Items and Services in Job Tracking

Hannah_7538100

Hi, Im Just beginning to use the Job tracking fuctions
within Reckon but Im having a little trouble getting my head around the Items and Services. When I record a sale via an invoice I select an item such as “Shed Kit” . That shed kit item is linked to the Income Account “Shed Kit Sales”.

When I write a cheque( in relation to that job where I sold the shed) I select items section within the cheque to record the expense. I had to purchase the shed kit initially so I select the item “Shed kit”.

On the job profitability report it all looks correct however isn’t my profit and loss now incorrect because the cost to purchase the shed kit isn’t linked to the correct account. Its going to the income account.

But if I create 2 “shed kit” items, one linked to the income account and one linked to the expense account, my job profitability reports don’t match up.

What have I missed or what am I doing wrong?.

gazza73

IN your ITEMS list, for "Shed Kit",  tick the BOX that says you resell this item,  Then you can define the selling CoA account (income)  as well as the Expense CoA account for the purchase side.


Gary

Hannah_7538100

Thanks very much Gary. Could you also please advise, when I create an estimate. Should I be entering the Retail prices here (what Im quoting the customer) or do I enter what I estimate the costs to be? Im looking at the Job Estimtes vs Job Actual reports and The amounts that I have entered in the estimate are appearing in the estimate revenue and the estimated cost columns. Clearly this is not correct. What am I doing wrong?

gazza73

Hannah.  A couple of things happening at once, here.
When you raise an ESTIMATE - think of that as a quote for a services (ie a potential sale in the future).  SO we're talking sales income here, which is the retail price (without the GST, which is swung into the balance sheet for paying to the GOVT next BAS).

Meantime,  the cost of the service is recognised as the supplier cost to you of the items concerned, if they are bought in, or held in stock at average cost and so forth.

When the sale is successful, and you swing the estimate into a sales invoice to the customer,  you might make some adjustment to the final ACTUAL price, due to negotiation or any number of reasons.  

The results you then see on a profitability report,  bring together the COSTS (perhaps expenses or if stock, the AVG cost of said stock iem) as well as the INCOME ACTUALLY gained from the sales invoice, alongside the ESTIMATE selling price from the ESTIMATE  (all without any GST component of course).

The 'profit' is the difference between the ACTUAL SALES income and the ACTUAL expenses.   By comparison,  you can also compare what you ESTIMATED originally as the selling price you sought, compared to the same costs in the end.

SO, as a business person, you get to compare how well you estyimate sales,  and how well you ultimately make profit (on an ITEM or on a JOB).

That's enough "profit101" cost accounting for one forum article.....

Gary

Hannah_7538100

Thanks very much again Gary. For every job I estimate the costs associated with that job. I want to compare my estimated costs with what the actual costs ended up being. where do I enter estimated job costs?