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P:\Click here for Manuals\Job Manager Instruction Manual and Tips 2009RTC.doc 08/17/09 1

“Job Manager”

Instructions and Tips for

Microsoft Dynamics NAV 2009 RTC

This material is intended to familiarize you with the features available throughout the Job Manager enhancements to the Microsoft Dynamics NAV software. (Formerly Navision) Learning these features will help you with your daily routines, but will especially help with locating information quickly and managing your business. We assume you have a strong working knowledge of the "Base" NAV Application. Posting Groups, Departments, Projects, Chart of Accounts, Customers, Vendors, and Inventory Items (Finished Goods and Raw Materials) should have all been implemented before you start using the Job Manager enhancements.

Allocate 2 to 4 Days to complete this documentation

Background and Concepts 7

Product / Service Design – Templates 10

Estimating - Costs and Prices 21

Quoting 26

Job Management

Inserting Jobs (MTS, MTO, Service) 29

Procurement of Raw Materials 38

Labor Allocation 54

Scheduling, Capacities, Loading 57

Production of Finished Goods (optional) 66

Consumption of Raw Materials 70

Billing (Service or FG Items) 76

Work in Process (WIP) 84

Opening Entries 86

Reporting 89

Job Completion Process 91

Business Models 92

Tips & Tricks 102+


General Ledger

Income Statement

Balance Sheet

Budgets

Accounts Receivable

Ledger Entries

Age A/R

Payments

Shipment History

Inv entory Control

Item Ledger

Pricing Options

Bil l of Materials

Locations

Sales Quotes

From Items or

Resources/Services

Sales Orders

Item/Invoice History

Location Lookup

Credit Checks

Purchase Orders

Manual or Auto

Requisitions

Manual or Auto

Accounts Payable

Vendor Invoices

Check Printing

Job Costing

Labor & Material

Phase / Task / Step

Job Budgets

Payroll

Full Processing

Job Cost Interface

Inv oicing

Quick Invoices

Job Invoices

Price Lookups

Navision Basic Workflow

Report

Designer

Form

Designer

Table

Designer

Application

Designer

Resources

Employee List

Services Price Book

Machines

WIP

Get

Use

Check

Reconciliation

Dataport

Designer

Navision Basic Workflow.vsd 8/1/97 rb

Fixed

Assets

Relationship

Management

Customers

Vendors

Prospects

Make

Prod


Job Manager 5.0

FG Items

Task Lines

Master Files Above

Planning Lines

Jobs

Planning, Quote,

Order, or Complete

Planning Lines

Task LinesJob LedgerActual Job Transactions

are stored here.

Service Resources

Task Lines

Make Order

Make a ProductProvide a Service

Sales Orders

w/ Generate Job(s)

Sales Quotes

Make Job

Billing

Production

(+ FG)

Copy to

Job‟s

Task and

Panning

Lines

Material Usage

Journal

(-RM)

P O S T

Planning Job

to

Quote

Planning Lines

Requisition

Purchase Orders

(Job or Stock?)Special Orders & Subcontracts

Copy to

Job‟s

Task and

Panning

Lines

Materials,

Labor,

Subs,

or

Production

Shipping

Labor Usage

Inventory


Account Card

Sales Header

Customer Card

Item Card

Resource Card

Payroll

Time JournalEmployee Card

General Journal

Entries

Job Card

Navision Financials' Table Layouts with Data Flow

Sales Invoice HeaderPurchase Invoice

Header

Vendor CardPost

Customer Ledger

Item Ledger

Job Ledger

Vendor Ledger

Resource Ledger

Employee Ledger

General Ledger

Sales Lines

Cash Receipt

Journals

Sales & Receivables Purchases & Payables

Requisition

Worksheets

Purchase Header

Purchase Lines

Payment Journal

(Check Printing)

Post

Post

Post

Sales Invoice LinesPurchase Invoice

Lines

Sales History Purchases History

Types:Quotes

Sales Orders

Invoices

Credit Memos

Types:Purchase Quotes

Purchase Orders

Purchase Invoices

Credit Memos

Also:Sales Shipment Header

Sales Shipment Lines

Sales Cr. Memo Hdr.

Sales Cr. Memo Lines

Also:

Purch. Rcpt. Header

Purch. Rcpt. Lines

Purch. Cr. Memo Hdr.

Purch. Cr. Memo Lines

T36

T18

T32

T27

T37

T23

T169

T167

T21

T10050

T203

T156

T25

T10052

T123

T122

T113

T112

T17

T15

T39

T38

T246

Navision Tables.vsd 6/14/97 rbSales & Receivables

Inventory

Job Costing

Purchases & Payables

Resources

Payroll

General Ledger


Job Manager This manual is designed for 2 days of instruction on the Job Manager fundamentals. We have included at the end of this manual some “Real World” examples of how different companies have adopted the features to meet their requirements. They are provided as examples to show the “variations on a theme” only. They are not intended as part of the curriculum.

Pre-requisite: STRONG WORKING KNOWLEDGE OF DYNAMICS NAV. Students should be able to Add, Change, Delete any Master Table. Add Change, Delete and Post a Sales Order or a Purchase Order. Student should have strong knowledge of “Ledger” Based Dynamics NAV. Student should have strong knowledge of Posting Groups and how important they are to the financial statements. Student needs to understand what Flow Fields are and why they are so important to Navison.


Job Manager Role Center

Role Center usage is covered in our NAV 2009 RTC Workflow “Home Study” class.


Job Manager Background & Concepts Job Manager is designed for companies that want to track job details and costs. Most companies are either producing a Finished Good (Item Driven) or are providing a Service (Resource driven). A Job‟s cost can be tracked using Standard Cost, Actual Cost, or both.

Background:

1. Why do Businesses Job Cost?

Wanting to improve their Planning / estimation of Jobs (Projects). - Allows them to be competitive in the market - Protects their profitability

Tracking Job Costs allows them to determine what processes in the Job are profitable and where improvement is needed.

Use Jobs to schedule and plan. Improves communication with customers.

Calculation of costs does not cut costs!

Calculation of costs lets you make decisions!

2. Levels of Job Costing:

Job Costing is totally independent from Accounting System (Manual Spreadsheets) They may or may not do manual Work in Process entries and Recognition to GL.

Job Costing interfaced with Accounting System‟s subsidiary areas but not to GL. They do not do Job Work in Process entries (WIP) and Recognition to GL. Example: Purchase Order costs post to Jobs and Material used on Jobs is pulled from Inventory.

Job Costing interfaced with Accounting System‟s subsidiary areas. Client uses Job Costing reports to determine WIP and Recognition periodically (typically monthly). They then do manual journal entries to GL for WIP and Recognition.

Job Costing is interfaced with Subsidiary areas and GL. A periodic process in the Job Modules will create the WIP and Recognition entries in General Ledger.


4. Why do some Job Costing businesses WIP?

Two main factors influence businesses to run WIP:

Financially large jobs and longer duration

Smaller financial jobs but large volume and at any one time making a large financial impact

5. Review of “Activity Based Costing” The challenge for traditional cost accounting: Reporting does not support management. The “big picture” is missing Insufficient product profitability calculations Insufficient customer profitability calculations Weak organizational learning Weak executive commitment Models that gets too complex and unmanageable Poor software tools Benefits of a good “Activity Based Costing” System Enables accurate and relevant pricing Reveals non-value-adding activities Decision support for outside processing Decision support for item procurement Adds reality to Planning Fair cost benchmarks on each activity or service provided Job Profitability Analysis


Sources of Costs

8 Cost Categories: Labor Machine Materials Outside Processing Overhead Misc. Expenses Transport

Labor – Labor cost can be assigned (charged) to a job through either Payroll or Directly in the Job Journal.

Machine – Machine cost can be assigned to a job through manual entries in the Job Journal. Typically Machine Hours x Machine Rate = Machine Cost.

Materials – Material cost can be assigned to a job through either a Purchase Orders to buy a specific Item for a Job or by recording a “usage” of Inventory in the Job Journal.

Outside Processing (Sub-contractors) – Purchase Orders can be issued to the various Service Providers to your Jobs. As they complete their service, their Invoice(s) is posted directly to the cost of the Job as Invoices are received.

Overhead – Overhead cost (Burden) can be assigned to a job through either Payroll or the Job Journal.

Misc – This category is provided for any other Job Charges that can not be allocated to any of the above categories.

Two Bonus Categories in Version 5.0

Expenses – New resource type in 5.0. Use as needed.

Transport – This category is provided for any transportation cost. (Shipping, Freight, Hotel, Airline, Meals, Mileage,)


Product/Service Design – Setup Templates

Job Manager supports both “Service” Businesses and “Manufacturing” Businesses. The only big difference is that a “Service” business does not product a Finished Good. However, we recommend that both businesses setup a “Work” Template to make it easier to create their “LIVE” Jobs. This section will discuss how to setup a Service Template, than how to setup a Manufacturing Template. Please know that we can only give you examples, you will have to adjust our examples to fit your actual business model.

COMMON CONCEPTS:

Samples: “Cost Breakdown Structure” (Router / Task List) General Ledger View: Salaries $ 10,000 Equipment $ 30,000 Travel $ 5,000 Supplies $ 15,000 Materials $ 50,000 $110,000 Activity Based Costing View: (What is spent per activity?) Process Orders $ 8,000 Disassemble $ 10,000 Inspect $ 8,000 Clean $ 20,000 Repair $ 44,000 Reassemble $ 12,000 Ship $ 8,000 $110,000


Here is a view of a Task List with the 5.0 Version of Jobs.

STOP! – THE DEFINITION OF YOUR TASK LIST IS THE FOUNDATION TO THIS JOB SYSTEM. STOP NOW AND WRITE YOUR TASK LIST ON A WHITE BOARD OR FLIP CHART. DISPLAY THE LIST FOR FULL STAFF APPROVAL AND BUY IN.

Costs will be accumulated per “Task”, so get your task list prepared.


Sample Spread of Tasks and Cost Categories:

Activity Based Costing - Actual Cost Grid

Task

Number Labor Machine Materials Outside Overhead Misc Total

10 Polish 200 20 25 245

20 Grind 300 200 100 2000 300 2900

30 Drilling 100 5000 25 5125

40 Shipping 50 10 10 50 120

Totals 650 5200 130 2000 60 350 8390

In the above example think where each of these ACTUAL costs would have come from: Labor Costs come from Job Journal Transactions or Payroll Time Entries? Machine Costs come from hours of machine usage entries in the Job Journal? Material Costs come from Usage Tickets? (Job Journal Entry) (Or back flushed?) Outside Costs come from Invoices from the Subcontractor? (AP) Overhead Charges come from an Administration Charge Table? (PR or AP) Misc. costs from extra freight charges due to expedite fees? (Job Journal) Every business is different. Maybe every Job will be different too. In the example above all the cost details are stored as “Transactions” in the Job Ledger Entry Table. The above example is a “Task Level View” of Actual Costs by Cost Category.

Remember: “Calculating Costs” is not “Cutting Costs.” It lets you make decisions!

Without an original Plan, you don’t know if you have a problem. Where do you set the Plans? How can I see comparisons? Discuss: “Standard Costing” VS. “Job Costing”


MANUFACTURING TEMPLATE: Let‟s review where to setup an Item Template.

Item Task List - Setup The first step in a new system is to “set up” the Task under the FG101 the Item Card. Let‟s see how it is done in CRONUS. Start at our sample Item: FG101 “Finished Good FG101” – Item Card.

From the Item Command Button, select Item, Jobs

The Task List holds all the procedural information required to make the FG item, including:


Setup & Run times Values It also:

Displays Material Costs from the Planning Lines Displays outside Processing Estimates entered on the Planning Lines Displays other Costs (Travel, Meals, Copies,) from Planning Lines.

STOP

Go to your LIVE Company and add One (1) Finished Good Item and One (1) Task.

GO

Add “Process” comments On Task 10: “Cut to .005 Tolerance. Install per customer‟s prints.” On Task 20 Add the following comments: “Use Glue #3029 to a .001 thickness.” “See Bill Johnson for application tools #29-10.”

Notice there are NO cost extensions yet.


Rick’s Tip on Setting up a Template Here is my recommended sequence: Go to the Task/Router Setup Screen

1. Build the Task List 2. Set your Begin-End Totals and Ranges 3. Indent 4. Add Resources where needed 5. Add Posting Groups where needed 6. (Optional) Add Setup Time 7. (Optional) Add Run Time 8. Generate the Labor Planning Lines

Go to the Estimating Form (Split Screen w/ Router & Planning Lines)

9. Per Task – Add Materials (BOM) This is linking the materials to a specific task. If not needed, then create 1 task called “Materials” and put all there.

10. Per Task – Add Subcontractors in Planning Lines 11. Per Task – Add OH, Misc, Exp, Travel,… in Planning Lines.

Rick’s Tip on Adding Jobs

Single Jobs

1. F3, Enter on the Job Card

OR

2. SO Line (MTO) and then Generate for this Line.

Project Jobs with Multiple Sub-Jobs

1. F3, Enter on the Job Card (manually add)

OR

2. SO Line w/ Multiple Lines. Generate ALL Lines.

OR

3. Multi-Task Item Template with MTS Items in Planning Lines.

Use the Purchase Planning to “Spawn” the sub-jobs w/ Req. Worksheet


BIG CHANGES in Version 5.0!!

Inventory - Finished Good’s Bill of Materials is moved to the Task/Planning Lines.

Note: We will not be using Dynamics NAV Manufacturing‟s Production Bill of Materials. We will be using the Planning Lines provided under the Item‟s Task List.

Inventory – Task and Planning Lines

Go to FG101, Item, Job, Task Lines.

Your screen should look like this.

Once you define your Task Lines, you next define your Planning Lines.

The Planning Lines hold the cost details: Labor, Materials, Subs,…


Notice the special split screen that enables you to see both the Task Lines and the

Planning Lines in one form. (It is editable too.)

Next:

From the Item’s Card, establish a production LOT size of 300 as our standard

production quantity.


Do NOT Calculate Standard Cost YET. Reminder: Job Manager Setup choices will control how the Standard Cost is calculated.

Product Design: Item Card Fields

New Field on Item Card: “Type Item” (Requisition Method Code)

Type Item Options (Job Tab): Purchase, Make to Stock, Make to Order

Purchase – This option is used to indicate a Raw Material Item. These are any item that you would issue a Purchase Order.

Make to Stock – This option is used to indicate items that you Make and then put into stock to sell or to use in future products. (Sub-Assemblies) Make to Stock items are monitored like purchase items by min quantities and reorder quantities (“re-make”). If this item is included in a Finish Good‟s BOM, then when you create a Job to make the Finished Good it will NOT explode the Make to Stock into its sub components as demand. It will show the Sub-Assembly as demand, but not the Sub-Assembly‟s component items. Make to Stock items typically have a bill of materials and Tasks. The Make to Stock item‟s bill of material and Tasks will only appear on a job where this item is the Job‟s Production item. (ie: replenishing the sub-assembly)

Option to spawn “Sub-Jobs” for production of a sub-assembly: Use the Requisition Worksheet‟s function “Calculate Plan” to pick up any new Sub-Assembly demand. In short you run the Calculate Plan in cycles. The first run should filter level one item first. Then create Jobs for the demand. Some level one item will already have Jobs created if you are using the Make Job from the Sales Line. Next run will filter for “sub assembly” type items. Their demand has increased because of the creation of Jobs for the level one item. You may run the Calculate Plan several times for sub assembly type items because the creation of Jobs for subassembly items may create demand for other subassembly type items. From the Requisition worksheet notice that the Sub-Assembly Item comes in with a “Replenishment System” = Job. Remember when you spawn a Sub-Job you are creating a Job to produce the Sub-Assembly into Stock Inventory so it can be pulled into the Parent Job Component Line as a usage.


Also, be sure to setup Advanced Setup with a Master Job Number Series for these special spawned Sub-Assemblies.

Make to Order – This option is used to indicate a Sub-Assembly that is only made when the Parent item is made. Hence the Components of this MTO item will be in demand if there is demand for the Parent Item. To do this we explode the MTO into the Job‟s Planning Lines, Flag the Sub-Assembly as “Ignore”, and establish demand for its component items. The default option is Purchase on all new Inventory Items. When you enter a new Item in the Item Master, change the Type Item where appropriate. When the item is entered as a component line of a BOM the Type Item value is also added to the component line. WHEN ALSO USING THE “REORDERING METHOD” This tells the system how to react when carrying out Actions on the Requisition Worksheet. See the following chart: Purchase Item Part made for a Job Part made for stock shelf Replenish System field Purchase Purchase Purchase On Replenishment Tab) Type Item field on Purchased Make to Stock Make to Stock (Job Tab) Reordering Policy field Fixed Reorder Qty Order Fixed Reorder Qty (On Planning Tab) or other or other Min Order and Max Order Need qnty no qnty needed Need qnty Fields (on Planning Tab) Safety Stock field on Qnty is needed blank Qnty is needed to (Planning Tab) to generate rprt generate a report


SERVICE TEMPLATE: Let‟s review where to setup a Service Template. A service Template is almost identical to an Item‟s Task and Planning lines. Here is a simplified “Service” Task List. Notice only one Begin and End Total.

Optionally you could add typically consumed items under the appropriate Task or leave them blank here and add them on a Job by Job basis.

Exercise: Create a “Service” Resource and a sample Task List and Planning Lines. Add a Service Type Resource: “Service” (IE. Repair Electric Motor) Add the Service‟s Task Lines. Add the Service‟s Planning Lines. Also, add 2 sample RM Items w/ 0 Qty.


Estimating

Estimating is setting up a “Planning Job” and then “Estimating” the cost of Labor,

Materials, Subcontracts, and other costs that may occur on the Job.

Estimating also includes establishing the price (Contract Amount) that you want to charge

the customer. Estimating tends to be very time consuming, but critical to the profitability of the company.

Errors and omissions can drive up the actual cost when the job is in process.

This is a large section as we will need to cover “Service” Estimates and “Production Estimates”. But, you will learn they are really very similar.

Job Estimating Sequence:

Setup Item Template w/ Task and BOM (Optional)

OR

Setup “Service” Resource Template w/ Task (Optional)

Add a Planning Job (F3)

Attach to a Master Job or add a new MJ first

Type = Product or Service (Item or Resource)

Job Status = “Planning” Job

Adjust Task Lines.

Adjust Planning Lines.

Adjust “Contract Price” Column.

From Task, Function, Make Sales Quote.

Job Status changes to “Quote” Job.

If accepted, Make Sales Quote into a Sales Order.

Job Status changes to “Order” Job.

No need to “Make Job” since it has already been set up.


Setting up Job Plans:

1. F3, Enter, and the new job number comes in automatically. You will get a

chance to answer if this is a Master Job number or a regular Job that needs to be associated with an existing Master Job.

2. The fastest way to setup a Job Plan and Job Task is to enter Type = Item and

select a Bill of Material item from the list that has both Planed Bill of Materials and a Task.

3. Or you can also select Type = Resource and select a Resource that has a Resource Service Task. Resources do not have Bill of Materials associated with them, therefore the Job Plan for materials, outside services, and misc. expenses will have to be manually entered on the Job (in the Job Plan table) or copied from another Job.

4. You must select either an Item or a Resource on the Job Card even if they are simply place holders. The Item or Resource you put on the Job should reflect the product you are producing or the service that you are performing. This product or service designation is useful when grouping similar jobs for reports and statistics. In this scenario the “Qty Ordered” entered on the Job Card is usually one (1).

Alternatives: 5. If the Item entered on the Job Card does not provide a Plan then you may go to

the “blank” Job Plan area and use a Function to copy the Plan from another Job, or manually enter the Plan lines.

If the Item or Resource selected does not provide a Task then you may go to the “blank” Job Specific Task area and use a Function to copy a Task from an Item, a Resource or another Job, or enter it manually. NOTE: This copy does not bring in the Setup and Run time details, i.e. the best source for a default job Task is to set up an Item or Resource “template”.

ESTIMATED LABOR AND MACHINE COSTS ARE ENTERED IN PLANNING LINES:

Labor Costs: Entered into the Planning Lines. A Task can be any type of work activity but only the work activities associated with Resource Types Person and Machine will be included in the estimated labor costs.

The “Est. Labor Costs” (flow field) at Job level is summing up the “Est. Labor Cost” field on the Person & Machine type Task lines.


NOTE: Additional Labor costs come from Machine type Planning lines. Even though the Task line is associated with a Machine there is an assumed labor cost that is found in the “Est. Labor Cost” field on the Machine type Planning Line. We suggest when you are “Estimating” you don‟t know who will do the work so use a generic LABOR resource. (LABOR 10). Set the cost rate and price in the resource. See the section on Crews for additional tips and ideas. Machine Costs: Such as: Drill Press #8. Estimated Machine Cost is entered and calculated on Planning Lines. Setup a Resource for the DP8. Establish the cost of the Machine that is to be charged to the Job. ($45/hr) Also, Establish the Operator Rate for the Machine. Also, establish the Price to be charged to the customer for the man and machine. Also, optionally set up the Setup Time and Run Time defaults if know. The Task Line will do the extensions from these values. Hence: One “machine” type Task line will contribute to the estimates of labor and estimates of machine costs. Note: Actual Machine Time will be posted in the Job Journal!

ESTIMATED MATERIAL, OUTSIDE PROCESSING and other MISC. COSTS ARE

ENTERED IN THE JOB PLAN: Materials Costs: Entered in Job Plan as Items Outside Processing: Such as: Sub-Contracting / Outside Processing Costs (Misc. Costs): Enter in Job Plan as Resources that are “Resource Type”: Outside Processing Enter a Task Number to associate this cost with a specific Task. Misc. Costs: Such as: Services, “Misc” Material, or Supplies

For: Travel, Meals, Tools, Clean-up, Uniforms, Freight and Overhead

Enter in Job Plan as Resources that are “Resource Type”:.anything other than Person or Machine. Enter a Task Number to associate this cost with a specific Task.

Or Enter in Job Plan as Account (G/L) … Defaults to Resource Type::Service There are FLOW FIELDS on the Task Line that display these values. NOTE: Since Sub-Contracting, Travel, Meals, etc. will be lumped into a Misc. Cost Category on the Job Statistics screen, you will want to consider how you will break out the details on a report, if required. Will the Phase code represent the separation of travel from Sub-Contracting? Or will the Resource No. make the separation? Phase Code, and


Resource No. are both found on the Job Plan and Job Ledger Lines. You only need to consider this if the client wants that level of detail. If you are using Account (G/L) entries, then you will have to rely on the Phase code to separate the detail.

Ignore Flag: You can prevent a Plan line from being incorporated into the Planed / Estimated costs of a Job if you check the field called Ignore. This field is also used to filter

Planed items from the Demand flow field on the Item card. The Demand field is used along with some other flow fields on the Item Card to determine if the Quantity Available has dropped below the Minimum quantity. The Demand field is also incorporated in the process called Build List with Job Demand from the Requisition Worksheet. Typical usage of the Ignore flag is when you explode the BOM levels. The Sub-Assembly shows at one level and the components indented below it. If you are showing demand at the lower level, then you will not want to show the demand again at the sub-assembly level. The same is true of costs on the Plan. If you explode the BOM then you want to show the costs at one level or the other but not both. It is probably that you will not be sending the Ignored items to the Job Journal when doing one of the Flushing processes. Be aware that checking the Ignore does not prevent the flushing copy process. So if the Ignored line in an Item and you do not want it to automatically flush then you will need to check the field called “Do Not Copy to Job Usage.” See more on Flushing Methods later. Plan copied from Item‟s Tasks & Planning Lines : An Item‟s Task and Planning Lines only allows Types = Item or Resource. We have further filtered the Resource list to just show Outside Processing, Overhead, or Misc. Person and Machine type Resources need to be entered in the Item‟s Task and eventually they will get copied to the Job Specific Task. NOTE: The Task can have entries representing all types of work activities (Tasks) and Cost Categories (Resource Types). When Task Lines representing Resource Types other than Person or Machine, i.e. Service, Product, Outside Processing, Supplies, are entered on Tasks, the costs seen on the Task are not included in the Estimate. These lines are placeholders that indicate “when” certain activities occur. If there are estimated costs related to these “other” work activities then these costs are entered in the Job Plan area (See above, Material costs and Misc. Costs). When the Job Planning Lines have Task Numbers entered then that Task‟s Task Line will show costs related to the Plan line entries. Flow Fields “Est. Misc. Costs” There are Flow fields on the Task lines that will show costs that were entered on Job Planning Lines with the associated Task Number. For an Example: We may enter a Task 60 that is when we send the product out to be electroplated. The Task is Electroplate and the Resource Type is “Outside Processing”.


