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Job Costing / Why use Job Costing?

Why use Job Costing?


Without an effective Job Costing system most companies rely on their monthly accounts to indicate if they are making profits. Unfortunately accounts software rarely indicates where the profit or loss was made. On which jobs? In what department? By which operators? It cannot highlight potential production problems. In short – it gives you too little, too late!

The Estimating module gives you an estimate of your profits based on the costs you have told the system to charge. But how do you know this is correct?

To accurately monitor job costs, production time, material costs and outwork prices need to be entered into the system. Material and outwork costs can be entered manually for accuracy, or automatically created by the system when Purchase Orders are raised to save time.

Production time can either be input from paper-based timesheets or collected in real time using our optional Remote Data Capture (RDC) software. Using this software not only saves you time inputting the data, but provides live job tracking information as to where the job is in the production cycle at any time.

The Invoice Approval wizard is a step by step management reviewing tool to analyse the costs accrued for the job, compare actual with estimated figures, control additional charges to appear on the invoice, and finally, fix the invoicing price for the order. Production problems with each job are instantly highlighted.

Job Costing also provides a wealth of reporting and analyses features which are covered more in depth here.

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