Anchor | ||||
---|---|---|---|---|
|
Setting up accounts involves the following, set up in the order displayed:
Table of Contents |
---|
Setting up division accounts
Setting up payroll and overhead offset accounts
Setting up revenue accounts
Setting up invoice accounts
Assigning default master cost codes
Setting up payroll and overhead offset accounts (optional)
|
Anchor | ||||
---|---|---|---|---|
|
Anchor | ||||
---|---|---|---|---|
|
...
- Choose Microsoft Dynamics GP > Tools > Setup > Job Cost > Account Setup > Division Accounts.
- Choose a Division. You must set up accounts for all divisions.
- Enter account numbers. You must enter a general ledger account for all cost elements, even if you do not plan to use them. If you are adding a new account, a message appears asking if you want to add this account. If you choose Yes, another message appears asking what type of account you want to add. Choose Posting, complete the Account Maintenance window, and choose Save.
Choose Save.
Note
...
If you change accounts, the new account number takes effect for all new transactions posted to this division and cost element. Any unposted transactions saved to a batch before you changed the division account will post with the account number at the time of data entry.
- To print the Division Accounts report, choose Print. You can also print the Detail Codes List report to verify the debit general ledger posting accounts for a job's cost codes. See the Job Cost Dexterity Detail codes list report in the Reports manual or help file. Go to Help > Signature Manuals or Help > Signature Help.
...
You can copy an existing division and its accounts to save time.
Note |
---|
...
You must have marked the Payroll Overhead Detail Distribution check box during posting setup to copy overhead accounts. See Choosing posting options. |
- Choose Microsoft Dynamics GP > Tools > Setup > Job Cost > Account Setup > Divisions.
- Enter a Division to copy.
- Choose Copy.
- Enter the name of the new division in the Copy Division window.
- Choose Copy. The division is created, and the accounts are copied to the division. The new accounts are reflected in the following windows:
- Division Accounts Setup
- Payroll and Overhead Offset Account Setup
- Revenue Recognition Account Setup
- Invoice Accounts Setup
- Default Cost Codes
...
You can set up offset accounts to overhead and payroll for jobs to the employee's payroll department, which may or may not be the employee's home department. This allows more granularity and detail when employees perform work under a different payroll department.
Many Many companies set up payroll so that all employee wages and overhead burdens such as benefits, taxes, and tool costs charge to the Payroll departments such as electrical or excavation and these departments have managers that carry P&L responsibility. Jobs and service calls are assigned to divisions and may use resources from multiple departments.
As costs hit jobs, an offset account is credited, and a Cost of Goods Sold Account is debited so financial reporting can be done by division. Often, though, this offset is only at a company level instead of a Payroll department level, so department profitability can skew as a result.
You can assign accounts at the department level, and further down at the pay code, overhead code, or cost element level. This is accomplished in one window: Payroll and Overhead Accounts Setup.
Example scenario: If a member of the Electrical department, in the Residential division, works on a Job in the Commercial division for 30 of 40 hours in a week, the costs of the member's benefits and tools costs for all 40 hours go to the Electrical department but 30 hours' worth of revenue is generated in the Commercial division. As a result, the division has profit, even with the Cost of Goods Sold amounts that it carries, and the Electrical department does not. If this happens often, financial reports can start to indicate that the Electrical department and even the Residential division is not contributing to profitability.
Note |
---|
...
At minimum, you MUST assign an All - Default: REQUIRED account for each origin/account type combination in the account tree. However, this account would only be used if you did not have accounts assigned anywhere in the individual Division tree levels. |
You can access the Payroll and Overhead Offset Accounts Setup in the following ways:
...
This window is organized in a hierarchical tree. There are main branches and sub-branches, like main folders and sub-folders in a Windows Explorer environment.
Origins represent the product areas: Job Cost, Service Invoice, and Service Maintenance.
Account Types represent the types of offset charges for which accounts will be assigned. These include Gross Pay Offset, Overhead Offset, Travel Offset, and Expense Offset.
The highest level of the tree is Division; the next highest is Department. The next level depends on the origin/account type combination.
Each level contains a Default and All branch. Default is used when you want to assign a default account for that department, pay code, and so on, one is not needed at a lower level, such as per pay code, overhead code, or cost element. All is used when you know that there will be no specific accounts, and one account will suffice. Even the lowest levels within a hierarchy (Pay Code, Overhead Code, or Cost Element) have Default and All.
