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MICROSOFT DYNAMICS NAV 2009
COURSE 50226: JOB COSTING
INSTRUCTOR NOTES
Contents and Timeline Chart
** Intended for Instructor Preparation Only ** Page i
Start the Class 1
Chapter 1: Jobs Overview and Setup 3
Chapter 2: Usage Posting and Invoicing 7
Chapter 3: WIP Posting 10
Chapter 4: Jobs – Advanced Facilities 14
Conclusion 17
Job Costing in Microsoft Dynamics NAV 2009
Page ii ** Intended for Instructor Preparation Only **
Timeline
Session Total Class Presentation: 4 hours
Chapter Description Minutes to Complete
Chapter
Page
Number
1 Introduction Presentation: 5 minutes 1
Chapter 1: Jobs Overview and Setup Presentation: 60 minutes 3
Chapter 2: Usage Posting and Invoicing Presentation: 60 minutes 7
2 Chapter 3: WIP Concepts Presentation: 90 minutes 10
Chapter 4: Jobs – Advanced Facilities Presentation: 60 minutes 14
Conclusion Presentation: 5 minutes 17
Instructor Notes
** Intended for Instructor Preparation Only ** Page 1
START THE CLASS
Timeline
Presentation: 5 min
Required Materials
Microsoft Dynamics® NAV 2009 Job Costing slide deck
Microsoft Dynamics NAV 2009 Job Costing Manual
Before the Class
If you are using the Cronus database, ensure that you have a clean database
installed. A clean database is required for the exercises to work correctly.
Opening Section
Display Microsoft Dynamics NAV 2009 Job Costing slide 1 as students come
into the room.
Display slide 2. Do the introductions.
Display slide 3. Give a general description about the course: the target audience,
training goal, and the process.
Display slide 4. Give a course outline, discussing what will be covered.
Display slide 5. Give the main course objectives.
Briefly have students write down their objectives on page 3 of the manual.
Job Costing in Microsoft Dynamics NAV 2009
Page 2 ** Intended for Instructor Preparation Only **
Ask students if they have learning objectives not highlighted on the slide. If the
students voice an objective that is outside the scope of the class, identify that
objective as such; if appropriate, you can try to reference it if time permits.
Write their objectives on a flip chart sheet and post the sheet on a wall in the
room. Revisit these throughout the class and at the end during the course review
to ensure that all of the students’ learning objectives are met.
Instructor Notes
** Intended for Instructor Preparation Only ** Page 3
CHAPTER 1: JOBS OVERVIEW AND SETUP
Chapter Overview
The goals of this chapter are to:
Define jobs and their elements in Microsoft Dynamics® NAV 2009.
Examine how data flows between the elements of a job.
Set up an appropriate Role Center for working with the Job Costing
functionality.
Set up job posting groups.
Create and set up a job card.
Plan a job: job tasks and planning lines.
Set up job related prices and discounts.
Timeline
Presentation: 60 minutes
How to Teach this Chapter
Throughout the training, multiple scenarios are to be used to demonstrate the
principles the students need to learn. It is recommended that you walk through
these scenarios on screen and have the students perform the scenarios at the same
time on their computers.
Each session of the presentation begins with a Microsoft® PowerPoint® slide
containing the session objectives. Each session can contain two to four chapters.
Display slide 6: Session 1
Discuss the objectives of this session.
Jobs Overview
Display slide 7: What are jobs?
Give a general idea about jobs in Microsoft Dynamics NAV 2009.
Define jobs and their purpose, and then describe typical situations of
use.
Reference the Service functionality and point out how Job Costing is
different and what possibilities this module provides for users.
Workflow
Display slide 8: Workflow
Describe a job’s main phases:
Planning
Job Costing in Microsoft Dynamics NAV 2009
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o Give the job structure. Point out two elements of the job
planning: job task lines and job planning lines.
o Emphasize that the job planning lines are secondary and cannot
be created stand-alone.
o Point out that job tasks define major tasks for the job, and job
planning lines specify the detailed use of resources, items, and
various G/L expenses, in addition to the planned dates when they
will be used and/or invoiced.
o Emphasize that planning lines represent the expected usage of
the job and job tasks: the job phases.
o Explain that the job card is the starting point when a new job is
created.
o Mention that you will later discuss the general setup that must be
done before working with jobs.
