Job Cost Application


Active Member
A few of you have mentioned that you use the Job Cost Application to track
the progress of fixed asset implementation.

Ideally, I would like to create a job, apply the costs, and have it
associated with a specific Item Number through Fixed Assets. Does anyone
currently do this? If not, how do you apply the costs to fixed assets when
the asset is completed? We could process as many as 75 assets a month, which
may have 10 component for each asset. It seems quite difficult to apply the
completed project to an asset number manually through J/E's pointing to the
Item Number for each item.

Any feedback is greatly appreciated!

What we do at White-Rodgers is at the end of job cost, when an asset
becomes active in essence, we do a journal entry that moves the dollars out
of the CIP (Construction in progress) account to our appropriate fixed asset
account, attaching the asset id so you can do the post from general ledger
to the fixed assets F1202 file. Once the cost record is in F1202, you start
depreciation on the new asset (based on the appropriate depreciation rule).
Tying job costs to a fixed asset item number is kind of yucky. What we have
done (and there may be a better way) is use a business unit category code to
input the fixed asset item number. So then we could link from that to fixed
assets - bearing in mind the category code is alpha while the fixed asset
number is a numeric field. Hope this helps some.

John Dickey
Thanks for the reply. So how can you tell when a fixed asset project is
complete? We have numerous projects going on in a number of locations,
involving material purchased from a number of suppliers who supply material
for different jobs. I think it would be quite difficult in our circumstances
to have someone inform Accounting when an asset is complete. Is that the
method you use?

Well, that is the big question and can be a challenge. What we do here
is that on the capital request the requester has to estimate the cost
amount. That becomes the budget for the job. When the actual cost gets
close to budget (run a report version to just show just those jobs), the
business unit will get inactivated and the requester will be asked if the
asset is completed. Also if no activity in a while, that will spark a
question as to if it is done (that is not too common). There is no
automatic way to know if an asset is done and ready to be moved to fixed
assets. Job cost has budget to actual comparisions as a fundamental part of
the application, so that does help a decent amount. That is it.

John Dickey