ERP Internals/Modules/Job Costing
Sometimes, the item sold requires days or weeks to create. During the process, job costing tracks actual costs, compares them to planned costs, and displays the resulting variances in the form of reports and graphs. Costs are divided into the following categories: Direct Materials, Direct Labor, Sub-contract, and Overhead (or Burden). This allows management to keep track of costs relative to the percentage the job is complete. Every ERP package has a Job Costing module.
The first table is the Job table which contains one record for every job. The second table is the Transaction table which contains one record for every transaction (labor, materials, sub-contract, adjustment). There is at least one transaction for every job and there can be many
Job Costing sends transactions to General Ledger and Payroll.