 In this presentation, we will continue on with entering our beginning balances for the jobs and related accounts beginning balances part two. Let's get into it within two weeks. QuickBooks online. Here we are in our job costing company dashboard. We're going to be continuing on entering those beginning balances. I'm going to go back to our practice problem or back to our Excel worksheet. Last time we entered the beginning balances for job number 14. We're going to be entering those beginning balances as of the tight day before the cutoff date. That including the direct materials, direct labor and the factory overhead so that we can populate both the accounts that are going to be involved as well as the job costing information or project information. We'll enter this with basically one transaction and that will help us to see how to get this information on the system, how the items are working to get this into the system, the relationship between the financial statements and the project or job costing data. Okay, so let's go back on over. We're going to go back on over to our Excel or not our Excel. I'm going to close the Excel sheet or minimize the Excel sheet to go to QuickBooks online. And then we're going to go to the plus button up top. We're going to make another expense type of form, another meaning we made one last video. And now we're doing like the first one for this video, but another one because we did one last video. And then we're going to say that the payee, I'm just going to pick the miscellaneous again. Miscellaneous is going to be coming out of the checking account. And we're going to say the date is going to be 1231.19, which is going to be the end of the last period. So it's going to be as of the day before the current period that we're going to be recording this in as of. I'm just going to pick cash for the method. Then we're going to enter those items that we set up. So I'm going to in essence make up random items for the most part just so you know for the direct materials. So that we have a subcategory of the materials. We're going to say that those are the materials, but we set up different materials items within it to help us to populate the expense accounts. And it can also help us to populate the invoices when we get to the invoicing process. So I'm going to then minimize this and I'm going to be picking up then the items. Now be careful about this because you don't, we're not looking for the category detail. We're looking for the item detail down below. So we want to make sure that we go down to the item detail. I did mess this up and had to pause the video and get back here. So it's something you can mess up on many cases. Okay, I'm going to minimize the items. Now also note that down here it's picking up the items and memorizing what happened in the last time. So it's basically memorizing what we did last time, which is nice because that might help us to populate the current item. So I haven't entered this in there. It's just picking that up as, as trying to help us out because I picked the same vendor. Now I'm going to change this a little bit. So I'm just going to go back in and change it that I'll keep the cement rendering. We're going to make this, this time for 3000. However, so I'm going to make this billable. So we're going to say this is going to be a billable item. And this time the job is not going to be 14 but 15. 15 is going to be the job or project as it's going to be called in, in our system. We're going to keep the dropped ceiling. This one's going to have a drop ceiling as well. We dropped the ceiling for this one. Couldn't hold it. It was heavy. We dropped it. I'm going to say this is going to be 2000. 2000 this time. I'm going to say billable. And then this is going to be job number 15. So job number 15. And then we're going to have the, we'll switch this one up a bit. Let's say instead of the flooring, we're going to say that this one was marble. We needed marble for some reason. Marble was involved here. And so we're going to pick up the marble and that's going to be for 5000. And that'll be billable as well. So we're going to say that's going to be billable and job number 15. 15. That's the one we're working on. Next item I'm going to say is paint. So we'll say we needed some paint and wood stain, fox finishing. And that's going to be for 3000. And let's see if that picks us up to our total that we need here. That's going to be job number 15 as well. Because these will all be job number 15. This whole thing's job number 15. And then I'm going to scroll down and we're currently at the 22. So if I go back on over to our worksheet, is that, is that, that seems too high. That's too much. Hold on a second. And that's because I got the factory overhead, which we don't want here yet. So I'm not going to pick up the fact. So let's, we're going to remove the factory overhead and I'm going to be put instead. I'm going to put plaster, plaster and, and the gypsum board plaster and the gypsum board. Not the factory overhead. And that's going to be for, let's say 2000. So that now we're at 15,000. I think we need 18. So I'm going to go then we're going to add one more. And this is going to be the surface finishing surface finishing. And that's going to be for the 3000. All right. That should pick us up to the 18. I'm going to say this is billable. This is billable. This is for job number 15. This is for job number 15. And this is for job number 15. They're both for job number 15. And that's going to be our 18,000. So here's what we have thus far. If I go back on over to our Excel, we have now picked up the 18,000. Now I'm going to do the direct labor. We set one line item for this. And again, we're kind of thinking of it as if it was basically a contractor at this point, rather than pushing it through the payroll. So you can imagine contracting