Hello Plamen, FYI, regarding discrepancy between the unit price on the job, unit price on the PO and the unit price on the vendor's invoice, the system will automatically adjust the cost on the job to match the unit price on the vendor invoice.
The unit price on the subcontract operation on the job will show on the production detail report under estimated costs. When the PO is linked to the job, the unit cost from the job operation will populate the PO unit cost, which can then be changed on the PO if necessary.
At the time the PO (containing the estimated unit price) is received (DR WIP, CR AP Uninvoiced)then run the production detail report and you will see the estimated job cost reflects the estimated unit price from the job operation and the actual cost on the job will match the estimated unit price from the PO.
When the vendor invoice is posted and the unit price does not match the PO unit price, they system will automatically adjust the value in WIP (this can be seen in the Invenotry/WIP reconciliation report) and will hit the GL (DR AP Uninvoiced, CR AP). Run the production detail report and you will see that the actual cost on the job now matches the invoiced price from the vendor invoice.
Glad I could help.
Virginia
The unit price on the subcontract operation on the job will show on the production detail report under estimated costs. When the PO is linked to the job, the unit cost from the job operation will populate the PO unit cost, which can then be changed on the PO if necessary.
At the time the PO (containing the estimated unit price) is received (DR WIP, CR AP Uninvoiced)then run the production detail report and you will see the estimated job cost reflects the estimated unit price from the job operation and the actual cost on the job will match the estimated unit price from the PO.
When the vendor invoice is posted and the unit price does not match the PO unit price, they system will automatically adjust the value in WIP (this can be seen in the Invenotry/WIP reconciliation report) and will hit the GL (DR AP Uninvoiced, CR AP). Run the production detail report and you will see that the actual cost on the job now matches the invoiced price from the vendor invoice.
Glad I could help.
Virginia
--- In vantage@yahoogroups.com, "plamen21" <plamen21@...> wrote:
>
> Hello Virginia,
> Thank you for the detailed explanation.
> I am still testing this approach.
> We also do everything make to order so we need to bill for the permits before the sign is built/shipped.
> I got as far as advance billing and cash receipts for the Permits. Everything check out in the GL as you said so far.
> I don't have an accounting background so I appreciate the detailed instructions.
> The Advance Billing invoice will need manual manipulation to show "Permits" and "Procurement" instead of the part being made., and I havent't tested a discrepancy between costs on the Job and PO yet.
> I will let you know how I make out.
>
> Plamen
>
> --- In vantage@yahoogroups.com, "Virginia" <vjoseph@> wrote:
> >
> > Hello Plamen,
> >
> > > Ideally we want to find the one transaction that adds the cost to the SO/job [even if it is a Journal Entry] and just do that, and in a way that it flows in the proper GL accounts.
> >
> > As far as I know, the single transaction you are hoping for does not exist.
> >
> > Here is how we handle these situations If we are charging our customer for permits/fees etc. Please keep in mind that everything we do is make to order. In this scenario we do not make anything to inventory and do not ship from inventory. All our parts are set-up with the Average costing method.
> >
> > 1) To the appropriate SO line we add a line miscellaneous charge for the value we want to bill our customer. You can add many line miscellaneous charges to SO lines.
> > 2) On the job we add a subcontract operation and enter the Unit Cost (if the exact cost is not known until we receive the invoice from our vendor our buyers are required to enter an estimated cost)
> > 3) Link a PO to the subcontract operation
> > 4) When the permit is approved/received the PO is received by creating a PO Receipt Entry in Vantage (Receiving the PO will DR WIP-Subcontract & CR AP-Uninvoiced - Which WIP account is used is determine by the product group that we assign to the job)
> > 5) When we receive the Invoice from the vendor, the buyer must approve the amount if it is more than the estimated amount on the PO.
> > 6) The Invoice is entered unsing New Receipt line so that Vantage makes the connection between this invoice and the PO Receipt Entry. (This will DR AP-Uninvoiced & CR Account Payable)
> > 7) When the order is shipped the job costs will move from the WIP accounts to AR Clearing.
> > 8) When the order is invoiced the job costs will move from AR Clearing to the respective COS accounts.
> >
> > I know this is a long process, but it ensures that you order entry values are correct and your job costs are correct for any BAQ's / reports / dashboards you develop.
> >
> > Not the single magic bullet you were hoping for but hopefully this helps. Please call me directly if you want to discuss this further.
> >
> > Virginia Joseph
> > Deep Hole Specialists, LLC
> > 440-543-8157
> > vjoseph@
> >
> >
> > --- In vantage@yahoogroups.com, "plamen21" <plamen21@> wrote:
> > >
> > >
> > > Vantage 803.407
> > >
> > > Many of our manufactured parts require Permits and Permit Procurement (for internal subcontractor) fees.
> > > We set up manufactured parts PERMITS GL-permits and PROCUREMENT with GL-Subcontractors.
> > > We enter those as separate lines on the SO/ARinvoice.
> > > We don't know how much the permit or the procurement costs, until we get it.
> > > We create jobs for each SO line and enter AP invoice Job Misc Charge to the corresponding job when we get the invoice.
> > > The problem is that these costs post to WIP Material instead of Permits and Subcontractors respectively. Then our accountant has to move them using journal entries.
> > > This approach is flawed and overcomplicated for something as simple as a fee cost.
> > >
> > > We are looking for a simple way to add costs/fees to a SO line with minimum hoop jumping though job/PO/receipt/AP inv Job charge/Journal entry.
> > > Correct me if I am wrong but it seems like we have to have a job link in order to show cost on a SO line. We can't just ship it from the SO without it showing 100% profit. One possible scenario would be to link the PERMIT and PROCUREMENT lines to the job for manufacturing the actual product and then apply the costs to that job.
> > > While the cost will be on the SO (and we like this a lot) this would not fix the GL part (subcontractor vs WIP materials)
> > > Also, the job will show we made n+2 of the product (adds 1 PERMIT and 1 PROCUREMENT). This we could possibly learn to live with.
> > >
> > > Ideally we want to find the one transaction that adds the cost to the SO/job [even if it is a Journal Entry] and just do that, and in a way that it flows in the proper GL accounts.
> > >
> > > Thanks,
> > > Plamen Cheshmedjiev
> > > Systems Administrator
> > > Art Display Co.
> > >
> >
>