IMPACT Project Management and Advanced Job Costing. Presented by Henry Lubas. May 5,

Transcription

1 IMPACT 2015 Project Management and Advanced Job Costing Presented by Henry Lubas May 5, 2015

2 Agenda Introductions Session Objectives Enhance your usage and understanding of Sage 100 Contractor Project Management Elements of effective Job Costing Provide tools to understand the profitability of your projects Question and Answer

3 QUESTION: What is Project Management? Financial Project Management AIA Progress Bills Subcontracts/Purchase Orders Change Orders Subcontractor Change Notices Document Project Management RFI s Submittals Daily Field Reports Operational Project Management Scheduling Time Keeping

4 Elements of Effective Job Costing Cost Code Structure Budgets Capturing Costs by Cost Code Procedures to Insure Proper Cost Capture Applying Budgets to Change Orders Monitoring Costs - Reporting Budgets Verses Actual WIP Reporting Cash Flow by Job

5 Advanced Job Costing COST CODE = the Work Performed COST TYPE = Who did the work Example: Demolition is the work performed (cost code). A Subcontractor (cost type 4) did the work. How many cost codes should you have? A good average is 75 or less for GC s. The basic rule of thumb: if the field will not or cannot tell you what they did (cost code) then do not bother having too many codes.

6 Advanced Job Costing BUDGET= YOUR Cost for the job NOT including Overhead or Profit PROPOSAL or SOV = the CLIENT s Budget Whenever you see budget in Sage it is ALWAYS the internal cost budget never the client s billing budget.

7 Advanced Job Costing Cost Capture Procedures Define Default Cost Codes by Vendor Use Subcontracts/Purchase Orders with Cost Codes Turn on: Budget Verification in AP Budget Verification in PR Subcontract Warnings Purchase Order Warnings Automatic Job Costing Button in AP Use Alerts Exceptions

8 Advanced Job Costing Change Order Processing Change Order Types Increase of Scope Customer Request Cost Event Budget Busters Cost Reallocation Change Orders can be generated from Sage estimating Use Change Order Budget and Subcontract Change order Tab!

9 Advanced Job Costing Monitoring Costs Useful Homebuilder Reports- for GC s! Job Settlement Major Components for almost all Advanced Job Cost reports: Budgets from 6-2 Change order Budgets from Actual Costs from 6-3 Committed Costs from Purchase order Committed Costs from Subcontracts Change Order Est Profit from 6-4-1

10 Advanced Job Costing Monitoring Costs Dissecting the Job Settlement Report Budgets Original Budget Revised Budget Budget Only Change Order Upgrade Budget Actual Costs Committed Costs

11 Advanced Job Costing Monitoring Costs Common Mistakes No Budgets (budget verification?) Budgets not Updated after Buy Outs Change order budgets not applied (budget verification?) Cost Code mistakes (budget verification and over budget warning?) Not applying AP transactions to commitments (vendor defaults?) Not using Automatic Job Costing button in AP Invoice screen

12 Advanced Job Costing Monitoring Costs Over/Under Billing Report and 31 (Legal size paper required) Hint: use Job Type to filter out jobs not needed on this report Not just for bonding companies! Use to adjust monthly financial statements for accurate picture of business health Requires, budget, change order budget, proper cost coding etc. Period specific pay attention to the period button on change orders See also, bonding report

13 Advanced Job Costing Monitoring Costs To Completion Analysis Cost to Complete Use to generate budget only change orders Hours to Complete Units to Complete 6-8-3

14 Advanced Job Costing Monitoring Costs Other Useful Reports Job Cost Journal Job Profitability Combined Contract Committed Costs Committed Costs Developer Committed Costs with Cost to Complete Committed Budget/Cost Variance by Cost Code

15 Advanced Job Costing Monitoring Costs Advanced Topics Direct Job Cost Entry 6-3 (and the reconciliation report) Adjusting Job Costs can use 1-3 or 6-3 Service Work Order Costing Job is required. Job Cost Reconcile per period 6-3 Options

16 Questions? Presenter Henry Lubas (732) Follow-up Inquiries Krista Sackman (800)