Setting Up the Job Cost System

This chapter provides overviews of the JD Edwards EnterpriseOne Job Cost setup requirements and user-defined codes (UDCs) for Job Cost, and discusses how to:

• Set up Job Cost constants.

• Set up automatic accounting instructions (AAIs) for Job Cost.

• Set up ledger types for Job Cost.

• Set up next numbers for Job Cost.

See Also

Setting Up Supplemental Data for Jobs

Understanding Job Cost Setup Requirements

Before you use JD Edwards EnterpriseOne Job Cost, you should define information that will customize the system to your business needs. The system uses the information that you define to work with the jobs. This table lists the setup tasks associated with each feature:

Understanding UDCs for Job Cost

You can customize many of the fields in JD Edwards EnterpriseOne Job Cost by setting up user defined codes to meet the needs of the business environment. You identify user defined codes by the system code and the user defined code list. For example, the represents system 51 (Job Cost) and user defined code list TO (chart type).

The system stores UDCs in tables related to a specific system and code type. These tables determine what codes are valid for the individual fields in the system. If you enter a code that is not valid for a field, an error appears. For example, you can only enter codes in the Business Unit Type field that exist in the table for System 00 and code type ME. The system stores the tables for all of the user defined codes in the User Defined Codes table (F0005).

Business Unit Types (Job Types) (00/MC)

Use business unit types to combine similar business unit type codes. In JD Edwards EnterpriseOne Job Cost, business unit type is also called job type. JD Edwards EnterpriseOne Job Cost uses both terms interchangeably. In JD Edwards EnterpriseOne Job Cost, you use job type codes to perform projected finals. If you want to project finals, the business unit type (job type code) must be the same code that you assign to the projected final business unit type (51/PF).

Business Unit Category Codes (00/01 through 00/30)

Use business unit category codes to identify different groups of jobs for reporting purposes.

You can define up to 30 different category code types, including the 10 menu selections for job category codes. For code types 01 through 20, the codes are three characters long. For code types 21 through 30, the codes are 10 characters.

You can assign job category codes to a job from either the Job Category Code Revisions form or the Job Revisions by Company form. The system stores these codes in the Business Unit Master table (F0006). All the systems that use this table share the same business unit category codes.

If you use JD Edwards EnterpriseOne Service Billing and JD Edwards EnterpriseOne Contract Billing, reserve codes 11 and 12 for cost plus billing.

Account Category Codes (09/01 through 09/23)

Use account category codes to identify different groups of accounts for reporting purposes. You also use account category codes to affect the sequence of the accounts on forms and reports.

You can define up to 23 different code types, including the four menu selections for account category codes. For code types 01 through 20, the codes are three characters. For code types 21 through 23, the codes are 10 characters.

Use these methods to assign the category codes to an account:

• Assign codes 01 through 08 on account related forms, such as Chart Type Setup, Original Budget, and so on.

• Assign codes 01 through 20 on the Account Category Codes form, which you access from the Revise Single Account form in the JD Edwards EnterpriseOne General Accounting system.

• Assign codes 21 through 23 on the Cost Code Schedule form. These codes can be used with the accounts in a secondary chart of accounts.

• Assign codes 01 through 03 to accounts for alternate sequences.

The system stores these codes in the Account Master table (F0901). All the systems that use this table share the same account category codes.

Units of Measure (00/UM)

Use units of measure codes to identify the different types of units related to the accounts. The codes are two characters. For example, you can define CF for cubic feet, CY for cubic yards, SF for square feet, and so on. The system assigns unit of measure to an account from account related forms, such as Chart Type Setup, Original Budget/Account Master Sequence, and so on.

Contract Type (51/CT)

Use these codes to identify the type of contract to which a job is related. You only define contract type codes if you use Service Billing. The codes are four characters, and are for information and reporting purposes only.

You assign the contract type to a job on the Job Master Revisions form.

Code FF relates to fixed fee or fixed price contracts.

Commitment Document Types (40/CT)

Use these codes to identify document types for purchasing (for example, OP and OS). You should use commitment document types if you want to update or track commitments in the PA and PU ledgers, which are stored in the Account Balances table (F0902).

Projected Final Business Unit Types (51/PF)

Use these codes to identify the jobs, by job type, for which you want to project final amounts (ledger type HA) and unit quantities (ledger type HU). The code is the same as the business unit type that you assign to a job on the Job Master Revisions form or the Job Revisions by Company form. If you do not set up the job type in UDC 51/PF, the system cannot create project final values for the jobs to which that job type is assigned. The job type that you assign as a code in UDC 51/PF must also exist in UDC 00/MC.

