A QuickBooks tip for entering Job-to-data costs and billing data at the item level when converting or archiving.
Use this procedure to enter Job-to-date (“JTD”) costs and JTD billing so the Job Profitability Detail Report is accurate at the Item level after converting your existing Quickbooks file to a new database file, or after archiving old QuickBooks transactions. In both cases, you are bringing over beginning balances as of the conversion date into your new data file, and this procedure will prove useful for reporting on jobs that are in progress as of the conversion date.
From your old data file:
Run your Job Profitability Detail Reports for each job in progress to obtain the JTD cost and revenue figures as of the conversion date. In the date fields, leave the first field blank, enter the conversion date in the second date field. You will use the figures on this report for your data entry in the new data file.
In the new data file:
- Create a fake Vendor called “Opening Balance”. You will make this inactive after completing this procedure.
- Create an Other Expense account in the Chart of Accounts called “9999-Conversions-JTD Costs”. You will make this inactive after completing this procedure.
- Create an Other Income account in the Chart of Accounts called “9998 · Conversion – JTD billing”. You will make this inactive after completing this procedure.
- Create a Service Item called “Opening balance JTD Costs” and link it to “9999 · Conversion – JTD Costs”. You will make this inactive after completing this procedure.
- Print your Item List. (Reports>List>Item Listing) Modify the report to display columns for Account and COGS Account; remove price, cost, tax code, etc.
- Look at your Item list and determine which Service Items appear on your Job Profitability Detail Reports. These are the items to edit in step 9. These are active items.
- In the Item List window, make all other Service Items temporarily inactive. Making them inactive will keep them from appearing in the Add/Edit Multiple Items screen allowing you to quickly copy down the account edits you will perform in step 9.
- Create a backup before performing step 9!
- Using the Add/Edit Multiple Items screen (available in QB 2010 and later) ,edit “all active service items” and point the COGS/Expense account to account 9999 and point the Account/Income account to 9998. Change the top item, and quickly copy down the account edits to the other items. Click Save. Do not update existing transactions. You will have to answer No repeatedly by pressing N until it scrolls through all your changes.
- When you are done with the following procedures, you will edit these same Items again, and change the COGS/Expense and Account/Income accounts back to what they were. Do not update existing transactions. You will have to answer No repeatedly by pressing N until it scrolls through all your changes.
To enter the JTD Costs for each item on each job:
Enter a zero dollar Bill to the “Opening Balance” vendor for the JTD cost. On the item tab enter each Item and the costs on the job profitability detail report and the appropriate Customer/Job. Keep the Billable box checked. On the last line, enter a negative number to the “Opening balance JTD Costs” Item with no customer:job.
This results in no AP balance, leaves no effect on GL, but leaves the correct JTD cost by Item in your Job Cost reports.
Create a new zero-dollar Bill for each active job as of the conversion date.
To enter the JTD Billing for each job:
Enter an Invoice for the Customer:Job for the total Billing-to-date on the job. The Add Time/Costs box will pop up, select the Item tab and bring over all Items to the invoice. You now only have to edit the dollar amounts to agree with your JTD Billing on your Job Profitability Detail report.
Enter a Journal Entry for the total amount of the JTD Billing on the job. The debit is to the “9998 · Conversion – JTD billing” account, leave the Name field blank. The credit is to Accounts Receivable. Select the Customer/Job name in the Name field.
In Receive Payments, enter the Customer/Job, and you will find the above Journal Entry is available as a credit against the Invoice you created above. Apply the Journal Entry to the Invoice.
The net effect on GL is zero, the invoice is paid, and the correct Job-To-Date Billing as of the conversion date will be reflected in your Job Cost reports.
Create a new Invoice, Journal Entry and Receive Payment entry for each active job as of the conversion date.
Run your Job Profitability Detail Reports on the new data file and compare with the same report on the old data file. They should agree. If not, you’ll need to double check your data entry.
I hope you find this QuickBooks tip to be helpful. If so, please leave a comment or share it on your favorite social media platform by using the buttons below.
Contractors switching to QuickBooks from another accounting program are often concerned about how to enter Job to Date Costs and Billing Data when converting, so they don’t loose this vital information.
Below is a procedure that I found several years ago, unfortunately I don’t remember where I found it or who wrote it (otherwise I would be happy to give them credit for it), but I do want to share it with you; as it is one way to handle this task.
Use this procedure to enter Job-to-date (“JTD”) costs and JTD billing so the Job Profitability Summary is accurate after converting your existing accounting software to QuickBooks, when you convert your existing QuickBooks file to a new database file, or after archiving old QuickBooks transactions.
Run your Job Profitability Summary Report to obtain the JTD figures as of the conversion date. In the date fields, leave the first field blank, enter the conversion date in the second date field. You will use the figures on this report for your data entry. If your cut-off date is 12/31/08, for example, use the next day (1/1/09) as the date for all the transactions below.
- Create a fake Vendor called “Opening Balance”. You will make this inactive after completing this procedure.
- Create an Other Expense account in the chart of accounts called “9999 • Conversion – JTD Costs”. You will make this inactive after completing this procedure.
