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Setting up accounts involves the following, set up in the order displayed:

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Step 1: Setting Up Divisions

You can set up divisions to group jobs for reporting and accounting purposes. You can also attribute all job-related revenue and expenses to general ledger accounts set up for the division.

1. Select Microsoft Dynamics GP > Tools > Setup > Job Cost > Account Setup > Divisions.
2. Enter a Division name. If you do not plan to use company divisions, select All.
3. Select Save.
4. To print the Division Setup list, select File > Print or select the printer button.

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Step 2: Setting Up Division Accounts

You must define a posting account for each cost element. If your company uses multiple divisions, you must assign a default set of cost element posting accounts for each division.

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1. Select Microsoft Dynamics GP > Tools > Setup > Job Cost > Account Setup > Divisions.
2. Enter a Division to copy.
3. Select Copy.
4. Enter the name of the new division in the Copy Division window.
5. Select 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

Step 3: Setting Up Payroll and Overhead Offset Accounts

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 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.

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• Overhead Offset
  You can enter accounts for individual overhead detail codes (Job Cost) only if the Payroll Overhead Detail Distribution checkbox in the Posting Options window is marked. You can still assign a default account that would be used for all overhead codes.
• Travel Offset Accounts and Expense Offset Accounts
  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.

Printing the

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Account Setup List

To keep better track of which accounts were assigned, we recommend you periodically print the Signature Payroll and Offset Accounts list. In the Payroll and Overhead Offset Accounts window, select the printer button that appears at the bottom left of the window. Complete the Report Destination window to print the report.

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Step 4: Setting Up Revenue Accounts

You must designate the posting accounts that update when you create a percentage-of-completion journal entry or closing jobs journal entry for each division.
Even if you do not use the percentage-of-completion revenue recognition method, you must complete the revenue recognition account setup to specify payroll and payroll overhead offset accounts.

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1. Select Microsoft Dynamics GP > Tools > Setup > Job Cost > Setup > Account Setup > Revenue Accounts.
2. Select the Close Jobs Accounts button. The progress billings account and WIP accounts you entered in the Revenue Recognition Accounts Setup window automatically appear as defaults in the Close Jobs Account Setup window. You cannot change those accounts.
3. In the Contract Earned Closed Jobs field, enter the contract earned closed jobs account. Closed job revenues post to this account as the offset to progress billings accounts.
4. Enter expense accounts. The accounts entered will be debit offsets to the accounts entered in the WIP fields in the Revenue Recognition Account Setup window during the close job journal entry.
5. Select Save.
6. To print the Closed Jobs Accounts report, select Print.

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Step 5: Setting Up Invoice Accounts

You must specify general ledger posting accounts, which are updated when you post job-related invoices. You can select to use a single sales general ledger account when posting Job Cost invoices (required for percentage-of-completion and completed contract revenue recognition methods) or assign a sales account to each cost element billed on an invoice. Assigning a sales account to each cost element allows you to track invoiced amounts by cost element in the general ledger.

1. Select Microsoft Dynamics GP > Tools > Setup > Job Cost > Account Setup > Invoice Accounts.

2. Select a division from the drop-down list. 

   The invoice posting accounts are updated when you post invoices for a job assigned to this division. You must enter accounts for each division.

3. Select an invoice posting option and the appropriate general ledger posting accounts based on the invoice posting option you selected:

   Option 1 – Single Sales AccountOption 2 – Sales Account for Each Cost Element/Code

   Select 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.

   You cannot select 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
4. Enter receivables and commission accounts:
   • Accounts receivable
     The general ledger account debited when you post accounts receivable amounts for Job Cost invoices.
   • Retention accounts receivable
     The general ledger account debited when you post retention accounts receivable amounts for Job Cost invoices.
   • Commissions payable
     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 expense
     The general ledger account debited when you post commissions expense amounts for Job Cost invoices.
5. Mark the Use a sales account for each bill code checkbox 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.
6. Select Save.
7. To print the Invoice Accounts report, select Print.

   . (See Invoice Posting Options table below.)

8. Enter receivables and commission accounts:
   • Accounts receivable
     The general ledger account debited when you post accounts receivable amounts for Job Cost invoices.
   • Retention accounts receivable
     The general ledger account debited when you post retention accounts receivable amounts for Job Cost invoices.
   • Commissions payable
     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 expense
     The general ledger account debited when you post commissions expense amounts for Job Cost invoices.
9. Mark the Use a sales account for each bill code checkbox 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.
10. Select Save.
11. To print the Invoice Accounts report, select Print.

Invoice Posting Options

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Step 6: Assigning Default Master Cost Codes

If you use Payables Management with Job Cost, you can assign master cost codes that appear as defaults for specific distribution types when you enter Job Cost accounts payable transactions. These distribution types include trade discounts, freight, miscellaneous, tax amounts, and depreciation.
When you assign a master cost code as the default for a payables distribution type, costs automatically distribute to the cost code during transaction entry after you select a job number, provided the master cost code exists for the job. The costs then post to the general ledger account assigned to the Job Cost code.

1. Select Microsoft Dynamics GP > Tools > Setup > Job Cost > Account Setup > Default Cost Codes.
2. Select a division from the drop-down list.
3. Mark the appropriate distribution types checkboxes. As you mark the checkboxes, the Cost Code Number field becomes enabled. You do not need to use all distribution types. By assigning a cost code number in the Depreciation field, the Fixed Assets Management depreciation expense account is credited, and the Job Cost general ledger account is debited upon posting. The asset must be set up as a job with the asset ID being the job number. The asset ID must also have a suffix of 1. The Depreciation field is enabled only if the Fixed Assets Management module is installed.
4. Assign a Cost Code Number and general ledger account to each distribution type.
5. Select Save.
6. To print the Default Cost Codes report, select Print.

Step 7: Setting Up Overhead Accounts (Optional)

If you selected the Payroll Overhead Detail Distribution option when you set up posting options (Microsoft Dynamics GP > Tools > Setup > Job Cost > Job Cost Setup > Posting Options), you must set up overhead accounts. An overhead detail account must be assigned for each division and each overhead detail code. Based on this setup, the posting process calculates each individual overhead detail cost amount and distributes that cost to a separate general ledger account.

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