The ONLY required default account for the entire tree is the All - Default: REQUIRED account. You must assign a REQUIRED account for each origin/account type combination. However, this account would only be used if you did not have accounts assigned anywhere in the individual Division tree levels.
The hierarchy for each origin/account is illustrated below.
Preparing to set up accounts
The Payroll And Overhead Offset Accounts Setup window provides a lot of flexibility in setting up accounts. Before you begin assigning accounts, jot down how general or specific you want charges, expenses, and so on to be charged to what accounts, for which departments. Perhaps you could print the origin/account type diagrams above, and mark which levels for which you will assign accounts. If necessary, organize and enter your accounts in a spreadsheet, and use that as your source when you to enter them into the system.
Setup requirements for account types
Please review the following setup requirements for setting up offset accounts.
- Overhead OffsetYou : You can enter accounts for individual overhead detail codes (Job Cost) only if the Payroll Overhead Detail Distribution check box in the Posting Options window is marked. You can still assign a default account that would be used for all for overhead codes.
- Travel Offset Accounts and Expense Offset AccountsYou : You can enter accounts for travel and expenses only if Signature TimeTrack is registered and the Create Expense/Travel Transactions option is set. This applies to all origins.
...
- In the Payroll and Overhead Offset Accounts window, select the Origin and Account Type.
- Locate the Division for which you want to assign accounts. Use the tree view to navigate as far down the tree as you desire, until you hit the level at which you want to assign an account. To save time, you can navigate the tree using arrow keys. When you get to a level/node that for which you can assign accounts, the account field at the bottom of the window is enabled. Some origin/account type trees do not go as deep as others. For example, for the travel offset account type, you can specify accounts at the Pay Code level. For the expense account type, you can assign accounts one level deeper, at the Cost Element level.
- You can select an account in one of two ways:
- Double-click on the node to which you are assigning the account (ex. Pay Code). The Accounts window opens. Select an account, then click Select. The account displays in the account number in the account field. The account is saved automatically. - OR -
Highlight the node in the tree, then enter the account manually in the account field at the bottom of the window. When finished, click the Save button. (You only need to click Save when you enter accounts manually.)
Note
...
Assign more accounts; remember to assign at least
...
an All - Default: REQUIRED
...
account for each origin/account type combination. If you close the window without having assigned Default accounts, a missing required account number message will display.
- Choose OK to disregard the error and keep the window open. You will get this message until you enter the required account that the system is looking for.
- Choose Ignore to close the window.
...
In this section, we will look at a sample General Ledger after payroll has been posted, in this case, through the Signature Transaction Entry window. Included is where from within the Payroll and Overhead Offset Accounts Setup window the accounts were grabbed.
After running Signature Payroll Post, the posting journal report contains account information, including GL accounts and amounts. Below is a table of the accounts and windows/areas within Signature Job Cost from which the accounts were taken.
Area from Payroll and Overhead Offset Accounts Setup window | Account | Description | Debit | Credit |
---|---|---|---|---|
Division Account Setup - COMMERCIAL Division - Labor Cost element | 000-1410-02 | WIP-Labor-Jobs-COMMERCIAL | $2100.00 | $0.00 |
Payroll and Overhead Offset Account Setup - Gross Pay Offset Credit Account - HOUR pay code | 000-5100-00 | Salaries and Wages | 0.00 | 1070.00 |
Payroll and Overhead Offset Account Setup - Overhead Offset Credit Account - HOUR pay code | 000-4801-00 | Overhead Offset Job Cost Labor | 0.00 | 1036.00 |
Payroll and Overhead Offset Account Setup - Travel Offset Credit Account - TRAVEL pay code | 000-4800-00 | Overhead | 0.00 | 3.80 |
|
| Totals | $2100.00 | $2100.00 |
...
- Choose Microsoft Dynamics GP > Tools > Setup > Job Cost > Account Setup > Revenue Accounts.
- Choose a division from the drop-down list, then choose a Source Document.
- Choose accounts for the following categories. You must assign an account number to each revenue recognition account.
