job Analysis Report

Session 1 Summary• Job Costing general setup:

– Role Center (project manager, accounting manager)– Job posting groups

• Job setup:– Job card– Job planning: task lines job planning lines

• Job handling– Posting job usage (job journal, job G/L journal, purchase line)– Issuing an invoice (only Contract or Both Schedule and Contract lines

can be invoiced)

• Job monitoring and analysis (job task lines, statistics, Job Actual to Budget report, Job Analysis report)

Session 2

Outline:• WIP concepts• Calculating WIP and recognition– Excluding a task from WIP calculation

• Posting WIP and recognition to G/L• Finalizing a job• Handling job payment by installments• Handling jobs in foreign currency• Issuing a credit memo• Item Tracking in Job Costing

WIP Concepts

• Work In Progress (WIP) indicates the financial value of a job that is not considered to be a final product, but must still be accounted for because funds have been invested toward its completion.

• WIP is generally calculated and posted to G/L for the majority of job, especially lasting for a long period of time. When a user does not post WIP, it means that the General Ledger will show expenses and revenue when they occur.

• WIP can be recalculated even after the job receives the status of Completed.

WIP Amounts and Methods

• WIP amounts (sales, cost, recognized, accrued amounts, and so on) that can be calculated and analyzed, depending on the WIP method used for calculation:– Cost Value– Sales Value– Cost of Sales– Percentage of Completion– Completed Contract

Calculating WIP and Recognition• WIP can be calculated as many times as needed.• WIP and recognition are calculated simultaneously.• WIP is recalculated if there are changes in the posted job

usage.• WIP is only a temporary registration and WIP is recalculated

and posted to G/L again after the job receives status Completed:– For Completed Contract method: to post the recognition of revenue

and costs for the job– For all other WIP methods: to reverse the last recognition postings for

the job and post the final recognized profit for the job

Posting WIP and Recognition to G/L

• Calculated WIP and recognition is not reflected in the G/L until you post the WIP values to G/L

Job

WIP entries

G/L entries

Finalizing a Job

Two general scenarios of finalizing a job: No WIP posted to G/L WIP has been calculated

and posted to G/LPosting final job usage

Final invoicing

Job status - Completed

Calculating WIP and posting WIP to G/L

Posting final job usage

Final invoicing

Job status - Completed

Recalculating WIP and posting WIP to G/L again

Excluding a Task from WIP Calculation

• Excluding a task that has gone out of budget from WIP calculation can help to avoid carrying the task’s unexpected result through the whole job.

• Manipulating the WIP-Total field for an End-Total task to exclude it from WIP calculation:

Posting Usage

Calculating WIP

Invoicing the off-schedule task

WIP-Total = Closed

Calculating WIP(the off-schedule task is excluded)

Payment by Installments• The payment of long term jobs is often split into several parts

(installments).

• When the agreed date to pay an installment comes, the project manager invoices the job task line of the Posting type that corresponds to that installment.

Job Card

Job task

Job planning line of the Contract type = installment

Job task

Job planning line of the Contract type = installment

Job task

Job Planning Line of the

Schedule type

Job planning line of the

Contract type

Handling Jobs in Foreign Currency• The setup on the Foreign Trade FastTab on the job card defines the

currency policy for the job• Two scenarios of handling a job in FCY:

1Setup and

managing in LCY

Invoicing in FCY

2Setup and

managing in FCY

Invoicing in FCY

Issuing a Credit Memo

• Credit memos can be issued for job planning lines of type Contract or Both Schedule and Contract

• Creating a job planning line with the negative value

• Posting the credit memo

Item Tracking in Job Costing

• Job item tracking is integrated into the general item tracking functionality.

• To track a job item, the item’s serial or lot number is used .

• Item tracking information is specified from purchase and job journal lines.

Session 2 Summary• WIP concepts:

– WIP is used to temporarily evaluate the financial value of the job and reflect this value in the G/L.

– WIP calculation includes the calculation of recognition.– WIP can be recalculated as many times as necessary, even after the job received status

Completed.– Excluding a task from WIP calculation can help to avoid carrying the task’s unexpected

result through the whole job.• Finalizing a job: For jobs with WIP posted to G/L, after the job receives status

Completed, WIP must be calculated and posted to G/L again.• Job payment by installments is handled through splitting payment into several

planning lines of type Contract.• You can plan a job in LCY and then invoice it in FCY or do both planning and

invoicing in FCY.• A credit memo is created from a job planning line with the negative value.• Job Costing is integrated into item tracking functionality; item tracking information

is specified from purchase or job journal lines.

Course Summary• Job Costing is used for handling, monitoring, and analyzing projects• A typical job includes the following stages:

– Setup and planning– Posting job usage (consumption of items, resources, and various expenses)– Invoicing (the whole job or an installment)– Calculating WIP and recognition– Posting WIP and recognition to G/L– Posting the job completion

• Advanced job costing facilities include:– Excluding a task from WIP calculation– Handling jobs in foreign currency– Issuing a credit memo for a job– Handling job payment by installments– Tracking job items using the item tracking functionality

Q & A

Questions & Answers