The Resource list available is also filtered, showing only the outside processing type of resources. Suggestion: You may have one Resource called Electroplating or you may have several Resources more specifically related to a particular Vendor and electroplating. The later would allow the Resource Card to hold the particular Vendor‟s charge to electroplate. We may have previously entered (or are about to enter) a Job Plan line that represents the purchasing of the Electroplating process from an outside vendor. We would go to the Job Plan Area and add a new line entering Task Number 60, the Electroplating Resource, the “Qty per Unit” and cost.


Quoting

Now that the “cost” estimate is complete and we have agreed to the “price” we will charge the customer, it is time to generate a quotation for the client‟s approval. This will be an easy step as the hard part is now complete.

CONVERTING A JOB ESTIMATE INTO A SALES QUOTE

We have been gathering estimated “Costs” and estimated “Prices” in the Job‟s Task Lines. These are the supporting details behind the Total Price for this Job. The far right side of the Task is our Price Estimate corner. It is here that we review the recommended “prices” that are to be charged for this Job‟s work activities. We suggest you use the Task “Function” to “COPY” the System Generated Prices to the “CONTRACT” Column. It is here that final price adjustments are made prior to generating a Sales Quote to the Customer for this Job. You can either use the recommendations as presented or adjust the Margin Column or Amount Column as desired to finalize the Job Price. Note: Currently we calculate a single Job Price to be put on the Sales Quote Document. If your company requires a variation to this process, please contact us about this customer specific modification. Once the final Quoting Price is decided simply run the “Make Sales Quote” from the Task Line. This will move the Planning Job‟s Information to the Sales Quote. The Job‟s status will be changed from “Planning” to “Quote”. The Make Sales Quote functions will respond as follows:

The existing code will first see if it can find a Sales Quote line associated with the Job (Job‟s Quote No. and Quote Line No.). If it finds the Sales Quote Line then it will ask if you want to "update" the Quote line. If you say yes then the Unit Price will be edited and validated with the Contract Unit Price, and the Unit Cost will be updated with the cost. If you say "no" then it moves to the next section of code. If the system finds Sales Quotes related to the Job's Bill-to Customer No. then it will produce a list of Quotes that you can select to add this job as a Line to the quote. If the system only finds one sales quotes it will add the Job as a new line.


If the system doesn't find a quote then it will create a Sales Quote and the line for the Job.

Next print the Sales Quote. Fax or Mail or e-mail the Quote to the Prospect. Upon Customer‟s approval of the Quote, use “Make Order” from the Sales Quote Screen. All the Job Information is already linked to the Quote so the Job Status will also be changed to “Order” Status at that time. Normal Job Cost Posting may proceed at his time. (Job is now an “Order” Job) Note: The Master Job Status will move in sync with the Sub-Job Status. If there are multiple sub-jobs, the Master Job Status will move with the most advanced sub-job, but not into completion status. See the Option in Advanced Setup to alter these automatic status changes.

Adding another Line to an existing Sales Quote The existing code will first see if it can find the Sales Quote line associated with the Job. If it finds the Sales Quote Line then it will ask if you want to "update" the Quote line. If you say yes then the Unit Price will be edited and validated with the Contract Unit Price, and the Unit Cost will be updated with the cost. If you say "no" then it moves to the next bit of code. If the system finds Sales Quotes related to the Job's Bill-to Customer No., then it will produce a list of Quotes that you can select to add this job as a new Line to the quote. If the system only finds one sales quote, it will add the Job as a new line. If the system doesn't find a quote then it will create a new Sales Quote and the new line for this Job.


Job Management

Inserting Jobs

The most obvious way to create a Job is to just have the Sale Quote we created above turn into a Sales Order and the “Quote” Job will turn into an “Order” Job. (Like a pumpkin turns into a fancy carriage) This method is a typical “Make to Order” type of Job. If your business is more of a “Make to Stock” environment, then there will be no Quote process. You will just press select new Job.

Remember throughout this manual, we can only tell you different ways the software can be used. You will have to identify which way works best for your company, and adapt that procedure.


Mini-Exercise – Adding our first 2 Jobs

1. Adding a “Product” Job. (Make a Product)

Go to the Job Card. Press F3, Enter. Do you want to create a Master Job? NO. Pick a Master Job from the Master Job List. The system will assign the Job Number for us. Set Production Type = Item Do a lookup on “Production No.” to the Item List. Find: FG101 (Finished Good #101) Set Order Quantity (Production Quantity) = 100 Enter a Target Ship Date, + 60 Days from TODAY. Notice the Customer Info came from the Master Job Selected. View the Planning, Job Estimate We have now set up a “Planning Job”!

2. Adding a “Service” Job. (Provide a Service)

Repeat above Tasks but select: Production Type = “Resource”. Select: SERV1 as the “Production No.” Qty = 1 Verify the Task List got copied from SERV1. Verify there is no BOM. (Free form entry on these types of Jobs)

Mini-Exercise – Adding our THIRD Job

Go to the Job Card. Press F3, Enter. Do you want to create a Master Job? NO. Pick a Master Job from the Master Job List. The system will assign the Job Number for us. Set Production Type = Item Do a lookup on “Production No.” to the Item List. Find: FG101 Set Order Quantity (Production Quantity) = 300


Enter a Target Ship Date, + 60 Days from TODAY. Notice the Customer Info came from the Master Job Selected. View the Planning, Task and Job Plan. (Extended BOM) We have now set up a “Planning Job”! (Job Status = Planning) Look at the Item Card for the FG101. See Qty on Production. If you had looked before, would the value have changed with this new 300? NO. Why? Look at the Item Card for the “Side Panels”. See Job RM Demand. Talk about how this might affect the Requisition Worksheet.


Make Job Exercise – Enter SO then make Job(s).

Sales and Receivables Link to Job Costing

1. Insert one of your Customers.

Notice: “Default” values fill in from the “Default Setup” area.

2. From the Customer‟s Card, create a Quote for 120 FG101s. (not from Orders) Hint: If a Quote exists, it will be displayed first. To ADD, F3, Enter.

3. Print Preview the Quote to the Screen. E-mail the Quote to your Customer with File, Send. ”Release” the Quote is optional at this time. It controls how it comes into the SO system on “Make Order”.

4. Receive in the Customer‟s Acceptance by Converting the Quote to an Order. (Make Order)

5. Go to the Sales Order. From the new SO Card, “Job” Button, select “Make one Job for this Line Item”. Say “NO” to “Create Master Job” at this time, and select from the list. This will set up the new Job according to the “Business Rules” you set in the Advanced Setup area. (No/No, Yes/No, or Yes/Yes) Write down the Job Number here: _______________ Master Job No. ____________ We will use this Job Number to track costs of this item‟s production. Instructor Demonstration: Generating Multi-Line SO to create Multiple Jobs.

6. Check FG101‟s Item card to verify the Job quantity is shown or changed. Drill? 7. Check the list of Jobs to see the new job.

A new Job is now set up as a Status = “Planning” job. Review the TABs on the Job Card with the Instructor. Now change the “Planning” JOB to “Order”. Status = Order enables us to post costs to this job, re-check the item card too. Any changes?


8. Our Item (FG101) had a Task, so the Task should have copied to the Job Specific Task. Verify this. Check the Quantity Extensions on Planning, Job Task.

9. Our Item (FG101) had a Bill of Materials, so the BOM should have copied to the Job

Plan. You can optionally assign materials to different Tasks now or in the Master BOM. If you have a nested BOM it will explode up to 10 levels deep. Check the Quantity Extensions.

10. Check the Job Plan to see the materials in the list. Notice: The component quantities are extended out to satisfy the entire job quantity. Notice: “Outstanding Quantity”. Notice: The estimated material cost also shows up on the Job‟s Task.

11. View Job Statistics. F9. Review each TAB carefully. More about these later. 12. Print Preview the “Job Estimate” Report from the Job Card‟s Print Button. 13. Print Preview the “Job Traveler”. (You will need 3 of 9 Font Installed in Windows for the

Bar Codes to print.)

14. Let‟s put this job into motion. When we change the Job‟s Status to “Order”, we like to think of this as a Release to the Shop Floor. Who does this? When is this done? What about Security??

15. Review Job Button on Customer Card. (Notice you can Add Jobs here too!)

Other Features to check: From SO Line, Order Button – View Invoice History From SO Line, Order Button – View Item Sales History From “Shipment Date” on Line Item. Use Assist Edit to pick dates from Calendar. (if purchased)


Job Manager Exercise – “Make to Order” Scenario Expanded These next exercises will take you through Purchasing RM, Receiving RM, Producing FG, and selling the FG to the customer. In this scenario, we assume that if our customer orders 300 items, we go to the shop and make the 300 items for the customer (1 to 1 ratio). You can make more or less, but usually production is the same amount as the Sales Order. The Job Manager is designed to also capture the “actual” cost to produce the order.

Purchases & Payables Link to Inventory

1. Go to Job Menu, (not main menu) Add one of your vendors. Notice that the “Defaults” on the Vendor come from the “Defaults Setup” Granule. (GL) We are going create a Purchase Order Manually to buy some inventory for stock. Later we will look at how Job Demand can automatically create a recommended “buy” list for us. Enter a PO to YOUR Vendor for the following items:

STOP, do not receive yet.

2. Check these Item‟s cards for Qty. on Purchase Order. Does it show our Purchase Order?

3. Change the cost of the Side Panel from $26.60 to $28.05.

4. Is this allowed in your business? Who? When? 2. Change Quantity Ordered on the “Base” to 800.

This is a security/workflow issue to consider. Who should do this? Who is authorized to make this change? ”Release” the PO. (Finalize the PO)


Print preview the PO. Discuss what your format needs to be.

3. Receive ALL using PO Screen. (Discussion on Warehouse Management Options)

From “Post”, Confirm “Receive” Only. This is a security/workflow issue to consider. Who should do this? Discuss how this process is done in your company!

4. Check Inventory “Qty on Hand” on the item card. Has it gone up? 5. Now we receive the Vendor‟s Invoice. Enter the Vendor‟s Invoice Number for the entire

RM. (add the Vendor invoice number to the PO and post.) (Do not re-enter the Invoice!) Let‟s keep it simple. Leave the costs as we adjusted. What if they are different? What if you got different quantities? This is a security/workflow issue to consider. Who should do this? When are the Vendor Invoices entered? Who matches the Invoice to the PO?

6. Check amount due vendor in the Vendor Ledger. Does it show up? Check the Vendor Ledger too.

7. Check the “Vendor Catalog” on the Item Card. This should have been populated from

the purchase order receipt.

Note: “One Time Price” on PO Lines will block update of Catalog. You may have to do a “Show Column” to see this option. 8. Check Qty on Hand of all Inventory Items. Has it changed? How can we verify it? 9. Check Item Costs. Did the cost change on the Side Panel?


Current Cost and Standard Cost Calculations on the Item Card 10. Establish a standard Lot Size of 100 on the Item card then run the “Calculate Current

Cost” option.

11. On FG101 Item card, press “ReCalc Cur Cost” Button. Current Cost = __________ Discuss who runs this. What frequency is it run? Is security needed?

12. Establish a “Price” for our FG101 at this time. __________ (or adjust existing price) 13. Print a “costed” Bill of Materials from “Assembly List”, Print.

14. Print BOM and Task Report.

Verify Report foots out to the values in the Current Cost Calc Box on Item Card.

15. Change the LOT Size to 200 in the Calculated Current Cost Box. Watch how the Task costs decreases as you increase the run quantity. (This can be used as a “what if” process.)

16. Press the “Update Item” button to copy the “Std Cost” to the Item‟s permanent “Standard Cost” field. (This button can have security added to it with the “Field and Control Security” add-on.)


17. UNDER DEVELOPMENT. A “Multiple Item” calculation of Standard Cost has been added. Go to Item, Assembly List, and Multiple Item calc of Std Cost. See how a range is provided with criteria capabilities.

18. A “Log” feature enables you can see who, when, and what was changed during a Re-

Calc of Standard Cost. (Item, Assembly List, Std Cost Change Log) Notice there is a Print option also to get a hard copy of the Log.

Creating Master Jobs and Sub-Jobs

This feature enables you to create multiple Sub-Jobs linked to a single Master Job. Three ways to create this relationship: 1. On a manual add of a new Job (F3), Enter you will be asked “Is this a Master Job?” If NOT it will ask you to link the new Job to an existing Master Job. It will present a list to pick from to establish the link. (You must have at least ONE Master Job to run “The Job Manager”.) 2. From the Customer Card you can add new Master Jobs or new Sub-Jobs to existing Master Jobs. 3. From a Sales Order Line you can generate Master Jobs.


Features: The Master Job Number has been added to all the Journals and Ledgers so

costs can be reported per Sub-Job or per Master Job. The Job List (F5) has an “Indicator” field showing the percent complete based on

costs of each Job. Job Card is marked whether it is a Sub-Job or a Master Job. See the Job

Statistics (F9) for Percent Complete status. You can see lists of Master Jobs only, Master and Sub-Jobs combined, or just

Sub-Jobs only. (apply filters as needed)


Procurement Now that the Job is underway, you may need to procure items or services to complete the work. This section will review various methods of procurement for the estimated items and services you will need to employ to get the job completed. We will explore three options:

1. Buying Raw Material Inventory for stock 2. Buying Raw Materials Inventory for a Job (Manually & Automatically) 3. Buying services from outside suppliers and service providers.

You will have to decide which option works the best for your company.

Buy for Stock with Requisition Worksheet – Calculate Plan

Item Card – Setup Certain fields on the Item card need to be setup in order to use the “Calculate

Plan” function on the Requisition Worksheet.

1. Purchased Replenishment Type Items: - First set the “Requisition System” field to Purchase. - Next enter a “Requisition Method Code” of PURCHASE. The PURCHASE Requisition Method Code needs to be setup as follows:

Code Name Mfg Policy Calc. Below Reorder ReOrder Policy Calc. With Point Inventory ---------------- ------------------- ------ ------------------- ------- PURCHASE Made-to-Stock Yes Fixed Reorder Qty Yes

2. Make-to-Stock Replenishment Type Item: - Set the “Requisition System” to Prod. Order - Set the “Requisition Method Code” to M-T-S.

The M-T-S Requisition Method Code needs to be setup as follows:

Code Name Mfg Policy Calc. Below Reorder ReOrder Policy Calc. With Point Inventory ---------------- ------------------- ------ ------------------- ------- M-T-S Made-to-Stock Yes Fixed Reorder Qty Yes


3. Filling in “Safety Stock Quantity” will trigger a suggested Reorder Quantity if the NetAvailable Quantity is less then the Safety Stock Quantity, then the calculate plan subtracts the NetAvailable from the Safety Stock Quantity to determine the suggested reorder quantity:

NetAvailable = QOH – QonSOs – QonJobPlan + QonPOs + QonReq. + QonJobs Qty to ReOrder = “Safety Stock Quantity” – NetAvailable

4. Optional: If you fill in “Reorder Quantity” then if the Net Available (calculated the same as above) is less than the Safety Stock Quantity, and then the suggested reorder quantity will be the fixed quantity in the “Reorder Quantity”.

5. Optional – Not Recommended: If you fill in “Reorder Point” then if Net Available drops below the Reorder Point then the Calculate Plan will suggest reordering the “Reorder Point” Quantity. If the “Reorder Quantity” is filled in and greater than the “Reorder Point” then the suggested reorder quantity will be the “Reorder Quantity”.

6. Changing the settings on the Requisition Method Codes will change the way the Calculate Plan works. We have not covered every option. We have however covered what we recommend for use with Job Manager.

7. If Items have Stockkeeping Units (Quantities by Location) then the same fields mentioned above for the Item card must be filled in on the Stockkeeping Unit Card.

IMPORTANT: If Locations are flagged as Mandatory in Inventory Setup then you MUST setup Stockkeeping Units for the items that you want the “Safety Stock Quantity” to affect the results of the Manufacturing, Planning Worksheets, Function Button, Create Regenerative Plan or the Purchase & Payables, Requisition Worksheets, Function Button, Calculate Plan. The process will be looking at the “Safety Stock Quantity” entered on the Stockkeeping Unit Card.

8. Some of the Demo Data has quantity on hand in a “blank” Location Code AND Quantity on Hand in Stockkeeping units (location codes). If you want the Calculate Plan to consider quantity in all areas including the blank location code you MUST have the Replenishment Type, Requisition Method and Safety Stock Quantity fields filled in on both the Item Card and the Stockkeeping Unit Card. The ledger lines with a blank location code will be influenced by the values found on the item card. The quantities with location codes will be influenced by the setup found on the stockkeeping unit card related to the location code.

SPECIAL NOTE: Like in the Demo Data, If you have Item Ledger Lines with quantity in a Location Code (that is not blank) AND if there is not Stockkeeping Unit to go along with the Location Code, then the Requisition process – “Calculate Plan” will not consider those lines when determining the net available.


Example: Item 70010 Has two item ledger lines of qty 2270 in the BLUE Location a total of 4540. There were no stockkeeping units. I put a value of 5000 in the Safety Stock Quantity and expected the Requisition calculation to tell me to order 460 (i.e. the difference between the QOH and the Safety Stock Quantity. BUT the Requisition calculation told me to order 5000 because it did not consider the Blue location lines, so it seemed that QOH was zero and therefore we need to order the full 5000.

Exercise: “Buy for Stock” with the Requisition Worksheet 1. Select, Requisition Worksheet, Calculate Plan.

Set Order Date = TODAY. Set Ending Date = 60 Days out.

2. Go to the Item Card. Make sure Requisition System = Purchase. Vendor Number on Item Card holds the “Default” Vendor for the Side Panel. Price Table (if purchased) holds optional Vendors and Lead Times. If purchased “Price Contracts”, the sub table holds their prices, BUT it pulls by the Default Vendor on the Item Card.

3. Go to Side Panel Vendor Catalog and set Lead Time to 12D!

Re-generate Requisition Worksheet. Verify new Quantities. Verify Date Changes.

4. Toggle Mark the RM that applies. (if any) (CTRL+F1)

5. View, “Marked only”, and Highlight selected lines. (Highlight is very important here) 6. Function; Carry out Action Messages to generate the Purchase Order. 7. Go to the generated Purchase Order. Print Preview the Purchase Order. If you have a

printer available now, print a hard copy example. Review PO, Line, View Purchase History.

8. Go back to RM‟s Item card. Verify the Item shows “On Purchase Orders”.

9. Change the Expected Cost of THB on PO Line from $1.00 to $1.20. You may have to

“Re-open” PO. Who? Security?


10. Go back to the PO. Post ALL lines as “Received.” (Not Invoiced, Not Received and Invoiced)

11. Later the Vendor‟s actual Invoice for these items comes in. All we have to do is add the

Vendors Invoice Number & Posting Date to the Purchase Header and post the Purchase Order as “Invoiced”. Verify the Vendors Balance and Ledger Entries have changed! How would we Post this directly into the cost of a Job? Verify: Change in Qty on Hand.

Change in cost. (If any) View amount due the Vendor. View Item‟s Last Direct Cost. Print Inventory Valuation Report with Details.

12. Pay close attention to the “Expected Receipt Date” on the PO lines. With the Posting

Date on the receipt document lines we can now generate a Vendor Performance Report that compares when lines were expected to arrive V. when they were posted received. (Print Preview this report with Details ON.)

13. Comment: We do the same Performance on the Customer Sales side with actual shipped posting date compared to “Promised Date.” Notice how many HATS we have worn today. It is hard for one person to simulate a multi-user system. It is time to start assigning all these work activities to specific staff in your office. Make a list!


Buy for a “Job” direct from the Job’s Planning Lines Often purchasing agents buy materials or services for a Job on an as needed basis. They want to review the Job‟s “Parts List” and “Sub-Contractor List” and then issue purchase orders based on their own decisions. This section will review how to do that process. Note: This process does not analyze Quantity on Hand, Expected Qty. to Receive on Purchases, or Demand. It creates Requisition Worksheet lines “specifically” for the Job you are on. Advantage: Generating Purchase Orders from the Job‟s Plan line will carry the “Job No.” and the “Task Number” to the Requisition Worksheet and on to the Purchase Order Line as well. What this means to you is that as materials are received and invoiced the transactions will go directly to WIP and not into Inventory! We review 3 different methods of purchasing:

1. Buy ALL. 2. Buy by exception. 3. Buy by selection.

Buying ALL:

Once the Plan has been established the purchasing agent wants to purchase ALL the items in the Plan. This is a three-step process. Auto Fill Qty. to Requisition Generate Requisition Worksheet Lines Carry out Action Messages (On Requisition Worksheet)

Step 1: Run Function, “Auto Fill Qty. to Requisition”.


This will copy the “Outstanding Quantity” to the “Qty to Requisition” column.

Notice above how only the Outstanding Qty is moved to the “Qty. to Requisition” column. Think of this as a “Preview” of what is going to be sent to the Requisition Worksheet.

Step 2: Run the Function “Create Requisition”.


As you can see below, this function will send the lines to the requisition worksheet for Purchase Order Generation.

This function will also update the Plan Lines with the Qty on Requisition. (See flow field below) So, once the “Carry out Action Messages” is run this column will go blank again.


Step 3: From the Requisition Worksheet you simply run its function to “Carry out Action Messages” to generate the various Purchase Orders.

Buying by exception:

This method is identical to the above, but prior to running the “Generate” function, you have the opportunity to change desired quantities. (UP, DOWN, OR ZERO) Then generate requisition lines as shown above.

Manual:

This method is just to “PLUG” the desired quantities in the Qty. to Requisition column. Do not run the function to “Auto Fill” the quantities. You enter a quantity in the “Qty to Requisition” field on the Job Plan for items that you need to purchase for a job at the time you want to purchase them. You may need to “Unlock” the Plan Lines to get access to the column. Qty. to Requisition:


SEE Appendix: Setup for User Specific Requisition Batches


Date Calculations: Since “when” product arrives is important, the Create Requisition Lines function will also auto-calculate recommended purchase dates. When you enter the Qty. to Requisition on the Job Plan, a “Due Date” will automatically fill-in. Taking the “Starting Date” on the Job Plan Line and subtracting the number of days found in the “Safety Lead Time”, field on the Item‟s card, it will calculate the “Due Date” for you. If there is no “Safety Lead Time” then the Due Date will be one day before the “Starting Date”. You are allowed to edit the “Due Date” field on the Job Plan Line.

Date Calculations – During run of Create Requisition Lines:

The Create Requisition Lines function will calculate a Suggested “Order Date” – (better termed Vendor‟s Ship on Date). The Order Date is calculated by taking the Plan Line “Due Date” and subtracting the “Lead Time” days found on the Item Vendor record (if it exists) or the “Lead Time” on the Item Card.


The Requisition Lines “Start Date” will be the WORKDATE. This “Start Date” will become the Purchase Order Date. On the Requisition Worksheet, when you run the function Carry Out Action Messages, the Purchase Order Date will be the “Start Date” and the “Order Date” (better named Vendor Shipment Date” and “Expected Receipt Date” (better named At Dock Date”) per item will be transferred to the Purchase Lines. (See below) The Order Date is further calculated by subtracting the "Inbound Warehouse Lead Time” Days, found in the Location record (if it exists) or from the Inventory Setup. The final date is the “Available Date”. (Expected Receipt Date) Sample Purchase Order Line:


We recommend you adjust the Dynamics NAV Purchase Order Document Lines to include as much as this information as possible. Here is a sample.

Notice the key fields displayed: Vendor‟s Part Number below our Item No. “Ship On” Date is the instructions to the vendor when we want him to ship to us. Our Job No. and Task Number display for our information just below description. The comments are from the PO Line Description. (Type = blank)


Outside Processing Tip Send one of your Raw Material Items out to be enhanced. There are a couple of ways to handle the outside processing situation.

Option I. Multiple Item No.s – The Outside Processing turns one item into another item. For example item 101 is an uncoated wire, and gets turned into item 101C as plastic coated wire.

Example A:

Job BOM calls for an Item that represents the Coated Wire.

Purchasers for wire, would observe the demand for coated wire and or make use of the below minimum field on the item card to determine when and how much uncoated wire to order.

Below shows how purchase orders might look when wanting to process uncoated wire out to the vendor and receiving in the coated wire.

POs for the uncoated wire are for stock and would not have a Job No. on it.

POs for the Job when coated wire is needed for the job would be like the sample below. Sample PO: Send raw wire out to be plated. The plated wire is returned. - 1000 Ft of 101 un-coated wires. (RM out of stock) “no job no.” $ 1.00ea + 1000 Ft of 101C coated wire. (RM into stock) “has job no.” $1.35

Example B:

Job BOM shows the need for uncoated wire. Item, No. =Uncoated item, Cost is item cost.

