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job_cost_closing_procedures_htm
job_cost_closing_procedures_htm
When a job is complete and all billings and cost transactions have been posted, you can close the job. If you use the completed contract or percentage-of-completion revenue recognition method, Job Cost automatically creates journal entries to recognize the final cost and revenue for a job when you close it.
You  You can also close each fiscal period.

When you close a month or fiscal period, the system prevents any future job-related transactions from posting to that period.

The year-end closing process clears all year-to-date balances and reclassifies the balances of prior year-to-date amounts for reporting purposes.
If the Closing Jobs Journal Entry check box checkbox in the Posting Options window is marked, a general ledger journal entry will be created for each closed job.

A general ledger batch is created for each day's closed jobs. The batch ID contains the letters JCC, plus the day's date. For example, if jobs were closed on 01/02/16, the batch ID would be "JCC 1/2/2016."

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Once a job is complete, you can close it. When you close a job, transaction detail is moved to the job history file with detail and summary records for the job.
When you close a job, the user-defined information from the Job User-Defined window also moves to history, except for the active user-defined field information.
You can view transaction detail for closed jobs by choosing Inquiry > Job Cost > Job History. You can also print Job Detail or Job Summary History reports.
Note: Once you close a job, the job is no longer included with the monthly percentage-of-completion or RPO  journal entries. This is because these entries calculate amounts for open jobs only. Also, no transactions may be posted to a closed job.

Before closing a job

Complete the following procedures before closing a job.

  • Completely bill the job, including retention. If you marked the Allow Job to Close if Net Billed Not Equal to Expected Contract check box in the Posting Options window, then the net billed doesn't have to equal the contract amount. Otherwise, the net billed must equal the contract amount to close a job.
  • Post all transactions. No unposted transactions for the job should exist in any Job Cost transaction work file.
  • Receive and invoice/match all purchase orders for the job to be closed. For more information, see Using Microsoft Dynamics GP purchase order processing. If the Allow Job to Close if Committed Costs check box is marked in the Posting Options window, you can close a job without receiving all purchase orders.
  • Back up all job cost files. If you encounter difficulties during the closing process, restore the backup and complete the procedure again.
  • Reconcile all jobs you plan to close. Reconciling verifies the information in the transaction detail files and adjusts the totals in the master files if a discrepancy exists. See Reconciling jobs.
  • Make sure all prior months POC have been run BEFORE closing the current month's jobs.

Closing a job

Once you have completed the steps before closing, you can close your job(s). When the Close Jobs window is open, all jobs that display in the window are temporarily made inactive. This prevents other users from linking transactions to a job you are in the process of closing. Once the Close Jobs window is closed, all jobs that have not been closed will be returned to active.

  1. Choose Microsoft Dynamics GP > Tools > Routines > Job Cost > Close Jobs.
  2. Choose a Posting Date. You cannot use a date that falls before the create date of a job you are closing. A Status of Not Available appears for any jobs that were created prior to the posting date. Additionally, if the period prior to that of the posting date is still open, you will receive an error when you attempt to close the jobs.
  3. Choose Print to print the following reports:
    • Jobs Available for Closing reportThis report lists the create date, manager, contract amount, actual cost, markup percent, billed amount, cash received, and contract earned amounts for all jobs you can close.
    • Job Closing Preparation reportThis SSRS report lists all reasons why a job cannot be closed.  This report does not include Contract Agreements. This report option is available if SSRS is installed.
  4. Choose a job to close by marking the check box in the Status column. The status changes from Available to Marked. To mark all available jobs for closing, choose Mark All.
  5. Choose Close to begin the job closing process.
  6. Once a job closes, you can print the Closed Jobs report. This report lists all jobs that closed successfully. If you chose to post the closing jobs journal entry through the general ledger, you may also print the general ledger posting journal, which displays the general ledger entry created as part of the closing process.

Note: We recommend you print these reports and store them with your records as part of each job's audit trail.

  1. Complete the purge process to delete non-job related detail from the Job Transaction Open file. See the Signature Utilities User Manual for more information.