Cost Code Master Chart Type (51/TC)

Use these codes to identify a model chart of accounts for a type of job or a standard range of cost codes within a job.

The codes are three characters. For example, you can define RAB for roads and bridges, RET for retail stores, and so on. A blank chart type usually relates to the most commonly used model.

You set up the model related to the chart type on the Chart Type Setup form. A model chart of accounts is optional. You can have one model job for each job type. We recommend that the job name be the same as the job type, for example:

• Job Name = JB

• Model Job = M

• Job Type = JB

Chart Type Edit Field (51/ED)

Use these codes to identify the fields for the accounts in a job that you want the system to verify against the cost code structure that is set up for the chart type. The codes help maintain uniformity within jobs related to a given chart type.

If a job and chart type share a common account (cost code and cost type), this UDC table ensures that the values agree for the specified fields. The code can be up to six characters. Use the data item name, which is the alias, for the field in the Chart Type Master table (F5109). For example, use GJERC for the equipment rate code, GJPEC for the posting edit code, GJUM for the unit of measure, and so on.

If you want the system to validate that the level of detail for the cost code is the same as the level of detail for the job, you must define data item GJLDA (level of detail) in the UDC table. Specify the chart type to compare the processing options for the Budget Original program (P510121).

Formula Descriptions (51/FM)

The codes in this UDC table are hard-coded to correspond to the formulas that appear when you define inquiry columns for the Job Status Inquiry User Defined Columns program (P512000). Do not add or revise the codes in this table. Although the codes relate specifically to amounts, the system displays corresponding formulas for units and units at the header level when you define columns.

• Formulas for amounts are set up using codes 1 through 10, and 61.

• Corresponding formulas for units use codes 20 through 30.

• Corresponding formulas for units at the header level use codes 40 through 50.

See Inquiring on Job Information.

Inquiry Ledger Types (51/IL)

Use inquiry ledger types to identify any additional ledgers from which the system can retrieve amounts or unit quantities for the Job Status Inquiry User Defined Columns program (P512000).

• For amounts, the valid codes are 11 through 20 and 70 through 79.

• For unit quantities, the valid codes are 31 through 40 and 80 through 89.

• For unit quantities at the header account level, the valid codes are 51 through 60 and 90 through 99.

The first two characters of the Description 02 field must specify the amount ledger type. The third and fourth characters of the field must specify the corresponding unit ledger type, if one exists.

The ledger types must be in uppercase.

The Special Handling field should contain one of the values:

• Blank: Non-budget ledger

• 1:Budget ledger

• 2: BORG field retrieval

When you complete the Description 01, Description 02, and Special Handling fields for the code, the system automatically displays it in the formula list that you use to define inquiry columns.

Profit Recognition IS Entry (51/IS)

If you use the Create Journal Entries program for profit recognition, the system uses locates the offset account to use for the work in progress (WIP) account by using the AAI item IS. If you want to use multiple offset accounts, you can set up the IS AAI by cost type (for example, IS1340). The system uses the account associated with IS1340 for all journal entries that it creates for that account. If, however, you want to differentiate offset accounts by job type, you can do so by setting up codes in UDC 51/IS. When you set up UDC 51/IS, you specify a code for the job type and a user defined AAI in the Description 02 field. You can set up additional codes for job type/cost type combinations, as required.

When you run the Create Journal Entries program, the system uses this hierarchy to locate the AAI that it uses to retrieve the offset account:

1. The system verifies whether a code for the job type is set up in UDC 51/IS, for example JB.

2. If the code is set up, the system searches for another code that is set up by job type and cost type, for example JB1340.

3. If the system locates a code for the job type/cost type combination, it retrieves the AAI from the Description 02 field, the account from the AAI, and uses it in the journal entry.

4. If the system does not locate a code in UDC 51/IS for JB1340, it uses the AAI associated with code JB.

5. If a code is not set up for JB, the system uses the AAI item ISxxxx, where xxxx is equal to the cost type.

6. If the system cannot locate AAI item ISxxxx, it uses AAI item IS.

This table shows an example of how to set up codes and AAIs in UDC 51/IS:

Note. You do not have to set up UDC 51/IS if the IS AAIs are specific enough for the entries on the income statement.

Setting Up Job Cost Constants

This section provides an overview of the JD Edwards EnterpriseOne Job Cost constants and discusses how to set up the constants for JD Edwards EnterpriseOne Job Cost.

Understanding Job Cost Constants

You set up JD Edwards EnterpriseOne Job Cost constants for a company to define whether the system:

• Calculates projected final costs and unit quantities.

• Maintains an audit trail of changes to projected final cost and unit quantities.

• Maintains an audit trail of changes to budget information related to methods of computation A and R.

