 In this presentation, we'll take a look at a project or job that has been completed and the invoicing relating to that project or job. Let's get into it with Intuit's QuickBooks Online. Here we are in our job costing company dashboard. We're going to go on over to Excel first and take a look at what our objective will be. So over here in Excel, we're going to say now that there has been a job that is completed and we're going to bill for it. That's going to be job number 14. That's going to be seen down here in our little worksheet. So what's not happening is we're not tracking through the working process to the finished goods because we're putting everything right directly to the cost of goods sold. Remember that if you needed to adjust to like a percentage of completion or a working process, we'll take a look at that in a future presentation. But right now we're going to say the job number 14 is done and we're going to bill for it in essence. So if we bill for it for the job basically and we're going to bill for the entire job, it's been completed and we're going to bill for it at this point in time. What we do not have to do is transfer for example from working process or finished goods to the cost of goods sold account because we've been tracking it in cost of goods sold. So the costs, all the costs side that we've been tracking is already being reported down here in the cost of goods sold. That is done for us. We're going to have the sales side of things, which is going to be a typical kind of invoice and invoice for like a service company because we're not dealing with the inventory item of it, which means accounts receivable would go up. Sales would go up. Typical or sales or revenue income account would go up. Typical kind of just normal invoice for like a service company and of course the sales would then line up against the cost of goods sold related to that particular job. Now how would we get to this amount? What we would do is we would take the job and then mark it up in some way. That would be one of the typical ways or we would take the estimate that we made. If we made an estimate that's a hard estimate, then we would just take that estimate and say, okay, now we're going to bill for it because the job is completed. Or you might say, hey, we had some adjustments to that estimate. Or you might say this was the estimate and now we have the actual cost and we're going to take the actual cost and then mark up based on the actual cost. So that's what we're going to do here. We're going to take the actual cost and we're going to say there's a 30% markup. So whatever the actual cost was, we're going to mark it up by 30% and that's going to be a 130% of the cost. Okay. To go over to our job then, what we're saying is that we have this job, number 14 has now been completed. These are the costs total, which include materials, labor, and the overhead. And we're going to mark that up at the 30%. So basically we're going to say that we have the 191.140 times .3. So that's going to be 57.342 plus the 191.140. And that's the 248.482, which we can also get to by just taking the 191.140 times 1.330% the 248.482. Now with regards to our job sheet, what we want to do is be able to indicate that this job has been closed. So if we had just an Excel sheet, all we would have to do is basically indicate that by saying it's now it's blue because we're going over here, this one has been closed. It's completed at this point in time. We want to know when the job has been completed. And then these two are still open, Job 15 and 16 are still open. So what we want to do is, this number over here, the cost of goods sold, is going to be including the cost of goods sold that has been basically accumulating up for the current period, which is going to be including jobs that started last year that are still open this year, as well as items that have closed this year. So there's a couple of things we want to know here. We'd like to know the jobs that were open as of the beginning of the year. And we'd like to know the jobs that are closed during the year and what jobs are still open basically. And if we know that kind of information, then if we have to do adjustments at the end of the time period for, let's say a completed contract or percentage of completion type of adjustments, if we know those things, then we can go back and make any kind of adjusting entries we need to for whatever kind of financial reporting purposes that we might have. So that's going to be the objective. Now if we go on back over to QuickBooks then, let's minimize this, go back to QuickBooks. We know that within the projects, if we go into the projects, we have project number 14, 15 and 16. I'm going to hold down control and scroll down a little bit. So there's going to be 14, 15 and 16. We're going to say 14 is now completed. So we could go into 14 and we could see the report specifically for 14, right? And we could say, hey, here's the cost, so we're basically going to bill for that at this point in time. We could look at the projects reports, which will basically be an income statement report that is just for that particular customer or project. And we could go through the billing if we so choose and bill by basically item by item, making the invoices. So that's going to be our items here. And once this is closed, then we could sort up top and say it's going to go from in progress to a completed contract. Now we'd also, like I said, we want to know, we'd like to know the jobs that were completed in the current year. So you may actually also go into, you could just edit the name, which I might just put in the name here, that's job number 14, and then indicate whether it's opened or closed and possibly the date that has been opened or closed, right? So that I'm going to say that this was closed on, you know, one, let's just say one and 20 somewhere in January, right? January 2020. And so I'll keep that so I can indicate, hey, this job was closed in the current year. So I'm going to go ahead and actually save that. And then I could indicate here that the job has been completed at this point in time as well. Then if I go back to the all jobs, I can see that information in here. It shows me just the in progress jobs. And if I want to see all statuses, then I can go here and see all statuses. Alternatively, you might, if you have a lot of jobs, keep the status open or as not completed until basically the end of the year so that you can, you can easily look at your job status over here and say everything that had been opened at some time throughout the year, if you need to make any kind of adjusting entries at the end of the year for financial reporting purposes or tax purposes to be