Job BOM shows the need for the coating service. Resource, Vendor, Cost is cost of coating service

Purchaser sees the need to purchase uncoated wire due to the demand from the Job Plan (BOM). Typically the uncoated raw material will be ordered for stock and not job specific.

POs for the uncoated wire are for stock and would not have a Job No. on it.

Purchaser sees the need to order services from the coating vendor. This would be more job specific ordering. See example of PO below that gets costs to the job.

Sample PO: - 1000 Ft of un-coated wire. (RM out of stock) “no job no.” 1.00ea + 1000 Ft of coated wire. (RM into stock, but a different number) “has job no.” 1.35ea


OR

Example C: If ordering the uncoated wire specifically for the Job then you will have one PO to Vendor A” PO Line: Item Uncoated wire 1000 ft 1.00ea ….. In this case you enter the Job No. And another PO to Vendor B for the Service: PO Line:

Resource Coating service 10000 .35ea with Job No.

--------------- The cost of the un-coated RM would get to the Job when the Item is entered and posted from the Job Journal.

Note: The PO format would have to be reviewed. You may want to consolidate the two lines into one for the benefit of the supplier.

OR

Option II. Use one Item number and use Item Charges.

Planning the job would be done the same as either Example A or Example B above.

The following is the way you handle the Purchase orders, inventory processing and the issuing of the item to the job for # II. Purchase the original item (item 101). PO does not have Job No... Item is received into inventory. Purchase the service of coating the item. The PO line would be a Type Charge (Item). This line also does not have a Job No.. Assign the cost on this PO to the receipt of the original item‟s PO. Charge (item)‟s costs are added into the original item costs when the Vendor invoice is posted and you run the Inventory‟s Periodic Activity “Adjust cost”. IMPORTANT: You will need to run Inventory‟s Periodic Activity “Adjust cost”, to get the Unit Cost on the original item to reflect the Charge (Item)‟s additional cost, even if you have the costs to post automatically. This is standard Dynamics NAV functionality. Once the Unit Cost is fully updated then the item can be issued to the job. Issuing the item to the Job is done by entering the Item into the Job Journal. The Unit cost from the item card is the cost that will default into the Job Journal and be posted to the job ledger.


Purchase Order Links to Job Card

If an item is purchased specifically for a Job, just flag the PO line item with the Job Number

and the Task number on which it will be used. This generates a “committed cost” in Job

Costing.


Mini-Exercise – PO:

1. Create a new PO with Job No., Task Number on the Line.

2. Go to the Job Card. Press F9 Statistics. See how PO Commitments show.

3. Do a receive only of the PO Line Items.

4. Go back to the Job Card. Observe what happens on the Job Statistics.

5. Close out the PO with the Vendor’s Invoice. Verity on Job Ledger & Statistics.

Mini-Exercise #2 – PO to an Outside Supplier (HT)

Remember in Job Manager you can purchase Resources for just this reason. See the separate

manual on “Purchasing Resources”.

1. Create a new PO to any Outside Vendor.

2. On the Line Item select HT. (Resource)

3. Add the Job Number to the Line.

4. Go to Job and Verify it is on the PO Commitment List.

5. Receive and Invoice the PO.

6. Verify the entry shows in the Job Ledger Entry.


Labor Allocations Now we will explore how “In-house” labor is allocated to Jobs and to Job Tasks. We provide only two options at this time: Through Payroll or through direct Job Entries. If you are using NAV Payroll you will enter the Job Time Allocations through the Payroll Time Journal. If you are not using NAV Payroll or chose not to enter Job Allocations into the PR Time Journal than you will enter the allocations into the Job Journal. (Our recommended procedure)

Labor Usage Sources:

Factors that influence how you post labor to Jobs: 1. What cost will show up in the Job Costing area? Who will see it and how

Confidential are the employee‟s pay rates? 2. How important is daily, weekly, monthly job cost reporting?

1. From Job Journal in Job area:

Employees are setup as Resources. Pay rates are setup on the Invoicing Tab.

Direct Unit Cost = Employee‟s actual hourly rate (not including Labor Burden.)

Indirect Cost % = an additional percentage of the employee‟s actual hourly rate to accommodate for Labor Burden.

Unit Cost = Total of Direct Unit Cost and Indirect Cost %.


Job Cost = Actual Hours * Unit Cost

Example: Mary works 10 Hrs X 15.50/hr = $ 155.00 cost to Job Ledger.

In the Job Manager, employees‟ time is posted to each Task of the Task of each Job.

You will need to start now considering what “rate” you want to show on your Job Reports. (SHOP RATE or ACTUAL EMPLOYEE PAY RATES) An “original” of the Task is kept with the Item or Resource, and then it is copied to the “Job Specific” Task when the Job is created. The Job Specific Task can be edited to accommodate changes in the processing of that job. Detailed “Process” descriptions can be added as comments to each operation.

2. From Payroll Time Journal: This is covered at the end of this manual, but will not be part of this class.

Job Exercise – Posting Labor Cost

LABOR ALLOCATIONS – Manual Posting Process:

1. Manually enter employee‟s time to your new Job through the Job Journal.

Use Lookup Type = “Labor/Machine”.

POST the Journal. Go to Job Ledger and Verify entries were transferred. “Person” Type Resource on Phase generates 1 line entry.


“Machine” Type Resource on Phase generates 2 entries. (Man & Machine) Go to Resource Ledger and Verify entries. How could this be automated? Should this be automated?

2. Look at the Job‟s Task Line. Did the actual Labor show up? Drill Down. 3. Look at Job Statistics. (F9) Labor should show up now! Drill Down!

Look at Job Statistics Look at WIP Statistics. Print at least one Job Cost Detail Report. (R14004447 – Job/Task/Cost Cat/P Date/Trans)

4. What if we just want to post some Machine Time to a Job? Easy, select your Job No., select Lookup Type = “Labor/Machine”, select your Task, select Type = Resource, select your Machine, Enter Time. Try this process.

Verify in Job Ledger Entries. Verify On Task. Verify On Job Statistics Screen. (F9)


Scheduling, Capacities, and Loading We find that scheduling means different things to different companies. It could be simple Job Level Scheduling or more complex Task Level Scheduling. It could also mean machine scheduling or employee scheduling. Often with these two processes Capacities will be set per Machine or per Employee so the demand (load) of time can be compared to the capacity.

Mini-Exercise – Setting Machine Capacity

1. Manually Setting Capacity. On our DP8 machine resource, enter its capacity manually from the Capacity Matrix. Make it available for 8 Hours per Day for the next 2 weeks.

2. Automatic Capacity Generation Utility now let‟s uses the utility to automatically generate capacities for a specific date range.

Go to: Resources, Planning, Resource Capacity, and Planning, Set Capacity (Job Mgr)

This utility will allow for ranges of Machines or run it with Type = Machine

for ALL Machines.

The Date Filter is a MUST.

Enter the desired Planning Horizon to establish your machine capacities.

Set DP #8 to 8 Hours per Day for all of “February”

Go back and review results. DRILL DOWN.


Job Manager does not deal with calculating people capacity at this time, only Machine Capacity.

Scheduling at the Job Level: (and re-scheduling)

1. Est. Production Qty Per Day Method When the Job Qty Ordered is entered the system determines the number of Working Days needed (Job Qty Ordered / Est. Production Qty per Day”). Example: 10,000 Ordered / 2,000 Unit capability per day = 5 Days to Produce. The field “Scheduling at Task Level Allowed” on the Job Card is the key to whether you are scheduling the Job at the Job Level or by the Job Task. The Advanced Setup holds the default value for all new Jobs. “Scheduling at Task Level Allowed” will automatically be YES (True) if the Advanced Setup field “Schedule at Task Level by Default” is YES (True). If the field “Scheduling at Task Level Allowed” is NO (False) then the Item or Resource will need to have the “Est. Production Qty per Day” field filled in. The “Est. Production Qty per Day” is retrieved from the record related to the Item or Resource that is entered on the Job card.

Can you edit the Est. Production Qty on the Job card and will the programming use it

instead of going back to the Item or Resource? NO. You must set up this control

value on the Item or Resource card. The system processes the Working Days through the Advanced Setup Calendar will add in the non-working i.e. excluded weekend days and holidays to determine the actual number of Calendar Days needed to complete the Job. It also looks at the Hours per day for Monday through Sunday. The Starting Date is determined by back calculating the Calendar Days from the Customer‟s Target Ship Date. If the Starting Date is changed on the Job Card (Duration Tab) then the system uses the Calendar Days to forward calculate a new Calculated Finish Date. The original Target Ship Date does not change. We are making the assumption that the date you entered as the Target Ship Date is related to promises made to the customer and should not be changed unless you manually edit it. If you change the Job Qty Ordered then the number of Working Days will be recalculated. The Calendar Days will be recalculated and a new Starting Date will be determined from the existing Target Ship Date.


Job Level: (Job Ship Date & Job Start Date)

If needed, you can manually change the Job Target Ship Date or Target Start Date. The Start Date will be calculated from the combination of Days to produce and the Advanced Setup of Days open and Hours per workday. Sort your jobs by Start or Ship Date to see your Jobs chronologically listed.

Mini-Exercise – Learn to use the Work Analysis Windows

Go to Job Analysis, Jobs by Start Date.

Tip: Right click to “Edit List”. Now you can “Bubble Sort” the Jobs. Discuss the other Views. Jobs by End Date Task Tasks by Start Date


Scheduling at the Job’s Task Level:

Purpose of Tasks:

Maintain the Sequence of Events during the Job process

Determine the Estimated Costs for Labor and Machines

Calculate the Job Duration & assist Scheduling Resources

Place Holders for Actual Cost Accumulation and Estimates from Plan. (Place Holders are non-sequenced and typically do not affect Job Duration but are associated with Job Costs – such as Admin, Accounting, or Overhead)

The number of Working Days at each Task is determined by dividing the Task‟s Total Prodctn. Hrs by the Adv.Setup‟s Hours per Day. The actual number of Calendar days needed is then determined by processing the Working days through the Advanced Setup Calendar. Starting with the Target Ship Date as the Finish Date for the last Task, the system backward calculates the Start and Finish Date for each Task. The Start Date of the first Task becomes the Starting Date on the Job Card (Duration Tab). All Tasks are assumed “Serial” processing, unless “Ignore for Duration” is checked. Further clarification: There is a field on the Job Task called "Ignore for Duration". If this is checked then this Task's production time will NOT be used to calculate dates. It will have dates parallel to a Task before or after the ignore for duration Task depending on if the schedule was forward or backward scheduled.

PERSON & MACHINE LINES: Entering the Setup and Run times will determine the “Total Prodctn. Hrs” for each Task. Formula: (Job Qty Ordered * Run Time) + Setup Time = Total Prodctn. Hrs If you just want to “plug” a value and tell the system that this Task will take 16 hours, then you would enter 16 hours in the “Setup time” and leave “Run time” at 0. The 16 hours will then appear in the Total Prodctn. Hrs column. Total Prodctn. Hrs (TPH) is used for two important Job controls. It is used to calculate costs (TPH * times Unit Cost) and (TPH X Operator Rate for machines) as well as being used for Scheduling the Task. IMPORTANT: It is important that you have the Unit Costs and Operator Rates coordinated in “Hourly Rate” units.

Task Level - Forward Scheduling Task scheduling assumes the Tasks are sequential (i.e. one Task finishes before the next Task starts). It is possible to allow the auto-schedule Tasks to begin with and then edit the Tasks that are simultaneous. You would then turn the auto-Task scheduling off on the Job Card, or say no anytime you are asked to auto schedule Tasks.


Note: End Date of the “Last” Task = Ship Date. We back up (backward schedule) the rest of the Tasks calculating each of the successive Start and End Dates. Finally we get to the Start Date of the First Task, hence we now know the Job‟s Start Date too.

Standard Sequential Schedule:

Task Duration Start Date End Date Example: Task 10 1 04/04/02 04/05/02

Task 20 3 04/05/02(Fri.) 04/08/02 Task 30 2 04/08/02 04/10/02 Task 40 1 04/10/02 04/11/02

Task 50 5 04/11/02(Thu) 04/16/02 Task 60 2 04/16/02(Tue) 04/18/02

Edit schedule because Task 40 and Task 50 can happen at the same time. Task Duration Start Date End Date Example: Task 10 1 04/04/02 04/05/02

Task 20 3 04/05/02(Fri) 04/08/02 Task 30 2 04/08/02 04/10/02 Task 40 1 04/10/02 04/11/02

Task 50 5 04/10/02(Wed) 04/15/02 Task 60 2 04/15/02(Mon) 04/17/02

Please notice a couple of important factors: We edited Task 50 to start at the same time as Task 40 (after Task 30 finishes). When we changed the Start date of a Task, the system will ask us if we want to reschedule the remaining Tasks. We said YES. Notice the start date of Task 60 changed to O4/15/02. Sometimes when rescheduling, you will see the number of days change. This is because you may have Job Manager set to “exclude” Saturday and Sunday as workdays as we do in this example. Task 50‟s actual duration is 3 days, however when part of the Task‟s actual duration passes though a weekend or holiday this causes an increase of 2 calendar days (or the number of the holidays). When manually scheduling simultaneous Tasks you will want to make sure the „longest‟ duration Task of the simultaneous Tasks is the lowest on the Task list. In our example, Task 40 and Task 50 will start at the same time, but Task 50 will last longer. We need the overall schedule to be based on the longest Tasks.

Looking at the schedule, what other Task‟s duration was effected by starting the Task on Friday with weekends excluded? What was the actual workday duration of the Task? What was the Task duration or calendar duration and why?


Just added: Working Days to Produce vs. Calendar Days to Produce. These same fields are also now available at the Task Level along with the Start and End date of each Task. Notice in the above example the Schedule at Task Level is YES. Therefore the “Est Production Qty” is not visible. (Only visible if scheduling at Job Level) Notice in the above example the “Calculated Finish Date” is non-editable since it is calculated or re-calculated with any “re-schedule” operations. (i.e.: Planning Job Quantity Changes) Scheduling Flexibility Summary:


1. Job Level Only with Est. Production Quantity per Day calculation.

Backward Calc from Ship Date to Start Date.

Forward Calc from Start Date to Calculated Ship Date.

2. Task Level set to YES. Backward Calc from Last Task Finish Date to First Task‟s Start Date (Job Start Date). Forward Calc from Any Existing Task Tasks Start Date (change allowed) to calculate a new Last Task Finish Date (Job Finish Date).

3. Advanced Setup of Shifts (8 hrs blocks typically)

Notice in this example how the company works two shifts on Tuesday and Thursday only. Dates will honor the exact hours shown in this important window.


Machine Load vs. Machine Capacity Job Manager enables you to compare a Machines Capacity to the work load that his been assigned to that machine. Over/Under Loads will be shown on the report. Note: Job Manager will NOT resolve any load issues automatically. Job Manager WILL enable you to move a Task to a Different Machine or Push Back a Start Date on any given Task. To see the “Load” we sort your Tasks by Machine, then by Start Date. We Sub-total Hours on a particular machine and present the machines‟ hours demand (Load). We next compare that calculated Load to what you established as that machine's Capacity. (Resource Card) The Resource Load Analysis report (R14004385) shows this relationship very clearly. Specify the date ranges and resources you want to see. To see this: Resource Card, Planning, Resource Capacity, and Resource Availability. Exercise: Go to Job Reports. Select the Report: “Load Analysis” (R140004385) Filter on DP8, Start Date = This Period (i.e.: P12) Review how Task Tasks = Load Review how Capacity is shown. Review the Over/Under Utilization level.


NEW SCHEDULING OPTION; Cost Control Software has partnered with “PlanetTogether” to enable their Advanced Scheduling and Planning Software to interface with Job Manager.

You can start off small with “Drag & Drop” Scheduling. Add Resource Constraints w/ auto optimization. Add What If Scheduling Add Material Constraints w/ auto optimization. Please contact: Rick Baxter (317) 846-6025 if you would like more information.


Production of Finished Goods (optional) If your business “produces” a Finished Good, then you will want to record that production. As you post production into Finished Goods Inventory, those items become available for shipping and Invoicing. In Job Manager we do allow partial production of a Job to expedite the ship and invoice process for partial productions. On the costing side, we post the finished good item at “Standard” Cost (Item Card) or “Estimated Job Cost” from the Job Statistics Window. Since we allow for partial productions, we can never assume that the Job To Date Cost is the “Actual” cost of the partial production. That is why we must use the Job‟s Estimated Cost Each.

Job Exercise – Make Finished Good Item(s) (optional)

Posting Finished Goods Production

1. Go to Job: Job Journals: Job Production Journal, and post a Qty. of 9. (A partial production entry)


What cost is to be used? Job Cost? I recommend a classroom discussion on this huge topic! Remember not all costs may have been posted to the job yet, so we MUST use the “Standard Cost” from the Item Card or the Estimated Cost from the Job Card. Improvement JM37.05: Also allows the use of the Job‟s Estimated Unit Cost to be used when posting production. The option of which cost to use, i.e. Standard Cost or Job Estimated Cost, is located on the Item Card, on the Job Tab. This card shows that Standard Cost will be used for Job production cost:


2. Verify: Production shows on the FG101 item card. (Qty on Hand should have gone up.) Item Ledger (Ctrl F5)

Unit Cost. (Invoicing Tab)

3. Post remaining Quantity of FG. Check Job Production Tab.

4. Re-check all Ledgers. (FG & RM) Navigate and watch Dynamics NAV‟s magic.

5. Production Scrap Comment: If you produce 9 good and 2 bad (scrap) you can enter the 2 in the Scrap Column, the system will Back-flush RM for 11, but only put 9 into FG Inventory.


Auto Back flush Exercise If you want to automatically post partial usage of your RM as you post partial production of

your FG item, you can select the “Auto Back flush” option in Advanced Setup to let the system do it for you.

1. Go to the Job Journal, Job Production Entry Journal section.

2. Add a Line for the Quantity Produced. Default = Job Quantity

Scrap entered here will reduce more RM, but not add more FG.

3. Post the Production Journal.

4. Now exit the Production Journal and move to Job Journal, review items that were copied, and POST.

Is there a preferred method? No, it is up to each companies “business rules”. However, we do recommend you post RM usage to the job at the time of actual usage. This will keep your Raw Material Inventory as close to real time as possible. This quick step allows for recording how many items you have produced against a customer's order. Example: The customer may have ordered 200, but JTD you have produced 50. You may want to ship and invoice those 50 units today, and keep working on the other 150. Just go to the "Job Production Entries Journal" and record the current production completions. Posting the results will update inventory item ledger and the Job Ledger. Those 50 are now available to invoice on a Sales Order. Record the partial shipment as standard Dynamics NAV. The Location Code on the Job Card‟s Production Tab will tell the system what WRHS should house the FG.


Consumption of Raw Materials We find that every business consumes their raw materials differently. Again, I will describe the options and then you will have to decide which way works best for your workflow.

Material Usage Discussion:

All Planed (estimated) materials are entered on the Job Planning Lines. Optionally,

the Bill of Materials (BOM) for the Finished Good (FG) Item is copied to the Job Plan from the Item Master. This process establishes the materials expected to be used by comparing the BOM to the Quantity Ordered on the Job. This BOM estimate may be posted in its entirety (back flushed), or you can post individual line items as materials are used on a Job. It is important to associate a Task Number with a Planed item; therefore, we recommend that you enter the Task first. If you feel that you will have a minimal need for Tasks, then we still recommend that you setup one, or two Tasks to be used with the Plan. If you have an item on the Plan/BOM that appears on more than one line, see example below, then it is important that the lines are associated with “different” Task Numbers. This is important when you post the usage of the materials, i.e. the system uses the Job No. and the Task Number in order to update the correct Plan line with the quantity posted used (YTD Usage Qty). It is important for the YTD Usage Qty to be accurate in order to keep track of the Outstanding Qty per line.

The second line with item 70000 is associated with Task 10. The ninth line with item 70000 is associated with Task 20.


Optional Methods of Raw Material (RM) Consumption:

A. Consumption Based on Actual Usage – As recorded on the shop floor.

This method enables you to enter the actual materials and quantities used on an as used basis. They are manually entered into the Job Journal and posted. Note: This manual process applies to ANY usage, including SCRAP RM. There is no built in Scrap Percentage on the BOM to calculate anticipated scrap.

B. Consumption Based on Planed Materials (BOM) (Job Plan) This assumes the Job goes as planned. Three Options:

1. Forward Flush - Stage materials and reduce RM at the start of the Job.

This assumes the entire exploded BOM is consumed, as listed in the Job Plan. The Job Planning Lines can actually be copied to the Direct Usage Entry Journal in their entirety, and posted to the Job Ledger. Usage of the Planed materials is manually triggered by a function on the Job Plan form.

2. Back flush - Reduce RM upon Job Completion.

This is similar to Forward Flushing, but the procedure is run upon the completion of the Job rather than at the beginning of the Job. Usage of the Planed materials is a manually triggered by a function on the Job Plan form.

3. Auto Back flushing (Based on FG Produced) - Reduce RM based upon actual quantity produced. Usage of Planed materials is triggered by the posting of a quantity produced.

This method is only available if in the Advanced Setup “Auto Back flushing” is set to YES.

When Job Production is posted in the Job Journal (Production Jrnl Template), the corresponding RM amounts are listed in the Job Journal, as dictated by the BOM of the FG Item. The Job Journal can then be reviewed, adjusted for accuracy, and posted. Auto back flushing will only flush Items and only items that have an Outstanding Quantity. Another way to avoid back


flushing a Planed item is by checking the field on the job Plan called “Do not send to Job Usage”. Important Back flushing Rules: If you plan on manually flushing “some” of the items on a Job Plan and then auto back flushing the rest of the components, then we strongly recommend that you check the flag on the manually flushed items to “Do no send to Job Usage”. If you forward flush some of the Planed items and then plan on the auto back flush for the rest of the items. Be aware that if you over produce the production quantity the auto back flush will not pick up the fully forward flushed item (i.e. outstanding quantity is zero). You would need to manually add the forward flushed RM quantity to account for the overage quantity. These rules are a protection to prevent accidentally “over” flushing RM component items.

Dealing with FG Scrap: Scrap quantities posted in the Job Journal (Production Jrnl Template) will also allow for reduction of the corresponding RM without adding the FG Items to Inventory. Example: As you were in production for 1,000 FG items, 2 of the 1000 had to be scrapped. You enter +998 into the Quantity field in the Production – Job Journal, and you enter 2 in the Scrap column. When you post the FG production, RMs are reduced for 1,000 (exploded BOM into components) but only 998 are entered into Quantity on Hand for the FG. Back flush Rules with Scrap: As stated before, the automatic back flush will only flush the Outstanding Quantity in the related job Plan. However: Scrap quantity ignores the Outstanding Quantity on the Plan and flushes all Planed components in the correct ratio to the scrap quantity. Raw Material flushing due to FG production and RM flushing due to scrap are written to the JOB – Job Journal. The system calculated what should be flushed but does not post it. This gives you a chance to make adjustments in the RM flushing before it gets posted. Since Scrap flushes all components you may decide that even though the scrapped


FG product was not re-sellable not all components were lost. You can adjust the JOB - Job Journal before it is posted. Notice the Job Ledger Entry Table has a column for “Scrap Parts”. This is an information only column related to the Scraped Parts on a Production Entry. Note: We are assuming that the “Scrapped” Raw Materials can not be re-used or you will adjust the RM flushing entries in the JOB – Job Journal before posting. When usage entries have been posted to the Job, they end up in the Job Ledger Entries table. You can view these entries from the Job Card, Job Button. You will also start seeing the results summarized in Job Statistics (F9 from the Job Card) as well as summarized by Task number on the Job Task. See an example below.

POSTING MATERIALS – Manual Posting Exercise:

1. Enter the following items manually as used through the Job Journal. (i.e.: They were removed from the inventory crib) Watch how Lookup Type = Material/other pulls the Expected List to PICK from.

POST the Journal. Go to Job Ledger and Verify. Are there any Drill Downs or Lookups from here? 2. Look at Plan again. See how Usage & Remaining Amount shows.

Drill Down.


3. Go to one of the Raw Material Item Cards. Verify the Qty on Hand went down. Verify the Item Ledger description says why. Navigate. Class Discussion: Inventory Cost Posting to GL. When, Who, Why? 4. For “Un-expected” Items override the phases pre-filled item with the additional

consumption.

MATERIALS – Semi-Automatic Posting Exercise

In your business, when are you going to record material usage? We discussed this early on Day 1, but it is now time to think about it again. If this decision has not already been made, it should be made soon. This is a crucial step of accurate job costing. The exercise we just completed is for an environment recording RM usage as it is pulled. Next are the steps you would use to Back flush and Forward Flush your RM.

