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  #1  
Old 02-23-2017, 02:23 AM
gssmauna gssmauna is offline
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Red face How to fix a system? How to job cost?

Hello Everyone - I'm new here and am SO happy to have found this website!

I have recently been given the exciting task of redirecting our Quickbooks.

We use Premiere Contractor Edition. I work with an electrical contractor. The owners set up their QB early on with out much knowledge of the system. Accounting has been 90% but there is no way to job cost, find accurate breakeven, and the chart of accounts is a little messy.

We are starting to heavy analyze the company, so all the holes are starting to appear.

I'm open to advice and feel free to ask questions if I'm not clear enough.

On the chart of accounts - what would a perfect one look like? I don't have very much accounting/tax experience, so I don't know the limits of a COA. I need to be able to see out breakeven, so wages for our office staff and owners needs to be a different account than our techs - related: I assume for BE payroll taxes would need to be separated between office staff, owners, and tech. I feel in some areas we have similar (duplicate purpose) accounts and in some areas not enough accounts.

The bigger mission. Job Costing. I am incredibly excited to get this rolling - currently between job costing, time entry, material tracking, profitability, etc, we are using 5-10 excels plus 3-4 systems, and there are cracks everywhere. Our guys travel to the customer, do work, paperwork is turned in, then I invoice - for a basic view of our flow.
- For material tracking, advice, would you enter all vendor invoices that show up on the website, then go back and edit the entry once you get updated numbers from the tech? Or would you wait for tech to turn in paperwork to enter it in to the system accurately the first time, only to find missing vendor invoices later? Neither seems ideal.
- For contract work, say I want to make a line item on a invoice that just says basically - Total Price of Work Complete - $1000. Later, when it comes to accounting, how does differentiate between how much of that was labor and how much should be material - harder, what if some of it is complete profit? This problem caused me nightmares last year with trying to figure out our breakeven.
- If I have an inventory account, if I put a line item of "all material - 200", is there any way to show the system that 40 of that was inventory, with 160 coming from a vendor? Or would our invoices to our customer need to start being more detailed, just so we have the information accurately in our system? I'm hoping we can still have very basic invoicing, with high details in the background of our system - but it doesn't seem like the two can happen simultaneously.

Thank you so much for your help!
<3 M
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  #2  
Old 02-23-2017, 05:07 AM
Rustler Rustler is offline
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The chart of accounts shows the overall status of the company, that is not where you look for an individual project or transaction.

There is no ideal CoA. I suggest you get the tax form your company will file and structure the CoA to match, use sub accounts to track detail as needed, ie
Utilities Expense
>> Elect Exp
>> Gas Exp
>> Phone Exp
>>etc etc

QB work on items, if you want to track rebar, then you have to use an item for rebar. If you use an item that says materails with a lump sum - that is what is tracked.

Inventory items are unique you can not use one item as a general purpose item.

Why would a vendor bill you (his invoice) if the numbers are not final? What does your tech have to do with the vendor selling you something?

An invoice or sales receipt is a final sale, you prepare estimates usually for jobs and either progress invoice during the job or one final invoice at the end of the job.
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Old 02-23-2017, 09:42 AM
gssmauna gssmauna is offline
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Smile

Rustler - thanks for your reply!

"QB work on items, if you want to track rebar, then you have to use an item for rebar. If you use an item that says materials with a lump sum - that is what is tracked."
- Let me try to explain this another way - say for a project I have material coming from a vendor AND from inventory, would there be any way for me to bill this to customer in one line item on the invoice? Or would I need a line that ties to my inventory account and then a line that ties to my retail materials?
- If i have $100 in material accounted to the job, then I bill the customer $200 in material - what does QB do with the extra $100 - would it get credited to my material account (when in reality it's mark up and profit).


"Why would a vendor bill you (his invoice) if the numbers are not final? What does your tech have to do with the vendor selling you something?" - In the morning an employee will pick up materials for project - say a 100 foot roll of wire, if he ends up only using 70' the extra 30' feet can't get billed to customer. If I enter the vendor invoice as it shows up on the website - the customer account gets all of the 100'. With that context can does that help with the question?

Thank you so much.
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  #4  
Old 02-24-2017, 04:25 AM
Rustler Rustler is offline
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Location: Texas - The Republic
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Quote:
Originally Posted by gssmauna View Post
"QB work on items, if you want to track rebar, then you have to use an item for rebar. If you use an item that says materials with a lump sum - that is what is tracked."
[COLOR="Black"] - Let me try to explain this another way - say for a project I have material coming from a vendor AND from inventory, would there be any way for me to bill this to customer in one line item on the invoice? Or would I need a line that ties to my inventory account and then a line that ties to my retail materials?
Yes and no

You can create a service item to charge the customer and title it what you want. Bit if you want billable purchases and inventory items on the customer invoice, then each item is a line item.

Quote:
- If i have $100 in material accounted to the job, then I bill the customer $200 in material - what does QB do with the extra $100 - would it get credited to my material account (when in reality it's mark up and profit).
The item you use on a customer invoice has the income account it posts to selected on the item screen.
You do not net expense and payments in one account.

Quote:
- In the morning an employee will pick up materials for project - say a 100 foot roll of wire, if he ends up only using 70' the extra 30' feet can't get billed to customer. If I enter the vendor invoice as it shows up on the website - the customer account gets all of the 100'. With that context can does that help with the question?
Then the 30 ft, one of two things happen you stock it in inventory or you get a refund.

I would suggest you find a local QB consultant to work with until you get the operations down. There is no way to cover this whole topic in this environment.
You can look up ones in your area here
http://proadvisor.intuit.com/search/...ml?v3#/landing
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  #5  
Old 03-04-2017, 07:31 PM
daksharora daksharora is offline
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Quick Books Support 1-800-786-7917

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