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 1Outline:• 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 • Job Card Planning • Job task lines (expected usage and revenue) • Job planning lines (Schedule/Contract) • Job Usage (job journal, job G/L journal, purchase lines) Execution and • WIP calculation and posting Monitoring (actual job usage • Invoicing and revenue) • WIP entries Finalizing and • G/L entries Analysis(final job usage and • Recalculation of WIP and posting WIP to G/L revenue)
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 Setup and Planning Job Card Special Prices(items, resources, G/L accounts) Job Task Job Task Job Planning Line Job Planning Line Job Planning Line Job Planning Line
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 Purchase line - items Job G/L Journal - Items not available on - Resources - Additional expenses stock - Extra usage
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 Job Task Planning Line (Contract Job Ledger Entry or Both Schedule and Contract) (Sales/Usage) Sales Invoice• 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 2Outline:• 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 JobTwo general scenarios of finalizing a job:No WIP posted to G/L WIP has been calculated and posted to G/LPosting final job usage Calculating WIP and posting WIP to G/L Final invoicing Posting final job usage Final invoicing Job status - Completed 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 Invoicing the off- Calculating WIP schedule task Calculating WIP WIP-Total = (the off-schedule Closed task is excluded)
Payment by Installments• The payment of long term jobs is often split into several parts (installments). Job Card Job task Job task Job task Job planning line Job planning line Job Planning Line Job planning line of the Contract of the Contract of the Schedule of the Contract type = installment type = installment type type• 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.
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: Setup and Invoicing in 1 managing in FCY LCY Setup and Invoicing in 2 managing in FCY 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