Back flush Exercise If you relieve you inventory as the job is completed, Job Manager allows you to COPY the entire BOM to the Job Journal and POST after production is complete. (See Function: “Copy BOM to Job Journal”) You can even edit the copy prior to posting if needed.

1. Use the function on the Job Plan to copy the entire Plan to the Journal.

2. Highlight the desired lines to copy to Job Journal.

3. Select Copy. (Only “Outstanding Quantity” is copied to Journal for posting.)

4. Now exit and move to Job Journal, review items that were copied, and POST. **Timing is up to you as to when to POST. **

Forward Flush Exercise If you “stage” you inventory as the job is started AND want the RM removed from the RM Inventory at this time, Job Manager allows you to COPY the entire BOM to the Job Journal and POST prior to the start of production.

1. Use the function on the Job Plan to copy the entire Plan to the Journal.

2. Highlight the desired lines to copy to Job Journal.

3. Select Copy.

4. Now exit and move to Job Journal, review items that were copied, and POST.


The timing is up to you. Materials are consumed when you press POST.


Billing

There are the eight billing options available in “Job Manager" (probably more).

Use only those that are appropriate for your business.

Option 1: “One Planned Contract Amount at end of Job” (Fixed Contract)

1. Sub Job exists first. 2. Select Planning button, and select “Estimating.”

a. View Estimated Cost totals and pricing totals b. Go back to Job Card.

3. Enter a Total Contract Amount. a. Box Pops-Up: Update the Contract amounts on the task/routers? Click

Yes 4. Mention Job is setup for single contract invoice at end of job. 5. Select Planning button, and select “Estimating.”

a. Select Job/Tasks button, mention with the correct template setup, you could automatically create contract lines using the “Auto create contract planning lines” option.

b. Instead manually enter a Contract line: i. Go to the task that you are using for billing ii. Select Job/Tasks button, “Edit Planning Lines” iii. Enter a Contract line.

1. Make sure that Line Type is “Contract” iv. Select Function, “Create Invoice.”

1. You do get the option here to “append” to another invoice.

2. Drill down to the created invoice. You can add additional text line if you want.

3. Now Post. a. Some people do Post and Print and have modified

the Post and Print b. Do Preview instead of printing for demonstration

purposes only. c. Esc to Planning Lines

i. Press Page Up (refreshes list) ii. Drill on the Posted Invoice iii. Print Preview from Posted Invoice

**If you have Created a Sales Quote from the Contract Planning lines and then click “Make Order” from the Quote, than the Sales Order already exists vs. you needing to Run the Create Sales Invoice.


Watch Ben demonstrate “One Planned Amount” (If a blank page opens press F5 “refresh”)

Option 2: “Free Form Invoice” One or more “Ad Hoc” Sales Order or Sales Invoice lines

1. Job exists first. 2. Go to Sales Document (Sales Order or Sales Invoice)

a. Create New(F3/Insert) Sales Order/Invoice b. Enter billing line, or lines if terms c. Enter Qty 1, and amount in Unit Price d. Enter Job No. and Job Task No.

i. Make sure that the Task is flagged to “Allow Auto Insert Contract Line” back on the Job Task/Router setup.

e. Now Post. i. Some people do “Post and Print” and have modified the “Post

and Print” to Preview instead of printing for demonstration purposes only.

Watch Ben demonstrate “Free Form Invoice” (If a blank page opens press F5 “refresh”)

Option 3: “Bill Contract Amount per Task”

1. Job already exists. 2. Click “Planning” button; “Estimating”

a. Click “Job Task” button; “Copy Est. Price to Contract Amount” 3. On the Sub-Job card 4. Click “Planning” button; “Task Details”

a. Verify the “Contract Task No,” “Contract Type,” and “Contract No.,” on the far right side of the form, is specified for each Task.

i. It is usually the same as the Task itself. ii. Must have “Allow Auto Insert Contract Line” checked. iii. These can be pre-defined in the Item/Resource template.

b. Click “Task/Router” button; run “Auto Create Contract Planning Lines” You should see one Contract Planning line created per task that had the previous columns specified.

5. Invoice Option 1: Bill by Job a. On Sub-Job Card b. Click “Planning” button; select “Task/Router Setup”

i. Click “Functions” button; select “Create Sales Invoice” 1. This is for invoicing Per Job or Per Task*

http://www.projectstreamer.com/users/rbaxter/Billing_One_Planned_Amount/Billing1B.html

http://www.projectstreamer.com/users/rbaxter/Billing_Free_Form_Invoice/Billing2.html


2. No highlighting of tasks, only filtering 3. No option to append to another invoice 4. System will tell you one invoice created successfully.

c. Click “Functions” button; select “Edit Planning Lines” i. Must be on a posting line ii. Go to the far Right to see the Invoice number that was created

and drill down to the Invoice. 1. You can add additional text line(s) if you want. 2. You may “Post,” or Post and Print (if preview modification

is in place) * You can set filters here but the default is the sub job that you are on and all tasks. As you Create Sales Invoice, go to the options tab. You have the option to create one invoice or multiple invoices by Job or by Job Tasks. If a job has two tasks, and you select by Job Task, and both tasks have un-invoiced contract lines, then the system will create two invoices, one for each task. Click OK, this will create the invoice or invoices without highlighting lines.

. 6. Invoice Option 2: Selective Billing by individual tasks

a. On the Sub-Job Card b. Click “Planning” button; select “Task Details”

i. Select the Task line you wish to bill. ii. Click “Task/Router” button; select “View Planning lines”

1. Select the Contract Planning Line 2. Click “Functions” button; select “Create Sales Invoice”

a. This is billing by Task Only b. You do have the option to append to another

invoice. iii. Drill down to Sales Invoice from Planning Lines iv. Click “Posting” button; select “Post”

7. Invoice Option 3: Selective Billing across multiple tasks

a. On the Sub-Job Card b. Click “Planning” button; select “All Planning Lines”

i. Filter on “Line Type;” for “Contract” ii. Highlight the line(s) you want to bill. iii. This option allows you to highlight multiple tasks at one time. iv. You do have the option to append to another invoice.

c. Drill down to Sales Invoice from Planning Lines d. Click “Posting” button; select “Post”

**If you have created a Sales Quote from the Contract Planning lines and then done “Make Order” from the Quote, then the Sales Order may already exist.


Tip: If you use this type of billing we recommend on “All Planning Lines,” Show the following columns to improve readability (5 second change):

Watch Ben demonstrate “Amount per Task” (If a blank page opens press F5 “refresh”)

Option 4: “Bill for a Group of Tasks (Milestones/Terms)

1. Sub-Job exists. 2. Go to Planning Button; “Estimating”

a. Enter the Contract Amounts per Task (Can use Copy Price Function). b. The Group Subtotal will show.

3. Go to Sub-Job Card 4. Go to Planning Button; “Task Details”

a. Enter the Task Number for your billing Milestones in the “Contract Task No.” column (far right) of the associated Milestone sub-totals row.

b. Enter “Contract Type:” G/L Account c. Enter “Contract No.” = Chart of Account Number (example: 41200 –

Job Sales). d. All of the above can be pre-defined in the Template.

5. Use “Task/Router” button to run “Auto Create Contract Planning Lines” 6. Option 1: Make Contract Line Sales Quote

a. Use “Task/Router” button to “Make Contract Line Sales Quote” i. Do not “append” if given option (but can mention possibility)

b. Go to Sales Quote i. Click Make Order Button

c. Go to Sales Order from Sub-Job Card i. Blank all milestones that are not being billed.

http://www.projectstreamer.com/users/rbaxter/Billing_Per_Task/Per%20Task.html


ii. Use “Posting” button; “Post” iii. Print Preview the document before you post or find the Posted

Invoice and Print Preview it. 7. Option 2: Create Invoice from Planning Lines

a. Go to “All Planning Lines” and filter on Line Type = Contract. b. Land on the Milestone you want to Invoice.

i. From “Function;” run “Create Sales Invoice.”** c. Go to Sales Invoice, Verify, and Post & Print

**If you have created a Sales Quote from the Contract Planning lines and then done “Make Order” from the Quote, then the Sales Order may already exist.

Watch Ben demonstrate “Milestone Billing” (If a blank page opens press F5 “refresh”)

Option 5: “Time and Materials” (Requires “Job Enhanced Billing”)

1. Job exists. 2. Post your normal cost entries in the Job Journal(s) (**Line type = blank) 3. On Sub-Job Card; “Jobs” Button; “Ledger Entries”

a. Highlight the lines you want to bill; “Function” button; “Transfer to Planning Lines”

i. Set “Transfer To” as Contract 4. Click “Planning” button; “All Planning Lines”

a. Highlight the line(s) you want to bill. b. Click “Function” button; Create Sales Invoice c. “Sales Invoice No” auto-fills; Drill down to Invoice

i. Verify and Post

**Slight variation: When entering cost entries, you can indicate what is billable by setting the

“Line Type” to “Contract.” When you post the cost entries the system will create the contract lines for billing along with posting the cost to the Job Ledger entry. In this variation, you would not do the Transfer from the Job Ledger Entry as the contract lines would already exist.

Watch Ben demonstrate “Time and Materials” (If a blank page opens press F5 “refresh”)

http://www.projectstreamer.com/users/rbaxter/Billing_Milestone_Billing/Billing4B.html

http://www.projectstreamer.com/users/rbaxter/Billing_Time_and_Material/Billing5B.html


Option 6: “Sales Order” Creating Job and Billing

1. Create a new Sales Order a. Enter the Finished Good* or Service** on the SO Line b. Enter Qty (Usually 1 for Service)

2. Click “Jobs” button; “Make one job for this Line” or “Make a Job for every Line”

a. Enter the Job Task No. for Billing on the SO Line (Task must “Allow Auto Create Contract Line)

3. Click the “Posting” button; “Post” *If Job is making a Finished Good item, then post Qty produced to Inventory, Ship and Invoice the Item from the Sales Order Line. (Qty. to Ship & Qty. to Invoice must be equal.) If you need to post a partial quantity, then split the line. I.e. two lines, the first line with the partial quantity being shipped and invoiced, and the second line with the remaining quantity. Enter the same Job No. and Job Task No. on the second line as was on the first line. **If Job is a “Service Job” (Type = Resource) then you do not need to post finished good production. You just need to post the invoice. Quantity on a Resource Job and sales line is typically one (1). If you need to split up the billing, then split the lines with the quantity of one (1) on each line, and enter the amount to bill in the Unit Price.

Watch Ben demonstrate “Sales Order” Billing (If a blank page opens press F5 “refresh”)

http://www.projectstreamer.com/users/rbaxter/Billing_From_SO/Billing6B.html


Option 7: “Percentage of Completion” (requires Job Enhanced Billing

Granule)

1. Job exists and Costs have occurred 2. On Sub-Job Card; “Enhanced Billing” box (lower left corner of card)

a. Set Billing Type to “% Complete” b. Set Billing Task to a posting task (i.e. Shipping, Billing, etc)

3. Go to “Enhanced Billing” folder in the left menu a. Click on the “Earned Rev. Worksheet”

i. Click the “Function” button; “Create Worksheet Lines” 1. Enter your Sub-Job No. in the Filter Column 2. Go to the Options Tab

a. Enter “w” (work date) in “Calculation as of Date” b. Enter any Document Number; Click “Ok”

ii. This auto-creates the entry in the Billing Worksheet; Review the Line (editable)

iii. Verify the “Billing Format Code” is set to desired format (far right side of worksheet).

iv. Click “Function” button; “Create Invoice” 4. Go to Sales Invoice and Post. 5. Other options are available too.

Watch Ben demonstrate “Percent Complete Billing” (If a blank page opens press F5 “refresh”)

Option 8: “Cost Plus” (requires Enhanced Billing granule)

1. Create new Sub-Job 2. Go to the Enhanced Billing Box (bottom left corner)

a. Select Billing Option; “Cost Plus” b. Select your Billing Task (must be a posting line) c. Set your Cost Plus Percentage (“10” = 10% mark-up)

3. Optional: If you need a smaller or larger mark-up for certain “Items” etc: a. Click “Prices” button; select “Item”

i. Enter a line for each specific item and set the “Unit Cost Factor” (“1.15” = 15% mark-up)

b. Repeat this step Selecting Resource to set-up your Resource‟s “Unit Cost Factor”

c. Repeat this step Selecting G/L Account as needed 4. On Job Card

a. “Functions” Button i. “Adjust Planning Line Prices…”

http://www.projectstreamer.com/users/rbaxter/Billing_Percent_Complete/Billing7B.html


All pricing can be based on Job Task too, i.e. a professional resource doing drafting can be priced using one factor, than the same resource doing project management (different task) is priced at another factor. As usage transactions are entered the system will default the price based on the Job Prices. Job prices take priority over all other pricing options.

Watch Ben demonstrate “Cost Plus” (If a blank page opens press F5 “refresh”)

http://www.projectstreamer.com/users/rbaxter/Billing_Cost_Plus/Billing8.html


Work in Process (WIP) If your “Jobs” are long in duration, than you may want to move the Direct Expenses from the P&L Statement to the Balance Sheet until the revenue is realized. Not all companies will utilize this accounting technique, please consult with your Tax Advisor. FUTURE SECTION (Bring in from other documents)


Opening Entries

Assumptions: All suggestions here are made assuming that when entering opening balances to subsidiary ledgers such as:

Inventory ledger (opening Quantity on Hand), Customer ledger (opening accounts receivable), Vendor ledger (opening accounts payable), Job ledger,

that entries will be made in such a way as to result in a net zero entry in GL. This procedure makes it much easier to enter your GL balances totally separately. The one thing that has to happen, is to make sure that the opening subsidiary balance total equals the balance that you enter in GL. We are assuming the technician reading this document has a strong grasp of the Jobs Systems. We are also assuming that if Dataports or RIM tools are used, the technician has experience with, or has a strong grasp of, how to use these tools are used. All existing jobs, ported from a previous system, will be wipped and later recognized on the same basis as was being done prior to Dynamics NAV; i.e. assuming general journal entries are made that will adjust GL WIP and Recognition accounts manually. Only new jobs will have the possibility of using an automated WIP and Recognition process. Entering Job to Date Customer Invoices to Jobs: If entering prior to entering balances to the Customer Ledger: When the Job invoices are posted they will make entries to the Customer Ledger as well as to the Job Ledger. If the invoices are paid then you will have to enter a payment against the invoice. If the invoice is not paid then the Customer balance will reflect the total of open(not paid) job invoices. If there are other non job invoices, then the opening entry to the customer ledger will be the difference between the job invoices and the customer‟s total open balance. Step 1 – Enter a Sales Invoice to the Customer (Set the Sales Invoice No.

series to allow manually entered numbers. Enter the actual invoice no. After all opening entries, you may want to remove the allow manual entry flag on the no. series.

Step 2 – Enter a description in the Posting Description field on the header. This


field will show up on the customer ledger area. Use a description like opening job invoices.

Step 3 – Enter one Line using the GL Account Type. Step 4 – Enter the Accounts Receivable GL account No. in the No. field. If you

have more then one AR account then make sure you are using the AR account that is associated with the Customer‟s posting group.

Step 5 – Enter the Job No. and Job Task No. on the line. Step 6 – Enter a quantity of 1 and the total invoice amount in the Unit Price. Step 7 – Retainage: If invoices involve retainage, then do the following:

If the Retainage has already been billed separately from the original invoice you are entering now, then make the total value of this “original” invoice (ie. The unit price on the first line) the value of the invoice after Retainage was subtracted. And do not enter a Retainage line on this invoice.

If the Retainage is not billed, then the first line on the original invoice you are entering now, will be the full invoice value, including Retainage. You will then enter a second “retainage” line, normal Retainage entry (see manual or training CD).

Step 8 – Posting options

If the invoice is unpaid, then you can just post it.

If the invoice is paid, you can enter a second line with the same GL Account type and No. as the first line. This line will have a qty of –1 and

the same amount as the first line in the Unit Price field. Enter a description on this line, “Invoice paid by CK No. xxxxx”

IMPORTANT: THIS LINE WILL NOT HAVE A JOB NO.

This second line causes the invoice to post to the customer ledger as a zero

amount. However, the first line will show the invoice amount on the job ledger.

RETAINAGE: If the original invoice amount (less retainage) is paid but

the Retainage is not billed, then the “payment” line will be the third line and will have a –1 quantity and will have a Unit Price value of the first

line less the retainage( i.e. the final value of the sales document prior to the payment line)


An alternative for the paid invoices is to post the invoice without the

second “payment” line and then enter a payment to the invoice in the cash receipts journal. When entering the payments, remember to use a Bal. Account No. which is the Accounts Receivables account for the customer, and apply the payment to the job invoice that was just entered.

If entering after Customer ledger balances:

You can make a “Temporary” modification to the job usage journal to allow you to change the Entry Type to “Sale”. Then enter data. Use a GL Account Type and No. Retainage entries cannot be entered this way.

Entering Job to Date Vendor Invoices: You actually do not enter Job No.s to opening Vendor balances. All the related costs purchased from vendors will get to the job via the next section on entering the Actual Job to Date Usage costs to Jobs. Opening entries will not Navigate to the Job ledger. Entering Actual Job to Date Usage entries: Both option use the Job usage journal. Don‟t use Type Item. When using Type GL Account or Resources then you will need to set the field called Chargeable to NO. The default is YES. This will prevent these opening entries from posting to GL during the post WIP process. This will maintain the basis of not posting to GL or posting a net zero to GL. Option 1 - If importing details from a prior system…(not recommended – usually too

difficult to map old system to new)

Map the prior detail to make entries to the Job Usage Journal. This entails generating the next line number in the journal. Set Chargeable field to FALSE. You need to Validate the “Job No.” field or populate the Master Job No. You need to Validate the “No.” field, Validate, Quantity, Validate Unit Cost and Unit of Measure, or make sure you populate the following fields appropriately. Posting Date, Document No.(Open Bal 1),Type, No., Job No., Master Job No., Job Task No., Cost Category, Unit of Measure, Unit of Measure (Base), Quantity, Quantity (Base), Unit Cost, Unit Cost (LCY), Total Cost, Total Cost (LCY). Unit Price, Unit Price (LCY), Total Price, Total Price (LCY).


It is NOT suggested that you import Type = Item, because when you post the Job usage, it will post a negative adjustment to inventory and you will have to reverse all the negative entries out of the inventory ledger. SUGGESTION: When bringing in item entries use a GL Account Type instead of Item, and a GL Account No. that has the Cost Category set to Material(see setting this on the GL Account Card, Posting Tab). Do not use the Cost Category Service for Job Usage. Option 2 – RECOMMENDED – Manually enter Job to Date actual usage costs by Cost Category in the Job usage journal. Set Chargeable field to FALSE. Do not use the Cost Category Service for Job Usage.

Material Entry: Use the GL account Type and a GL Account No. that has the Cost Category set to Material(see setting this on the GL Account Card, Posting Tab). Labor Entry : Use a Resource set to cost category Person(labor). Machine Entry: Use a Resource set to cost category Machine. Expense Entry: Use a Resource set to cost category Expense. Services provided by Vendors – Sub Contractors:

Use a Resource set to Cost Category Outside Processing. Overhead Entry: Use a Resource set to cost category Overhead. Misc Entry: Use a Resource set to cost category Misc. Transport Entry: Use a Resource set to cost category Transport.


Reporting As hard as we try, we never seem to provide the exact reports that companies are looking for. However, we do feel we provide the foundations to most requested reports. I will document here some of the key reports we feel help you manage your Jobs and your business.

Key Reports: 1. Job Estimate 2. Job Traveler 3. Job Audit 4. Job Cost Summary 5. Job Schedule


Job Completion When is a Job complete? It all depends! Just because you have shipped and invoice your customer for the service or product they have ordered, doesn‟t mean that all of your costs have been received. If a vendor is slow to invoice you that should not stop you from invoicing your customer if the job is completed.

Closing the Job – When? Who? How? We find often that costs on a job are received well after the product/service is completed and shipped to the customer. Therefore, we recommend you leave the job open until you are sure there will be no more vendor invoices or employee time cards to be posted against the Job.

Call Backs or Re-works are best set up as a separate Job. Remember, you can Block the job to keep any other transactions from being posted to it while you are awaiting your final costs. When the job is ready to be closed, just change the status from “Order” to “Completed” on the Job Card. This will prevent any more postings from being sent to this Job ever. You cannot change your mind later. The history is not deleted. You can review historical costs at any time. When (or if) you delete (F4) a Job, it also deletes: Job Ledger, Job Plan, Job Task, and Job Task Comments. The system checks to be sure that there are no open transactions slated for the Job before completing the deletion.


Business Models These are the ideal business models for Job Manager.

1. Companies that Provide a Service and then bill for that service.

2. Companies that Make a Product and then Sell the Product. (MTS)

3. Companies that Sell a Product, then make the product. (MTO) Service Business – F3 on Job Card, Type = Resource Make to Stock – F3 on Job Card, Type = Item Make to Order with No Quote – Enter Sales Order, then on Job command button make job(s). Make to Order with a Quote. – Make a “Planning Job”, Do a Job Estimate, Make a Sales Quote from the Job, if accepted Make Order from the Sales Quote and the Job will also convert to an Order Job.


Job Manager’s Setup Options The setup is accessed from the Role Center‟s Actions command. We put this section towards the end of the manual because now you will better understand what these many options can control.

Advanced Setup:

General Tab:

Hours Per Shift – Enter the total daily hours in one shift.

Shop Rate: – Enter your “Shop Rate”. (i.e.: $12.00/hr)

Company Schedule – Click this button to set up more specific company operation information. You can enter hours of operation for specific days of the week, as well as Exceptions to the normal hours of operation. For example, a holiday on which your business is closed is an Exception to your normal business hours.

**NOTE: The Company Schedule is important for job scheduling in Job Manager.


Job Tab:

Use Master for Sub-Job Defaults – A YES here will get the Master Job Information and copy it into each new Sub-Job. A NO will get the default Job Values from the “Defaults Setup” Granule.

Use SO Number as Master Job No. – Check this box YES to make the Master Job No. acquire their Number from the Sales Order number from which the Master Job was generated.

Use Master Job No. for Sub Job Numbers. = Check this box YES to have the system automatically create a DASH Job for each Sub-Job. (02003-01, 02003-02,….)

BlockStockOutWarningProd – Check this box YES to skip all “Out of Stock” Warning.

Job No. Series – Enter the Job Number Series desired here.

Master Job No Series – Enter the Master Job Number Series here.

Sched at Task Level by Default – If you want to schedule each Task of each job, instead of the whole job, check this box. (Recommend YES) This option assumes the Tasks are sequential (i.e. one Task finishes before the next Task starts). It is possible to allow the auto-schedule Tasks to begin with and then edit the Tasks that are simultaneous. You would then turn the auto-Task scheduling off on the Job Card, or say no anytime you are asked to auto schedule Tasks.

Copy Tasks to Jobs – If you want to copy your Master Task from the Item Card to the Job, enter YES. NO means do not copy, and ASK will always ask you if you want to copy the Task and give you the YES or NO option each time a new job is created.

Copy BOM to Jobs – If you want to copy your BOM from the Item Card to the Job, enter YES. NO means do not copy, and ASK will always ask you if you want to copy the BOM and give you the YES or NO option each time a new job is created.

Auto Back flush Raw Materials – If you want to automatically back flush your RM when you post Production, enter YES. NO means do not automatically back flush the RM, and ASK will always ask you if you want to automatically back flush the RM each time Production is posted.

Auto Back flush Task – Not implemented yet. Leave NO.


On Make Job from SO – This field will set the Job Status on Generated Jobs. (Planning, Quote, Order) We recommend = Quote.


Purchases Tab:

Purchase Update Purchase price updates the Vendor‟s Price Catalogue. Blank Date can be defaulted. Requisition Worksheet Cost can be set to pull the specified Cost from the Job‟s Planning Lines or to refresh from the Item Card.

Sales Tab:

Use Quote No. for SO No. – When you create a Sales Order from a Quote, check this box to make the number of the new Sales Order the same as the original Quote.


Setting Up and Using the Job Journal Entry Forms Notice the folder on the Navigational Pane for Job Journals.

The Shop Floor Entry forms have reduced data entry columns and preset cursor movement to maximize the entry speed. Using these new forms with a simple hand held scanner for scanner Job Traveler barcodes minimizes keyboard entry and maximizes data entry speed and accuracy. Quantity is entered or Scanned from a Bar Coded Number sheet located near entry station.


SETUP

Setup for the new Shop Floor Entry forms:

Insert the five (5) Job Journal Templates that you see

below. The JOB Template is used for the

Administrative Entry – Job Usage Entry. Be sure to use

the Form Ids that you see below.