labor that we have here. And we're going to be processing this through. So we're going to say that we have the labor now, direct labor. And that's going to be for the amount of what was it here? It was 16,000. So it's going to put that one line item for now. You can imagine breaking those out in a similar fashion. Whoa, that's not extra zero, extra zero. And then we've got billable. This is going to be job number 15 as well. And then the overhead, which we will talk about breaking out the overhead as well. So this is going to be the factory overhead. So I'm on this last component now. That's here the factory overhead, which is going to be the 8,000. So I'll put that into the 8,000. So here we go. 8,000 factory overhead. We're going to make that a billable item as well. Job number 15, job number 15. And there we have that. Now, if we add all this up then, we're at the 42,000 bottom line. Bottom line, 42,000. That's going to be what we have here. So that looks good. Everything looks good thus far. If we then go back on over and say, okay, what's this going to do for us? It's going to be decreasing the checking account because it's a checking account. We will have to enter the beginning balances for the checking account. We'll do that with a journal entry. And then the other side is going to be going to the expense accounts, but it's going to be driven by the items. The items are deciding which expense accounts they're going to go to, which are going to be those costs of goods sold type of expense accounts. It's going to happen, however, in the prior period, 1231.19. And therefore those expense accounts will roll it over into the equity section as of the current date of our current period, which is going to be 2020 January 1st, 2020. We're also going to have this information pulled over to the jobs so that we can track it by the jobs within the open job or project, which will be job number or project number 15. All right. So let's go ahead and say save and close and check it out. So I'm going to say save and close. We're going to be opening up our financials now. So we'll then go on over to our reports. Take a look at our reports. We're going to open our favorite two reports. That's the balance sheet and the P and L. So let's open the balance sheet first. So we'll open up the balance sheet. This will be kind of a common practice that will be opening up this balance sheet on an awful lot. And now it's going to the current time period. So as long as it's in 2020, then we'll have the same information typically or something as long as it's after the data input point, which it will be in any case. We have the 83,000 here. And then down below it's in retained earnings right now, right? Retained earnings. The only change is if I bring it back to the date of input, which is 2019, it's going to change from retained earnings to net income. So 123119, 123119. If I say run that report, only difference down here is that in the equity section, still in the equity section, but now it's in net income. And that just means that it's on the income statement for this time period, for this year. And then it's going to roll into retained earnings as we saw in the next year, which is what we want because we're starting our data input in 2020. So now let's go ahead and duplicate this report up top. We're going to go to the tab up top, hover over that tab, right click on that tab, then we're going to duplicate that tab. And that puts the tab on the right, giving us our balance sheet so we can see that and still do stuff on the tab to the left. So let's go to the tab to the left so we can do stuff. Let's go down to the reports again. The next stuff we're going to do is going to be the PNL profit and loss report, otherwise known as the income statement. So we're going to be opening up that income statement, our second favorite report. Maybe, you know, they're kind of tied one and one and two. They're the top two for sure, favorites. And there's nothing in 2020. So we're going to bring this on back to 2019. Why isn't there anything in 2020? Because it rolled into the equity section. That's what we want. We want no temporary accounts as our beginning balance in our system. So we're going to say as of 123119 and 123119, we're going to go ahead and run that report. And then if we scroll on back down, now we have all this information with our costs for all under cost of good soul. So note you can then these are two jobs that we have now. If I scrunch this thing up, it's all in cost of good soul, right? That's the only line item we have thus far. If I unscrunch it or like make it longer, then we have this. And if I scrunched up the by with a little triangle, the materials, then we have the cost of good soul breaking out between our three categories, the direct labor, the materials and the overhead. So if I went to our information over here, we've got the direct labor materials and the overhead, which now note we do have a problem here because note that if I add up the direct materials and the direct materials for the two jobs here and bring that over, you would think that the direct materials if I was to minimize this item, it's 30,000 over here and it should be, we would think it should be 32,000. And the overhead from here and here, the nine and the eight, the 8,000 and the 9,000 adding up to the 17,000, you would think would tie out to the overhead here of the 19. So it looks like the overhead is overstated. Let's go into the overhead. We should have two items in the overhead and it looks like we have this extra 2,000. This 2,000 doesn't look right, right? It should be the nine and the 8,000. So what I'm going to do is I'm going to drill down on this 2,000. That'll take us back to the expense report and we're going to see what happened with that 2,000. So we're going to say, all right, there's 2,000 here and it