Executing and monitoring the job
o Define the job usage in jobs.
o Describe why the job usage must be posted, and the consumption
of what it can include.
o Emphasize the importance of WIP calculation and posting.
o Explain that during this course, you will first handle a small job
that will not require WIP calculation, and during the second
session, a more complicated demonstration will follow.
o Explain that invoicing can be done in various stages of the job
costing workflow, depending on the job schedule. If the job has
no WIP posted to G/L, the invoicing can be the final stage of the
job.
Finalizing and Analysis
o Explain what types of entries are created as a job progresses.
o Describe the two possible scenarios of finalizing a job: with and
without WIP posted to G/L.
General Setup
Display slide 9: General Setup
Specify the main application areas that must be set up before one starts working
with the Job Costing module.
Display slide 10: Role Center
Remind students about the Role Center functionality.
Ask the audience to give a general description of Role Center since
most will have had prior experience with this area.
List the roles that are engaged in Job Costing and explain that you
are going to base the presentation on the Program Manager Role
Center.
Instructor Notes
** Intended for Instructor Preparation Only ** Page 5
Show how to set up the Role Center in Microsoft Dynamics NAV
2009. Students will perform the same operation on their computers.
Display slide 11: Job Posting Groups
Give a general idea why is it necessary to set up job posting groups.
Demonstrate the Job Posting Groups window.
Go to Departments > Jobs > Job Posting Groups to open the Job
Posting Groups window. There is already a SETTING UP posting
group set up in the demo database.
In the Job Posting Groups window, mention some of the most
important fields, such as Job Cost Adjustment Account and Job
Sales Adjustment Account. Rather than describing each field in the
setup, refer students to the manual and online Help for more detailed
information.
Point out that if WIP does not need to be run for a project, the
account fields do not need to be filled in. However, the Code field
must be set up in this window since job cards require job posting
groups, regardless of WIP.
Job Setup
Display slide 12: Job Setup and Planning
Outline the procedure of setting up a job.
Describe the hierarchy of job elements and the succession in which
they must be set up.
Open the Job Card window. Go to Home > Jobs and double-click a
DEERFIELD, 8 WP job line in the Jobs window.
Display slide 13: Job Card
Introduce the Job Card window.
Highlight mandatory and other important fields on the job card, and
then proceed to the creation of a new job.
Change the work date to March 3, 2009 and advise your students to
do the same. This will simplify data entry.
Create a new job card and fill in the mandatory fields.
Explain to students that they can set up special prices for the items,
resources, and G/L accounts that are part of one’s job.
Job Planning
Display slide 14: Job Task Lines
Describe and demonstrate the first phase of planning a job – creating job task
lines.
Open the Job Task Lines window from the previously-created job
card.
Job Costing in Microsoft Dynamics NAV 2009
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Briefly introduce the structure of job task lines.
Highlight the similarity to Chart of Accounts.
Demonstrate the creation of job task lines for a small job.
After the job task lines are created, show the Indent Job Tasks
function and describe what it does.
Emphasize that it is preferable to set up special job prices and
discounts before you proceed to setting up job planning lines if you
want to have new pricing applied to the planning lines automatically.
Otherwise, you will have to manually adjust prices and discounts on
the job planning lines.
Display slide 15: Job Planning Lines.
Describe and demonstrate the second phase of planning a job – creating job
planning lines.
Mention that for each job task, planning lines describe the expected
consumption of items, resources, and other costs.
Describe the various types of job planning lines. Emphasize that only
lines of type Contract or Both Schedule and Contract can be
invoiced.
Create a couple of planning lines of Both Schedule and Contract type
for job task line of the Posting type. Note that planning lines are
created only for posting job tasks.
At this point, you can also describe the possibility of splitting Both
Schedule and Contract planning lines into two separate lines and
why it can be necessary.
Lab 1.1 Planning a Job
Suggest that students perform Lab 1.1 in the training manual. Give
approximately 10 minutes for this task. Provide assistance if requested.
Test Your Knowledge
As a home assignment for this chapter, suggest that students answer the questions
from the “Test Your Knowledge” section of chapter 1 and check their answers in
the “Solutions” section of that same chapter.
