What is Job Costing, WIP Report, Custom Fields in QuickBooks?

When you hear the term ‘Job Costing‘, it is used in business accounting that means to track the cost and […]

When you hear the term ‘Job Costing‘, it is used in business accounting that means to track the cost and revenues of a job and the standard reporting of profit by the said job. Job costing is a term that is used for tracking labor com materials, and overhead costs related to specific jobs that use the information to check if the cost can be decreased for future jobs.

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Since it is quite important, QuickBooks Online can help perform the Job for 1099 Contract Costs and other expenditures. Read more to find out about the steps to perform job costing in QuickBooks online.

Before connecting and tracking costs, you need to have QuickBooks online plus subscription because the budget segment is not available for those using Simple Start and Essential levels.

How to Enable Job Costing in QuickBooks?

Follow the below mention steps to enable job costing in QuickBooks:

Step 1: Track Expenses by the Customer

The first step is to track expenses by customers, and for that, one needs to adjust their Expense Tracking preferences in the company setting. So, select the company name or gear icon in the top right-hand corner of the QuickBooks online screen, and then select the company setting.

Move to the sales tab on the sales form content from the menu, and click on the box next to the customer transaction number.

The next task is to tell QuickBooks online that you want to track the expenses by the customer, and if you want, you can also mention that you want to make expenses and items billable.

To conduct this, you need to select the ‘Expenses‘ tab in the setting screen and then click on the bills and expenses and edit it.

Now you need to click on ‘Show Items Table on Expenses and Purchase Form‘, ‘Track Expenses by Customer‘, and ‘Make Expenses and Items Billable‘.

Now do not forget to click on the safe button to ensure that all the changes that you have made are saved and applied.

Now select the advanced tab in the settings cream and select the automation from the menu. Next, click on the check box next to copy estimates to invoices and then click the save and done button.

Step 2: Update Setting on the Customer List

The second step of job costing is adjusting the customer list setting. You need to use the sub-customers, who are also called jobs, when you use the Desktop Editions of QuickBooks and select the bill with parent option in the customer preferences.

Step 3: Adjust Setting on Products and Services

The 3rd step of job costing is using the products and services, Also called the item list, When you use the QuickBooks Desktop Editions. Now you need to convey to QuickBooks online that you want to purchase each of them for a vendor.

Moreover, You do not need to set up everything on the list, Only those you want to pay a contractor or a product you want to purchase for selling purposes. If you want to have access to the least, You need to select the company name and then select the products and services from the list menu.

Step 4: Submit Estimates and Invoices

Usually, The workflow is to design and estimate, Get your customer to approve it, and then Turn the Estimate into an Invoice. To develop an estimate, The best way is to use the quick create button, Which is the term used in QuickBooks for the + that you can see on any QuickBooks online screen.

You need to enter the details into the estimate form, Click the save button, And send the invoice to your customer.

Now the customer needs to approve the estimate, and then you can convert it to an invoice.

How to Develop a WIP (Work-in-progress) Report in QuickBooks?

If you are thinking about creating a work-in-progress or WIP Report, You can follow the steps below:

  • Create a new account and name it work in progress.
  • Now you need to change the item account from an expense account to a service item. Now go to the list-menu and, click on the item list and add the other charges items.
  • You can produce a report to track the amount of work in progress by the job. To do that, you must click on the reports menu, then click on customer reports and then summary.
  • Now click the customize report lab and click on display. Click on the display columns using the drop-down arrow and select the account list option.
  • Select the display roll using the drop-down arrow and select customer. Now click the filter tab.
  • Moving on, Select the account drop-down arrow and click on WIP account.
  • Select okay once you are Done.

How to Create Customs Fields in QuickBooks Online?

If you want to create customs fields in QuickBooks you need to follow the below steps:

  • To create custom fields in QuickBooks online, Follow the points below.
  • Then, Click on settings and select custom fields.
  • Choose to add a custom field. If you have created a field, Then click on add field.
  • Give a name to your custom field.
  • Select the type of data in a custom field. Then, Click on the drop-down list and at the items in the list.
  • Click the category in the custom field belonging to the customer transaction or vendor.
  • Choose the forms that you want the custom field to appear.
  • Select print on the form if you want your customers or vendors to notice the field on the form.
  • When you are done, Select the save button.

The article sheds light on the Best Version of QuickBooks intended for businesses looking for solutions. In addition, you get to know about job costing, WIP reports, and how to create custom fields.

However, If you cannot understand the versions, It is wise to take the help of Dancing Numbers expert. They will explain the various features involved in the versions and how you can use them according to your need.

If you have further queries about the best QuickBooks version fit for businesses looking for job costing, WIP, and custom fields, then you can connect with Dancing Numbers experts via LIVE CHAT.

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+1-800-596-0806 or chat with experts.

Frequently Asked Questions (Faqs)

How to Use QuickBooks in MAC?

If you want to use QuickBooks in MAC you need to follow the below points:

Step 1: Click on the Lists, then choose the list you want to see.

Step 2: Click on the Customer, Employee, or Vendor for Editing, then click the Pencil.

Step 3: On the Additional Info tab, click on Define Fields.

Step 4: Select OK.

How to Track Job Costs in the QuickBooks Desktop Version?

When you decide to track job costs in the QuickBooks desktop version you need to follow the below steps:

Step 1: Create a customer: Job for each of your jobs.

Step 2: Allocate all your expenses to jobs.

Step 3: Add your particular estimates in the given QuickBooks Desktop.

Step 4: Create appropriate invoices.

Step 5: Operate the job costing reports to check how your business is running on a job-by-job basis.

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