Hi there! I am back with another question. After an invoice is posted, it is retrieved into Job Cost and GL. We have set it to automatically debit the Job Cost clearing account in the GL. That worked.

Once we post the entry in Job Cost, another batch is sent to the GL, which credits the Job Cost clearing account. However, the debit side for this GL batch is left blank. We thought we had set it to automatically debit the Work in Progress account. What did we not link up properly this time?

Thanks for your help!

Hi Michael,

What is the Revenue Recognition method of the Job? Is it Billings and Costs, or a different method? If by Billings and Costs, then the debit will go directly to Cost of Sales. The other methods will debit Work in Progress, which will go to Cost of Sales when you run the Recognize Revenue and Expenses procedure. There may be other credits to overhead allocation or labour burden if you have defined these for the job.

GL accounting is determined at the lowest detail level, and if blank, then the next highest level is read. In other words, if your estimate uses Categories, then the Cost of Sales or WIP account is read from there. If it is blank, then the Phase code is read. If blank on the Phase, then the Job is read. And if blank on the Job, then the Company Profile is read. This logic is used so that if all accounting will be the same for all jobs and estimates, then you only need to set it up in one place. Only exceptions need be entered, and in as few places as possible.

My suspicion is that you may be missing the GL account on the Cost of Sales, since you indicated that you set up the WIP account. But you can determine where accounts are entered for your jobs, phases and categories and what might be unexpectedly blank. Ensure that none of the accounts in the Company Profile are blank.

Hi Softrak Support Team,

Your explanation makes sense and you are correct in suspecting that we are missing the GL account on the Cost of Sales. The only accounts we initially set up in the Company Profile are Work in Progress and Job Cost Clearing. After your recommendation, we have populated all the account fields in Company Profile.

Did a test batch and everything is working now. All the account codes are now showing in the batches that we retrieve into the GL.

Thank you once again for your help! This is very much appreciated!