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Level 2

service oriented company, no inventory, how to set up job costing? steps to set up job costing.

every answer always is either for the online version of QB or is inventory related.  I need some steps to set up job costing for each contract we have.  We do not have estimates, we have actual contracts which we reduce when we do each service.  I need to know how to set up job-costing centers in the enterprise to charge the expenses to each contract and be able to run reports on those jobs and sub-jobs.

8 Comments
Level 15

Re: service oriented company, no inventory, how to set up job costing? steps to set up job costing.

In desktop you have a customer, then a job (your contract) under it

 

in edit>preferences turn on billable expenses, When you pay for an expense mark it billable if you plan on putting that expense on the invoice, or leave the billable mark unchecked and just select the job.

 

On the job screen in the customer center you can run a job profitability report

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Moderator

Re: service oriented company, no inventory, how to set up job costing? steps to set up job costing.

I appreciate you for bringing this concern in the Community, Carolexx.

 

Here's how to set up job costing:

  1. Select Edit from the main menu. Then, Preferences.
  2. Select Accounting from the left menu.
  3. Click the Company Preferences tab.
  4. Make sure there is a checkmark in the Use class tracking box.
  5. Hit the OK button.
  6. Then, let's select again the Edit from the main menu.
  7. Select Payroll and Employees from the list.
  8. Select the Company Preference tab.
  9. Tick the  Job Costing, Class and Item tracking for paycheck expenses box.
  10. Then, select between tracking the by Entire Paycheck or Earnings item.

 

You can run job reports by going to the reports menu. Then, click Select Jobs, then select Time, & Mileage. Also, I'm including an article where you can learn on how to track expenses by job.

 

Visit again if you need further assistance with the job costing. The Community is always here.

Level 2

Re: service oriented company, no inventory, how to set up job costing? steps to set up job costing.

Maybe I wasn't clear.  I am setting up a new company in enterprise and bringing over portions of the company from online because we hated the online version.  I need to know if there is anything else I should put into this new company in order to run the job costing reports.  I thought I saw something that said if job costing isn't set up in quickbooks, the reports won't run so I was thinking maybe I have to transfer customers to items and put in the job information in the items area of quickbooks but your saying that is not necessary as long as we have T-sheets, assisted payroll and it will automaticall figure out the expense and post it in the invoice?  correct or do I need to fill in items with the customers name and information on each job?

Level 2

Re: service oriented company, no inventory, how to set up job costing? steps to set up job costing.

when I try to follow the steps for setting up job costing in quickbooks, I get to the area in the payroll items list and click edit payroll items, the box that comes up just says advance earned income credit???  Then if I choose to click next "payroll liabilities" comes up and if I click next again, a list of deductions from the paycheck are listed.  what am I doing wrong?

Level 2

Re: service oriented company, no inventory, how to set up job costing? steps to set up job costing.

do I have to set up my customers (jobs) in items in order for this to work?

Moderator

Re: service oriented company, no inventory, how to set up job costing? steps to set up job costing.

Yes, you need to set them up in QuickBooks Desktop, Carolexx.

 

I appreciate your effort in following the steps on how to set up job costing in QBDT. However, you need to create a new payroll item instead of editing them. Here's how:

  1. Go to Lists, select Payroll Item List.
  2. Select Payroll Item drop-down at the bottom part.
  3. Select New.
  4. You can either select the EZ Setup or Custom Setup in creating a new item.
  5. Click Next, then Finish.

As mentioned by @Rustler, we need to turn on Billable Expenses. This is to track the customer's expenses for the specific job. Here's how:

  1. Go to the Edit menu, select Preferences.
  2. In the left panel, select the Time & Expenses tab.
  3. Select the Company Preferences tab.
  4. Make sure to chekmark the Mark all expenses as billable box.
  5. Click OK.

I'll be right here if you need more help with the process.

Level 2

Re: service oriented company, no inventory, how to set up job costing? steps to set up job costing.

You indicated I should edit my lists payroll item list when I go to the payroll item list and go to new, Ex Setup, what am I creating and will it override what is in there now?  Right now in this list, there is sick leave, vacation, SS, supplemental pay, medicare, hourly vacation, sick vacation, and expenses that look like they are being charged to a job perhaps.... will all the items in the list right now be deleted or overridden?

 

I don't do the payroll and so am unfamiliar with how it is set up.  This part of the company was set up by our Payroll girl. 

 

I guess my question is, if I continue with the EZ set up is it going to eliminate all these other items listed in the Payroll item list?   

QuickBooks Team

Re: service oriented company, no inventory, how to set up job costing? steps to set up job costing.

Adding a new payroll item using the EZ Setup will not override the previously created items, Carolexx.

 

It will only create an item add on it on your Payroll Item List. If you want to remove or delete the old ones, double-click on the payroll item and check the Payroll item is inactive box. You can also right-click on it and select Delete Payroll Item

 

Please see these articles about editing payroll items for more info:

 

Please take note the expenses for these payroll items are only passed on if the correct job is tagged when creating paychecks.

 

Jobs are also set up in the Customer Center and not as an item. See this article for more info: Tracking Job Costs In QuickBooks Desktop

 

I'll be around if you need more help while editing and adding new payroll item. 

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