Instructor Notes
** Intended for Instructor Preparation Only ** Page 7
CHAPTER 2: USAGE POSTING AND INVOICING
Chapter Overview
The goals of this chapter are to:
Post job consumption.
Post additional expenses.
Post extra usage.
Invoice the job.
Analyze the job.
View job statistics.
Copy a previous job.
Timeline
Presentation: 60 minutes
How to Teach this Chapter
Display slide 16: Job Usage
Give an overview of posting job usage.
Explain that you will teach usage posting by first reviewing how job
usage is recorded and posted.
Explain that you will create purchase orders and job journals to
record those costs for the job created in the first part of the session.
Define job usage and describe the ways it can be posted.
Job usage can be posted through a job journal, job G/L journal, or
purchase line.
Discuss the typical situations when different methods of job usage
posting are used.
Posting Consumption of Items and Resources
Demonstrate the usage posting procedure for items and resources for the
previously created job.
Briefly introduce the job journal and the main fields in the journal.
When you are at the stage of creating job journal lines, mention and
use the Calc. Remaining Usage function for creating the lines.
Include posting of additional expenses and extra usage into the
demonstration.
Ensure that students understand when and how various types of job
usage must be posted.
Job Costing in Microsoft Dynamics NAV 2009
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Highlight a possible scenario when an item used in the job is not
available in the inventory and that, in this case, the job usage for
such an item is posted from the purchase line. ]
Stress the importance of the Job Line Type field during the usage
posting.
Mention that the value in this field defines whether the
corresponding job planning lines will be created after they have
posted the job usage.
Invoicing a Job
Display slide 17: Invoicing a job
Describe and demonstrate the procedure of invoicing a job.
Explain the posting mechanism in job posting.
Mention that there are two possible scenarios of completing a job.
o The first scenario is when there is no WIP calculated and posted
to G/L. In this case, the job invoicing is the final stage of the job.
o The second scenario is when there is WIP posted to G/L. In this
case, the WIP must be recalculated and posted again when the
job receives status Completed.
Point out that in the first session, you will demonstrate the first
scenario by invoicing the previously created job.
Highlight that invoicing can be done at various stages of the job
depending on the job schedule.
You can also briefly describe the types of entries created after
invoicing: Usage and Posting.
Invoice the job and change the job status to Completed. The
possibility to reopen the job can be mentioned at this stage.
Job Analysis and Statistics
Display slide 18: Job Analysis and Statistics
Introduce various types of monitoring and analyzing a job (use the job created
and invoiced during session 1 as an example).
Note to instructor: There has been no WIP and recognition calculated/posted for
the invoiced job; therefore, no statistics are displayed on the WIP and
Recognition FastTab on the job card. Explain that you will demonstrate this
method of monitoring during session two when you will handle more
complicated jobs with WIP.
Lab 2.1 Carrying Out and Invoicing a Job
Suggest that students perform Lab 2.1 from the training manual. Give
approximately 20 minutes for this task. Provide assistance if requested.
Note to instructor: This is the end of session 1.
Instructor Notes
** Intended for Instructor Preparation Only ** Page 9
Display slide 19: Session 1 Summary.
Review the key concepts. You can ask students to describe what was covered for
each bullet point.
Test Your Knowledge
As a home assignment for this chapter, suggest that students answer the questions
from the “Test Your Knowledge” section of chapter 2 and check their answers in
the “Solutions” section of that same chapter.
Job Costing in Microsoft Dynamics NAV 2009
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CHAPTER 3: WIP POSTING
Chapter Overview
The goals of this chapter are to:
Examine WIP concepts in Microsoft Dynamics NAV® 2009.
Calculate WIP and recognition.
Post WIP and recognition to G/L.
Finalize a job.
Exclude a task from WIP calculation.
Timeline
Presentation: 90 minutes
How to Teach this Chapter
Display slide 20: Session 2
Discuss the objectives of this session.
WIP Concepts
Display slide 21: WIP Concepts
Give an overview of WIP concepts in Microsoft Dynamics NAV 2009.
Define WIP and mention that WIP and recognition in Microsoft
Dynamics NAV 2009 are calculated and posted simultaneously.
Describe the advantages of calculating and posting WIP, mentioning
that it helps eliminate inaccuracy of a company’s financial statement,
if only expenses have been posted.
