JD Edwards EnterpriseOne Job Cost Accounting Part-1

What is Job Costing?

In accounting, job costing is a process that allows businesses to track the costs associated with individual tasks or jobs. There are three main components that make up the total ‘cost’ of a job, which we’ll outline below.

Job costing is an accounting tool used by businesses of all sizes. Although often associated with construction and manufacturing, this method can be applied to any business that commissions tasks or individual projects.

It’s also known as project-based accounting, describing the process of tracking associated costs for each project. The costs of a job are broken down in detail, based on factors like cost of labour and materials.

JD Edwards EnterpriseOne Job Cost Accounting Overview

The JD Edwards EnterpriseOne Job Cost system from Oracle, along with other JD Edwards EnterpriseOne systems, can assist you in managing projects and jobs, and monitoring the costs and revenues associated with them. You can use JD Edwards EnterpriseOne Job Cost to perform these tasks:

• Create and maintain cost code structures for all jobs.

• Establish job budgets.

• Set up time schedules for job tasks.

• Track and manage the costs and revenues associated with projects and jobs.

• Review and revise additional information associated with projects and jobs.

• Generate various reports showing the cost, revenues, and other details of projects and jobs.

• Calculate job progress at any time during the job.

• Calculate estimated final values associated with projects and jobs.

• Recognize and record profit or loss at any point in a job.

• Create draw reports on the costs that are eligible to be borrowed against a loan agreement.

The JD Edwards EnterpriseOne Job Cost system has the flexibility to manage the jobs associated with a wide variety of businesses, including these business areas:

• Mining

• Utilities

• Engineering projects

• Media production

• General contracting

• Manufacturing

• Self-constructed assets

• Property development and home building

• Heavy equipment and highway contracting

In addition, you can customize the JD Edwards EnterpriseOne Job Cost system to the specific business needs by completing these tasks:

• Setting up unique cost code structures for different jobs.

• Integrating industry specific terminology into forms and reports.

• Selecting from various computation methods when calculating projected final values.

The JD Edwards EnterpriseOne Job Cost system enables you to manage the projects and jobs. For example, the financial features enable you to monitor the costs and revenues associated with the job. System features include:

• Final projections

• Profit recognition

• Job status inquiry

• Audit trail management

• Job budget revision

• Cost analysis

• Draw processing

• Report generation

• Project status inquiry (Release 9.2 Update)