Opening a closed job

You can open a closed job that is in an open fiscal period. This may be useful if a job is closed accidentally, or if late costs come in or additional billings are sent out after a job is closed.
When you open a closed job, any journal entries that were posted during the job close process are reversed using the same posting date, so GL costs and revenue are recorded accurately after the job is reopened. In addition, a new audit table, JC10400, keeps a record of the date, time, and user every time a job is closed and reopened. Opening a closed RPO job will open the job with all RPO codes 100% recognized.
Note: If the costs or billings that you need to post are immaterial in amount, for example, a $100 permit for a $2 million job, rather than reopening the job, you may choose to capture these amounts on a separate job, or a GP transaction that debits a "Callbacks and Adjustments" account. This is also useful for jobs that cannot be reopened.
You can only open a closed job if it is in an open JC fiscal year and period. Closed jobs in closed fiscal years cannot be opened at all; however, if you want to open a closed job that is in a closed JC fiscal period, you can reopen the period. When a period is reopened, closed jobs in that period are opened but marked inactive. See Opening a closed Job Cost fiscal period for information on when and how to open a closed fiscal period.

  1. Choose Microsoft Dynamics GP > Tools > Routines > Job Cost > Open Closed Jobs. If necessary, enter the administrator password when prompted. The Open Closed Jobs window opens. This window displays a list of all available closed jobs. Open jobs, as well as any closed jobs that are in a closed JC fiscal period, do not appear on this window.The column headers on the scrolling window allow you to order the list of jobs by Job Number, Job Name, Date Closed, or Closed By.
  2. Choose the job(s) that you wish to open. You can choose one, multiple, or all available closed jobs. You can also use the Find button to search for a specific job number.
  3. Enter a Reason for reopening the job(s). This is a required field; you cannot open a closed job without a reason. The reason is printed on the Opened Jobs List report, as well as saved in the audit table. You can only enter one reason at a time. If you are opening multiple closed jobs for multiple reasons, you must run this routine separately for each unique reason you want to record.
  4. Choose Open Jobs. The selected jobs are opened and set as active. Journal entries created by the "close job" process are reversed.
  5. After processing is complete, choose a destination for printing the General Posting Journal, which displays the JCC Reversing entry, and the Opened Jobs List, which shows the jobs that were opened successfully. Job information including Batch ID, Journal ID, and Last Date Closed prints on the Opened Jobs List report, along with the Reason for reopening the job.

Note: A Journal ID of 0 indicates that no reversing entry was created. This may occur if the job had no posted costs and no journal entry was created during the job close process.

Viewing an audit trail

Each time a job is closed or reopened, a record is written to the audit table JC10400. This table keeps track of the date, time, and user whenever a job is closed or reopened.
In addition:

  • The Journal Entry field displays the journal entry number of the JCC Reversing transaction that is created when a job is reopened.
  • Jobs that have been reopened have a Previous State of Closed and a New State of Open.
  • The Created Date shows the date that a job record was created, while the Posting Date and User ID fields display information from the most recent instance of the job being opened or closed.

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You can close periods or months in Job Cost just as you close them in Microsoft Dynamics GP. Closing a period prevents posting any new Job Cost transactions to the period. In addition, the period closing procedure allows you to finalize cost and revenue amounts for the period as the first step in creating the percentage-of-completion journal entry.
When you close a period in the current fiscal year in Job Cost, you can no longer post from any Job Cost transaction entry windows using a transaction posting date that falls within that closed period. An exception to this is if a non-job related transaction entry posts to a Microsoft Dynamics GP module and the JC period check is disabled.
Note: You cannot close a fiscal period in Job Cost unless the previous fiscal period is already closed.
Note: We recommend that you close the Microsoft Dynamics GP Series periods prior to closing the period or month. Failure to do so might cause transactions not to be posted to Job Cost.