LABOR is used for the Labor/Machine entry.

MATERIAL is used for the Item/Other entry.

PRODUCTION is used for Administrative –

Production entry.


Create Separate No. Series Codes and the No. Code setup. For the new LABOR and MATERIAL templates. These No. Series Codes will be used on the Template Batch setup next. Setup the Job Journal Template Batches: Click the Template button on the Job Journal Template Entry screen to get to the Batches for each Journal Template.


NOTE: See that the JOB Template has a DEFAULT batch without a “No. Series” code.

When you back flush Usage as Production is posted, the back flushed usage entries will appear in the JOB Template, DEFAULT batch.


NOTE: That the LABOR, MATERIAL and PRODUCTION Templates have a No. Series Code. You will need to setup two No. Series Codes, one for the LABOR journal template, and one for the MATERIAL journal template. You can use the JJNL-GEN no. Series for the Production Journal Batch or create a new one.

You enter the quantity produced on a Job in the Job PRODUCTION journal.

JOB Journal entries from Copy Job Plan to Job Jnl function:


The JOB Journal is used and there can be some user defined batch names.

The Batch Name can be placed in a field in the User Setup so that when a user Posts Job Production the Job Journal batch name, where back flushed consumption is automatically entered, can be a User batch. Consumption is when component usage is calculated from Job Plan. If no user specific batches are setup in the User Setup then the DEFAULT batch will be used.


Tips & Tricks

Job Setup

Tasks (Work Activities) (Very Important List!!) Tasks are the way you want to analyze your jobs. They are the “operations”, “Tasks”, or “activities” (all the same) through which the RM will be processed to become your FG Item (Milling, Polishing, and CNC, Welding…). In NAV 5.0 the Task List is the cornerstone of the Job Setup. See the NAV documentation for how to setup Tasks.


Tips and Tricks:

Job, Setup

Job Posting Groups Enter all of your Job Posting Groups and their appropriate GL Account No.s. Your G/L accounts go here as instructed in Job Costing Class.

Hint: Job Types = Commercial, Residential, Industrial,

Sometimes there is a need to coordinate the Job Posting Group with the Gen. Product Posting Group of the Item or Resource being used on the Job. This means that you will setup Job Posting Groups with the same Code as the Gen. Product Posting Groups. You will set the Yes/No field called “Job Post Grp from Prod. Item”, on the Job Advanced Setup to YES (Checked).

Program Logic: When the Job is first created.... before it has the Production Type and Production No., the program looks to a control field in the Advanced Setup that says if you want Job fields to default from the Master Job.

If YES then (use the Master Job fields as defaults)

The Job Posting Group will become the same as the Job Posting Group from the Master Job.

Then when the Production No. is entered, the system checks the

Advanced Setup again.

If the Master Job's Posting Group is "blank" AND if the control field in Advanced Setup says that the Job Posting Group is the Item's Gen. Prod. Code is YES then

The job posting group will be the Item's Gen. Prod. Code.

However; if the Master Job's Posting group is “not blank” then That takes priority and the new jobs posting group will be the default from the Master Job.

If NO (don't use the Master Job for defaults) then We check the control field in Advanced Setup that says that the

Job Posting Group is the Item's Gen. Prod. Code is YES then the job posting group will be the Item's Gen. Prod. Code.


General Ledger, Setup

Default Posting Groups Tab: Review Default Job Posting Groups. (From Getting Started Class)

Resources, Setup

Resource Groups (optional) Let‟s make sure some Resource Groups exist.

1. Machine Groups (Presses, Drills, CNCs, Polishers,) 2. People Groups (Welders, Foremen, Clerical,) 2. Service Groups (Repair, Maintenance, Cleaning,)

Mini-Exercise – Resource Groups

Add the following Resource Groups: HYDRAULICS Hydraulic Machines. (Machines) PLANNERS Planners (People) SERVICES Services. (Services)

Setting up Resources There are six main types of Resources: (Cost Categories)

Person – Employees

Machine – Machines

Service – A service you provide or sell to your customers.

Outside Processing – A service provided to you by a vendor. Examples: Anodizing, Glazing, Re-winding,

Overhead – Additional Company Charges

Misc – Other Misc Costs. …

The Resource Type is very important for the Job Statistics Screen. The definition of

the many flow fields works from the resource types (Cost Categories).


Mini-Exercise - Resources

Enter one Resource of each type.

1. Add yourself as a Resource. (Person Example) No. = Your last name Type = Person U of M = Hour Allow Use on Sales Lines = YES. (Billable) Resource Group = Planners Capacity Allowed = YES. Direct Unit Cost = $12.00/hr Indirect Cost % = 20% (Notice that the Unit Cost fills in at $14.40) Price = $45.00/hr. (Billing rate if it applies)

2. Add “Electrical Repair Service” (Service Example) No. = ER1 Type = Service Unit Price = $70.00

3. Add “Heat Treating.” (Outside Processes) No. = HT Description: Heat Treating Type = Outside Processing. (No Costs or Prices yet.)


4. Add: “Drill Press #8” (Machine) No. = DP8 Type = Machine. U of M = HOUR Billable = YES Group = PRESSES Direct Unit Cost = $38.00/hr Indirect Cost % = 0% (Notice that the Unit Cost fills in at $38.00.) Price = $95.00/hr. (Billing rate if it applies)

Machine Defaults Tab: Each machine can have a default setup & run time. This would be especially useful if you had a machine dedicated to specific items or tasks. Machine Operator Rate = $19.50/hour Note: This is a special Labor Rate required to run this machine. You can cancel this special rate by checking “Use Std. Operator Rate”.

Job Setup Tab: Default Setup Time = 30 min (.5 hrs) Default Run Time Each = Hours per Unit. (800 LBS/HR = .00125 hrs/lbs)

Est. Production Qty per Day will be discussed later.


Review of Workflow – Verbal Summary

When are Jobs Created? __________ Who in your business creates the Jobs? _________

I. Make to Order Jobs : A. The way you invoice the client is directly associated with the Jobs or Sub-

Jobs. Enter Sales Order. Sometimes the line items on a Sales Order will represent the Master and Sub-Jobs. Using the “make job” function from the Sales Line creates the Jobs. The Item or Resource No. and the Quantity on the Sales Line is what appears on the Job Card. In this scenario you do not enter the Job No. on the Sales Order header. The Job No. is related to the Sales Line and each Sales Line can have a different Job No...

B. The method of billing the Job is totally separate from how the Job and Sub Jobs will be entered into the system. In this case, you might consider that you are billing for the Master Job (Project) and will want to enter the Job No. on the Sales Order Header and remove the Job No. field from the lines. By putting the Job No. on the header, the lines will automatically have the Job No. with no additional data entry.

II. Make to Stock Jobs: Since these jobs do NOT come from the Sales Order, we will manually create the Jobs directly on the Job Card. Pressing F3, enter on the Job card creates a new Job. You may have several orders for a particular finished good item and you want to combine them into one Job for easier tracking. Or you may be producing sub-assembly item to restock your supply. In either case you will not associate the Job with a Sales Order.


Tips, Comments, Ideas 1. Job Card, Days to Produce Field. This can come in any of three ways, depending on clients needs. First – Use Tasks & let Task roll up the Days. Second – Use “Est. Production per Day” on Item/Resource Card. Concept: You can Produce 10 per day. Order is for 200, hence 20 Days Advanced Setup must be set to “NO” on “Using Tasks”. Job Card will display both Working Days and Calendar Days. 2. Job Card, Description 1 – “free form” description for the end user. Description 2 – automatically fills in from the Item or Service being provided.

Questions and Answers

[Question] When posting the finished product it‟s taking into the item ledger entries the Planed cost instead of the actual cost. We need to post the actual cost and update the item card and item ledger entries according to that. How can we achieve this? [Answer] This can be a rather long answer. You have two choices to what cost is posted when posting Finished Good production. I.e. Planed cost, or Item's Standard cost. The flag for which cost to use is on the Item card, Job tab. We decided on these two costs based on installed base feed back. One thing you learn in "real life" is that it is very hard to get all the actual cost collected and entered prior to wanting to post the finished good production. There are numerous reasons for the "lag" in getting the actual costs, one obvious one is Vendor Invoice delays. Another reason is that we allow posting of partial production quantities, and the collected and entered actual costs at the time of the partial production posting is never exactly and "just" related to the quantity being posted. Variances between “actual” costs and the Standard (or Planed) costs posted with the Finished Good are captured in the Inventory Adjustment accounts for product lines. Manufacturers or at least the CFOs are familiar with the need to review the


variances, and then perhaps printing and reviewing Jobs for certain product lines that have "unacceptable" variances. Adjustments are made to the Finished Good item's Bill of Material and or Task so that the new "Standard Cost" or "Job Planed Costs" are closer to actual costs. This is what Job Cost Manufacturing is all about.

Additional Features

OTHER LINES:

In this document when we talked about entering Job Specific Task Lines for Plan/estimating purposes we mentioned that you may be entering lines other than type person or machine. These “other” lines were place holders for “when” processing activities occurred, because the Plan/estimated costs for these “other” Task lines would actually be entered in the Job Plan, not on the Task line itself. With scheduling in mind these “other” lines along with the person and machine lines will be important to determine the “length” of the job when scheduling at the Job Task level. For instance we may enter a line for Outside Processing. We know that the Outside Processing activity for this job will take 4 days. We enter 48 hours in the Setup time and 0 in the Run Time. Total Prodctn. Hrs = 48. We do not have to coordinate the Vendors method of billing us because the Plan / estimated costs are on the Job Plan. Reminder: Job Plan cost calculations are handled differently when it is an Item vs. a Resource, Account (G/L), or Resource (Group). Type Items will multiply the Qty per Unit by the Parent Item Qty to determine the Quantity. On all “other” Type Plan line‟s the “Quantity” field will be the same as what you enter in the “Qty per Unit” field. In our example above, we entered 48 for hours in the Task, representing the duration of the Outside Processing Task. When planning that Outside Processing cost we have several options on how the cost is entered which importantly are totally separate to how the Task is scheduled. The same setup procedures would apply to the “other” Resource Types of Service, and Supply.

1. Flat Rate Charges: On the Job Plan we select the Task related to the Outside Processing. On the Job Plan we will see the Job Qty Ordered as the Parent Item Quantity. For this example lets say the Parent Item Quantity is 100. If the Outside Processing Vendor has quoted us a flat rate for this Job then we will enter One (1) in Qty per Unit and the flat charge of $500 in the Unit Cost field. Notice that the Quantity field = 1. The Qty per Unit field did not cause the Quantity to become 100 as it would have for Item type entries. (not extended)

2. Piece Rate Charges: If the Outside Vendor is going to charge you by the piece then you will enter the Job Qty Ordered in the Qty per Unit and the Piece charge of 12 cents in the Unit Cost field.


3. Hourly Rate Charges: If the Outside Vendor is charging you by the hour and has quoted you 10 hours, then you will enter 10 in the Qty per Unit field and the Hourly Charge of $25.00/hour in the unit price field.

Since these “other” charges will be entered as Types Resources or Account (G/L) there is not the facility to automatically change the Unit Cost based on a unit of measure. However we recommend that you enter the unit of measure a Flat, Piece or Hour for informational purposes on the resource card.


Excluding Task Lines from Job Duration Calculation:

Other Resource types will be entered in the Task that should not be included in the

Job duration calculation. Any line that should not be included in the Job duration calculation should have the field “Ignore for Duration” flagged Yes.

You may also enter Person and Machine type Task lines for estimating cost

purposes, but that date math may not be desired to be included in the Job duration calculation. Check the “Ignore for Duration” field and the hours entered to obtain the estimated cost will not be included in the Job scheduling process.

Example: We enter a Task with a Phase called ADMIN. We want to include 10Hours of labor at $50.00 per hours for cost on the Job but we do not want the 10 hours to extend the duration of the Job. We enter the Task line as usual using a person type Phase. Our Resource may be an actual person or a general LABOR resource with the $50.00 unit cost. We enter the 10 hours in the Setup time and zero in the Run time. We also check the Ignore for Duration field. $500 cost is added into the Job estimate but the 10 hours in not used for the scheduling calculation.

Job Manager Data Improvement:

(database37JM_Extended.fdb 11/26/03)

Table 14004351 is a shared table. Hours open per day are defined with a “blank” record. Exception days are defined with exact dates. If your database got shipped without the “blank” record please add it (F3) as shown directly in the Table Designer with the RUN command.


Bar Coding Discussion Time allocation is a great use of the time collection equipment on the market today. There are many manufacturers of this equipment. It usually accumulates the time into its software for this type of information. All of the Time Clock Manufacturers have export tools that will allow you to export an ASCII file by day or by week. Use Dynamics NAV‟S “Dataports” to Import this allocation directly into the “Job Journal”. Then post it as if you had entered it manually. NOTE: Be sure their system collects: Job #, Task #, Date, Hours Worked! Many systems do not. Exercise: From the Job Card, Print Preview the “Job Traveler” report. (3 of 9 reqrd) (If you need a copy of this tt font, please ask your re-seller)


Analyzing Percent Complete and JTD Cost

We show percent complete 3 ways: Estimated Production Qty / Actual Production Qty.

Actual Hours / Estimated Hours Actual Dollars / Estimated Dollars

If you have Cost Control Software‟s Enhanced WIP Granule, there is also a field on the Job

Card (Posting Tab) “Completion %” to enable you to just plug in the value from a field inspection report. (See Enhanced WIP Add-on for more information.) What are your business rules for calculating Percentage Complete? Is there another way to calculate Percentage Complete?

Mini-Exercise – Percent Complete

Percent Complete

1. Go to Job Card, Statistics (F9), review Completion Percentage for Cost Categories and for the Job overall on the “Revenue Analysis” TAB.

2. Go to the Job Card, Job, Percent Complete Analysis. Review statistics screen.


New in Version 5.0 and above: “Projections” – Projected Cost at Completion”


Payroll Interface with Job Manager (Discussion only)

Reasons to Interface:

1. Client is currently using Dynamics NAV Payroll. 2. Client wants to track labor costs per Job and Task 3. Client wants a SINGLE source to enter Payroll and have it post to the Job. Note: Client may only be entering total time in PR. 40 REG, 3 OT Now with Job Costing they want to allocate an employee‟s time down by at least Job Number and maybe by Job and Task Number. With since the Phase Number is already linked to the Task Number, by just recording the Task Number the system will know the Phase Number also. It is important to find out how the client is doing this now. It is often separate processes. PR in one system, Job Entries in another system. Now they want it combined! There are considerations that have to be made. Get OLD COPIES of filled in TIME CARDS, COST CARDS, JOB TICKETS, or what ever they call the “Source Document”. It is also important to review existing “Job Cost Reports”. Is it in Excel?

It is important to talk with your client about how the RATES shown on the reports. Are they using a “Shop Rate” or using actual “Employee Pay Rates”? Most companies are very sensitive about showing the actual Employee Pay Rate. So, how does this impact the PR transfer to Job Ledger? There will be no problem with the PR Interface if Actual Rates can be transferred into the Job Ledger. If not, you may have to split the Job Cost time and the weekly Payroll Time into separate entries. This is not as bad as it may seem. In PR you are only entering the TOTAL TIME, so it goes very quick. In Job Costing you will enter the detailed calculations. If time is entered in the Job Journal for the Job Cost allocations there is more flexibility on the rate. In the Job Journal you are linking to the “Resource” file to pull the employee‟s information. Each employee can have his/her ACTUAL RATE or SHOP RATE on their card.

We see 3 Solutions. (Options)

1. No Cost Solution with PR Time Journal. Actual Employee Rate is used in both PR and Job Costing.

2. No cost Solution with separate entries. PR Time Journal used to enter time w/ Actual Rate. Job Journal used to enter time with Resources “Shop Rate”.


3. Cost Solution. “Modification” that as PR Time Journal is posted to Job Ledger, the Actual Rate is replaced with the “Shop Rate” on the Resource‟s Card. (NOT INCLUDED)

Item Block on BOM We have added a column on the BOM: “Do not copy to Job Usage”. If this column is checked the Item will show in the Job Plan, but NOT be copied to the Job Journal for back flushing when you use the “copy” function. Example: Bulk items, such as “Shrink Wrap”, are often better inventoried with physical adjustments rather than Back flushing through the BOM.


Job Manager “Service Type of Job” Exercise (OPTIONAL)

Scenario: Provide a Service. (i.e.: Grinding, Building a Tool, Installing a Deck)

Repairing an item. (Electric Motor)

Building a Large Machine is another example.

(No Inventory module required, but recommended.)

Concept: Job Manager also works very well for companies that provide a service on each Job, rather than making a specific item. Job Manager Assists you in accumulating all Labor and Materials posted on service type Jobs as well. This exercise will take you through adding items, Purchase & Receiving, Providing the Service, and invoicing the customer for the service. The key to this technique is that the Service = Resource. The Job Task is attached to the Service rather than the Item. (Service Task)

1. Add the following Service: SER204 = Repair a #204 Tool. (Resource Master)

2. Add the following Service Task: (Resource Card, Resource, Resource Task)

10 CUT Cut Materials PRESS1 20 BEND Bend per Specs. PRESS1 30 GRIND Layer per Customer‟s Specs. PRESS2 40 PACK Pack Labor10 50 SHIP Ship Labor15

On Task 20 Add the following comments:

“Use Glue #3029 to a .001 thickness.” “See Bill Johnson for application tools #29-10.” You have now setup your Master Service Task that will be copied to a Job Specific Task so it can be modified for a specific job.

3. Go to Job Manager Main Menu.

4. Add a Sales Order to the system for repairing 100 SERV204. At $75.00 each.

5. Set the “Ship Date” 30 or more days into the future.

6. Print out the Sales Order.


7. At the bottom of the SO click on “Job”. Select Generate a Job for this line. The line item you are currently on will now generate a new Job in Job Costing and write back the number for reference on the Sales Order Line.

8. Go to Job Card to verify. (All of this activity can be done from within “The Job Manager”)

9. Check the list of Jobs to see the new order. Bring up the Job Card.

10. Look at Job Statistics (F9). Outstanding amount should now be the same as the Sales Line amount. (Not Sales Order.)

11. Verify the Task was also copied to the Job. At the bottom of the Job Card, Planning, Job Task. You can change this freely since it is specific for this unique job.

Optional: Under Job planning Plan, you can add Estimated Materials. Enter Quantity in the Qty per Unit Column. Check that the estimated material cost shows up on the Job‟s Task. (By Task Selected.)

12. Go back to the Job Statistics (F9). See how estimated information automatically flows in.

13. Add a new vendor. (one of your Outside Service Vendors)

14. Issue a PO for an Outside Service. (Resource = Out Source) Use your best judgement on the cost of these items. Assign it to your new Job Number. (You can go to Phase level if needed) Stop.

15. Go to Job Card, Statistics (F9). See committed cost. Drill Down.

16. From the PO Card, Receive in the completed Service. (Add the Vendor invoice number and post.)

Check amount due vendor in Vendor Ledger. Check actual cost on Job Card. Check committed cost on Job Card.

**This concept works for items or GL account as well.

17. Record actual labor and materials used on the Job. From the Job Manger Menu, go to “Job Journal”. Make up one line for a Resource. (Labor) Use F6 to look up as needed. Make up one line for an Item. (Material) You may change the sequence of columns if needed for your business, but we recommend you keep Job No., Task Number, Phase Code in sequence and together since the Job/Task determines the Phase Code, Task Code. Be sure to add ALL your direct employees as resources with their actual pay rates. As mentioned before this exercise, this is a great place to use Bar Coding if you have a high Transactional Entry. For most companies with over 75 people in the


shop who allocate down to the hour, this is a must have. There are many Time Collection Systems available on the market today.

18. Close the Job Remember to wait long enough to have all time cards posted & Vendor‟s actual Invoices received before you flag job as completed. (There is no going back!!)

From the Job Card change the Job Status from Order to Completed.

If there are open Purchase Orders or Open Sales lines that have not been completed you can not change the status. This system will give you a Warning Message notifying you of any conflicts with an intended Status Change.

19. Reports on Jobs. We have added about eight new reports to the system. Some print landscape only due to the amount of information displayed. As part of this exercise, we recommend you print a hard copy of all of them and make sure you understand what they are showing. Put these report samples in a 3-ring Procedures Manual for future reference.

Notice the similarity of a service job to an Item Job. You just don’t post production.


HOW TO USE “MAKE JOB” FROM THE SALES ORDER LINES:

This section will explain the 5 “Set Up” Options!

Creating a Job from a Single Sales Line “One at a Time”:

1) With Advanced Setup with NO / NO:

Use S.O. No. as Master Job No. = NO Use Master Job No. for Sub Job. = NO

With this configuration the System HAS to ASK for Master Job No. As you Generate Jobs individually in this mode it will ask which Master Job you want to link this line item to. You will be presented with a Pick List.

“Make Job” Process: Click “Production” button on Sales Order Card. Select Create a Job for the One Sales Line.

Confirm that you want to create one job for this single sales line. When asked about Creating a Master Job select NO. You then get a list of Master Jobs. (Pick List) Select on and click OK or double click the selection. Wait while the system creates the new Job, its BOM, and its Task. ….as stipulated in the Advanced Setup table. You will see the system returns the new Job No. and inserts the Master


Job No. and confirms the Made Job field. Job No. Master Job No. Made Job J-0089 MJ-10010 Yes

2) With Advanced Setup as YES / NO:

Use S.O. No. as Master Job No. = YES Use Master Job No. for Sub Job. = NO

With this configuration the System uses the Sales Order Number as the Master Job Number. (No Asking for Master Job Number required) As you Generate Jobs individually in this mode it use the SO Number as the Master Job Number and also use the NEXT Job Number from the Job Number sequence for your sub Job. The first line selected will actually create a Master Job (using the SO Number) and create the Sub-Job for the Sales Line. All other lines on the same Sales Order will just be lines that will be sold, but no Job for tracking production costs will be set up. This “Make Job” process is the same as #1 above, but you will not get a question about the Master Job Number, no see the Master Job List.

Make Job Process: Click Production Button Select Create a Job for the one Sales Line. You will see the system return the following:

Job No. Master Job No. Made Job J-0089 10901 Yes

NO OTHER OPTIONS ARE AVAILABLE FOR “ONE LINE” AT A TIME MODE!


Creating Jobs for Multiple Sales Order Lines:

1. Advanced Setup with NO / NO:

Use S.O. No. as Master Job No. = NO Use Master Job No. for Sub Job. = NO

Method #1 – 1st Line = Master Job, Remaining Lines = Sub Jobs

Select Create a Job for Multiple Lines: Confirm that you want to create Jobs for multiple lines. When asked about making the 1

st line represent the Master Job:

Answer, YES

The system will create a New Master Job Number and the 1

st line of the

Sales Order will have the Master Job No. in both the Job No. field and the Master Job No. field. (When this line posts, it will go to the Master Job Ledger while all costs are being posted to the Sub Jobs. When printing a Revenue analysis of the “Project” you will want to include the Master Job No.) The remaining lines on the sales order will contain new Sub-Job numbers and they will all have the same Master Job No. that was created from the first line. Line No. Job No. Master Job No. Made Job 1 MJ-10110 MJ-10110 Yes 2 J-0091 MJ-10110 Yes 3 J-0092 MJ-10110 Yes 4 J-0093 MJ-10110 Yes


Method #2 – Pick Master Job for Each Line as you go. When asked about making the 1

st line represent the Master Job:

Answer, NO

You will get a lookup of the Master Jobs and you will select the associated master Job for each line.

Make Job Process: Click Production Button Select “Make a Job for every line item” Confirm (Yes) Say NO to making 1

st line the Master Job.

Double Click the Master Job you want from the MJ List. If you select the same master Job for each line (not required) the result will look like the following: Line No. Job No. Master Job No. Made Job 1 J-0091 MJ-10110 Yes 2 J-0092 MJ-10110 Yes 3 J-0093 MJ-10110 Yes 4 J-0094 MJ-10110 Yes

Method #3 – Put Master Job into SO Header First, then Gen Lines.

TIME SAVER METHOD: (Popular Method) If all lines being processed will have the same Master Job No. then You can enter a Master Job No. in the Header of the Sales Order before you start the Make Job process. The process will then use that Number entered in the Header instead of displaying the Master Job List for your response. Result is the same as shown above.


2. Advanced Setup with YES / NO:

Use S.O. No. as Master Job No. = YES Use Master Job No. for Sub Job. = NO With this configuration the System uses the Sales Order Number as the Master Job

Number. (No Asking for Master Job Number required) System also uses the regular Job Number Series to get the Sub-Job Numbers. When you say YES to Generate, the system will Create 1 New Master Job (w/ SO Number as Master Job Number) and as many Sub-Jobs as you have lines on your Sales Order. (Uses Job Number Series for Sub Job Number generation.)