- Progress BillingsCustomer : Customer billings post to this general ledger account, which debits during the creation of revenue recognition entries for customer billings and should be the same account entered in the Invoice Account Setup window for each division.
- WIP accountsEnter : Enter WIP accounts for each cost element. These nine accounts will be the credit accounts in the percentage-of-completion journal entry for the various cost elements. If you are using percentage-of-completion or completed contract revenue recognition, these accounts should be the same as those entered in the Division Accounts Setup window.
- Billings in Excess of Cost + EarningsThe : The posting account to which amounts post for jobs with amounts billed greater than revenue earned on the job (in excess of cost plus earnings).
- Unbilled ReceivableThe : The posting account to which amounts post for jobs with amounts billed less than the revenue earned on a job (unbilled receivables).
- Prior Year Retained Earnings OffsetEnter : Enter the prior year retained earnings offset. This account is not used at the present time, but you must still enter an account for each division.
- Choose Save.
- To print the Job Cost Revenue Accounts report, choose Print. This report contains all the accounts you designate for revenue recognition.
...
- Choose Microsoft Dynamics GP > Tools > Setup > Job Cost > Account Setup > Revenue Accounts. The Revenue Recognition Account Setup window opens.
- Choose the Revenue and Exp Accounts button.
- Choose accounts for the following categories:
- Contract EarnedThe : The contract earned account, which is the posting account to which revenue amounts for open jobs post when the percentage-of-completion journal entry is created. Typically, this is a sales-open jobs account.
- EXP accountsEnter : Enter expense accounts (EXP) that are debit offsets to the accounts entered in the WIP fields in the Revenue Recognition Account Setup window during the percentage-of-completion journal entry.
- Choose Save.
...
- Choose Microsoft Dynamics GP > Tools > Setup > Job Cost > Account Setup > Invoice Accounts.
Choose a division from the drop-down list.
Note
...
The invoice posting accounts are updated when you post invoices for a job assigned to this division. You must enter accounts for each division.
Choose an invoice posting option and the appropriate general ledger posting accounts based on the invoice posting option you selected:
Option 1 - Single sales account Option 2 - Sales account for each cost element/code Choose this option if...
...you use the percentage-of-completion or completed contract revenue recognition method.
The single sales account method designates that one general ledger account updates when you post Job Cost invoices to the selected division.
When an invoice is posted with this option, the typical general ledger entry debits an accounts receivable account and credits a progress billings account....you want to update designated sales posting accounts assigned to each cost element when you post Job Cost invoices to the selected division.
Typically, you use this method to recognize revenue when issuing invoices. This option allows you to compare amounts billed for each cost element. For example, if you want to know the total amount of labor sales, all labor sales amounts are posted to one general ledger account. Each sale from a cost element posts to its specific account.
Note: You cannot choose option 2 if you are using the percentage-of-completion revenue recognition method.Sales account to use when posting Job Cost invoices
Progress Billings
Enter the general ledger account credited when invoices are posted for jobs. This is for percentage-of-completion or closed jobs journal entries. This account is the offset to the progress billings account and should be the same as the account entered in the Division Accounts Setup window (Microsoft Dynamics GP > Tools > Setup > Job Cost > Account Setup > Division Accounts).
You can enter one sales account if you recognize revenue when invoices post and you want all sales amounts posted to the same general ledger account.Cost Element Sales Accounts
Enter a sales account for each cost element. These accounts are updated for each cost element affected by an invoice:- Labor
- Materials/Equip
- User-Defined 2
- Subcontractors
- Travel
- Startup
- Other
- User-Defined 7
- User-Defined 8|
- Enter receivables and commission accounts:
- Accounts receivableThe : The general ledger account debited when you post accounts receivable amounts for Job Cost invoices.
- Retention accounts receivableThe : The general ledger account debited when you post retention accounts receivable amounts for Job Cost invoices.
- Commissions payableThe : The general ledger account credited when you post commissions payable amounts for Job Cost invoices. Your setup selections in Receivables Management determine commission amounts.
- Commissions expenseThe : The general ledger account debited when you post commissions expense amounts for Job Cost invoices.
- Mark the Use a sales account for each bill code check box if you want to use a sales account for each bill code at the job level and during job invoice entry. You cannot use this option if there are unposted invoices.
- Choose Save.
- To print the Invoice Accounts report, choose Print.
...