 In this presentation, we're going to take a look at some terminology, that terminology including jobs, sub-customers and projects. These terms can be a little bit confusing and they can be used interchangeably at times and they can be used differently at times as well. Some of these terms will be used in job costing in general. If you take it away from the idea of accounting software and just talk about the process of job costing, then you're typically going to be using the term jobs. But then would you add the feature of accounting software that actually adds some terms to the standard accounting terms, including terms that you might see such as sub-customers and projects. Get ready because here we go with zero. Here we are in our job costing company dashboard. Now when we think about the job costing system, what we have are jobs and then we have customers. That's going to be what we would typically think of in terms of just a job costing system in general without adding any terms with regards to software. If we think about that, we would go into let's say the contacts and take a look at our customers. The customers then are going to be the people that we do business with. We're going to hopefully do work for them and we're going to generate revenue through that process then they pay us. Typically with regards to customers, if you're thinking about normal accounting processes, what would then happen if we had just had a service business or if we sold inventory or something like that, we would create an invoice for the customer or a sales receipt and that would record the sale at the point in time that we made the invoice or the sales receipt increase in accounts receivable or cash and then increasing the sales. When we think about the contractor information or when we think about job costing, we're typically thinking about jobs that have a longer period of time that we want to be tracking for a longer period of time. It's not a short term thing. It's not like a restaurant where we're just making the food, giving the food and it's done right there, then and there or inventory. We're just giving the inventory right then and there at that point in time. If it's going to be a longer term process, we might have to do more information and track that more information. Therefore, you can kind of think of the jobs as a two tier, two level type of thing. We're going to have, of course, a customer. The customer is still going to have to be someone that we're going to have to bill for, but under that level, we're going to also have the job and the job might be there for some extended period of time and we're going to have to allocate our costs to the job and think about how we're going to have an estimate for the job, how we're going to allocate costs to the job, how we're going to create the invoice and bill the client either through the process of the job or at the end of the job. And therefore, we could have one job per customer. We might have a system where we have a customer and they have one job, but the job is fairly long. So we want to create a project for it. Or we could have a situation where we have one customer who has multiple jobs. We might say this is someone who gets jobs for us. This particular customer pays us. We have multiple jobs that are related to this particular customer. So in just normal kind of bookkeeping terms, that's how we would terminology use the term basically jobs. That's how jobs would be used. Now, when you get into the accounting software, if you're used to accounting software like I'm going to compare this to QuickBooks, a QuickBooks accounting software, the desktop version, which is like the original kind of version of QuickBooks, it's still there, the desktop version. But now a lot of the cloud-based versions are there too. There's an online and there's a desktop version. If you were going to the desktop version, they kind of stuck with that original language. Here's just an example of QuickBooks desktop. This is where the software kind of gets into things and changes terminology a little bit sometimes. So in any case, in the desktop version, we've got the jobs where you could set up like a customer. This is the customer center. And then you could set up a job, which is going to be sub to the customer, which is what you would kind of imagine it to be. The job's going to be a sub unit to the customer. It's going to be kind of related to the customer. So when you create a new customer or job, you can either say, I want a new customer or a new job. If you're going to create a new job, then it'll be by definition, typically it's subordinate to a particular customer. You can have multiple jobs related to one customer. That would be the traditional way that you would see it. Now, when QuickBooks went to QuickBooks Online, they used pretty much the same feature of this sub-customer. But then they called it this job feature. But then they called it a sub-customer. So if you hear the term sub-customer in the sense of a job costing system, they're basically talking about a job. If you're using it as a job costing system, they're basically talking about a job. So that would be a similar feature. So you may hear that terminology. You're going to hear jobs. Anyone who's in just general job costing system will typically use the term jobs. And then people that work with particular softwares might use terms like a sub-customer. So that's going to be a sub-customer. And then both QuickBooks Online and Zero now have this projects feature. And the projects feature, when you're thinking about it in terms of a job costing system, is really, again, basically the jobs. This is where we're going to be tracking the detail, the information for the jobs. From a software standpoint, this is my interpretation of it, from a software standpoint, the projects have more functionality than the typical jobs that were in the old system in QuickBooks Desktop or in the sub-customers and the QuickBooks Online. And therefore we have a new term to call them projects. But in essence, you're thinking about them in a similar fashion with regards to a job cost system. We're going to set up a project. The project will be basically a subordinate to a customer for us. And then we can track that project in a longer term fashion within the project. So you could see how those three terms, jobs, sub-customers, projects can kind of be used