Make Job Process: Click Production Button Select Create a Job for Multiple Lines: Confirm that you want to create Jobs for multiple lines. You will not be asked….about making a Master Job because A Master Job will be automatically created from the SO #. Wait while the system creates Job(s), BOM(s), and Task(s).

3. Advanced Setup with Both YES! (Popular Method)

Use S.O. No. as Master Job No. = YES Use Master Job No. for Sub Job. = YES

Note: This option is NOT available when processing lines one at a time! With this configuration the System uses the Sales Order Number as the Master Job

Number. (No Asking required) Since the Master Job Number is the Sales Order Number the Sub Jobs now go to DASH Jobs. System uses the Sales Order Number to GENERATE the Sub-Job Numbers. When you say YES to Generate, the system will Create 1 Master Job (w/ SO Number as


Master Job Number) and as many Sub-Jobs as you have lines on your Sales Order. (All with Dash Number extensions: -01, -02, -03…

Make Job Process: Click Production Button Select Create Jobs for Multiple Lines: Confirm that you want to create Jobs for multiple lines. You will not be asked….about making a Master Job because A Master Job will be automatically created from the SO #.

The Results: Line No. Job No. Master Job No. Made Job 1 SO10010-01 SO10110 Yes 2 SO10110-02 SO10110 Yes 3 SO10110-03 SO10110 Yes 4 SO10110-04 SO10110 Yes This is nice because all SO Lines become Jobs you can POST to. TIP: If you are using the DASH method I suggest you use PURE numbers for your Sales Order Number. (10020, not SO-1029)


Job Manager – Creating Jobs for “Make for Stock” Items (Job Manager 37.07 Improvement) Ability to Create Sub Jobs to Produce Make-for-Stock type Items from the Requisition Worksheet. Setup: See the new field on the Jobs: Advanced Setup, Jobs Tab

1. Batch Replenishment Master Job: This field is used during the Calculate Plan process on the Requisition Worksheet. When there is demand for a Make-for-Stock item that has a Reordering Policy set to Fixed Qty, Maximum Inventory, or Lot for Lot then the Requisition Line created will get the Master Job No. from this field on Advanced Setup. The concept here is that when the Reordering Policy, Planning Horizon (Reorder Cycle) and the Calculate Plan order date range is broad enough, the Calculate Plan process will add the demand for multiple Jobs together and create one Requisition Line. This means that this type of Requisition Line is not tied back to their original Master Job. We are looking to produce the Make-for-Stock Items to put quantity into inventory in order to meet the demand. This is considered internal production orders.

====== When there is demand for a Make-for-Stock item that has a Reordering Policy set

to Order, then the Requisition Line created will use the Master Job No. from the Job Plan Line that initiated the demand.

The Master Job No. on the Requisition Line is used to determine the Sub Job No.


2. Job Status from Req. Wks Create: This will be the status of the Sub Job when created from the Carry out Action

process from Requisition Worksheet. For Example setups of Make-for-Stock type Items I created an Item 101C. This item would represent a “sub assembly” type item that would be found in a Finished Goods Bill of Materials. Thus you will see that I have added it to Item FG102. Item 101C could also be added to a Job Specific Plan Bill of Materials as I did on Job No. J-0021, J-0022, and J-0037. See the next two print screens for Item 101C‟s Item Card.


Item Card, Replenishment Tab:

Set Replenishment System to Purchase (since we are not using Prod. Order) Set Manufacturing Policy to Make-to-Stock.


Item Card, Planning Tab:

Reordering Policy to Lot-for-Lot Reorder Cycle to 3M (three months, i.e. the planning horizon)


Item Card, Job Tab:

Type Item to Make to Stock. Because Item 101C is a sub assembly it has its own Task‟s and Planning Lines. There are several other fields on the Planning Tab that will have an effect on when demand is added together and what the final suggested reorder quantity is. In my example Item 101C I have most of the planning fields filled in. However, you should know that some of the information in that field will NOT be used if I change the Reordering Policy. For instance if I change the reordering Policy to Order you will see that many of the Planning fields are grayed out, i.e. not applicable to the Order Policy.


With my sample data I have demand for Item 101C coming from three jobs, and two of the three are associated with the same Master Job. Item 101C is set to the Reordering Policy of “Order”. After running the Calculate Plan for a date range of 10/01/04 to 01/31/05, I get the following result.

With the Reordering Policy set to Order, the Master Job No. is the Master Job No on the Job Plan Line that initiated the demand. When you run the Carry out Action, three Sub Jobs will be created, one for each line. The Sub Job No.s will be the next consecutive sub-job no. based on the setup in Jobs Advanced Setup. Now let‟s remove these requisition lines and change item‟s 101C Reordering Policy to Lot-for-Lot, and then run the Calculate Plan again. See the result below:

Notice that the Ref. Master Job No. is the No. from the Advances setup area. The Carry out Action process will create one sub-job for a total production of 450.


Requisition Worksheet – Calculate Plan

Here are some key parameters to make items “batch” together for replenishment. The concept is that you have two sales orders for the same item (SO1 – Qty 10, and SO2 – Qty 5), within the same “Planning Period” (SO1 - Shipment Date 11/05/05, and SO2 – Shipment Date 11/10/05, and the Planning period for this Item is one month(1M), and when you run the Requisition Worksheet – Calculate Plan, you want the system to return one line with the total quantity of both sales orders; i.e. Qty of 15. The Item card: Reordering Policy: Lot-for-Lot Reorder Cycle: 1M (this is planning period) On the Replenishment Tab: Replenishment system is Purchase and for Job Manager, on the Job Tab, the Type Item is set to Make to Stock.

IMPORTANT: When using Location Codes! If the Location Code is blank on the Sales Order then the Calculate Plan will batch the two orders together. However, if you use location codes and the location codes are the same on both sales orders, the Calculate Plan will NOT batch the two orders together UNLESS you have setup Stockkeeping units with the setting show above. The moral of the story is….. The Calculate Plan can not batch “same” Locations together unless it finds a Stockkeeping unit for that Location with Replenishment parameters.


Using Stockkeeping units with Job Manager: If the particular Item and Location‟s replenishment method is by Job Production, then set the Replenishment method on the Stockkeeping to Job. See below:


Job Manager – Advanced Scheduling Ideas

How do I deal with overlapping Tasks? Sample: Task #60 will take 40 hours. Task #70 will also take 40 hours, but it can start one day after Task #60 starts. Background: It is very common for work to be passed down the line to the next Task as soon as “some” of the units on Task #60 are completed. This keeps things moving along. The Problem: The scheduling engine schedules by default in a “Serial” fashion. IE: Task #70 starts after #60 is finished. Solution: Override the calculated date of Task #70 to the desired “start date”. Now the only other decision is how to treat the remaining Tasks. You will be asked if you want to change dates on this Task only or have the system re-schedule the remaining Tasks.

How do I set up crews for estimating hours and costs of a “crew” type of Task?

Sample: Crew #4 is composed of 4 people, so a 40 man hour task will only take 10 actual hours. Background: Many businesses will assign a crew to a task. (i.e.: Framing a wall). The time is less, but the total cost is the same. The Problem: The typical Task‟s resource is a person or a machine or a generic person like Labor10. The extension is for Machine Hours or Man Hours, not crew hours. Solution: Create a new Resource Type = Labor10-3. Have it mean the average labor rate of the crew is at $10/hr. So, on the Cost field set it to $30.00/hr. Price might be $90.00/hr for a crew of 3 people. The second consideration is the Setup and Run Time values. Remember you can leave Run Time at 0 and use Setup to be the total time. But the key here is that the total time is the Crew of 3‟s total time. Task‟s Time = 7 hours X $30.00/hr = $210.00 total estimated cost. If you want to use Run Time factors for this Task, then just adjust the factor to compensate for the increased manpower to get the Task done quicker. Example: If a single resource (labor) is set for .02 hr per pieces. (50 units/hr) then a 2 man crew (labor-2) should be set at .01 hr per piece. (100 units/hr). There are no other changes required. Actual time postings can be by the Crew or by the actual employees that were on the crew.


Additional Topics (if not covered in Enhanced WIP class) Dynamics NAV‟s flexibility on Job Costing Posting:

Job Usage Posting (methods) - None ……. Not posting WIP - Costs ……..Normal Setting for WIP - Prices

Recognition Methods: - Completed Contract: Status = Completed, Recognizes WIP Balance - Percentage of Completion: Recognizes WIP Balance when recognition

occurs

Control of which Job Ledger Entries get posted during Periodic activity:


Where is G/L Posting accounts setup for WIP?

WIP Debit Side – Job Posting Group Cost WIP Acct. Cost Recog. Acct.

WIP Credit Side – Looks at the Job Ledger‟s General Posting Groups (Gen. Prod. Posting Group and Gen. Bus. Posting Group) and posts credit entry to the

Job Ledger Entry, Entry Type: Usage uses the “Job Cost Adjmt. Account” Job Ledger Entry, Entry Type: Sale uses the “Job Sales Adjmt. Account”


We recommended the setup is coordinated to the Gen. Prod. Posting Groups with the Cost Categories the Client wishes to track. Example: Labor, Material, Machine, Outside Service, Misc. Job Manager offers some new fields on Job Ledger Entry table to help track the status of WIP and Recognition. There are also new flow fields on Job Table to summarize the new fields on the ledger. See new WIP tab on the Job Statistics form (F9). Job Manager offers some additional ways to categorize costs. (i.e. Additional Resource Types)

These categories are used to analyze costs on Jobs, not changing the way transactions are posted to General Ledger.


Item Tracking with Job Manager

Programming Note: With the release of Version 5.0, Raw Material Item Tracking is now handled by the new Version. (Consumption) Since Version 5.0 Jobs does not deal with Production of Finished Goods we have enhanced our Production Journal post process to enable the end user to Post a S/N or Lot Number at the same time they are posting the production. See below for the details. SETUP: Setup Item Tracking Codes on your FG and/or RM: Go to Administration Go to Inventory Go to Inventory Setup Select the Item Tracking Codes Menu choice:


Create a new code and setup it up for item tracking related to Job.


Assign Item Tracking Codes to the “Item Tracked” Items:

Go to an Item that will be tracked with either a Serial or Lot No. Go to the Item Tracking Tab. Select the Item Tracking Code that fits how this item will be tracked.

Additional Control field on the Item Card.


Checking the Auto Enter Serial No. will create a Serial No. Card in the Serial No. Information Table. Lot No will always insert a Lot No. on the Information Card. This auto insertion happens when you post a transaction with a Serial No. or Lot No. and the Information Record does not exist. Job side of setting up Finished Good Item Tracking: Go to the Job Menu Go to Setup Go to Advanced Setup, and to the Item Tracking Tab:

When either assigning Serial No.s or Lot No.s for Produced Items it is a two(2) Task process.

1. Post the items in the Job Production Journal 2. Go to the Item Journal and Select or Assign the No.s, and then post.

This Advanced Setup Item Tracking Tab allows you to assign specific Item Journal Templates and batches for when Job entries go to the Item Journal for Serial or Lot. No. selection or assignments. When Items are posted from the Job Production Journal the posting process will be checking for if the Item is setup for Item Tracking, i.e. if an Item Tracking Code has been assigned to the Item, as seen above. If the Item is being tracked then the job posting process will create entries in the Item Journal. The Setup here in Advanced Setup gives you an opportunity to setup specific templates or batches for holding the item tracked items.


WORKFLOW: Posting Job Production: This is a two (2) step process. First you enter and post the Job Production or Job Usage.

Second you Assign or Select the Serial or Lot No.s and post the Item Tracking Journal

Notice above the “Serial No.” entry has an option to explode the Serial No.s to the lines. Example: Qty Produced = 5, the create 5 Lines of Qty 1 with the Serial No.


If you use Serial Nos. or Lot Nos. then learn to use the new “Item Tracing” function in version 5.0 and above. Note: If you are using Lot Numbers on your Finished Good Production you might want to consider purchasing the Cost Control “Quality Control” Granule. It is designed to set up pre-defined specifications for the QC test, and then there is a place to record and save the test results on the Lot Numbers you test.

Reversing Item Tracked Production

First Test: I produced two items with serial numbers. Then I reversed the two items (negative quantity on the production journal). The Production journal allowed a lookup on the Serial No. field to the job ledger entries so I was able to select them. There were no error messages and the Job Ledger looked like the following. And the item ledger entries were reversed correctly too.


Second test: I produced two items with serial numbers. I then sold the two items. Then I tried reversing the two items (negative quantity on the production journal). I received the following error message, which makes sense because I am trying to remove serial no.s. that were already removed because I sold them.

Continuing…… I do a credit memo on the incorrect sales putting quantity back in stock. I try doing the negative production journal for both lines and get the error message. I found that I could post one of the Production Journal lines at a time. I.e, enter one reversing production journal line then post. Then enter the second line and post. ===================


TIP SHEET on Inventory Movement for Manufacturing

Dynamics NAV allows for flexible handling of materials costs. Raw Material usage can go to Jobs directly from a Purchase Order and Issuing out of your stock inventory.

Logically materials move through the following stages:

OPTION 1:

Purchases Stock Raw Matls Jobs & WIP Stock Finished Goods Sale &

COGS

Simplified: Think of this sequence : + RM, - RM, +FG, - FG

All of the above workflow (OPTION 1) is assuming that you stock raw material and then “issue” the raw material out of inventory into Jobs. The next scenario will be assuming purchasing raw materials especially for a Job.

Purchase Credits AP Acct – Vendor‟s Posting Group + RM Debits RM‟s Purchases Acct – RMs Gen. Prod. Posting Group Adj Cost Credits RM‟s Inv. Adj. Acct – RMs Gen. Prod. Posting Group Post Cost Debits RM‟s Inventory Acct – RMs Inventory Posting Group ** Post RM Credits RM‟s Inventory Acct – RMs Inventory Posting Group (- Stock Qty) To Job Debits RM‟s Inv. Adj. Acct. – RMs Gen. Prod. Posting Group **Most run the Inv. Adj Cost / Post Cost to post to GL WIP Credits Job Adj. Acct – RMs Gen. Prod. Posting Group Debits Job WIP Acct – Job Posting Group + FG Credits FG Inventory Adj. Acct –FGs Gen. Posting Group (+Production) Debits FG Inventory Acct – FGs Inventory Posting Group Recognition Credits Job WIP Acct – Job Posting Group Debits Job Cost Acct – Job Posting Group Sell FG Credit FG Inventory Acct. – FGs Inventory Posting Group Debit Cost of Goods Sold – FGs Gen. Prod. Posting Group

1st Into RAW MATERIALS Where the COA is Setup

Step 1 – Issue a Purchase Order for the Raw Materials. (G/L not affected.)


Step 2 – Post Receipt of Raw Materials: *(G/L not affected-Yet unless using expected costs) Increases QTY On-hand. See Item Ledger. Step 2.5 – Post Vendor Invoice related to above receipt: Increases Accounts Payable COA 22300 CR Vendor‟s Posting Group

Debits Purchases RM-“Purch. Acct” 53100 DB Item‟s Gen. Prod. P. G. and Vendor‟s Gen. Bus. Posting Group (as designated in the Gen. Posting Setup in G/L)

* Posting the Receipt and Posting the Invoice may be combined into one process if you have the invoice at time of receipt. (Receive and Invoice)

Step 3 - Adjust Cost – Item Entries. (Inventory Module, Periodic Activity)

(Presuming that posting inventory costs is not set to automatic)

Step 4 - Post Inventory Cost to G/L (Inventory Module, Periodic Activities)

Increases RM Inventory COA 14300 DB Item‟s Inventory P.G. Credits RM “Inventory. Adjmt. Acct.” 53100 CR Item‟s Gen. P. G.

and Vendor‟s Gen. Bus. Posting Group (as designated in the Gen. Posting Setup in G/L)

Note: Above, we recommend using the same COA number for both the Purch.

Account and the Inventory Adjustment Account. The Adjust Cost and Post Cost would be run as frequently as you need the G/L Inventory Accounts re-validated. You do not have to run these daily. In fact, we recommend weekly at most.

2nd

Out of RM into WORK IN PROCESS Step 1 - Issue Raw Material to Job. Use Job Journal.

This reduces QTY on-hand of RM. See Item Ledger. (G/L not affected-Until Task 2) Increases Cost of Job. See Job Ledger. (G/L not affected-Until Task 3) Note: Inventory comes in at Item‟s “Unit Cost”

Unit Cost Field – Definition from Dynamics NAV’s Help

The Item Table This field contains the cost per unit of this item. The program fills in the unit cost field according to what you selected in the Costing Method field: If you selected... the value is copied from...

T_27_21.htm


FIFO, LIFO, Specific, Average the Average Cost ($) $) $) $) $) $) $) field Standard the Standard Cost field The program updates the contents of this field when either the Average Cost or Standard Cost field is updated. If you selected FIFO, LIFO, Specific or Average, the program also updates the field when you post purchase invoices from an item journal line or a purchase line.

Step 2 - At end of Period. (D,W,M) Post Inventory Cost Changes to G/L.

(Presuming that posting inventory costs is not set to automatic) Use: Inventory Module, Periodic Activities:

Adjust Cost – Item Entries Post Inventory Cost to G/L This reduces RM Inventory COA 14300 CR Item‟s Inventory P G

Increases RM “Inventory Adjmt. Acct.” 53100 DB Item‟s Gen. Prod. P G - Uses Item‟s Costing Method. and Vendor‟s Gen. Bus. Posting

Group (gets COA # as designated in the Gen. Posting Setup in G/L)

Step 3 - At same time, run Job Cost – Post WIP to G/L. (Do immediately after Step 2) Use: Jobs Module, Periodic Activities: Calculate Job WIP Value Post WIP Value to G/L

This increases “WIP Cost Acct” 15100 DB Job‟s Job Posting Group (Asset)

Decreases RM “Job Cost Adjmt. Acct.” 53100 CR Looking at the Job Ledger Entry and getting the Item‟s Gen. Prod. P G

(Originally Item‟s Average Cost.) and Vendor‟s Gen. Bus. Posting Group (gets COA # as designated in the Gen. Posting Setup in G/L)

Note: We recommend using same COA number for Job Cost Adjustment and

Inventory Adjustment Accounts. This way any variance between average cost and the item‟s actual cost (Item‟s Costing Method) will be shown in account 53100.

Example: Actual Cost: $48.00 DB 53100 (Step 1 + Step 2) Average Cost $46.00 CR 53100 (Step 3) If Actual = Average then 53100 would be at zero. If 53100 has a debit balance then actual costs are running higher than average costs.

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T_27_24.htm


It 53100 has a credit balance then actual costs are running lower than average costs.

3rd

Out of WIP, into Recognition & Out of Recognition, into FINISHED GOODS Step 1 - In Job Cost, Post Production of Qty Made. (G/L not affected.) This increases QTY on Hand of FG. See FG Item Ledger (G/L not affected.)

Makes a production entry in Job Ledger. See Job Ledger (G/L not affected.) Assuming Inventory is not set to post costs automatically. See Inventory periodic

activity “Adjust Cost” & “Post Inventory Cost to GL” on Inventory menu to get related costs to post to G/L accounts(See Step 5). Step 2 - Run WIP to insure all costs have been captured. Use: Jobs Module, Periodic Activities: Calculate Job WIP Value Post WIP Value to G/L Step 3 - Recognize Cost on Jobs. Post to G/L. – Job Module, Periodic Activities This Reduces “WIP Cost Acct” 15100 CR Job‟s Job Posting Group

Increases Job‟s “Cost Account” 54500 DB Job‟s Job Posting Group (Uses actual costs accumulated in the Job Ledger.)

NOTE: We recommend using the same COA number for Cost Account and the FG’s

Inv. Adjmt. Acct. Step 4 - Adjust Cost – Item Entries. (Inventory Module, Periodic Activities) Step 5 - Post Inventory Costs to G/L. (Inventory Module, Periodic Activities) Increases FG Inventory COA 14100 DB Item‟s Inventory P G

Reduces FG “Inv. Adjmt. Acct.” 54500 CR Item‟s Gen. Prod. P G (Uses Standard Cost) and Vendor‟s Gen. Bus. Posting

Group (as designated in the Gen. Posting Setup in G/L)

Example: Job Cost Actual Cost = $8,200.00 to build 10 FG101. (Step 2) FG101‟s Standard Cs = $780.00 ea x 10 = $7,800.00. (Step 1 + 3) Variance = $400.00 If 54500 is a Debit Value, then Actual Costs are running higher than Standards. If 54500 is a Credit Value, then Actual Costs are running lower than Standards. If Actual = Standard Costs then 54500 would be at zero. The timing of when postings takes place is important and is related to activities. For instance when you post production and run the inventory adjust cost post cost to GL, then


you should be recognizing the wipped cost related to those producted Jobs. If you don‟t coordinate the two activities then the “Inv. Adjmt. Acct.” (#54500 above) will not get balanced out.

4th

Move out of Finished Goods and into COST OF GOODS SOLD – (COGS) Step 1 - Post Sales Order or Invoice. (“Unit Cost” that shows on the sales line comes from

the “Unit Cost” field on the Item Card. This will be the standard cost for Item‟s using a Standard Cost – Costing Method. “Unit Cost” will be average for the rest of the costing methods. The “Unit Cost” on the sales lines typically is not the same as the costs that post to GL for the LIFO and FIFO items, since the posting routine will find the Last or First cost remaining on the Item ledger lines.

Customer Ledger Entry is made This increases Accounts Receivable 13100 DB Customer‟s Posting Group This credits FG “Sales Account” 44100 CR Item‟s Gen. Prod. Posting Group


Step 2 - Adjust Cost – Item Entries. (Inventory Module, Periodic Activities) Step 3 - Post Inventory Costs to G/L. (Inventory Module, Periodic Activities) This Reduces FG‟s Inventory COA 14100 CR Item‟s Inventory P G This Increases FG‟s “COGS Account” 54700 DB Item‟s Gen. Prod. P G


- Uses Costs based on Costing Method. Idea: Use multiple product lines to separate sales. Use corresponding Adj. Accounts so you can compare Actual Cost to Standard Cost per product line.


OPTION 2:

Purchases Jobs & WIP Stock Finished Goods Sale & COGS Raw materials go direct to Job… they never go to inventory Purchase Credits AP Acct – Vendor‟s Posting Group Debits RM‟s Purchases Acct – RMs Gen. Prod. Posting Group WIP Credits Job Adj. Acct – RMs Gen. Prod. Posting Group Debits Job WIP Acct – Job Posting Group + FG Credits FG Inventory Adj. Acct –FGs Gen. Posting Group (+Production) Debits FG Inventory Acct – FGs Inventory Posting Group Recognition Credits Job WIP Acct – Job Posting Group Debits Job Cost Acct – Job Posting Group Sell FG Credit FG Inventory Acct. – FGs Inventory Posting Group Debit Cost of Goods Sold – FGs Gen. Prod. Posting Group

1st PURCHASES Direct to Jobs WORK IN PROCESS

Step 1 – Create & Post Purchase Order The Job No. is placed on the lines of Items that will go direct to Jobs. Receive PO Only - No effect in GL, Jobs, Inventory Post Vendor Invoice – Costs Cr to Accts. Payable (Set in Vendors Posting Group) Costs Db to Purchase Acct. (Set in GL General Posting Groups) Costs show up in Job Ledger. No effect in Inventory Step 2 – Calculate and Post WIP to GL: Costs on Job Ledger Lines - Cr to “Job Cost Adjmt. Acct.” (Setup in GL General Posting Groups) Db to “Job Cost WIP Acct.” (Setup in the Job‟s posting Group)

2nd

Out of WORK IN PROCESS & RECOGNIZED Step 1 – Calculate and Post WIP Recognition: Costs on the Job Ledger Lines – Cr to “Job Cost WIP Acct.” (Setup in Job‟s posting Group) Db to “Job Costs” Acct. (setup in the Job‟s Posting Group)


3d FINISHED GOODS TO INVENTORY

Step 1 – Post Production of Finished Good – Costs entered on the Job Production Journal or Item Journal will be (or effects) the cost used for COGS when the FG item is sold, regardless of the actual costs from the Jobs. If the Item has a Costing Method of Standard then the Journals will only post the standard cost found on the Item card. If the Item uses the Average Costing Method, then the COGs will be affected by the cost being entered on the journal lines. The cost entered in the journal will be the COGS for LIFO and FIFO items when that item ledger line is used during the sales post. Discrete Manufacturers: It would be possible to set a FG item to FIFO costing method. When the job or production run for that item is complete, determine the unit cost for that job and enter that cost on the Job Production Journal. NOTE: Having the actual cost is normally very difficult because all the costs for the Production may not be collected and posted to the Jobs when you are ready to sell the product. This is especially true if you partially ship. The cost on the Job at that point in time will not exactly match only the costs for the partial quantity. This is why manufacturers will use a “Standard Costing Method” for there finished good items and then compare the actual Job costs to the Standard costs periodically. ADDITIONAL FEATURE as of version 3.7: Designate on the finished good item card whether to use the Standard Cost, or to use the Job‟s Estimated Cost and a FIFO or LIFO costing method. This allows you some additional flexibility. You can have a finished good item that has widely fluctuating costs due to the products configuration. If using the Job‟s estimated Cost the concept is that you will be closer to actual when posting production. Variance of posted item‟s cost and the Job‟s actual cost is captured in the Inventory Adjustment account. See suggestions for setup above. Process Manufacturers: Typically stabilize costs by using the standard costing method and then comparing Job Costs to Standard to determine if standard cost is still accurate. Step 2 - Calculate and Post Inventory Costs to General Ledger – (Assuming that you don‟t have post inventory cost set to automatically) Cr to “Inv. Adj. Acct.” (Setup in GL General Posting Groups) Db to “Inventory Acct.” (Setup in the Item‟s Inventory Posting Group)

4th

Move out of Finished Goods and into COST OF GOODS SOLD – (COGS) Same as in Option 1.