Display slide 22: WIP Amounts and Methods
Introduce five methods of WIP calculation:
Cost Value
Sales Value
Cost of Sales
Percentage of Completion
Completed Contract.
Give a typical business situation when each of them can be used.
Explain that only the first two methods (Cost Value and Sales Value) are going to
be used in this session’s demonstrations. Therefore, you can discuss the
remaining three methods further.
Instructor Notes
** Intended for Instructor Preparation Only ** Page 11
For example, you can mention that the revenue and profit (or loss) of
the job are recognized when the job is invoiced to the customer (Cost
of Sales method).
The typical situation for the Percentage of Completion method is in
the Construction industry when the total cost plan is estimated to be
done when a certain percent of work is completed.
The Completed Contract method is used when the whole job is sold
as a one-off result: the job is a single entity and no part of it is
considered to be finished until the whole job is completed.
After you explain all five WIP calculation methods, highlight their influence on
the process of finalizing a job.
For jobs with the WIP method Completed Contract, changing the job
status to Completed allows the user to post the recognition of
revenue and costs for the job.
For jobs with WIP methods other than Completed Contract,
changing the job status to Completed allows the user to reverse the
last recognition postings for the job and post the final recognized
profit for the job (the invoiced sales value less the total usage cost).
Calculating WIP and Recognition
Display slide 23: Calculating WIP and Recognition
Describe and demonstrate the procedure of calculating WIP and recognition.
Discuss the basic concepts about WIP calculation.
Demonstrate the procedure of calculating WIP in Microsoft
Dynamics NAV 2009 using the Cost Value and Sales Value
methods.
Emphasize that WIP methods are generally not changed often, at
least not within an accounting year. But the program allows
switching the methods and recalculating WIP with the newly
selected method.
Mention the necessity to reverse the posted calculations to G/L,
which will be demonstrated later.
Calculate WIP for the job you posted usage for.
Display the results of WIP calculation the WIP and Recognition
FastTab on the job card.
Posting WIP and Recognition to G/L
Display slide 24: Posting WIP and Recognition to G/L
Describe and demonstrate the procedure of posting WIP and recognition to G/L.
Discuss the temporary nature of the WIP calculation and that the
calculated WIP must be manually posted to G/L.
Describe the entries created after posting WIP and recognition to
G/L.
Job Costing in Microsoft Dynamics NAV 2009
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Open the Job Post WIP to G/L batch job and demonstrate the
procedure of posting WIP to G/L. Then, open the WIP and
Recognition FastTab on the job card to view the results.
Note to instructor: After every posting process, display the created entries to
view the posting results. This refers also to WIP calculation and other procedures
during the course. You can ask students to use one of the methods of analysis
they learned about during the first session.
Finalizing a Job
Display slide 26: Finalizing a Job
Remind students about the small job created during the first session, which did
not involve WIP calculation. Then you can proceed to the description of the two
possible scenarios of finalizing a job.
With WIP posted to G/L (demonstrated during the first session).
Without WIP posted to G/L.
Finalize the job from the current demonstration.
When you are at stage of reversing the last recognition postings and
posting the final recognized profit for the job, mention that the
procedure applies to all WIP methods but Completed Contract.
For the Completed Contract method, the final stage is posting the
recognition of revenue and costs for the job.
Explain that the procedure of finalizing a job with WIP calculated by the
Completed Contract method is different because the job in that case is considered
as a whole entity and no intermediate postings are done as the job progresses.
Lab 3.1 Calculating WIP and Finalizing the Job
Suggest that students perform Lab 3.1 from the training manual. Give
approximately 25 minutes for this task. Provide assistance if requested.
Excluding a Task from WIP Calculation
Display slide 26: Excluding a Task from WIP Calculation
Briefly introduce the possibility of excluding a task from the WIP calculation and
demonstrate the example from the manual.
Create a new job, with multiple tasks to describe the process of
excluding a task from WIP calculation.
State why excluding a task from WIP calculation can be helpful.
Lab 3.2 Excluding a Job Task from WIP Calculation
Suggest that students perform lab 3.2 from the training manual. Give
approximately 20 minutes for this task. Provide assistance if requested.