- Create an Other Income account in the chart of accounts called “9998 • Conversion – JTD billing”. You will make this inactive after completing this procedure.
- Create a service Item called “Opening Balance JTD Billing” and link it to “9998 • Conversion – JTD billing”. You will make this inactive after completing this procedure.
To enter the JTD Costs for each job:
Enter a Bill to the “Opening Balance” vendor for the JTD cost. On the expenses tab select the appropriate Customer/Job, and select “9999 • Conversion – JTD Costs” for the account.
Enter an AP Bill Credit to the “Opening Balance” vendor for the same amount, but do not select the Customer/Job. On the expenses tab, select 9999 • Conversion – JTD Costs.
In Pay Bills, select the bill, click Set Credits, and apply the credit against the bill.
This effectively removes any AP balance, leaves no effect on GL, but leaves the cost in Job Cost.
Create a new Bill and AP Bill Credit for each active job as of the conversion date.
To enter the JTD Billing for each job:
Enter an Invoice for the Customer:Job for the total Billing-to-date on the job. Use the new service Item called “Opening Balance JTD Billing”.
Enter a Journal Entry for the total amount, the debit is to the “9998 • Conversion – JTD billing” account, leave the Name field blank. The credit is to Accounts Receivable. Select the Customer/Job name in the Name field.
In Receive Payments, enter the Customer/Job, and you will see the above Journal Entry is available as a credit against the Invoice you created above.
The net effect on GL is zero, the invoice is paid, and the correct Job To Date Billing as of the conversion date will be reflected in your Job Cost reports.
Create a new Invoice and Journal Entry for each active job as of the conversion date.
Run your Job Profitability Summary Report on the new data file and compare with the same report on the old data file. They should agree. If not, you’ll need to double check your data entry.
QuickBooks automatically prefills the date field in every transaction you create (Enter Bill, Write Checks, Create Estimate, etc.) and report that you generate. You should always verify that the date specified by QuickBooks is the correct date for the particular transaction or report.
In many cases, the date that QuickBooks provides you with is not the correct date that you need. Additionally, you should verify that you are not posting transactions to a date in a period that has been “closed”. Unfortunately, QuickBooks allows users to post new transactions to a prior period if they have access to change or delete transactions recorded before the closing date.
Report Dates
Every QuickBooks report automatically specifies a default date range each time the report is created. You should always verify that the default date range is correct.
You can change the date range by:
- Selecting a different preset date range (e.g., today, this month, this fiscal quarter, this fiscal year-to-date, last fiscal year, etc.) from the “Dates” drop-down list at the top of the report.
- Entering a time period not specified by one of the preset date ranges in the “From” and “To” fields at the top of the report, by entering the dates manually or by clicking the calendar symbol to the right of the dates and then clicking the arrows on the calendar to select the applicable month and year and then clicking on the applicable day.
NOTE: You should click the “Refresh” button at the top of the report after changing the date range. *
Check Dates
QuickBooks allows users to pay bills or write checks on a particular day but not print the checks until a subsequent day. In that case, QuickBooks automatically prints the payment date specified in the “Pay Bills” window or the date specified in the “Write Checks” window as the check date.
Users can print the actual check date by selecting “Preferences” from the “Edit” menu and then selecting “Checking” from the “Preferences” scroll box. Users then should check the “Change check date when check is printed” box in the “Company Preferences” tab.
Changing Source Documents
QuickBooks allows users to correct or otherwise change transactions by changing source documents (such as bills, checks, invoices, etc.). In fact, many of the QuickBooks help screens and user guides encourage users to correct transactions simply by changing the source document. Consequently, many QuickBooks users change source documents when a more accurate method for changing a transaction should be followed.
For example, many users change Estimate or invoice amounts in QuickBooks rather than issuing credit memos to their customers. Likewise, many users change bills that have been entered in QuickBooks rather than entering vendor credits as negative bill amounts. In addition to changing amounts on source documents, QuickBooks users also may change accounts, dates, or other information after the transaction has been posted. When users alter source documents, QuickBooks retains a record of the change with the audit trail feature. Practitioners should encourage their QuickBooks clients to enter new transactions (such as credit memos) or record journal entries when applicable rather than changing source documents.
Accounts Receivable and Accounts Payable
QuickBooks requires that a “Customer:Job” be specified in journal entry postings to accounts receivable and accounts payable. Consequently, practitioners who wish to make correcting entries to accounts receivable or accounts payable without correcting individual customer or vendor accounts often specify the “Customer:Job” as “dummy” or “adjusting.” While that practice may be a quick and efficient way to adjust the accounts receivable or accounts payable balance, the authors caution that the adjustment method will result in incorrect individual customers and vendors accounts. The practitioner should advise his or her clients that the individual customer and vendor accounts will be incorrect.
*Users can choose a personal preference that automatically refreshes reports. To turn on that preference, select “Preferences” from the “Edit” menu. Select the “My Preferences” tab under “Reports & Graphs” and then select “Refresh automatically.”
