How to Add Job Costs in Sage 100

Understanding Job Cost Basics

The Job Cost module in Sage 100 enables detailed tracking of costs and revenues for every project or job. Before adding job costs, it's important to understand that the system allows for integration with multiple modules including Accounts Receivable, Accounts Payable, Payroll, TimeCard, Inventory Management, Sales Order, and Purchase Order.

Setting Up Job Cost Options

Before adding job costs, you must configure the appropriate settings in Job Cost Options:

Cost Code Configuration

The system allows for flexible cost code structuring with up to nine characters divided into three segments. This enables you to:

• Break large jobs into sub-jobs using up to seven characters
• Designate phases, steps, or other categories
• Create detailed cost types for labor, overhead, and materials

Integration Settings

You'll need to enable integration with relevant modules:

Adding Direct Job Costs

Manual Cost Entry

1. Navigate to Job Posting Entry
2. Enter the job number
3. Select the appropriate cost code
4. Input the cost amount
5. Add any relevant notes or descriptions
6. Save the entry

Automated Cost Allocation

The system provides several methods for automated cost allocation:

Overhead Allocation

• Costs are automatically allocated based on work-in-process percentage
• Can be applied daily or monthly
• Burden allocation calculates indirect costs associated with labor expenses

Work-in-Process Accounting All expenses for ongoing jobs are posted to a work-in-process asset account. When the job is completed, the total unbilled cost is:

• Relieved from work-in-process
• Posted to the cost-of-goods-sold account

Managing Labor Costs

TimeCard Integration

When using the TimeCard module, you can:

• Post labor costs daily to Job Cost
• Post weekly to Payroll
• Generate Certified Payroll reports

Payroll Integration

The system allows you to:

• Expense wages directly to jobs
• Post labor expenses in detail by employee
• Post labor expenses summarized by pay period

Material Cost Management

Inventory Integration

Through integration with the Inventory Management module, you can:

• Apply transaction costs for materials allocated to jobs
• Track material usage and costs
• Maintain accurate job costing for inventory items

Subcontractor Cost Tracking

The system provides robust features for managing subcontractor costs:

• Track contract amounts and change orders
• Monitor cost detail by vendor
• View detailed transaction history of cost postings and payments

Monitoring and Reporting

Essential Reports

The Job Cost module includes various reports for tracking costs:

Financial Reports

• Daily Transaction Register
• Job Analysis Report
• Job Profitability Report
• Work in Process Report

Progress Reports

• Job Schedule Report
• Job Field Report
• Job Transaction Detail Report

Cost Analysis Features

The system provides tools for analyzing costs:

• Compare actual versus budgeted costs
• Track cost variations
• Monitor project profitability

Best Practices for Job Cost Management

Cost Code Structure

• Implement a logical, consistent cost code structure
• Use meaningful segments that reflect your business operations
• Maintain consistency across all jobs

Regular Monitoring

• Review cost reports regularly
• Address variances promptly
• Update estimates as needed[4]

Data Accuracy

• Verify all cost entries
• Reconcile with integrated modules regularly
• Maintain proper documentation for all cost entries

Advanced Features

Project Estimating

The system allows you to:

• Create detailed project estimates
• Use standard material and labor costs
• Transfer estimate information to establish budgets

Billing Integration

The module supports:

• Time and materials invoicing
• Percentage completion billing
• Fixed contract billing

Troubleshooting Common Issues

Data Integration

• Verify module integration settings
• Ensure consistent cost codes across modules
• Check posting settings for each cost type

Cost Allocation

• Review overhead allocation settings
• Verify burden calculation methods
• Check work-in-process accounting setup

Maintaining System Efficiency

Regular Maintenance

• Archive completed jobs
• Update cost standards periodically
• Review and adjust allocation methods as needed

Data Management

• Back up job cost data regularly
• Maintain detailed records
• Review and clean up obsolete data

By following these guidelines and utilizing the full capabilities of Sage 100's Job Cost module, you can effectively manage and track all job-related costs while maintaining accurate financial records for your projects. The system's integration capabilities and robust reporting features provide the tools needed for comprehensive job cost management in construction and project-oriented businesses.

Citations: [1] https://www.wix.com/blog/how-to-write-a-blog-post-with-examples [2] https://www.semrush.com/blog/how-to-write-a-blog-post/ [3] https://www.thesideblogger.com/how-to-write-a-blog-post/ [4] https://www.swktech.com/erp-resources/sage-100-resources/sage-100-job-cost/ [5] https://www.grammarly.com/blog/writing-tips/how-to-write-a-blog/ [6] https://blog.hubspot.com/marketing/how-to-start-a-blog [7] https://help-sage100.na.sage.com/2023/Subsystems/JC/JCSetupFields/Job_Cost_Options_-_Fields.htm [8] https://www.wordstream.com/blog/ws/2015/02/09/how-to-write-a-blog-post [9] https://www.jcscomputer.com/sage-100-job-cost-module/ [10] https://help-sage100.na.sage.com/2023/Subsystems/JC/JCSETUP/JC_OPTIONS_OVERVIEW.htm [11] https://www.accordantco.com/content/job-cost-tracking-in-sage-100-contractor/