Learn how they appear in Job reports
“When did THAT happen?” Have you ever looked at a Job Cost report, and then been completely astonished a few hours later when the same report has drastically changed? You just need to learn how posted and committed costs appear in Job reports in Sage 100 Contractor to understand why that can happen.
Not all Job Reports include the same information. Some include ONLY posted costs, others include Committed Costs. Make sure to use the report that is most suitable for what you are trying to find out. Sage 100 Contractor Reports that include Open Committed Cost data are always clearly labeled.
Using the sample Committed Costs report
(Menu option 6-1-12; report #31) below:
- POSTED COSTS are costs that are already “posted” in Sage 100 Contractor; through Payable Invoices, Inventory Allocation, Payroll posting, or any other Job Costed accounting entry.
- COMMITTED COSTS are costs that almost certainly WILL be spent and are “Committed” through Purchase Orders, Subcontracts, and Accrued Labor. (The “remaining”/open amounts of these Commitments.) NO accounting entry has taken place yet; the costs are not “Posted.”
Being aware of COMMITTED COSTS provides information that is more up-to-date than reports that only show posted costs. How? There are three columns in the sample Committed Cost report below that provide the Open COMMITTED COST information.
Committed Contracts
The REMAINING amount of the Subcontract. As amounts are billed against the Subcontract, they “move” into the Cost to Date column. So, in this column, you see what you are “still committed” to pay as soon as you “commit” the money. And by the time the job is “closed out” this column should be depleted since the contracts should be billed; this serves as a nice double-check to make sure all billings have been received.
Purchase Orders
Like the Subcontract amounts above, this represents the REMAINING amount of the Purchase Order.
Accrued Labor
Completing time daily in the “Daily Payroll Screen (5-5-1)” allows the “Accrued Labor” to be added to the up-to-date information available. When this report is run, for example, a popup allows for an estimated “Labor Burden” to be entered, so a close approximation of the Labor spent can be available every day.
These open Commitments, added to the “Cost to Date” (the POSTED job costs), are then compared with the Job Budget to have a current view of the actual remaining costs, after all “commitments” are satisfied (ending up as POSTED costs).
What should I look for in my Job Cost reports?
In general, in Sage Job Cost reports, unless otherwise specified:
- BUDGETS – Original Budget + Approved Changes. SOME reports are “period sensitive” regarding the Approval Period for the Change Order.
- COST TO DATE- these are costs that have been POSTED (through an accounting entry)
- COMMITTED COSTS- Open POs and Subcontracts (unbilled balance) + Accrued Labor.
How do I get the best reports?
Each of these ACTIONS has more BENEFITS than just better reports:
- Enter Job Budgets (screen 6-2)
- Use Change Orders (screen 6-4-1)
- Implement Purchase Orders (screen 6-6-1) and/or Subcontracts (screen 6-7-1)
- Enter Daily Payroll (screen 5-5-1)- use a field time entry system to save even more time
The benefits of more up-to-date Job Cost information added to the additional CONTROL and time-saving of each of these actions are immense. Understanding whether your report is showing Open Committed or just POSTED costs will help avoid surprises, improve job management, and make more money!
Want another great article? Learn why construction accounting is different than other accounting.
by Pam Schulz, Sage Senior Certified Consultant