 In this presentation, we're going to record the completion of a job and the invoicing related to that job. Get ready because here we go with zero. Here we are in our job costing company dashboard. We're going to open up our Excel file to see what our objective will be. So we're over here in our Excel file. We're going to be completing a job here. We have the transfer job to finish goods and then complete it. So let's consider what we're talking about up top. So if we go back on up top, we are considering our job job number 14 that has now been completed. So if I go over to our job sheet here, this job we're going to say it's been completed and we're going to complete and we're going to finish it up and bill for it in essence. So that job is done. What does that mean in terms of the journal entries? Well, in terms of a journal entry note that we haven't been tracking this through the work in process and the finished goods, but rather recording this information basically to cost a good sold and then supporting it over here with the job cost sheet. So what we don't have to do at this point in time is go through the work in process and transfer possibly to finish goods and then record the decrease in the inventory type of an item and the and the related cost of goods sold because we've already recorded it in the cost of goods sold. If you want more examples or explanation on those two methods of recording this information, you can take a look at our example problem will provide at the end here on, you know, the two basic methods that you could or different methods you could use for the job costing and supporting of it, this information with the job cost sheets. But at this point in time, that basically means then that we just really need to record kind of like the service side of the invoice. So on the service side of the invoice, we're going to say that sales are going to be increasing. We're going to record basically an invoice. The other side is going to be going to the accounts receivable. So that's going to be fairly straightforward. That's going to be the invoicing process. We're going to use the costs that have been accumulated, which are adding up to the 191, 140 to help us generate the invoice. Now note that these costs over here aren't what we're going to bill exactly because that's obviously the costs. And we're going to be marking them up. We're going to mark them up by 30%. So we'll say, Hey, this is our actual costs. We're going to mark it up by 30%. Also note that you might have different ways that you bill somebody. You might be using an estimate and say, Hey, this is a hard estimate. It is what it is. We're going to bill you at the end of this for that estimate or and you might change the estimate and whatnot as you go. Or you might say, Hey, this is an estimate and we're actually going to bill you on the actual costs, which is what we will do here, plus some type of markup, which we're going to say is going to be a 30% markup. And that's what we're going to do with this transaction. So the actual journal entries just going to be increasing the accounts receivable increase in the sales, we're then going to have to support that information with the job cost. Now, we also want to note with the job cost system, it's going to be going from open to now being closed. This job is now closed. It's closed. It has been closed or it will be closing in the turn the current time period. So when we're trying to match up our costs to good soul to say the the the work in process ledgers over here, we need to basically know when the item was closed, was it closed in the current year or not closed in the current year? So we want to be able to see if we can mark that off in our system, right? Because this cost a good soul down here is including the jobs, the activity for the jobs that were open in the current time period. So we want to keep that in mind as we run our job reports. So in essence, we're going to make the invoice, we're going to take everything that was billed and we're going to mark it up by 30%. So let's see how we can do that in zero over here. So we're going to go back on over to zero. I'm going to do this by going into the project. So we're actually going to go into the projects. We're going to go into the project that was closed that being project number 14. So let's go into project number 14. There's our cost of the 191 140. We would like to create an invoice based on those those actual costs that are in there at this point in time, which you can see down below. I'm going to do that with the invoicing item up top. And I want to invoice tasks and expenses. So I'm going to invoice tasks and expenses. And notice it's taking all the items that we have incurred thus far. And we can basically make an invoice with them. So we're going to take these are the actual costs that we're going to be pulling over. So we're going to check all those off. You can uncheck any of them you don't want to pick up. You can see that amount is coming up to the 191 140. And then it says save draft or save and open draft invoice. Let's save and open the invoice. Now here we have it. Now notice it's going to customer one because this is a job or project related to customer one. I'm going to make the date is going to be going to January. So let's bring this on back to January 31st. So we'll pick that up on January 31st due date. Let's go ahead and say due date is in February, say February 29th. So we'll pick that up invoice number. So that looks good. And then we of course have all of our information down below with regards to the items. So all these items have been pulled in now so we can give the really the detail of the invoicing. And you can do this of course as you go as well that you could do progress invoicing as you go and generate this this information as you go and say say here's the invoice and you can either collect like for example you might collect. I'm just recurring my costs until the end possibly and then and then bill up the 30% at the end of the project or maybe you bill the cost plus the 30% as you go you know however you want to do it. But notice how this can help you to populate your your expenses down here then we need to add a line for the markup so that we're going to have I'm just going to call it markup which is going to be the 30% markup. So I'm just going to be taking then that 191 140. So let's pull up the trusty calculator. Get the trusty calculator. And so we're going to say this is going to be the 191 140 times point three and that's going to be the 57342 57342. So we're going to pick that up here. We'll say this is going to be 57342 57342. So there we have that. So now the invoice amount is going to be at the 248 482. Does that match what we have in our Excel worksheet? Yeah, the 248 482. So that looks good. So when we record this then what's going to happen increase the accounts receivable by the 248 482. And the other side then going to revenue revenue. So let's say and notice it's doing that why is it able to do that? It's pulling the other side all of these accounts are pulling to that one revenue account you can see here except this overhead, which seems to have a problem. It's going to it's going to the cost of good sold account. We may need to change that this should be going to revenue. Let's go ahead and put this to revenue. And that means I set up that double sided item to the wrong account. But in any case, bottom line is we set up all the double sided items to be going to the revenue account and we should have been sending them up to go to the revenue account. And so when we create the invoice on that this is using the second side of the double sided or two sided items we set up it's they're all going to the income account here. So we're able to use the same items which we used when we created the expense side. And now we're using them to pull over to the revenue side to help us with the billing process. Alright, did I miss anything else up? And also note at this point in time that you could, we only have them all go into one revenue account, but you could imagine you made those double sided items to differentiate between revenue, possibly you put, you know, revenue breaking it out between the direct materials to overhead and and so on, you could you could break it out in that fashion. If you so choose, just remember, you don't want to get carried away with the number of revenue accounts. Typically, you want to have fewer revenue accounts, typically, and group them together. But you can do though that by when you set up the double sided items, changing the revenue items there. Okay, let's go ahead and save this, we're going to approve this. And then we'll take a look at the old financial statements. So let's approve that. Okay, and then we're going to go into the accounting drop down and we want to go into the balance sheet. So we'll go accounting balance sheet. We'll take a look at the current year. So this is going to be January 31. And then we'll update the that report. And then if we scroll down, we've got now, of course, the accounts receivable now at that 248 482. So the accounts receivable has now shown up. Let's go ahead and right click on this report on this tab up top and duplicate this tab, and then go back to the tab to the left so that we can then open the income statement. So scrolling back up going to the accounting drop down, we want to then take a look at the income statement. So then within the income statement, we then have the revenue and again, notice it's in one account up here, we just have the revenue account for sales, whereas the cost of goods sold, we broke it out between those components. So then if we go into the sales item, we can then see the detail of it, we can drill down in on it, and then we can go back to the invoice that we have created by then scrolling down and clicking on one of these items within the sales item. Now note that sales item is picking up all of the items that picked it up item by item, even though you know, we only had these are all coming from the one invoice which you can see indicated by the invoice number here. So if I select any of these items, in other words, it'll take us to the one invoice that's including all of these items that are on that one invoice. So here it is, here's the actual invoice and just note that if you needed to go in and adjust this at a later point, then you can go to the drop down here and edit the invoice. So that's going to be it for now. Let's get out of here.