OPTION 3: ---------------------------

Another possibility! No WIP You may Job Cost but you don‟t wish to do computerized WIP postings. Jobs would have the field called “Job Usage Posting” set to none. By the way, this is the default!

Purchases GL (purchased costs) Stock Finished Goods Sale & COGS |____________ (a) _____________| |________ (b) _______| |____ (c) ____| (a) On the Purchase Line: If the Type field is: G/L Account – Then the total costs will credit the account payable account associated with the Vendor‟s “Vendor Posting Group” and debit the G/L Account No. entered on the Purchase Order Line. End of story. Item or Resource – Then the total costs will credit the account payable account associated with the Vendor‟s “Vendor Posting Group” and debit the G/L Account No. found on the “Purchase Account” column on the General Posting Group setup. Remember that the particular General Posting Group setup line is determined by the Gen. Business Posting group coming from the Vendor record and the Gen. Product Posting Group assigned to the Item or Resource. Important to note is that the Purchase Account for Items should not be the Inventory asset account. Instead it should represent a cost account because in the case of purchases made with Job No.s and not WIPPING, this account is where cost lands permanently. If you should purchase the same item without a Job No. (i.e. the Item goes to stock or physical inventory) then the purchase costs go to this same cost account but then the automatic cost posting related to item and or the inventory periodic process “adjust cost” and “post cost to GL” will remove the purchase costs out of the Purchase Account – Costs Account No. and put the purchase costs into the Inventory Asset Account (Item‟s Inventory Posting Group).

For more specific details Option 3 (b) is the same process described in Option 1 - 1st Into

RAW MATERIALS (b) When you post production of the finished good in the Job Production Journal.

Same as Option 2‟s - 3d FINISHED GOODS TO INVENTORY

(c)

Move out of Finished Goods and into COST OF GOODS SOLD – (COGS)


Same as in Option 1.

OPTION 4: ---------------------------

One more possibility! No WIP and No Inventory

What we are saying here is that all purchased costs are posted direct to GL like Option 3, and you never put the product into stock. You sell the manufactured item immediately. In this case you don‟t have an Item to sell with a Cost. You sell by using a Resource of G/L Account No. on the Sales Order lines. The Cost is already in GL coming directly from the purchases.

OPTION 5: ---------------------------

Purchase Costs to Jobs WIP Recognize No Inventory Production This would be good for Service type businesses. The Job type would be Resource.

As you can see the options are limitless. Dynamics NAV offers the flexibility you need under any circumstances. Put together the workflow that works for your business.


General Posting Groups

Gen. Prod. Sales Purch. COGS Inv. Job Cost Posting Acct Account Account Adj. Adj. Acct. FG 44100 54700 54500 FG-SA 44300 54800 54600 RM 43600 53100 53600 53100 53100

Inventory Posting Groups

Finished 14100 SA 14200 Raw Mat 14300

Customer Posting Groups

AR Acct. No. ALL 13100

Vendor Posting Groups

AP Acct. No.

ALL 22300

Job Posting Groups

Code WIP Cost WIP Sales Cost Sales GL Exp Acct Acct Acct Acct Sales Acct FG-JOB 15100 54500 SA-JOB 15200 54600

Run Report #50097 Posting Groups to see your current setup!


Additional Comments and Ideas

Customer: “When can you ship my Job?”

Answer Source: Job Statistics Window, Job Task Lines

Shop Floor: “What do I work on next?”

Answer Source: Resource Allocation Window or “Task List” report.

Materials Manager: “Do I have the materials to start the Job?”

Answer Source: Job Planning Lines and reports. (Shortage Report)

Definitions: Task List = the place that you list the Tasks (processes) involved to make an item or perform a service. We also recommend that you leave gaps in the numbering of Tasks to allow for inserting Tasks later. (10, 20, 30, 40) Bill of Materials (BOM) = the place that you list materials or purchased items or services that are needed to make this Finished Good. You use Type Item to represent Material costs. You use Resources to represent the Misc. Costs. Misc. Costs would be costs other than materials, direct labor or machine usage, such as overhead, freight, expensed tools, outside services, travel, etc. The costs on the Plan are included in the Standard cost calculation. You should enter a Task Number on the BOM if you want the material and misc. costs to be associated with a Task. If the item will not have a Task then Task Number is not necessary. (It defaults to Task Number = 0) If the item will not have a Task but will be

used later on a Job with a Task, then the Task Number should be entered. SUGGESTION: You can build a “Master” Item template to hold a master listing of Tasks. From a new item‟s Task, copy the master item‟s Task then edit, delete and add Tasks as needed for the new item.


Here are several examples of possible Tasks:

PROCESSING STYLE Task Tasks:

Task 10 Purchasing Task 20 QC Task 30 Sanding Task 40 Assemble Task 50 Cleaning Task 60 Welding Task 70 Heat Treat Task 80 Electrical Task 90 Painting Task100 Polishing Task110 Clean-up Task120 Packing Task130 Shipping Task140 Invoicing

DEPARTMENTAL STYLE Task Tasks:

Task 10 Materials Task 20 Design Task 30 Engineering Task 40 Production Task 50 Field Work Task 60 QC Task 70 Sub Work Task 80 Admin Typical Tasks GRIND Grinding DRILL Drilling POLISH Polishing DEBURR Deburring WELD Welding PAINT Painting LABOR Labor (all labor posted here to simplify if desired) MAT Material (all Materials posted here to simplify if desired


EXAMPLES OF VERY SIMPLE TASKS (FOR MANY COMPANIES THIS WORKS GREAT) Task Task 10 MATERIAL Task 20 LABOR Task 30 OUTSIDE Task Task 10 MATERIAL Task 20 LABOR Task 30 OUTSIDE Task 40 MISC Task Task 10 MATERIAL Task 20 LABOR Task 20 MATERIAL Task 30 OUTSIDE Task 40 FIELD LABOR As you create a new Job for an ITEM the Task and BOM are copied to the Job. As you create a new Job for a SERVICE the Task is copied to the Job. (There is no Service BOM in the current release of Job Manager.) Job Specific Task: The place that you list the Tasks involved in the Job.

Four (4) ways to get Task created:

1. “Make Job” from Sales Order Line with an Item or Resource that have a default Task. Edit Job Task as needed.

2. F3, Insert a Job. On the Job Card, enter an Item or Resource that have a default Task. Edit Job Task as needed.

3. F3, Insert a Job. On the Job Card, enter an Item or Resource that do not have a default Task. Then from the blank Job Specific Task screen, use the copy Task function. Edit Job Task as needed.

4. F3, Insert a Job. On the Job Card, enter an Item or Resource that do not have a default Task. Go to the blank Job Specific Task screen, and manually enter Task Tasks.

HINT: Job Tasks should be entered before the Job Plans. Item Tasks should be

entered before the Item’s BOM.


Resources : A term that represents areas of cost and prices. This can be non-

inventory items, people, machines, services, travel expenses, freight, etc. Resources can be purchased like sub contract services and can be sold. Resources can have capacities.

Resource Type : Cost Categories - Typically broad categories of costs. Further breakdown of these categories should be at the Phase or Task level.

Resource Group: Resources of a similar nature can be grouped.

Capacities can be viewed by individual Resources or by Resource Groups. You could answer questions like: Is a particular Resource over-allocated while the Resource Group is under allocated. Reports will show you the over load. Then it is user adjusted as to how the load will be distributed.

4 Flushing Options:

1. Go to Job Plan at the Beginning of the Job, highlight all and Send Planed Items

to the Job Journal and Post. (Forward Flushing Method)

2. As Job is in process, periodic Job entries are entered in the Job Journal and

posted to the Job. (As Used Flushing Method)

3. Go to the Job Plan at the End of the Job, Highlight all and Send the Planed

Items to the Job Journal and Post. (Manual Back Flush)

4. Post Quantity Produced in Production Jnl. Setup is set to Auto-flush. All outstanding Quantities on the Job Plan are automatically copied to the Job

Journal and are ready to be posted. (Auto-Back Flush Method) The Flushing methods only move Item (type) Plan entries. Other types of Planed entries using Resources are presumed going to be purchased using Purchase Orders or Purchase Invoices. Entering the Job No. and Task Number on the Purchase Order will post the actual costs to the Job Ledger directly from the Purchase Order. If you have periodically “flushed & posted” Planed items the Job Plan maintains the remaining quantity to flush. If you then highlight all on a Manual Back Flush or trigger an Auto Back Flush by posting production, then the flushing process only copies the “outstanding” quantity on the Plan. You can also stop an Item from being copied to the Job Journal Job by checking the Boolean field on the Job Plan Line called: “Do not copy to Job Usage”.


How do I add an additional Line to a Sales Order that has the Master and Sub-Jobs

already created? Quick Way: Step 1 – Add the additional Line the Customer is ordering. Leave the Job Number Blank. Step 2 – While on the new line click the Job button and Select the menu choice to create a single job for the line. Another way: Step 1 – Add the additional Line the Customer is ordering. Leave the Job Number Blank. Step 2 – Write down the Job Number you want to use. Step 3 – Go to the Job Card and F3, Enter. NO to Master Job, Select the Sales Order/Job Number Master that you want to link. Step 4 – Put in the Type = Item, Production No = Desired item. Quantity = 200…. Step 5 – Simply “Re-number” the Job Number to the desired Number. (1002-03) Step 6 – Go back to the SO Line and manually add the new Job Number.

Calculating cost is not controlling cost, but you cannot control costs unless you

have calculated the costs.


SOME COSTING THEORIES TO KEEP IN MIND: Maintaining accurate details on job and contract costs is not a simple process. Maintaining and comparing a job Plan (or estimate) to the actual costs increases the benefit you will get from job costing but increases the data input time. You must have a commitment to job costing which means you must have or will have to build a job costing culture within your organization. Knowing what the costs are is just the beginning of improving your business. You should be striving to analyze the following: What location is profitable? What department is profitable? What Jobs were profitable? What processes within the Jobs were profitable? What Resource Groups are profitable? Which Resources are profitable? What Products are profitable? What Customers are profitable?

THREE FACTORS TO JOB COSTING:

PLANING / ESTIMATING COSTS

TRACKING ACTUAL COSTS

SELLING VALUE OF THE PRODUCT OR SERVICE

ACTUAL COSTS & SELLING VALUE Some companies will only track actual costs to determine the selling price or value of the product or service that they sell. Improving profitability is a matter of increasing the price when costs increase. (Assuming the competition is doing the same.) It is important to be able to view ACTUAL costs in the same units or groupings that you bill the customer. If you bill the customer in large segments, such as in Phases, then you will want to at least be able to capture the Actual costs in Phases too. Most likely you will be capturing ACTUAL costs at a more detailed level than just Phases. Make sure that your setup for capturing costs will allow you to summarize the detail in the larger grouping so you will still be able to compare the ACTUAL costs to the SELLING VALUE of each Phase.

ACTUAL COSTS VS PLANED COSTS If the value of the product or service you sell is locked in, to stay competitive, then your only alternative to better profitability is to analysis and lower costs. If your profitability is too low due to high costs, you must be able to view costs in smaller units to see if one activity, phase, location, department, task, activity, etc. is less profitable. Determining profitability at detailed levels may be difficult because you may not charge the customer at these levels. Now you need to compare the Actual Costs to how you originally planned the costs.


COMPARING ACTUAL COSTS TO SELLING VALUE: (JOB PROFIT) Make sure that some level of the way you collect and report ACTUAL costs will be equivalent (or easily compared) to the way you bill your clients. (SELLING VALUE). Is a $100 per hour cost for a specified service too HIGH? Yes, cost is too high, if you are billing $101 per hour. No, it is not too high, if you are billing $150 per hour, or should be. Yes, cost is too high, if the competition can do the quality level of service and bill

$ 95.00 per hour. Determining if Costs are too high is directly relative to what the Value is for the product or service you are delivering. “The Value” is another way of saying “what is it worth” or “what is the client willing to pay.” Value is also directly related to what your competition can do. If you sell Product A for $1000 and you discover the average cost to build A is $1200, then there are two (2) potential problems.

1. Your cost of $1200 is too high. 2. Or consider that your costs may be ok and you are not billing enough. (But you

must be able stay competitive.) Example: Here is an Example of viewing the ACTUAL COSTS in the same way as you bill the customer. Contract Price Contract Price Categories Actual Cost View ____________ _____________________ of Price Categories $ 30,000 Design….. $ 5,000 3,000 Engineering 7,000 4,500 Materials 5,000 10,000 Labor 10,000 11,000 Shipping 1,000 900 Overhead 2,000 1,500 ------------------- ------------------ $30,000 $30,900 This Project was not profitable!!! Where was the problem? Notice we needed to be able to rollup the Actual costs in a similar way to the method we used to determine the customer‟s contract price. The first question to answer is:

Did we just not charge enough for the Materials and Labor? Or did something go terribly wrong with the costs?

The next step is to further analyze the particular areas of concern, i.e. the Material and Labor Costs. Can we see the Material and Labor in more detail? Did we Plan this Job so we can compare Plan to Actual? See the next section:


COMPARING ACTUAL COSTS TO PLANED COSTS: If you have determined that the product or service VALUE can not change then your only method to improved profitability is to reduce costs. If you have not been planning cost prior to starting a Project you need to start. Determining where the cost problems are will be found easier if you can compare the ACTUAL COSTS to the PLANED COSTS. Job Costing must break the larger project costs into smaller understandable and analyzable units. We may discover the cost of materials to build Product A doubled from the costs on our estimate. Analyzing further we find that the materials didn‟t cost more but the freight charges on the materials caused the increase. Is this something I can change in my business? See Levels of Analysis below to see concepts of how you might break a project into small analyzable units. Selling Price Categories / Actual Cost View Plan Costs Charge

Cost Summarization by Planed Units _____________ per Cat. Design….. $ 3,000 Design $3,000 3,500 $5,000 Engineering 4,500 Engineering 4,500 5,000 7,000 Materials 10,000 Material Painting 1,000 300 Material Assembly 5,000 2,000

Material Welding 1,000 300 Material Freight-In 2,000 100

Material Overhead 1,000 500 ------------- 3,200 5,000 Labor 11,000 Labor Painting 2,000 1,000 Labor Grinding 1,500 1,000 Labor Assembly 6,000 4,000 Labor Welding 1,000 1,000 Labor Polishing 500 500 -------------- 7,500 10,000 Shipping 900 Labor Shipping 700 300 Material Packing 200 200 -------------- 500 1,000 Overhead 1,500 Overhead 1,500 1,000 2,000 ------------------ ------------------- ----------- ---------- $30,900 $30,900 20,700 $30,000 Comparing Actual costs details helps but is especially telling if you can see the Planed details in the same way you see the actual costs. The Plan will show you how you determined the selling price.


In our example, ALL the Material areas were under estimated but we were especially wrong about the Freight related to getting the material in. Examining the Purchase Orders and Vendor invoices would be a good idea. Perhaps we were shipping in product at premium prices because Purchase Orders were issued late? This is the kind of detail you have to get to, to correct the problem. As you can see, Job Costing alone does not improve your business but the ACTIONS taken based on Job Costing information can.


Carry Forward Hours –

A scheduling improvement to Job Manager 3.70

THE SITUATION: The original functionality evaluated each Task Task‟s Total Production Hours against the Advanced Setup‟s “Hours per shift”. If the “Total Prodctn Hrs” was half or more then the Hours per shift then the dates were calculated based on the number of shifts available for that day. However if the Total Prodctn Hrs were less then half there was no change in the scheduled dates.

THE PROBLEM: You could have had several Tasks that were less then half the shift hours accumulating to several days of work, yet each Task because of the small amount of hours per Task, did not cause a change in the schedule dates. So, the estimated Start Date of the Job was miss-calculated

THE IMPROVEMENT: Now when a Task‟s “Total Prodctn Hrs” are evaluated, and if they are less then half the hours per shift, then the hours are carried forward to the next Tasks schedule calculation. The carried forward hours are added to the next Task‟s Production hours and continue to do so until the total number of hours goes over the half way threshold and causes a day schedule change. Once the carried forward hours are used in a schedule change it reverts to zero until another Task below the halfway point causes another occurrence of carried over hours. This “carry forward” concept works for both forward and for backward scheduling.


THE EXAMPLE:

See the example below for producing 10 units of FG102. This schedule was backward scheduled from a 02/02/04 end date. The last Task has no hours and caused no schedule change. The second Task up caused no change because the .625 is less then half of the 8 hours shift. The third Task up has the carry over hours and is more then the half way threshold and therefore caused a schedule change (+ the week end days according to the company calendar). Notice the next Task of .250 hrs was carried forward and added to the next Task‟s 2.500 hours for a total of 2.75hrs. Neither Task caused a change in schedule because even with the accumulation we are not up to the half way threshold. However we see reference to the 2.75 hours carried over to the Task third from the top because now the addition of the carried over hours (2.75) and the Tasks Total Prodctn Hrs (1.750) are added together to make 4.5 hours, which causes the schedule to change. Since the carried over hours were used in a schedule change on the third Task, the carried forward hours reverts to zero. The second Task from the top has 2.70 hrs which is not enough to cause a schedule change, so this starts another occurrence of hours being carried over to the top Task where they are used in addition to the 1.667 hours to cause another schedule change.


Job Costing when using Item on a Job.

Job Production with an Item: Debit Credit

Purch. Raw Material

Acct. Payable 500

Purchase Acct. 500

Direct Cost Applied Acct 500

"RM" Inventory Account 500

Raw Material Usage

Raw Material Inventory 500

"RM" Inv. Adjmt. Account 500

Labor Usage 50

Posts to Jobs Only Payroll info posts to GL

WIP

Jobs WIP Account 550 Material + Labor Costs in Job Ledger

Job Cost Adjmt. Account 550

Post Production

"FG" Inventory Account 565 "Standard Cost" or "Job's Estimated Unit Cost"

"FG" Inv. Adjmt. Account 565 *

Recognize WIP

Jobs WIP Account 550

Jobs Cost Account 550 * Net diff. Shows actual to STD

variance

Sell Item

"FG" Inventory Account 565

Cost of Goods Sold 565 * Variance adjust COGS

When the Job Posting Group is coordinated with the Job's Production Item's Gen. Product Posting group, you can have an Inventory Adjustment Account that will be capturing the variance between the Job ledger

entry costs and the Production item's Standard Cost (or Job's Estimated Unit Cost) by item or by item groups. The combination of the Cost of Good's sold account and the Inventory Adjustment Account provides the exact cost in GL.


The Attachment shows that the Items standard cost is $15.00 higher then the Job Ledger entries for this particular Job. Look for the lines with the (*)

DB CR Work Flow Action

I. E. Cost of Goods Sold Debited $565 Post Sale (Item's standard Cost)

"FG" Inv. Adjmt. Account Credited $565 Post Production (Job Ledger Costs)

Job Cost Acct. (Recognition) Debited $550 Post Job Recognition (Job Ledger Costs)

--------- ---------

Net Entries in GL Net Credit of $15 in the Recognition Cost acct. Showing the actual costs Were less then the std. Costs.

If costs continue to get posted to a job after the production has been posted, the WIP and recognition of cost should continue with periodic activities. Using the same scenario as above, the “late” costs would now increase the amount Debiting the Job Cost Acct. attached to the Recognition posting. Lets say that another $30 were posted to the job. The $550 now increases to $580. This means that we have increased the job Cost account by $15.00 which shows in GL that costs were running higher then “expected”. No adjustment is needed in GL. Costs have been increased or decreased appropriately for what happened with the actual costs.


Flow Field Definitions at the Job Level:

Estimated/Planed Costs:

Est. Labor Cost: From Job Specific Task Resource Type = Person|Machine

Adding “Est. Labor Cost” field on Task

Est. Machine Cost: From Job Specific Task Resource Type = Machine Adding “Est. Machine Cost” field on Task

Est. Material Cost: Flow Field from Job Plan Entry Type = Item Ignore = No Adding “Total Cost” field on Job Plan Entry

Est Outside Processing Cost : Est Overhead Cost Est Misc Cost Flow Field from Job Plan Entry

Type <not> Item Ignore = No Resource Type > Machine Adding “Total Cost” field on Job Plan Entry


Actual Costs:

Labor Costs: From Job Ledger Entry Entry Type = Usage Type = Resource Resource Type = Person Adds “Total Cost” field on Job Ledger

Machine Costs: From Job Ledger Entry Entry Type = Usage Type = Resource Resource Type = Machine Adds “Total Cost” field on Job Ledger Material Costs: From Job Ledger Entry Entry Type = Usage Type = Item Adds “Total Cost” field on Job Ledger Outside Processing Costs: From Job Ledger Entry Entry Type = Usage Cost Category = Outside Processing Adds “Total Cost” field on Job Ledger Overhead Costs: From Job Ledger Entry Entry Type = Usage Cost Category = Overhead Adds “Total Cost” field on Job Ledger Misc. Costs: From Job Ledger Entry Entry Type = Usage Cost Category = Misc Adds “Total Cost” field on Job Ledger


Calculations and Flow Field Definitions at the Job Specific Task Level:

Est. Labor Cost: Calculate on Job Task Line (Production Hrs X Unit Cost, if Cost Category = Labor) (Production Hrs X Operator Rate, if Cost Category = Machine)

Est. Machine Costs: Calculated on Job Task Line (Unit Cost x Prod Hrs)

Extnd Cost : Calculated on Job Task Line (?? Deadwood)

Est. Labor Cost + Est. Machine Costs Est Material Costs: Flow field from Job Plan Entry Est Outside Processing: Flow field from the Job Plan Entries Est Overhead : Flow Field from the Job Plan Entries

Est Misc Cost: Flow Field from Job Plan Entry

Act Labor Hours: Flow Field from the Job Ledger Entries Act Machine Hours Act Labor Cost Act Machine Cost Act Material Cost Act Outside Processing Act Overhead Cost Act Misc Cost


Phantom Items: Does JM support phantom bills? Yes. Basically a Phantom Bill of Material is an "entity" that is made of a group of component items. The unique thing about a Phantom Bill entity is that they are never in stock... i.e. never a quantity on hand... i.e. never produced... i.e. only made when in association with another Item being produced. In Dynamics NAV Manufacturing the "entity" is called a Production BOM. You can reference a Production BOM on an Item, AND reference a Production BOM on a bill of Material line of another Production BOM. If you had a Production BOM that is used for an Item, then you would not use this Production BOM on the BOM of another Production BOM. When you use a Production BOM on another Production BOM, there is no associated Task Tasks with that Production BOM (Phantom Bill). If there are processes to build the Phantom Bill then those processes are built into the Production Task that is recorded on the Item that is a level above. In Job Manager a Phantom Bill of Material entity is an Item designated as a "Type Item" = Make to Order. "Type Item" is a Job Manager Field in the Item table. When you put a "Make to Order" item on another Item's Bill of Materials, it explodes the make to order items components on the Job Plan along with the Job's production Item's bill of materials. Creating the Phantom entity is actually part of building the Job's production item. You do not post production of the Make to Order Item (Phantom Bill). The Make to Order Item typically should not have a Task. If there are processes to build the Phantom Bill (Make to Order Item) then those processes are built into the Production Task of the level above.

Q&A

We have a client with subassemblies that have BOMs and routers. For example, they have a 24” counter bases that uses a sheet of plywood, 3 sets of drawer pulls, and 3 handles and 3 steps in the router. They have a 36” counter base that uses a similar BOM, just greater quantities and longer times on the steps.