interchangeably to some degree within our accounting system, our accounting process. But you also want to know what the differences are in terms of which software is going to be using which term and also the slight differences in functionality from software to software between projects and jobs with the online software, the projects typically being the items that have more functionality and therefore it being indicated by having a new term which is going to be the projects used. Now we're going to set up a customer and jobs related to it. So we're in the contacts area. We're in the customer section. So remember that zero will call things by contacts and then customers depending in essence on how they're going to be used. We're going to set up one customer and then the jobs will be tied to that one customer. So we'll show that we can have multiple jobs that will be applied to the same customer. So we're going to then say that we're going to add the contacts. We're going to add contact here. The name we're just going to call, we're going to just call customer one, customer one. Yeah, very creative name, primary person, customer last name one. And so we're not going to have any email address. So it's obviously a generic customer here. So we're going to go ahead and save customer one. Customer one has then been saved. Then we're going to go into the projects. We're going to add our three projects just basically labeling them by number, job 14, 15 and 16, I believe are the numbers that we're going to have. So I'm going to go into the projects dropdown. I'm going to go into all projects that'll take us into the project view screen. So we're now in the projects view is very blank, nothing here. We're in the in progress tab. So any project that we will start will typically be in the in progress tab because we're working on that project. Now, if we jump over into our Excel sheet, you'll note that as we've worked through the practice problem, we've got job number 14, job number 15 and job number 16. Those are going to be the three jobs we will be entering here. So moving back on over, we are then, and then let's, I don't know what I did there, but I'm going to maximize this. We're going to say we want a new project and I'm going to say a new project. So it's going to be in progress. Note that you could set the project up as a draft as you saw there, but we're going to go right into the in progress. We're going to say the contact, find a contact. I'm going to say customer one project name. I'm just going to name it number 14. Now note that you might put a more detailed name, obviously for the type of project and whatnot. I do recommend we might be using the naming system later to help us to sort projects. So a number can be useful on the project and you might use something, we might use something like a date to indicate when the project was closed to help us kind of sort the projects in the future. So deadline, I'm not going to put a deadline here. You could pick a deadline if that would be applicable. Next we have the estimate, which you could put a total estimate here or you could say that you're going to calculate from tasks and estimated expenses. So I'm not going to be put in the estimate or dealing with the estimate at this point in time. We're just going to be setting up the jobs at this point. So then I'm going to say create. Now we are in customer one, that's the customer. And then we have the job number 14. This is going to be our layout screen for that particular job. So we've gone into the projects and drilled down into the customer information. Obviously we can then go back to the projects with the back arrow. So we have the tasks and expenses. We have the invoicing, time and expenses. Obviously nothing has been imported or added to it at this point in time. Then we have the time that can help us to track the time information related to it. We'll talk a little bit more about that in the future. Then we have the quotes and invoices, quotes and invoices. So I'm going to go back to the tasks and expenses. I'm going to then go back up top with this arrow to go back to the projects. Now we're in the main project view, just like you would get to if you were to say the project dropdown, then go to all projects. That takes us to the in progress section, the in progress tab. And now we have of course the one project here. One project and then C1. C1 is going to be our customer and we have the one project there. We're going to add another one. So we're going to say new project. I'm going to make it a full in progress project. And this is going to be for a customer. I'm going to say customer, customer one again. And this is going to be just simply job number 15. No due date, not going to be dealing with any estimate and create. So now we're going to have another job that should be showing up that takes us into the job. So here's the customer, here's the actual job or project related to it. We're in the tasks and expenses, not much activity given the fact that we just opened it up. Let's go back and we'll do this one more time for job number 16. So we're going to select these dropdown up top and we're going to say we want another one that will be in progress. The contact information we're going to say is customer one and the job is going to be 16. So once again, we're not going to put a deadline or deal with the estimate at this point in time. We're simply going to create that job. So those are going to be the primary three jobs. I'm going to then go back in the arrow up top to go back to our three jobs and that'll kind of match out. You can see how this is starting to be built in terms of our job cost sheet. So this is kind of mirror in our Excel worksheet in essence, the job cost sheet. And we're going to apply the costs to these jobs which will be tracking the direct materials, the direct labor and the overhead which is the supporting documentation that will basically support the cost of goods sold kind of line item account, right? That's what's happening over here. This report is breaking out and giving a sub ledger of in essence what's being tracked in the cost of goods sold which is going to be the jobs. And then more specifically within the jobs we would like to be able to break out what's included in there. We'll talk about more tools on how we will do that in future presentations. That's going to be it for now. Let's get out of here.