Before closing a period or month

Prior to closing the period or month, complete the following procedures:

  • Back up your Job Cost files. If you encounter difficulties during the closing process, restore the backup and complete the procedure again.
  • Reconcile all jobs. See Reconciling jobs.
  • Close all completed jobs. See Closing a job. In addition, complete the following steps only if you are using the POC or RPO revenue recognition method. After closing the period, you will create a POC journal entry.
  • Use the WIP reports to make sure your Job Cost WIP accounts balance with the WIP accounts in the General Ledger.
  • Print the POC/RPO edit list.

Closing a period or month

  1. Choose Microsoft Dynamics GP > Tools > Routines > Job Cost > Month-End Closing.
  2. Choose the fiscal Year that contains the period or month to close. Enter the Period ID. You cannot close any fiscal period unless the previous fiscal period is already closed.
  3. Choose Close. A progress window appears, indicating the status of the month-end closing process. Once the period closes successfully, a message alerts you that you can no longer post transactions to the closed period.
  4. Choose OK. If you are using the percentage-of-completion or recognized performance obligation revenue recognition method, you must create a POC/RPO entry after closing a period or month. Refer to Creating percentage-of-completion journal entries or Creating RPO journal entries and complete the steps outlined in that section. If the edit list that prints after you close the period differs from the entry list that you printed before closing the period, contact Key2Act Support.

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You may need to open a closed Job Cost fiscal period if significant costs come in after a fiscal period is closed, and you want to record those costs in the period in which they were incurred. Once you have re-opened the fiscal period, you can recognize revenue for the new costs and, if necessary, create more billings for the period.
You cannot re-open a Job Cost fiscal period if

  • The corresponding Microsoft Dynamics GP fiscal period is closed.
  • The fiscal year containing the period is closed.

You can only open the most recently closed fiscal period. For example, if periods 1, 2, and 3 have all been closed, you cannot open period 2 without first re-opening period 3. Likewise, if you need to open the last period in an open fiscal year, but the following year contains periods that have been closed, you must open the most recently closed periods before you can go back and open periods in the previous fiscal year.

  1. Choose Microsoft Dynamics GP > Tools > Setup > Job Cost > Job Cost Setup > Fiscal Periods. The Job Cost Fiscal Periods Setup window opens.
  2. Unmark the Series Closed check box next to the period you wish to open. This row of check boxes is disabled if the fiscal year containing the period is already closed.
  3. Choose OK to close the window.

NOTES:

  • If you had previously been using POC and are now switching to the RPO revenue recognition method, all entries for both POC and RPO are in one batch called REVR user date. Re-opening a closed fiscal period reverses all RPO and POC entries.
  • If you were not using POC or RPO but are now using the POC or RPO revenue recognition method, re-opening a closed fiscal period reverses any POC/RPO entry that has been posted. If a POC/RPO entry has not yet been posted for the period, you receive a message indicating that a reversing entry did not need to be created. The batch ID for POC only  is POCR user date. The batch ID for RPO is REVR user date.
  • If you were previously using POC and will continue to use POC, all POC entries are in the batch POCR user date.
  • If you are not using POC or RPO, and you are using cost code posting accounts rather than division posting accounts, no reversing entry is created.

After you finish posting costs for the now re-opened Job Cost fiscal period, you can close the period again. If you are using either the POC and/or RPO method to recognize revenue, you must re-build and post a new entry/entries.

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The year-end closing procedure removes all previous-year Job Cost transaction amounts and reclassifies them as prior-year amounts for reporting purposes.
Note: You cannot close a fiscal year in Job Cost until the last fiscal period in the year is closed. Before closing a fiscal period in Job Cost, make sure to close the corresponding series on the Microsoft Dynamics GP Fiscal Periods Setup window (Microsoft Dynamics GP > Tools > Setup > Company > Fiscal Periods).

Before closing a year

  1. Post all Job Cost transactions for the year. No unposted transactions for the year should exist in any Job Cost transaction work file.
  2. Back up your Job Cost files. If you encounter difficulties during the closing process, restore the backup and complete the procedure again.
  3. Perform the period closing for the final period in the fiscal year. See Closing a period or month.

Closing a year

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