They review the drawings and determine that the customer wants a 10‟ cabinet. 2-24” counter bases and 2-36” counter bases. Their estimator puts in one main/parent item called Kitchen Job, he then does his estimate using the two subassemblies. I see where I can explode the BOM‟s, but I can‟t see where I can explode the routers for the subassemblies and get the hours from the subassembly routers. How do I do that or how can we do it? There are different answers depending on the responses you give to me. 1. Is the 24" counter base(s) a separate "item" that gets built for the job, and post production of this sub-assembly item and then issue this item to the main job through the Job usage journal either by manually entry or back flushing when the final assembly production is posted? If YES then in this case the sub-assembly counter items would be set


as "make for stock" type item and would separate subjobs would be created with it's BOM and Router on the separate subjob. Depending on the version, "make for stock" items on a job budget can be set to create subjobs below the originating master job from the Requisition Line, otherwise the subjobs are manually created, or they are entered as separate lines on the sales order and use the make jobs for all lines to create the main/parent subjob and the other subassembly sub jobs under the master job. The main/parent subjob might be priced on the sales order while the other sales lines don't have prices, or each part/line is priced. When separate subjobs are created either manually or via sales lines then you either do NOT have a MTO BOM line or you set the MTO line on the job budget to Ignore so that you do not get duplicate costs on the roll-up on the Master Job. If you do not want to post production of the sub-assembly sub jobs then set the MTO job budget line to "Do Not to Send to Job Usage" = TRUE, so it does not make flushed usage entries. 2. If Regal prefers to have the sub-assembly counters to be Make to Order and explode on the main subjob then there should be a step (or multiple steps) on the main subjob, for each "Make to Order" item, to represent the time needed to build the sub-assembly. If you are changing the sub-assemblies on the fly then you would need to manually edit the times on the related router steps too. Some options to #2 - We have some client specific mods in 4.0SP3 (will be standard in 5.0) that will print a separate Production Traveler Document per each Job Budget line it finds that is a Make to Order subassembly. The Traveler prints the BOM and Router from the Item Master and multiplies by the Parent Item Qty on the MTO line. The traveler is informational only and does not change the Job Estimate amounts, so you still need to have router lines on the "main/or parent item" router to hold estimate values for the MTO process. We have discussed by not done one yet, where once you have set up the Job Budget with and MTO lines and Qty Per(s) that there is a function that will look back to the MTO router and multiply the times, then roll-up the total times to the "main/or parent item" router step that holds the values for the MTO process.


Replenishment of Finished Good - Assembly Items

SETUP: “Type Item” (DataType = Option) – found on Item Card, Job Tab (Purchase, Make-to-Order, Make-to-Stock) Three types of Replenishment:

1. Use the Create Job from the Sales Order. 2. F3… insert a new job from the Job Card as needed. 3. New with version 37.07:

Run Calculate Plan (function) on Requisition Worksheet form then Carry out Actions. Use this method when you wish to create one Job to produce the quantity to meet the demand from multiple sales orders within the planning horizon. The setup on the Item Card will determine how the Requisition Lines are created. Some examples are given below: Example A: (Accumulate and group demand from multiple demand sources) Item Card, Replenishment Tab: “Replenishment System” = Purchase Item Card, Job Tab: “Type Item” = Make-to-Stock Item Card, Planning Tab: “Reordering Policy” = Fixed Reorder Qty. Or

Maximum Qty. or Lot-for-Lot Fill in other fields like: Maximum Qty, Reorder Point and Safety Stock as

appropriate for the choice of Reordering Policy. See online help if needed. Fixed Reorder Qty. …… fill in field “Reorder Quantity” Maximum Qty………… fill in “Maximum Inventory” Lot-for-Lot……………. Fill in “Reorder Cycle” (like 3M for 3 month planning

horizon. A blank in Reorder Cycle or the shorter the planning horizon, the higher chance that demand line will be separate requisition lines. Also fill in the Minimum and Maximum Order Quantity and the Order Multiple for the best result. Example B: (Create Requisition Lines per demand source.) Item Card, Replenishment Tab: “Replenishment System” = Purchase Item Card, Job Tab: “Type Item” = Make-to-Order or Make-to-Stock ** Item Card, Planning Tab: “Reordering Policy” = Order If you also use this item as a Sub-assembly on a higher level Finished

Good then you will need to set the Type Item to Make-to-Stock. See more direction on this below on replenishment of Job Plan components. Only Make-to-Stock items appear on the Requisition Lines.


Replenishment of Components on Jobs

SETUP: Advanced Setup: Go to the Jobs Menu, then Setup, then Advanced Setup, Job Tab Field “Batch Replenishment Master Job”: Enter the Master Job No. that will be used for internal production jobs to replenish make-to-stock type items. This Master Job No. is used when using the Reorder Policy(s) of: Fixed Reorder Qty., Maximum Qty., or Lot-for-Lot. It the Reorder Policy for an item is set to Order then the Master Job No. will not come from advanced setup but instead will come from the source of the demand….. I.e. the Master Job No. on the Job Plan Line. Field “Job Status from Req.Wks Create”: Enter the Job Status you wish the Job to be when it is created from a Requisition Line. We recommend that the Job Status be Order. Item Card: “Type Item” (Option field) – found on Item Card, Job Tab (Purchase, Make-to-Order, Make-to-Stock)

Purchase – Items on Job Plans: Two ways to Replenish:

1. Create Requisition Lines (function) on Job Plan form: Use this when you want the purchases to be specific for a Job. This process does not use the Replenishment and Planning settings on the item card. This process is a purely an order components specific for Jobs type of replenishment policy. The function button on the Job Plan contains an Item availability form menu item to let you see if stock exists or will be available when needed.

2. Calculate Plan (function) on Requisition Worksheet form:

Suggested method of running the Calculate Plan would be to set specific field filters on the processes‟ opening request panel as follows:

Item Tab: Blocked = No Item Type = Purchase Setup on Item Card determines whether the Requisition Lines are created for each Job or if the demand is accumulated together to create one Requisition Line suggested purchase that is “not” Job specific.


Accumulate and Group Demand: Suggested setting for the “Ordering Policy” on the Item Card, Planning Tab, for the Purchase type items would be Fixed Reorder Qty., Maximum Qty. or Lot-for-Lot. If using the accumulated setup and Job Costing you use this option to order supply that will be received into inventory. Then these purchased items will be issued to Job by some other user action as listed below:

- Forward flushing: Copy Job Plan to Job Journal at the beginning of the Job.

- Manual flushing: Insert the Items on the Job Journal as used during the Job.

- Backward flushing: As set in Advanced Setup, when you post the production of the finished good or service the proportional amount of Planed items will be automatically entered into the Job Journal.

Job Specific Requisition Lines: In version 37.00 to 37.06 it

was not recommended that you use the Calculate Plan to create Job Specific Requisitions because the Job No. was not sent to the Requisition Lines. We recommended the Create Requisitions from the Job Plan.

Make-to Stock – Items on Job Plans:

Two ways to Replenish: (version 37.00 to 37.06) Same as the purchased items.

1. Create Requisition Lines (function) on Job Plan form: If you use the Create requisition lines (function) on the Job Plan then both purchase and make-to-stock items would appear on the requisition journal if the “Ordering Policy” on the item cards are the same.

If you don‟t want the make-to-stock items to create requisition lines then set the “Ordering Policy” on the Item card to “blank”. If you do want the make-to-stock items to create requisition lines then you would manually delete these requisition lines as you manually create the Production Job to fill the need. (See improvement in version 37.07 where the Carry out action messages will automatically create the Production Jobs to fill the need instead of the manual process mentioned here.)

2. Calculate Plan (function) on Requisition Worksheet form:

Suggested method of running the Calculate Plan would be to set specific field filters on the processes‟ opening request panel as


follows: Item Tab: Blocked = No Item Type = Make-to-Stock Suggested setting for the “Ordering Policy” on the Item Card, Planning Tab, for the Make-to-Stock type items would be Fixed Reorder Qty., Maximum Qty. or Lot-for-Lot. Running the Calculate Plan process this way will create lines just for the Make-to-Stock items and would accumulate quantity needed within the planning period. This process serves as information to the planner. At this point the planner will manually delete the requisition lines as he manually creates the Production Jobs to fill the need. (See improvement in version 37.07 where the Carry out action messages will automatically create the Production Jobs to fill the need instead of the manual process mentioned here.)

Make-to-Order – Items on Job Plans: One method of Replenishment: Make-to-Order sub assembly items will explode their Bill of

Materials on the Job Plan Line at the same time the Job‟s Production Item is exploding. The Make-to-Order Item on the Job Plan is flagged to ignore for requisition purposes because we are now seeing the demand for the Make-to-Order Items components. The components are then requisitioned based on there Item Type as seen above. The concept for Make-to-Order Items is that they are only made when demand is created by a Job and therefore their production becomes a Task of the Job‟s production vs. being a separate production Job. It is recommended that the “Reordering Policy” on the Item Card‟s Planning Tab be set to “blank”. It is suggested that there is a Task within the Finished Good Item‟s production Task that indicates the labor process involved in the Make-to- Order sub-assembly. To avoid duplicate costing of the labor, in these situations you will enter the Task on the sub-assembly item‟s Task using Resources with the appropriate cost for the labor and machine usage. The standard cost of the Make-to-Order sub-assembly Item is then calculated correctly with both Labor, Machine, Material, Outside Processing, Overhead and Misc costs. On the other hand, when you enter the Task for the Make-to-Order sub-assembly on the parent finished good item, you will use Resources that indicate the labor and machine process but without cost. (When you calculate the standard cost of the parent finished good item, the labor and machine cost for the sub


assembly is rolled up in the cost of the sub assembly item, so you do not want the “sub assembly” Tasks in the finished good‟s Task to carry more cost.)


Setup for User Specific Requisition Batches

1. Go to the Requisition Worksheet in the Jobs menu and make sure that all batches are empty. 2. Go to the Purchase menu, under Planning, to Setup, select Req. Worksheet Templates. 3. Add a Template REQ and delete REQ. (see below)

You can add the Batches for the user Ids here or wait until step 5.

4. Next go to Administration, Application Setup, Users, User Setup. If using Windows logins then the user ID setup here need to match the user ID to the right of the \ in the Windows login.


Windows logins look something like: ServerName\ESUYD ServerName\ESVQB

5. In the same user setup form, add the Req Batch name that corresponds to the user id.


If there is no batch name specified here in the User Setup then the transactions will go to the Default batch.

Tip on “Blocking” Customers and Jobs: 1. There is a new Field in the Advanced Setup to indicate that you want a connection between Jobs and Customers. When Customers are blocked, the Jobs become blocked, and if you are attempting to create a Job from the Sales lines you will be stopped. 2. When Customers are blocked (All); then all related jobs will be blocked too. When unblocking, the Jobs will be unblocked too. Blocking the Job will prevent transaction postings to that Job. 3. When creating a Job from a Sales Line, if Sell-to or Bill-to Customer is blocked the Job creation will be halted. 4. When manually entering a Job, when you enter the Sell-to or Bill-to Customer No. the system will check if the customer is blocked (All). If it is, then the Job will be flagged Blocked too. Blocking the Job will prevent transaction postings to that Job.


Questions and Answers

Q & A on Job Plans:

Question: When you have a make to order or make to stock item on the job Plan, how do we handle their process? Do we have to explode the BOM to get the component? [Answer] If you only make the subassembly item with a BOM, when a job calls for it, the subassembly item is set to make-to-order and the BOM's explode when the Job Plan is created (i.e. when you enter the Job Qty Ordered). If you have subassembly items with a BOM that you periodically produce just to maintain a stocking level, then the make-to-stock item's BOM does not explode automatically. I would have to question why you need to explode a make-to-stock item on the Job Plan. The components or BOM of a make-to-stock item will show up on the "in house production job" that you periodically manually create to keep up stocking levels for that item. In the 4.0 version of Job Manager we have added functionality to Create Jobs for "make-to-stock" sub assembly components when they are below minimum. This way when the Requisition Worksheet contains "make-to-stock" items, a new "in house production job" is created when executing the Carry out Action Messages.... to build the sub assembly. Then the components would appear on the in house production Job's Plan. In 3.7, when make-to-stock items appear on the Requisition Worksheet you delete the Requisition Worksheet line and manually create the in house production job to full the below minimum need. Question: What if I have an item as type Purchase on Job Plan, can I see all BOM level. [Answer] Typically if an item is set to Item Type::Purchase then it does not have a BOM.


How to use “Job Manager” and “Recurring Sales Documents” for Preventative

Maintenance in your plant. We are often asked how can I remember all the PM work we need to do to keep the Plant running smoothly. Equipment break down is very expensive both for the repair and for the productive time lost during the repair. By establishing a good preventative maintenance program in your shop you can minimize, if not eliminate, down time. But, you need the right computer tool to assist you in the planning, cost tracking, and execution of the schedule. Here is where Job Manager and “Recurring Document” works:

1. Planning. By setting up “Recurring Documents” for future work (repetitive tasks) you can schedule the repairs and maintenance when it is convenient and less disruptive to the flow of the plant. Use the Recurring Document Generator to create (Work Orders/Sales Orders) Jobs based on the pre-defined frequency code on the Recurring Document.

2. Cost Tracking. The repairs or PM calls all have costs. Labor time spent making the repair or doing the PM work. Materials consumed from Inventory or Special Orders for parts. (10W30 Oil, or replacement electrical motors) Each PM Job will have a Job Number assigned to it for detail cost tracking.

3. Execution of the schedule. Instead of “putting out fires”, organize your workflow to be preventing “fires”. Establish know components that are needed for a particular repair service (BOM) Replenish items as they are used. Notify your staff well in advance of what PM work is coming up. Print the “Job Traveler” with all the details of the PM Job. Basically, have a plan.

Here are the setup steps for Preventative Maintenance with Job Manager. 1. Add a Recurring Sales Document for each piece of equipment that you intend to maintain. Set the “Recurring System” to create Jobs not Sales Orders. Create one (1) Master Job = “Preventative Maintenance”. Assign Each “Equipment Job” as a sub-Job to the PM Master Job. The Recurring Docs system can hold the Master Job Number and then the system will populate the new Job Number. 2. Add “Service” Resources for the “in-house” Jobs that you will be performing.


Example: “PM Large Boilers” – (Setup a Resource)

Task = 10 Gather Equipment and Materials 20 Clean Feeds 30 Inspect key locations 40 Repair as necessary

50 Re-assemble 51 Test 52 Clear Work area.

This Task List will be the common Tasks performed during the service call or PM call. Additional Tasks can be added on-the-fly per Job if needed.

BOM = 20 Boiler Rods 4 Glass Plates 8 Gaskets 9 Qtrs Oil

These are the common know consumables on each PM. Other items might also be used, but not know until PM work is performed.

4. Now the magic begins. Weekly run the “Periodic Activity” to generate new PM Jobs. (From the S&R Periodic Activity screen) This process will scan the Recurring Documents looking for PM Jobs that time has come due on. “Next Service Date”. If it finds one, it will automatically set up the PM Job with its pre-defined Task and BOM.

5. Print the Job Traveler. This will contain the PM Job Instructions with Tasks and Materials expected to be used.

6. Jobs can be enhanced by the PM supervisor. Add additional tasks or additional materials to be used. Add Comments and specific task descriptions.

7. The staff member performs the work. The key here is accuracy of time spent on the repair or PM and what materials were consumed in doing so. Both Time and Materials will need to be entered and posted to the Job.

8. We recommend generating the Job List at least one week in advance so adjustments in the plan can be made if needed.

9. Emergency Repair Jobs can easily be added on-the-fly as needed. Materials and Tasks may not be known in advance like a PM Job. But you should still record the actual Time and actual Materials consumed on these Emergency Jobs.

10. PM Summary. Since all PM Jobs will be under a Master PM Job and all Service Jobs will be under a “Service Master” and all “Emergency Jobs” will be under an “Emergency” Master, it will be easy to sum up the costs of each of these Job Cost


Categories. Even if Sub-Contractors have to be called in to do some of the work. (Or all of the work.) Just post the Subs Invoice to “Outside Processing” category to keep it separate from your in-house labor or materials.

11. End

See Rick for Flow Chart on this process.

Question: How do you use “Item Charges” in Job Manager? First, with standard Dynamics NAV, there is code that says if Item Charges, the Job No. is not allowed. You get the error message when you try to post. Second, if the Item's on a PO went directly to a Job then they are not in inventory to assign the item charge to it. Item Charges is used to increase the cost of the item. I.e. the Item originally cost $500. Then we got a $60 freight bill from another vendor for shipping the Item. You can use item changes to reassign the freight charge to the item. The system does the appropriate postings to increase the items cost to $550 and increase GL inventory by $50. With Job Costing if the Item cost was posted directly to the Job. The freight should be too. We don't have to increase the Item's cost. We report both Material cost and freight cost separately. In many cases it is very important to know what the freight expense portion of the job is. We use Resources. No need to use Item Charges. Now with all that said..... I have added the potential of receiving Item's into Inventory with a Job No..... It is a Job Manager advanced setup "option". Then when the PO is posted as a vendor invoice, the inventory is automatically removed out of inventory and onto the Job. The net result is the same but there are some advantages to have ALL items roll though inventory, i.e. the new analysis reporting tool works on the item ledger, so you can see the "usage" of items along with the "sales", all from one place. Now with this flow you might be able to get the Item Charge posted to the receipt of the inventory related to a Job No... The Item Charge would not have the Job No. on it. We need to test this. I still think that using Resources for freight is the better way to go. This new functionality has some benefits BUT there is no "reservation" of the item that posted with the Job No... What this means, is that some other transaction may "use" that particular item ledger entry before the PO is posted as an invoice. So when the PO IS posted as an invoice it will just find the next available item ledger entry which may not have the "extra" item charge that you wanted to go to the job. When is a Job Complete? This is subjective from one client to another. You need to remember that once a Job Status is changed to Complete you can no longer post transaction to that job.

How do we know when all the invoices have been posted and orders closed, in order to complete the job?


I don't have any functionality that would indicate that the "last" invoice.... or all orders are closed. This would have to be a client specific issue. The problem is.... what determines the "Last invoice"... or even though you may have posted all Sales Orders with a certain Job No., that doesn't mean that you won't enter another sales order for that Job. Determining when a Job is entirely complete is usually a very "subjective" determination from company to company.

What is the purpose of the Task Started and Task Finished fields? When answering questions related to the status of a Job, customer service reps can view the Task and see where they are in the process vs. just looking at a Completion %... assuming they are even using that. If you post entries to a Task then it will automatically change the Start Flag to True. There is a Task Finish field on the Job Journal too which will also edit the Task Finish flag on the Job Task line.

Why are those fields editable? Sometimes people have Tasks that will start and stop but never get entries posted to it. I.E. they estimate and schedule at a more detailed level then the way they collect time on the floor. So sometimes you just want to manually set the Start and finish flag.


Clarification on entering and Viewing Revenue: The “Primary” location for storing Revenue is on the Task Line in the column called Contract Amount.

See the Contract Amount total This total also appears automatically on the Job Card.

The field on the Job Card is editable, and if you change it there, it will automatically redistribute the new contract Amount (total) across the Task lines. If you edit the Contract amount on the Task lines then the Contract Amount on the Job Card is updated to match. So the Job Contract Amount automatically stays in sync with the Contract Amount total on the Task Lines.


The Job Statistics form:

Notice the Curr. Estimate Revenue matches the Contract Amount on the Job Card…. Which matches the Contract Amount total on the Task. The Task line is the primary location for viewing the revenue. The Orig. Estimate Revenue is the total of the Contract Amount column on the “Saved Task”. See below:


Question: I created Per Diem and Standard Rate resources (i.e. PerDiem 060

which is $60 per day and Machinist $9 per hr).

Now I have a question on loading them in the estimating form against a job. When I put the resource down I can Identify the number of hrs worked for the machinist or the number of days for per diem. However, I can't figure out how to identify that I will have three (3) machinist working 24 hrs without loading the machinist three (3) times. The same goes for per diem. How do I show that I have 10 people working 2 days @ $60 per day?

,

Response: First lets establish that when comparing estimate to actual when it comes to labor and labor related charges there is not usually a match between estimate to actual, i.e. I estimated a “NNI Machinist” but the actual came in from payroll as a person’s name. So we can’t expect an outstanding quantity to be tracked like you might expect the material usage. However, we might want to track estimated Hours to actual Hours, in the same way we track estimated Cost to actual Cost…. Such as what is seen on the Job statistics form (from a Job card, click F9). The next two posible entry solutions depends on if tracking estimated to actual Hours is important.

1. If tracking hours used is not important: You could setup a resource called Machinist 2, which stands for two machinist working at an Hourly rate of $18. Machinist 1 is a single machinist at an Hourly rate of $9.00. Machinist 3, is three machinists working at a “3 person crew” hourly rate of $24.00 per hour. You get the drift. Same for Per Diem. This might not be reasonable if the potential “teams” are unlimited.

2. If Tracking hours is important, or the potential team combination is unlimited, then we want the Quantity to always reflect “man hours” not team/crew hours. You would have the one NNI Machinist resource with the $9.00 per hour rate. Then when you get to the Qty per Unit field, enter #men * #hours , i.e. 3*24 , in the field and hit enter. Decimal fields in Navision will calculate values. Now the Quantity has the total man hours to be worked for $9.00 per hour. You can perhaps change the description to indicate that it is 3 machinist for 24 hrs. If you want me to add a couple of fields called “Crew size” and “Hours”, I can and


this would be information. We could add math to these fields to calculate the Qty per Unit instead of entering the math in the field, but we want to be careful not to over program the standard system. There may be other situations where the best solution is to do the math in the field vs programing. Let me know what you think and want to do.


Sales Order

Type No. Qty

Item FG111 50

Item Make for Stock(A)

Item Make for Stock(B)

Item Make for Stock(C)

Master Job

Sub Job - 01

FG111

Qty 50

Sub Job - 02

Make for Stock Item(A)

Sub Job - 03

Make for Stock Item(B)

Sub Job - 04

Make for Stock Item(C)

One Sales Order with

Multiple Lines

Can generate

One Master Job and

Multiple sub-jobs.

Making Jobs – Project Order

Item Purchase Item(3100) 100



Requisition Worksheet

Type No. Quantity

Run Calculate Plan filtered

for Purchased Items

PO 1945

Vendor No. AC400

Type No. Qty

Item 3100 100

Item 3200 200

PO 1946

Vendor No. SP688

Type No. Qty

Item 5612 400

Item Cards

Demand

from Job

Budgets

Job Budget

Job Budget

Job Budget

Job Budget

Req worksheet will

Pick up all component demand

Requisition Worksheet Buy for “Stock” Sample


Sales Order

Type No. Qty

Item FG111 50

I

Master Job

Sub Job -

FG111

Qty 50

Make Jobs for Sub-Assemblies

Sub Job

Make for Stock Item(A)

Sub Job

Make for Stock Item(B)

Sub Job

Make for Stock Item(C)

Item SubAssembly(A) 50

Item SubAssembly(B) 100

Item SubAssembly(C) 200

Type No. Quantity

Run Calculate Plan

filtered

for Make for Stock

Sub Job Budget

Type No. Qty

Item A 50

Item B 100

Item C 200

Item Card

A

Demand 50

Flow Field





Type No. Quantity

Run Calculate Plan

filtered

for Purchased Items

PO 1945

Vendor No. AC400

Type No. Qty

Item 3100 100

Item 3200 200

PO 1946

Vendor No. SP688

Type No. Qty

Item 5612 400

What happens if the

components are

Sub-Assemblies?

Item Card

Demand

from Job

Budgets

Job Budget

Requisition Worksheet picks up

the Sub-Assemblies' Demand

Job Budget

Job Budget

Second Run of Requisition

Worksheet picks up the

new Job Component Demand

Receive into

“Stock” Inventory


Sales Order

Type No. Qty

Item FG111 60

Multiple Sales

Documents with

Same Item.

Item FG111 200

Master Job Number

InHouse Make for

Demand Production

Sub Job -

FG111

Qty 200Requisition Worksheet

Jobs

Sales Order

Type No. Qty

Item FG111 80

Sales Order

Type No. Qty

Item FG111 40

Sales Order

Type No. Qty

Item FG111 20

Type No. Quantity

Jobs

Advanced

Setup

Run Calculate Plan

filtered

for Finished Goods

Make 1

Job

through

grouped

demand.

Sub Job Budget

Type No. Qty

Item A 200

Item B 400

Item C 800

Item

Card

Components to


Requisition

Worksheet picks

and combines

demand into

one line.

MJ-1001