Job Costing: Control WIP

With Exordia Job Costing comes the ability to know the Work In Progress at any time - by Job, Groups of Jobs or All Jobs. The integrated WIP control process monitors the costs booked and invoiced and, because it is up to date at all times, completely eliminates the need for any period end WIP estimate.

Job Costing is primarily a cost management tool. It deals with the recognition of direct costs associated with items of work. Exordia Job Costing works with Sage Line 50 to simulate an integrated Financial and Cost Accounting System. This means that transactions are entered once only, and all the ledgers (across both programs) are balanced and reconciled. When you process a transaction in Job Costing you can choose to allocate it to a job. When you do this, details are logged in the Cost Ledger of Job Costing and the transaction is posted to the Sage Line 50 Nominal Ledger.

When you initially set up your Job Costing application you are asked to configure your Sage Line 50 nominal ledger to identify the nominal accounts you intend to use for Work In Progress and Cost of Sales. Cost transactions allocated to a job are treated as WIP and posted directly to the nominated WIP account. When you raise a bill for the job or part job, you identify the costs related to the billing. These costs are then posted to Cost of Sales and the WIP account is relieved by the same amount.

With this completely integrated process there is no need to make period end WIP adjustment journals and you can be confident that your Balance Sheet and Profit & Loss reports reflect the cost picture accurately at all times.