• Automatically relieves open commitments when you post accounts payable vouchers to the Account Ledger table (F0911) using JD Edwards EnterpriseOne Procurement or Subcontract.

Projected final costs and unit quantities are an estimate of the total cost and unit quantities required for the completion of a job. If you set up the system to create projected final information, it estimates the final costs and unit quantities for each account based on:

• The percentage of completion of the account.

• The field progress values related to the account.

• The actual costs against the account.

• The budgeted and committed values.

• The method of computation that you select when you calculate job progress.

You can use the projection audit trail to track changes to projected costs and unit quantities. You use budget audit trails to track changes to budgeted costs and unit quantities in the IA and IU ledgers.

You can set up the system to automatically reduce open commitments by the amount of payments posted against the accounts.

You can view commitment information as total commitment amounts or as open commitment amounts. Total commitment amounts are the sum of all open commitment amounts and all actual commitment amounts. Open commitment amounts are the sum of committed costs only.

JD Edwards EnterpriseOne Job Cost shares its constants with JD Edwards EnterpriseOne Subcontract Management and JD Edwards EnterpriseOne Procurement. You should work with the system administrators of both of these systems to ensure that the constants are set up the same way. You define JD Edwards EnterpriseOne Job Cost constants and JD Edwards EnterpriseOne Subcontract Management constants on the same form, which updates the Job Cost Company Constants table (F0026).

You must set up the system constants for company 00000. Doing so provides default constants for companies that do not have specific constants defined for them. To save time, you should set up the default company constants as the constants most commonly used by companies on the system. Set up company specific constants for exceptions to the default values.

Note. To create projected final amounts and unit quantities for the jobs in a company, you must select the Job Cost Projections option and define the types of business units (UDC 51/PF) for which you calculate projections.

Forms Used to Set Up Job Cost Constants

Setting Up Job Cost Constants

Access the Job Cost Constants form.

Setting Up AAIs for Job Cost

AAIs define the link between the JD Edwards EnterpriseOne Job Cost, JD Edwards EnterpriseOne Subcontract Management, and JD Edwards EnterpriseOne General Accounting systems. Before defining new AAIs, you should first review the AAIs in the system to ensure that the AAIs that you want to include are not already defined.

The sequence numbers for AAIs related to JD Edwards EnterpriseOne Job Cost begin with 51.

Profit Recognition AAIs

Profit recognition AAIs specify the accounts that the system uses when it creates journal entries for profit recognition. This table lists profit recognition AAI items and describes how they are used:

Field Progress Protection AAIs

Field progress protection AAIs protect the actual units in specific accounts from updates in related job progress entry programs. These AAIs prevent entering quantities when the actual quantities come from other JD Edwards EnterpriseOne systems.

Note. You should set up an AAI range of cost types for any actual quantities that are automatically posted from another JD Edwards EnterpriseOne system.

Draw Reporting Selection AAIs

Draw reporting selection AAIs specify the eligible construction cost accounts for draw reporting. The system does not process any other accounts for draw reporting.

See Also

Setting Up Automatic Accounting Instructions

Setting Up Ledger Types for Job Cost

This section provides an overview of ledger types for Job Cost and discusses how to set up ledger types for Job Cost.

Understanding Ledger Types for Job Cost

JD Edwards EnterpriseOne Job Cost uses different types of ledgers to track units, maintain budgets, and so on. You must set up financial rules for each of the ledgers. The system identifies a ledger type as a JD Edwards EnterpriseOne Job Cost ledger type because:

• The Roll Original Budget to Next Year check box is selected.

• The Revised Budget Ledger check box, which you access through Job Cost Rules, is selected.

You can also specify that the amounts and units for the ledger type are included as part of the revised budget ledger by selecting the Summarize Ledger Types check box, which you also access through Job Cost Rules. Summarization enables you to review the sum of all revised ledger on a form or on a report, as well as enables you to summarize any journal entries before purging.

For accurate calculations for profit recognition and projected finals, the currency code for all JD Edwards EnterpriseOne Job Cost ledgers must match the currency of the company to which the job belongs in the Ledger Type Master File table (F0025).

If you set up an amount ledger type that corresponds to a unit ledger type, both ledger types must have the same first character. Additionally, the second character in the unit ledger type must be U. For example, SA (amount ledger type) and SU (unit ledger type).

The data used by JD Edwards EnterpriseOne Job Cost is stored in the Account Balances table (F0902) by ledger type. The ledgers in the Account Ledger table (F0911) can contain both amounts and quantities that support the information in the Account Balances table, including:

• Budget information

• Commitment information

• Actual information

• Field progress information

• Forecasts and estimates

• Projected final information

Before you revise the ledger types for JD Edwards EnterpriseOne Job Cost, you should review the ledger types that are defined for the system. You can then revise the ledger types as necessary.

