Cost types are user-defined categories that all costs of a job fall under. Up to nine cost types may be set up, for example - L-labor, M-materials, S-subcontracting, etc. These types are also used by the system to determine if the cost type is taxable, how much burden and overhead to add to the costing amount, and what general ledger account numbers to post the costs and invoices to (assigned in the GL Posting Table F/M). Cost types are also set up to store default markup methods and percent markup for individual cost codes.
If the user is posting overhead and/or burden to a single GL # then a cost type (for each or both) must be set up so that the GL # number set up for this cost type in the GL Posting Table F/M holds all the overhead and/or burden amounts if the appropriate fields in the JC to GL posting control record are set to J-the posting table assigned to the job number.
Cost types are used in the job cost Posting Register, Invoice Register, some reports and the entry programs.
For more information how to use maintenances, refer to the following topics:
How to use file maintenance programs
1. Cost Type
Enter the cost type code (1 character). Entering a space or a duplicate cost type code is not allowed.
2. Description
Enter the cost type code description (up to 30 characters).
3. Taxable Status
This field is skipped if the charge tax flag in the job cost static control record is set to N. Enter Y or N to indicate whether the cost type is taxable. If a Y is entered, the Automatic Job Selection program creates the job cost invoice with sales tax (amount times the tax percentage from the tax code and rate assigned to the job #). If N is entered, the invoice is created with no tax. Enter (CR) initially defaults to Y.
4. Overhead %
Enter the percentage that is to be used by the system to calculate overhead for each cost. When posting costs to general ledger, the system retrieves the overhead percentage, multiplies the cost by the entered percentage and posts the calculated amount. If the user is not posting overhead, press Enter (CR) or enter 0 (default cost code overhead field in the job cost static control record should be set to " ", which is not used). Enter (CR) initially defaults to 0.
5. Burden %
Enter the percentage that is to be used by the system to calculate burden for each cost. When posting costs to general ledger, the system retrieves the burden percentage, multiplies the cost by the entered percentage and posts the calculated amount. If the user is not posting burden, press Enter (CR) or enter 0 (default cost code burden field in the job cost static control record should be set to " ", which is not used). Enter (CR) initially defaults to 0.
The next two fields are used as the default values for any cost codes that are of the entered cost type. The user is able to override the entered values in the Cost Code F/M.
6. Markup Method
Enter the default markup method for cost codes of the entered cost type. Enter (CR) initially defaults to E. The user options are:
F Fixed. The system charges a fixed amount every time. Cost amount does not affect the billing amount.
M Manual. The system charges a fixed amount every time. Number of units or cost amount does not affect the billing amount: the user has to enter the billing amount.
$ Dollar. The system adds a dollar amount to the cost every time. If units are used, the system marks up the cost per unit by the entered dollar amount. If units are not used, the system marks up the total cost by the entered dollar amount.
% Percent. The system marks up the cost amount by a percentage every time. If units are used it marks up the cost per unit by the entered percent. If units are not used, it marks up the cost extension by the entered percent.
7. Markup Percent
If %-percent was not entered field #6, then this field is initially skipped. Enter the percent to mark up the cost. For example, to markup the cost 20%, enter 20. Enter (CR) initially defaults to 0.