converted to a completed contract or a percentage of completion, some kind of adjustments. Cause then you can, you can show the beginning balances. Like I say, the ones that were still open last year and this year and then the jobs that, that were open this year and the ones that were closed. So those are a couple of methods that you can use. So we have that and then we're going to make an invoice to basically bill for this. So obviously we're going to make an invoice and what we want to do is take like we say that 191, 140, which of course is the same as we had here, 191, 140 and then mark it up by that 30%. So we could do that by, by pulling over if we had an estimate and just saying, hey, we're going to pull over the estimate, but we're not going to do it that way here. We're going to actually take the, all the billable items, remember that we made them all billable and use that to pull over into our invoice so they could populate the invoice for us. And, and then the customer can see all the items that we had and they can see transparently, this is the actual costs, including the overhead, our best estimates on the overhead and then our markup at the, at the 30%. So let's do that. We're going to say new, I'm going to say invoice. So we're going to say new invoice. And then I'm going to make this for job number 14. So it's going to be job number 14 on the invoice. And I'm going to then note we have these items on the side here. These are going to be all the billable items that were assigned to that particular job. Now, if I tab through this, notice the billing address is going to be the company one because this is going to be the job related to that customer. So it's saying that customer and I don't have an address because we just put in the customer, but that would be the customer name terms. So we'll keep the terms there. We're going to say the invoice date, I'm going to say is 013120. And so the due date is going to be 3-1, we'll keep that. And then we're going to say then that I'm just going to add these items over. I'm just going to see what they have. I'm going to double check them to what our status is, but I'm just going to be adding these over now. And once added, I'll double check them to the actual job so we can see that they pulled everything over properly. So I'm going to say just let's just add these in here. And say add that, add that, add that, add that, add that, okay. And so these are going to be all the items that we're assigning over to this particular job. And this is going to bring them over basically at the cost. Now we're on the actual billing side of things, but this should bring them over basically at the cost, right? So we're going to be adding all these in. So we'll add all the costs here and there we have this and one more, that's going to be adding up to the 191.140. I would double check that to the job now. I'm going to do that by duplicating the tab up top. I'm going to right click on the tab, duplicate the tab. And then I'm going to take a look at the projects so we can go into the projects and just double check that the costs of the project should now be lining up to the items now on our invoice. Now if they don't line up, then maybe we didn't click something as billable on the invoice or something like that. That's okay. We can go figure that out and find it and then simply add it to our invoice here. So if I go into job number 14, I'm going to say I want to see all status jobs. And we want to then go into job number 14 here. And then if we double check job number 14, we're going to say yeah, it should be 191.140. And again, if it doesn't include some of these items, I can just find what I'm missing by going into the materials here and then add that information to the job as needed. But here it looks good. So we're at the 191.140. If I go back over here, in other words, 191.140. Here's all the items. I'll go through them slowly. So I mean, if you wanted to add them up, if you're missing any of them, then you can add these. And this gives, of course, a full detailed list of all the items that we're putting and involved in job number 14 so that we could be as transparent as possible. These are going to be the actual costs that we have and the best estimate that we have for the allocation of the overhead. Then we're going to mark it up by the 30%. So I'm going to say there's going to be a markup for us of the 30%. And that's going to, of course, simply be the, and we could actually calculate it in here, I think. If I say, this is going to be the 191.140 times. Now they won't let me calculate it in there. All right, that's OK. We'll pull out the trusty calculator. Trusty calculator is going to say 191.140 times the 0.3. That's going to give us the 57.342. So let's put that in here. The markup is going to be 57.342. And this is going to be the markup. And the markup is 30%. So we could just kind of note that. And that'll bring the invoice up to the 248.482. That should then match what we had in our journal entry, right? The 248.482, that looks good. So let's go ahead and record this. What's going to do, what is it going to do when we record it? It's going to be increasing now the accounts receivable by that amount. And then the other side is going to be going to the revenue account. It should be increasing revenue. So let's go ahead and do that. I'm going to say save and close. So we'll save and close this item. Then we'll go on over to our financial statements. So let's go over here to the second tab now. Let's go to the second tab. Let's go to the reports. Within the reports, let's then look at our favorite reports. So let's look at the balance sheet report. So I'm going to be opening up then the balance sheet. So we are in January. So as long as we're in 2020 or until the end of 2020, we are good. We're in 2020. I'm going to close up the hamburger. I'm going to hold down control, scroll up just a bit. Let's get it back up to that little even further, like to the 125. 