This table lists and describes the ledger types used by JD Edwards EnterpriseOne Job Cost:

Note. Additional tasks are involved in setting up and using additional ledger types in JD Edwards EnterpriseOne Job Cost.

See Setting Up Ledger Types for Job Cost.

See Inquiring on Job Information.

Performing the Tasks to Set Up New Job Cost Ledgers

To use additional ledgers to track job cost budgets and review job progress, you must perform specific tasks in sequential order. Because it is easy to neglect a simple setup task, this tasks are listed in the order in which you should perform them to successfully set up and use additional ledgers in JD Edwards EnterpriseOne Job Cost:

1. Set up the amount and unit ledger types as UDC codes in 09/LT. Amount and unit ledger types share the same first initial; therefore, if you set up ledger type QA, you must use ledger type QU for units.

2. Set up the ledger type rules, including the job cost rules, for each ledger type separately. Although the form has separate fields for Ledger Type and Units Ledger Type, you cannot set them both up simultaneously on one form. For example, you set up ledger type QA, and then you set up ledger type QU.

   These check boxes must be selected to distinguish the ledger types as JD Edwards EnterpriseOne Job Cost:

   • Roll Original Budget to Next Year on the Ledger Type Rules Setup form.

   • Revise Budget Ledger on the Job Cost Ledger Type Rules form.

3. After you set up the ledger type rules for both the amount and units ledger, you must add the units ledger type in the Units Ledger Type field of the amount ledger type. For example, you must select the record for the QA ledger and add QU in the Units Ledger Type field.

4. Set up the ledger types in UDC 51/IL, so that you can set up user defined columns for Job Status Inquiry User Defined Columns (P512000). The system automatically adds formulas for the numeric values that you use for the ledger types that you specify in the Description 02 field of the UDC. In addition to the ledger type, you must specify a value in the Special Handling field:

   • If you enter 1, the system retrieves the values in the net amount posting fields from the Account Balances table (F0902).

   • If you enter 2, the system retrieves the value in the BORG field from table F0902.

5. For example, if you select UDC 13 for the QA/QU ledger, you must enter QAQU in the Description 02 field of UDC 13 with a special handling code of 1. When you do this, the system adds formula 13 for the budget ledger amount, formula 33 for the budget units ledger, and formula 43 for the header units. The units and header units formulas are hard coded based on the UDC code that you select in 51/IL.

6. Set up the column formula for each ledger type using the Define Inquiry Columns program (P51921).

7. Set up the column on the Job Status Inquiry form.

8. Set up new versions of the Original Budget (P510121) and Budget Revisions (P510171) programs and specify the new budget ledger type (for amounts) in the Budget Amount Ledger Type processing option.

9. Add the new program versions to the menu, for example, Original Budget QA.

See Also

Setting Up Ledger Types for General Accounting

Understanding Summarizations, Deletions and Purges

Prerequisite

Before you complete the task in this section, you must set up the ledger type that you want to use for JD Edwards EnterpriseOne Job Cost in UDC 09/LT.

Forms Used to Set Up Ledger Types for Job Cost

Setting Up Ledger Types for Job Cost

Access the Job Cost Ledger Type Rules form.

Setting Up Next Numbers

This section provides an overview of Job Cost next numbers and discusses how to set up draw next numbers.

Understanding Job Cost Next Numbers

You set up standard next numbers for JD Edwards EnterpriseOne Job Cost by system code. The system code for JD Edwards EnterpriseOne Job Cost is 51. The standard next numbers for JD Edwards EnterpriseOne Job Cost utilize only lines three and four (Job Draws and Profit Recognition, respectively). The system uses these JD Edwards EnterpriseOne Job Cost next numbers to:

• Assign draw numbers.

• Link profit recognition tables.

You can assign next numbers by company and fiscal year for selected documents.

See Setting Up Next Numbers.

Note. Next numbers are central to JD Edwards EnterpriseOne systems. You must be thoroughly familiar with next numbers before you change them.

Draw Next Numbers

You use the Draw Next Number program (P51002) to associate a job or multiple jobs to a draw number. By setting a processing option when you generate the draw information, you can direct the system to assign the next number from either the Job Cost Draws Next Number table (F51002) or the standard next number table (F0002). If you direct the system to use a draw next number, but you have not added the job on the next numbers table, the Draw Generation program automatically adds the job with a Draw Number 1.

Forms Used to Set Up Job Cost Next Numbers

Setting Up Draw Next Numbers

Access the Job Cost Draw Next Numbers form.