went, it's going to overhead here and it's going to overhead down below. So it looks like this one is not going to the right place. So let's change that up. I think this one should be going to plaster. So I'm going to adjust this. This should be going to plaster and gypsum board. And that should be for the 2,000. There we have it and that still adds up to our 42,000 which ties out to the 42,000 here. So that looks good. So notice I made that adjustment here on this item. This is the expense item here. All right. So then I'm going to say save. Let's say save and close that and then go back to our reports. I'm going to say save and close and then we're going to go back to our report. I'm going to close this one out or I'm going to go, in other words, I'm going to go back up and go back to the summary report. This is back to the PNL or profit and loss. Then make sure you refresh the screen by going to the little refresh button up top. So it'll recalculate or you can select the URL and just hit enter and it'll refresh the screen. Then if we go back down and check this again, we're going to say, all right, now we have the direct labor of 34,000 direct labor. If I go back over should be the 34, which is this and this. So that ties out to the 34. The 14 and the 18 are the direct materials on the Excel worksheet for the 14 and 18. That's going to be the 32,000. So that looks good for the 32,000. And then of course the factory overhead, the eight and the nine or the 17,000 for the factory overhead matching the 17,000 here. We could see more detail for the materials by selecting this item and that'll give us some more detail there. Let's go ahead and go back up top and we're going to duplicate this tab. I'm going to go to the tab up top, right click on it and duplicate that tab. So now we have the balance sheet, the P and L and we can do stuff to the tab to the left. Now I'm going to open up the hamburger so that we can do stuff over here and then I'm going to go down to the project now. And now we're going to have the two projects that we can toggle between. So if we go to the projects tab, then we have project number 14 and project number 15. So if I scroll on down to project number 15 now and open that item up, now we have our information for project number 15, which is the income and of course the cost of goods sold here. We also have the transaction so we can see the transactions. We made these billables so you can actually create an invoice from each of these items for billable items if you were going to bill them basically separately. And then we've got the time tracking and the project reports so we can go to basically jump to these reports on the right hand side under the project reports tab. Now also note that if we jump back over to the P and L tab if we want to consider the reports we can look at this profit and loss report in a couple different ways up top so we can consider it in P and L report the profit and loss reports and I'm looking at it for 1231.19 to 1231.19. Now this is a standard profit and loss now we can jump easily to kind of our job costing type of information by saying instead of seeing the total only we want to see this by customer so we can see it by customer and then run that report and then it's going to show us basically the customer and then here's the jobs related to that particular customer so we are in essence running kind of like the job report for job 14 and 15 that's going to give us the total cost breaking out in a profit and loss type of format same kind of activity where we got the cost of goods sold you could scrunch it all up for customer now and then we've got the materials and so on and so forth so the total job of course added up to the 41,000 and the 42,000 and the total of the 83,000 which is the 41, the 42 and the 83,000 that we have in our job cost information here as well then you also have some filtering options basically be able to tie this thing out so if you go to the customized tab on the right then you have your filtering options and you could filter for example by customer if you wanted to filter by the customers you could hit the drop down and then here's 14, 15 and 16 so you could select the particular customers you wanted to filter by so if I just wanted to see for example these jobs because I know these the open jobs I could just select those items and use the filtering options I won't do that now I'm going to go ahead and close this back out so we're going to close this back out now just realize that of course when you're looking at the P&L reports that it's going to cross over for the time period in other words you might have open jobs that are going to be open in 2019 and still continue to be open for 2020 so there's a consideration in terms of what your P&L for the current time period the current month and year for the job over the span of the job and if the job of course spans over the year end 1231 year end you got to realize that when you're trying to compare those items out same kind of issue with regards to when we're tying out the total jobs in this format the total jobs being the 83,000 we can see the 83,000 is the net of the open jobs at this point in time which if we're looking at the first at 2020 if we recorded those in the cost of good soul they have now rolled over into the retained earnings or the capital account at this point in time so you just got to kind of realize that that's the process those accounts were recorded to an income statement account even though the job is still open over here and if you needed to convert this to something like a work in process type of account then you can make that basically adjusting to discuss that process if it was necessary at the end at the end of our practice problem so we'll go through that process so in any case that's going to be it for now let's get out of here