Job Costing allows users to select to process transactions based upon Cost Centre codes or by Job Type Codes.
Job Costing allows the user to nominate the WIP, COGS and Revenue accounts for posting to the General Ledger at a Job Type level rather than posting based upon Cost Centre codes. Where users need to record transactions at a more detailed level, such as ‘department’ or ‘division’, within the General Ledger, then they have the option to set up processing of transactions at the Cost Centre code level as described below.
Setting processing at the Cost Centre level allows users of Job Costing to split Revenue, Work in Progress and Cost of Goods Sold to the General Ledger based on Cost Centre level settings rather than Job Type settings. This way, for example you are able to post Revenue to different General Ledger account(s) for the same job. Once this change has been made it cannot be reversed.
It is essential that users who wish to take advantage of this functionality review and if necessary update all Cost Centres and their associated General Ledger links. Please read the manual carefully before proceeding. Any user who maintains stock on hand – must stay with Job Type selection, Cost Centre level not available to those who use this functionality.
This will enable the user to create several ‘department’ or ‘division’ specific Cost Centres, and direct them to specific GL accounts. When using a departmentalised GL the user can then have a separate WIP and COGS account for each Cost Centre. This enhancement ensures this occurs at time of transaction rather than having to record a GL Journal to reclassify these transactions at end of month.