Question:  In setting up items I have used service and pointed them to correct revenue and COGS accounts. We want to be able to use the "actual vs estimates" report which is at the item level. Before I have put the revenue items in the estimate and then put in the estimated costs by item and had a 100% negative mark down for each item so that net for estimate is only the amount to bill client. This approach brings estimated costs to above report to compare to actuals. However not working as the cost estimates are being reflected in revenue section of atual vs estimates report at amount before 100% negative mark down. Doing something wrong - help!

 

Answer:
Use the Rate column for expenses and the Total column for revenue.  If a line item only has expenses, clear out the Total column.  If a line item only has revenue, clear out the Rate column.  Try to avoid having the Rate equal the Total because this really doesn’t give you much useful information.

I usually customize Estimates so the Cost column is actually called Cost (why it defaults to Rate is beyond me) and the Total column is called Sales Price.  This makes it easier for clients to remember because these are the same names used in the Items List.

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Written by Ruth Perryman, CMA, CFE, CFM, MBA, DPA (ABD)

Ruth is the president of The QB Specialists, an Intuit Solutions Provider that has helped thousands of businesses throughout the United States, Canada and even the Caribbean get the most out of QuickBooks since 1996. Ruth has over 20 years of industry experience, including 5 years as a Chief Financial Officer. She is an Advanced Certified QuickBooks ProAdvisor and a member of Intuit’s Trainer/Writer Network. She is also certified in QuickBooks Point of Sale and Enterprise.

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Question:  I'm having problems getting all my expenses to show on my job costing reports.  One item to note is that I set up the initial project by making a journal entry to get the beginning balances in Quickbooks.  If it is necessary to do so, how do I account for the opening balances (my fear is balances will be double counted if I have already made the opening balance JE and then I create a purchase transaction with all the amounts so that they show up as actual in the ‘Estimate to Actual report’)? Lastly, the Estimate report shows all balances I entered as estimates as Revenue, under the title Service.  Is this possible to change?

 

Answer:
In order for the job costing reports to display properly, you need to use the Items tab insted of the Expenses tab on your purchase transactions (bills, checks, credit card charges).  This is because most of the job costing reports are based on your items, not your chart of accounts. 

Since journal entries don’t have an item field, you’ll have to trick QuickBooks into doing what you want with a $0 transaction.  Since these are purchase transactions, I’d use a $0 check.  Start by creating a bank account called Clearing Account in Lists > Chart of Accounts so that you don’t clutter up your regular checking account with a bunch of $0 checks.  Then go to Banking > Write Checks, select your clearing account for your bank account, enter in your items on the Items tab with a positive amount and enter the expenses you've already entered with your journal entries on the Expenses tab with a negative amount.  Always put a Customer:job on the Items tab, put it on the Expenses tab only if was also included on your journal entries  Once you’re done, check both your Profit & Loss by Job (which is based on your chart of accounts) as well as one of your job costing reports to make sure everything looks correct.

As for the estimates, the Amount column is your estimate expenses and the Total column is your estimated revenue.  If you have a line that’s only for expenses clear out the Total column.  If you have a line that’s only for revenue clear out the Amount column.  If you have a line for both, put your expense estimate in the Amount column and your revenue estimate in the Total column.  You can use the Markup column to help you determine the revenue (you can use either a $ or % for markup).

If we helped solve your problem, please consider spending a minute or two posting a review for us. ____________________________________________________________

Written by Ruth Perryman, CMA, CFE, CFM, MBA, DPA (ABD)

Ruth is the president of The QB Specialists, an Intuit Solutions Provider that has helped thousands of businesses throughout the United States, Canada and even the Caribbean get the most out of QuickBooks since 1996. Ruth has over 20 years of industry experience, including 5 years as a Chief Financial Officer. She is an Advanced Certified QuickBooks ProAdvisor and a member of Intuit’s Trainer/Writer Network. She is also certified in QuickBooks Point of Sale and Enterprise.

For more QuickBooks Tips & Tricks, subscribe to her monthly newslettter.

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Question:  I run an excavating company with over 100 pieces of equipment to operate. I want to track the hourly cost of each piece used and have that cost go to job cost reports as equipment. For instance: a dozer is used for 3 hours on a job for clearing topsoil. I assign its cost as $70/hr. I want to see $210 show on my job's cost report as Equipment: Clearing Topsoil. Any idea on how to do that?

 

Answer:
You can use $0 checks to create job costing burdens that don't have associated expenses.  Just keep in mind that since these expenses aren't real, the total costs shown on your job costing reports are going to be higher than the total expenses on your Profit & Loss report.

1.  Go to Lists > Chart of Accounts and create two clearing accounts - a bank account and a cost of goods sold account.  I like to name them something like clearing - should be $0.

2. Go to Lists > Items List and create an other charge item for the rental.  Enter $70 for the Amount and the cost of goods sold account you created in Step 2 for the Account.  Do not make this item two-sided.

3.  Go to Banking > Write Checks.  Select the clearing bank account created in Step 1 for Bank Account. 

4.  Select the Items tab and enter the rental item you created in Step 2 for the Item.  Enter the Qty (hours) and the Customer:job. 

5.  Select the Expenses tab and enter the clearing cost of goods sold account created in Step 1 for the Account and a negative for the Amount to bring the total check to $0.  Do not enter a Customer:job on this tab.

6.  If everything was entered properly, both clearing accounts should still have a $0 balance but the job costing reports will show a balance for your rental under Other Charges.  You might want to modify some reports so that accounts with $0 balances are hidden (Modify Report > Advanced > Display Rows Non-zero).

If we helped solve your problem, please consider spending a minute or two posting a review for us. ____________________________________________________________

Written by Ruth Perryman, CMA, CFE, CFM, MBA, DPA (ABD)

Ruth is the president of The QB Specialists, an Intuit Solutions Provider that has helped thousands of businesses throughout the United States, Canada and even the Caribbean get the most out of QuickBooks since 1996. Ruth has over 20 years of industry experience, including 5 years as a Chief Financial Officer. She is an Advanced Certified QuickBooks ProAdvisor and a member of Intuit’s Trainer/Writer Network. She is also certified in QuickBooks Point of Sale and Enterprise.

For more QuickBooks Tips & Tricks, subscribe to her monthly newslettter.

Looking for QuickBooks Point of Sale or Enterprise? Call 800-707-0940 or email us to save up to 46% off!

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