Use this program to create and maintain cost codes for different tasks and material required for each job.
Cost codes tell the system how to handle the billing for each job and determine default costing methods and billing values for each job. They are set up for each cost type and also determine whether the operator is able to override the defaults.
An example of a cost code might be LAB1 - Labor. This cost code would be set up as requiring units (hours); the unit of measure could then be HR. The mark up method could be percentage and the default mark up could be 5%. You can then use this cost c\ode to post labor costs to jobs.
If the user is going to post overhead or burden, a corresponding cost code has to be set up and entered in the Job Cost Static Control F/M. These cost codes require a cost type that does not add a percentage of overhead or burden. If the user elects to post all overhead/burden into a corresponding overhead or burden GL #, the flag for WIP credit (work in process) in the JC to GL posting record must be set to J-use the posting table assigned to the job number. Since GL posting tables post by cost type, the cost type entered stores all the overhead and/or burden from all jobs (see Cost Type F/M).
Cost codes are used mainly in the posting programs, but also are used as sort options in some reports and inquiries.
For more information how to use maintenances, refer to the following topics:
How to use file maintenance programs
1. Cost Code
Enter the cost code (up to 4 characters). F2 allows a search.
2. Description
Enter the cost code description (up to 30 characters).
3. Cost Type
Enter the cost type of this cost code. Cost types are user defined and set up in the job cost Cost Type F/M. All available cost types are displayed above the field line. Enter (CR) initially defaults to the first cost type on file.
4. Require units?
Enter Y or N to indicate whether this cost code requires units. To determine if the cost code should require units, think about whether the system will be able to calculate results to post based on this cost code and a dollar amount. For example, assume a case of oil costs $8, then if the cost code is set up to charge $10 for every case of oil, to let the user field $88 total does not make sense; instead the user should have to field the number of cases (eleven) and let the system compute the total ($121). Enter (CR) defaults to N.
5. Unit of Measure
Enter the unit of measure for this cost code (up to 2 characters).
6. Cost Per Unit
If a unit measure was not entered at field #5, then this field is initially skipped. Enter the cost per displayed unit of measure. This cost is the default cost for this cost code in the posting programs. Enter (CR) defaults to 0.
7. Markup Method
Enter the default markup method for this cost code. Enter (CR) initially defaults to the markup method assigned to the cost type. The user options are:
F Fixed. The system charges a fixed amount every time. Cost amount does not affect the billing amount. This method requires a unit of measure.
M Manual. The user must enter an amount. Number of units or cost amount does not affect the billing amount. This method does not require units.
$ Dollar. The system adds a dollar amount to the cost every time. If units are used, the system marks up the cost per unit by the entered dollar amount. If units are not used, the system marks up the total cost of the entered dollar amount. This method does not require units.
% Percent. The system marks up the cost amount by a percentage every time. If units are used it marks up the cost per unit by the entered percent. If units are not used, it marks up the cost extension by the entered percent. This method does not require units.
8. Markup Amount
If F-fixed or M-manual were entered at field #7, then this field is initially skipped. Enter the amount or percent to mark up the cost. For example, to markup the cost 20%, enter 20, to markup the cost $1.50 enter 1.50. Enter (CR) initially defaults to 0.
9. Bill Per Unit
If F-fixed was not entered at field #7, then this field is initially skipped. Enter the default amount to bill per unit of measure. This number is only used if the cost code is F-fixed or M-manual.
10. Override cost?
If M-manual was entered at field #7, the system requires the flag be set to Y and the field is initially skipped. Enter Y or N to indicate whether the user is able to override either the default value from field #6 or the system calculated value during job posting. Enter (CR) initially defaults to Y.
11. Override price?
If M-manual was entered at field #7, the system requires the flag be set to Y and the field is initially skipped. Enter Y or N to indicate whether the user is able to override either the default value from field #9 or the system calculated value during job posting. Enter (CR) initially defaults to Y.
12. Use inventory?
Enter Y or N to indicate whether to allow inventory items to be entered under this cost code in the Estimate Entry program. By entering an N, the system skips the line-item field for item number and unit of measure. If Y is entered, the program allows item number and non-stocked item information to be entered. Enter (CR) defaults to Y.
13. Expense GL #
Enter the GL# to use when posting costs and billing while the post to work-in-process flag is N in the JC to GL posting record. F2 allows a search.