 In this presentation, we will take a look at an overview of the project that we will be going through. Let's get into it with Intuitz. QuickBooks Online. Here we are in our job costing practice problem dashboard. Now note that this is going to be the completed project I'm looking at at this point in time. In other words, I've already populated the data into this file. This is what we're going to construct throughout the course. What we want to do at this point is look at the end product where we're going to end up so that we can see the direction as we go through the course. In other words, you're not going to have this information that is currently in this file populated in your system, but it will be something that we will create as we go. This is just to get the objective. First of all, I'm going to jump on over to Excel. We're going to be jumping back and forth from Excel to QuickBooks because Excel is going to be a much more transparent way to see things. You don't have to actually enter the data into Excel if you don't want to. I think it's good practice to do so. The reason we want to look at it is because it's really transparent. In other words, we can see the actual transactions without having that buffer of using forms to see what the actual effect on the transactions will be. We can see the effect directly on something like a trial balance and the financial statements. We can also see the sub-ledgers, the reports or projects or jobs in a very transparent way as well. I know this spreadsheet is really complicated. That's the problem, of course, with all that transparency as it's getting a lot of information in one area. Our objective will be to look at this information one step at a time and we'll do that by journal entry by journal entry, just one journal entry at a time. We'll look at it here. We'll take a look at the actual objective. We'll take a look at the obstacles to that objective with regards to recording it into a database program. Then we're going to jump over to QuickBooks and we'll actually input it. We'll take a look one step at a time, one journal entry at a time and then jump on over to QuickBooks and enter that information on this side. We'll push forward without actually working through this entire Excel worksheet. However, at the end of the course, we will provide the work through with this entire worksheet in case you want to take a look at it from a theory standpoint. When we go through the practice problem, we're just going to jump to each one of these tabs here and each one of these tabs will be highlighting one particular transaction in this Excel worksheet and we'll look at it briefly and then jump into Excel or into QuickBooks. However, if you want to see this entire problem, we'll have two entire problems that we'll work through this so you can see kind of the logistics in terms of the bare bones, the journal entries and then tie that into the data input. That'll be basically at the end of the course. If you want to start there, you can do so. You can go to those practice problems and look at them. What are some of the challenges that we're going to have here? One is just to take the transactions that are typically, we could see them in terms of a journal entry format and think of them in terms of data entry forms, which is typically what we're going to be using of course in QuickBooks. We typically will not be using journal entries. We will typically use forms in order to enter the data. If I was to go down to the projects, again, you won't have this information in your system but just to give an example, we will be setting up the projects. If I was to open up an example of a project that has in our completed problem here that you don't have set up quite yet and we look at the transactions for it, you'll notice the transactions will not be journal entries. They're going to be things like expenses, billable expenses, expense forms and whatnot. So if we were to open up an expense form, this is going to be one of the crucial type of forms that we're going to be using in order to enter the data into the system. The expense form is going to be what drives the journal entry. In order to set up the expense forms properly, we're going to have to set up basically items down here and understand how to use the items in order to populate the expense forms that we want to be seeing. Back to Excel, another challenge that we're going to have here is that when we post to certain accounts, in our case in this account, it's going to be the cost of goods sold account and you can take a look at the two methods of Excel problems to see the work in process account as well as the finished goods account as well, we're focusing here on the cost of goods sold account. When we populate that cost of goods sold as we incur costs and apply them to jobs, we are also going to have to support that by a job cost sheet. Now, if we were to do this in Excel, we would actually have to have a sub ledger, which would be a job cost sheet and that would be similar to a sub ledger that you might recognize with something like an accounts receivable, the sub ledger breaking out by customer. That's going to be one of the major things that we need to break out of course with a job cost system is the actual jobs or projects as we'll call them as we go into QuickBooks online and breaking this information out by project. This information, the job cost sheets will basically be supporting a line item, line items on the financial statement or the trial balance. And so you can see how if you enter this into Excel, it gets a bit tedious to do so to enter that information in a database program. It kind of does it magically for you. However, it does some really neat things, gives you more detail in a database program. So for example, if we were to go to the first page of the job projects reports, this is basically going to be our job cost information. We're going to have our projects or jobs down here, job number 15 and job number 16, and they can give us more detailed information on those particular jobs or projects. If you want to see this in context to the financial statements, let's say we open up a couple of reports here, go down to the reports and let's open up the balance sheet and the income statement. So we'll open up the balance sheet and I'm going to open this. I'm going to