Job Costing and OneWorld
The Job Costing feature allows OneWorld users to transfer the cost of a resource from one subsidiary to another using the posting time function and intercompany time adjustments.
For example, your Canadian subsidiary requires project tasks to be completed by an employee of your Japanese subsidiary. When you create your project in the Canadian subsidiary you assign the Japanese subsidiary employee to the appropriate project tasks. As the employee completes the work and tracks time, after time is posted, the labor cost is recorded in the Japanese subsidiary’s general ledger. When the accounting period is closed, advanced intercompany journal entries are created to transfer the Japanese subsidiary employee’s labor cost back to the Canadian subsidiary.
Before you can use Intercompany Job Costing, you must have a OneWorld account and enable Projects, Project Management, Job Costing and Project Budgeting, and Intercompany Time and Expenses.
You must also ensure that the Intercompany Time preference is set to Allow. Go to Setup > Accounting > Accounting Preferences. On the General subtab, under OneWorld, select Allow in the Intercompany Time field. Click Save.
You can then assign employees from different subsidiaries to project tasks. After time has been tracked and approved for those tasks, they are available to be posted at Transactions > Financial > Post Time.
NetSuite roles with the Post Time permission can post time to any subsidiary selected in the Subsidiary field on the role record. If no subsidiaries are selected on the role record, only the user’s assigned subsidiary is available for posting time.
For example, if your company posts time at the parent company level for all subsidiaries, you can create a custom accountant role with the Post Time permission and all subsidiaries selected in the Subsidiary field on the role record. You can then assign that custom role to your accountant. When your accountant logs in with the new custom role to post time, NetSuite displays time available for posting from all subsidiaries.
If the selected Job Cost Variance account is not available for one of the subsidiaries, NetSuite displays an error message and no time is posted for that subsidiary.
When the time is posted, journal entries are created to account for the cost in your general ledger. The costs are reflected in real-time on the project record P&L subtab and in the Project Profitability report. When closing an accounting period, go to Transactions > Financial > Create Intercompany Adjustments to create advanced intercompany journal entries transferring the job cost from the employee’s subsidiary back to the project’s subsidiary. For more information on closing an account period, see Using the Period Close Checklist.