Instructor Notes
** Intended for Instructor Preparation Only ** Page 13
Test Your Knowledge
As a home assignment for this chapter, suggest that students answer the questions
from the “Test Your Knowledge” section of chapter 3 and check their answers in
the “Solutions” section of that same chapter.
Job Costing in Microsoft Dynamics NAV 2009
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CHAPTER 4: JOBS – ADVANCED FACILITIES
Chapter Overview
The goal of this chapter is to:
Handle job payment by installments.
Issue a credit memo for a job.
Handle and invoice a job in a foreign currency.
Examine item tracking in jobs.
Timeline
Presentation: 60 minutes
How to Teach this Chapter
Display slide 27: Payment by Installments.
Payment by Installments
Introduce the possibility of handling long term projects by installments when the
whole job payment is split into several parts.
To handle a job by installments, it is necessary to perform proper job
planning.
Each installment is represented by a planning line of the Contract type,
which in its turn is created from a task line of the Posting type.
An invoice is created from the corresponding planning line on the agreed
date.
Mention that payment by installments allows doing a prepayment for a job, for
example, by invoicing the first installment in advance.
Demonstrate an example of handling job payment by installments
provided in the manual.
o Highlight that it is also necessary to create a task posting usage.
o If the job usage is in not included in the installments, the
planning lines are of the Contract type and must be invoiced
separately.
o If the payment for job usage is covered by the installments, lines
of the Schedule type are created but not invoiced.
Lab 4.1 Payment by Installments in FCY
Suggest that students perform Lab 4.1 from the training manual. Give
approximately 15 minutes for this task. Provide assistance if requested.
Instructor Notes
** Intended for Instructor Preparation Only ** Page 15
Handling a Job in Foreign Currency
Display slide 28: Handling Jobs in Foreign Currency
Introduce the possibility of handling jobs in foreign currency.
Describe two scenarios of handling a job in FCY.
Create a new job card and introduce the fields on the Foreign Trade
FastTab.
Demonstrate both scenarios based on the examples from the manual.
Mention the Change Job Dates function that bulk updates the
currency rates.
Issuing a Credit Memo
Display slide 29: Issuing a Credit Memo.
Describe and demonstrate the procedure of issuing a credit memo for a job.
Describe how one can issue a credit memo for a job planning line.
Highlight the necessity to create a planning line with the negative
value to reverse the transaction.
Issue a credit memo to one of the planning lines from the previously
demonstrated examples.
o When you are at the stage of creating a planning line, mention
that credit memos can only be issued for job planning lines of
type Contract or Both Schedule and Contract.
This ensures that the job planning line is always updated to
reflect the correct planned invoice/credit memo lines for the job
prior to posting of sales invoices and credit memos.
o When you are in the Job Transfer to Credit Memo batch job
request window, highlight that it is not necessary to always
create a new credit memo; instead one can append the planning
line to another credit memo, if any, from the same batch job.
Lab 4.2 Issuing a Credit Memo for a Job
Suggest that students perform lab 4.2 from the training manual. Give
approximately 10 minutes for this task. Provide assistance if requested.
Item Tracking in Jobs
Display slide 30: Item Tracking in Jobs
Give a brief overview how item tracking is used in Job Costing.
Note to instructor: You do not have to provide a lot of information on item
tracking functionality in jobs; the principles are the same as throughout Microsoft
Dynamics NAV 2009.
Mention where item tracking information can be specified from.
o Purchase line
Job Costing in Microsoft Dynamics NAV 2009
Page 16 ** Intended for Instructor Preparation Only **
o Job journal line
Refer students to the “Inventory Management in Microsoft
Dynamics NAV 2009” manual for more information.
Display slide 31: Session 2 Summary
Note to instructor: This is the end of session two.
Summarize the key points and answer the questions.
Test Your Knowledge
As a home assignment for this chapter, suggest that students answer the questions
from the “Test Your Knowledge” section of chapter 4 and check their answers in
the “Solutions” section of that same chapter.
Instructor Notes
** Intended for Instructor Preparation Only ** Page 17
CONCLUSION
Chapter Overview
The goal of this chapter is to review the key points that have been covered in this
class.
Timeline
Presentation: 5 minutes
How to Teach this Chapter
Display slide 32: Course Summary
Note to instructor: This is the end of the course.
Review the list of key points with students. Have everyone review their list of
objectives and ensure that questions have been answered.