hold down. I'm going to close the hamburger. I'm going to hold down control. I'm going to scroll up just a bit to get this up to the 125. Then what I'm going to do is duplicate this tab so we can open up the income statement at the same time. I'm going to hold down control tab up top. I'm going to hover over it, right click on it, and then duplicate it. So we're going to duplicate that tab. That'll put a tab to the right, which will have the balance sheet on it. I'm going to go back to the tab to the left, open the hamburger back up, and we're going to then open up the profit and loss or income statement. We're going to go down to the reports on the bottom to do that. And I'm going to scroll down just a bit. I'm zoomed in. So that's why it looks a little funny if it's out of proportion on your side. I'm going to pick up the PNL, the profit and loss. I'm going to close this back up. And here's going to be the standard PNL. This is for the January through March. So as long as we're picking up January, we're going to be working in January 2020. And we have our detailed information here. Now note that we can modify this now by saying that we want the total only. I'm going to modify it by customers. And when I look at the customers, it'll pick up the jobs as well. You can think of them as sub-customers or jobs in the desktop version. We set them up as projects here. So we'll talk about the different terminology between those things. But just note in essence that you can call them jobs. You can call them projects. So we have that. And then we have the numbers here. These are going to be the job numbers or project numbers. And now we can have that more detail that we were taking a look at. I can see just the cost of goods sold. But we can also break out this information and say, I want more detail within the cost of goods sold by job. So it's broken out by job, by the vertical categories. And we can break it out by the components, which is going to be labor, materials, and overhead. Notice we could do that here. We did that in our Excel worksheet. So if you look at the Excel problem, and we'll look at this periodically briefly as we go through, we got the direct materials, labor, and overhead. Those are the components of jobs or inventory, anything that's basically done. There's going to be three components to goods and services, typically the material involved, the labor involved, and everything else that's included in it, which would be the overhead. Everything else is included in the process. So we're kind of limited, however, to what types of things we can include here. Now we can have more types of things that we can include in this type of reporting using a system like a database system. I could say not only do I have the materials here, but I can break out the materials and list the different materials that are applied to the jobs. So that's going to be benefit that can give us more detail. We can list the overhead that applies to the jobs and so on. The total for the income then is at the 425-518. That amount, if we go back on over to the balance sheet, back on over to the other tab, the second tab, and scroll down to the bottom of the balance sheet, that's going to be the income statement here. So you can see how the job reporting should be tying in then, of course, to the financial statements. So that's going to be one of the huge benefits you have with a database program is it can manipulate these reports a bit more easily and give you a whole lot more detail with less time. But it kind of happens magically, and with all that information, it can be easy to get a little bit confused. So you've got to navigate your way around and see what's actually going on with these numbers. Some other challenges with a job cost system is to create an estimate. Think about how to basically enter the estimate into the system and entering items into the system. So we have things called double-sided items and the items are going to be the things that are going to allow us to populate the expense forms and the checks to allow us to give us this more detail as well as to use the invoicing process to invoice and then thinking about what is the invoicing process. Do we make the invoice from the estimate? Is that how we're going to be invoicing, creating the actual bill? Or are we going to be making the invoice through the actual data in the system, the actual costs that have been incurred? So if we right-click on this tab up top, I'll duplicate this tab again. We'll duplicate this tab. I'm going to go back to the tab to the left and I'm going to open up the hamburger. And so we'll open up the hamburger here. I'm going to hold down control and scroll back down. Note that when I navigate around, it's much better to be at 100%. So I'm going to zoom in when we get to the forms when we're navigating back around. I will then typically go back down to the 100%. So the QuickBooks Online doesn't have any problems when we enter things like bills and whatnot. So then if we go back into the projects here, here's going to be our project information. And if I go into a particular project, you won't have these projects. This is going to be the end result. This is going to be project number 15. You can see a nice layout in this format as well in the individual projects, which will give you the cost and the profit at this point in time. So we can see that we have a lot of material down here, down here with once again the materials, the labor and the overhead. These being the costs of the project. We can also have the transaction information. This is giving the actual transactions for this particular project. If we enter time into the system, which is one of the direct labor items that you could enter into the jobs. We'll talk more about that later. That's going to be another issue or a thing to work on or a challenge with the project and the job costing system. The project profitability or reports that we can run particular reports for the particular projects. It's really nice to have this projects option over here because that gives you a lot more detail that we can be zooming into on the particular projects. Those are going to be an overview of the challenges or the projects that we will be going through as we go through this practice problem. It'll be great. That's it for now. Let's get out of here.