Job costing is a accounting based strategy used to track the job which is given to you. For an accounting system to support job costing, It should allow job numbers to be assigned to individual items of expenses and revenues. A job can be defined to be a specific project done for one customer, or a batch of units of the same type that are produced together or a single unit of product manufactured.
To apply job costing in a manufacturing setting involves tracking which “job” uses various types of direct expenses such as direct labor and direct materials, and then allocating overhead costs to the jobs which includes indirect labor, warranty costs, quality control and other overhead costs. A job profitability report is like an overall profit & loss statement for the firm, but is specific to each job number.
Job costing might enter into entire costs involved in a construction job or in the manufacturing of goods done in discrete batches. These costs are recorded in ledger accounts throughout the life of the job or batch and are then summarized in the final trial balance before the preparing of the job cost or batch manufacturing statement.
Project Cost Management
Project cost management is involved in understanding the procedures, policies and documents that will be used for planning, executing, and controlling project cost. The main output of this process is a cost management plan. Estimating costs is a very important part of project cost management.
Now let’s talk about project costing,
Project costing fall into a category of job costing systems with a lot of vivid features.
Track profitability by job / customer is one of that featureswhich job costing possess. Tracking profitability for each and every deal is a unique advantage that Job costing has for your business.
Consolidate multiple jobs into a single project is another aspect of Project costing process which has to go in the front. Job costing is a part of ERP systems
helping the business to grow in a path which was not aware before. But now when we come to know about these amazing things which can transform your business, I say go for it without any hesitation.
An Invoice by fixed price or actual usage is something every company dream about, now thats a feature to be pointed out from Project costing. It’s great to have a invoice by fixed price or for an actual usage, now that is a key feature of project costing which has to be listed on top.
Track sub-contractor work by using job costing software
To Track sub-contractor work from anywhere anytime is -an icing on the cake feature of Project costing. It is that very simple nowadays to track your sub-contractor work from home. Isn’t that cool, It feels the same for me to have a Project costing software within my hands. In order to have my hands free.
It is now easy to produce Easily process time sheets by your job. Is your time sheet process taking your time away. Don’t worry, I assure you can overcome these kinda things just by leaving your business into ERP systems which includes project costing. which means your time sheets are processed easily.
Project costing will generate purchase orders directly from a job. Yes you heard it justify,project costing generates purchase orders directly from a Job. Project costing makes this possible for you in no matter of time.
If Extensive labor and material tracking options are the one you are seeking for. I immediately give you my word ” try Project costing process under Job costing in ERP which will definitely grow you and your business into unimaginable heights”.
Ever wondered” quote acceptance or service call to completion and invoicing” would be that very easy to access, now it is made possible at your fingertips. Yeah now it is, with job coasting ERP.
Weather, Progress payment or retention invoicing every process gets fastened with project costing which falls into Job costing under ERP.
Easy comparison of quoted and actual costs only gets compared this seriously and accurately under a good project costing under a capable ERP software.
So, be seriously involved in with these kinda technologies and gather quick success with a perfect ERP software implementation with Bssam Infotech, a trustworthy ERP software company who looks forward a great impact in our society by uplifting a business to a futuristic level.