Job On Cost for Actuals
Generate Job On Cost is a Workbench feature provided to assist with the allocation of overhead costs to a group of jobs. It calculates the overhead cost as a percentage of Job Costs to Date for certain Activities. The overhead cost calculation can be based on Cost, Cost @ Retail or Revenue.
- The "Group of Jobs" to be charged with the On Cost is defined by a Profit Centre and by Job Group.
- The "Activities" that the On Cost is based on is defined by Activity Groups setup for this purpose.
The Generate Job On Cost function calculates the total costs (JTD), applies the specified percentage and calculates a JTD On Cost value. The process then totals all previous transactions of the same type (defined by the On Cost Activity) and deducts these from the latest calculated value to arrive at a value for the current On Cost transaction. A Control Parameter 'Job OnCost Threshold' avoids the creation of a lot of small value transactions. If we rerun the OnCost calculation for the same period and the existing On Cost transaction has not been sold then we delete the existing transaction for the period and recreate it in the current period. Where this transaction has been invoiced we create a second transaction in the period of the batch. Where you are creating an OnCost for the next period, based on the Batch Date the previous period on costs transaction are taken into account even if these have not been sold.
These On Cost transactions have a type of "Disbursement". The function provides the facility to report the calculations before any actual transactions are created and once the actual transactions have been created they can be viewed from Batch Control via the Disbursement Batch List report.
The On Cost process also allows the creation of a revenue only 'On Cost' transaction on a job. This provides for the situation where one or more margins are to be added for Input Based invoicing. E.g. where we want to create two transactions on a job, one for a 5% margin and a second for a 12% margin. These would have a retail value on the transaction, but no cost.
Under 'Transaction Created' there are two options :
'Cost and Retail' - if this is selected then the Disbursement transaction created will have a Cost value, as per the existing standard basis of the selected Cost Allocation. The Retail value will then be the standard Retail based on the pricing rules on the Activity Code and/or the Price Code of the job. This is the existing standard process and is the default selection option.
'Retail Value Only' - if this is selected then the Disbursement Job Transaction will be created as for 'Cost and Retail' above, but the Cost value will then be set to 0.00 and the Retail Vales will be calculated using the % in the Job OnCost form.
Job On Cost for Estimates
You can set up a selected Job Group that every time you add a budget it will automatically calculate a budget On Cost line.