125. I think I went too far now. No, that was right. That's where I like it. All right. And then we're going to go down. And we're going to say that the accounts receivable here is now at that 248-482. So there it is at the 248-482. And here's our invoice that we just made. So if we scroll back up, then the other side is going to be on the income statement. Let's go back to the first tab so that we can then open up the income statement going down to the reports on the left-hand side with, of course, that hamburger open. We want to go to the income statement, the profit and loss, the P and L, all different names for the same thing. And then I'm going to close up the hamburger and then we have the income. There's the income, the 248-482. If we go into that item, then we have job number 14 and all the detail for job number 14 within it. So that looks good. So then I'm going to go back on over. And so now we've got that detailed information with the revenue involved as well. Let's go ahead and sort to this report now or give us more detail. Let's take a look at this report and we want to take a look at it by customer now and run that report, which is basically by job, right? It's going to give us the jobs. So there's now job number 14, which I gave the date that it's basically closed on within the job number. And you might want to put like a C in front of it, a C or to make it close or open or something like that for an indication within the name because that can help you a bit in the sorting of it. So then if I just scrunch up the cost of goods sold, if we were to scrunch these items up, keep on hitting it twice, then it'll give us basically the net profit here. And of course we only have net profit on job number 14 because we haven't been billing job 15 and 16. And then if we want the detail, notice all the sales went into just one line item even though the invoice is showing all the detail on the invoice. Cost of goods sold, however, still shows all the detail within it so that we're breaking out all the cost side of things. So here we have all the cost of goods sold information. So that looks good. Also note that if you wanted more detail on the sales side, when you set up those double-sided items, then you could set up different sales items in a similar way as we did with the cost of goods sold. But you don't want too many typically sales items, sales accounts up here. You wanna break out the cost accounts oftentimes, but not too many sales accounts. In other words, you don't wanna be breaking out a sales item for every material item or anything like that typically. So just be aware of that. That's gonna be the general case up here. So we've got the materials and then we've got the overhead and then we have our totals down below. So the total for all jobs at this point is the 425.518. If I go back to the second tab, scrolling down to the equity section, there's the 425.518 here in the net income. Going back to the first tab, I may want to know however, for the entire life of the job or any open job that was in this period. So to do that, I can then say, okay, let's go back to 2019. Let's go to 2019, run this report. And now we're gonna have the information for the jobs that were open throughout that entire time period that were open prior to this, right? And so now we've got the net job here, the net profit for the total job up to this point in time. And then these jobs here, if we looked at the total cost of goods sold, we're gonna have the cost of goods sold for all the items that were open through that time period. Now, if we wanted to sort this information, I note, if you go up top and say, I wanna customize and sort this information, we could go to the filters down here and we can go to the filter by customer. Now, if we filter by customer, then we can choose the customers we want. And this is why it's kinda useful to be indicating that the dates that the job was closed because I might want to be filtering and look at all the jobs that were open in 2020, at some point in 2020. And this little indication here saying, hey, it was closed in 2020, but if I still wanna see it because I wanna see the open jobs that were still open in the current period, then I can choose this item or I can choose to just look at the items that are still open, which is just 15 and 16. So that can be a useful feature. Note that this report, it's funny that you can't really sort it. There's no way to sort it that I can see by the status, meaning whether it be open or closed status. You can see the status. Of course, if you go to the projects tab, you can see the different statuses. And once you pick up the different statuses, you can go in here and then select the jobs that you want, whether they be open or closed or not. But I don't see, there's not an actual sorting by status, by project status within here. So in any case, you could sort in this way. So if I just wanna look at the open jobs, I could select these jobs that are open. We can then filter and say, okay, that'll remove the closed job. So it's useful to have the indication that it's closed basically in the title so that you can know when it's closed. And it's useful to have the date of closure in the title so that you can have an indication whether it be closed in the current time period or not. Now I'm gonna right click on this tab again, right click on this tab up top and duplicate this tab. I'm gonna go back to the tab to the left and then open up the hamburger and then go to the projects. So if we go back on over to the projects here and close up the hamburger, you'll note, of course, within the projects tab, I'm gonna hold down control and scroll down a little bit or we get it back to, let's say, let's get it back to like 80 so I can see the projects down here. Within the projects tab, you can then sort by projects and project status. So these are all the in progress, which is the default. If I then go into it and say I wanna see all statuses, then we see all statuses and if I wanted to go into just the completed ones, then we're gonna see this item that is completed. So I'm gonna go into all statuses. So that's great, but like I say, if you needed to convert from the system we're using now to like a completed contract or you need to put a work in process account in there or something or a percentage of completion, then you'd like to be able to see not only the ones that were closed, but the ones that when they were closed, if there were jobs that had activity in the current time period. So I'd still say that you may wanna go in there and do some indication by like the date of the job. So somewhere prominently in the name, if possible, might be useful to put the date of the close of the job, maybe just a month in year indication and that can help you to sort your reports here. And then after the year closes, maybe then you change the status to completed at the end of the year. So anything that closed in the year, then change the status to completed, possibly at the end of the year and that might make it a little bit more easy to sort your information and you can sort by jobs that are still open and then you can filter out the ones that had been closed during the year. So just a couple kind of different ways you might wanna think about sorting the jobs that will be open and closed, just depending on what your reporting requirements will be at the end of the year. So that's gonna be it for now. Let's get out of here.