When a job needs to be revised ie: Original cost to customer is $4050.00.
Original Estimated costs are: Product "1" is $1000.00. Product "2" is $1000.00.
Product '3" is $1000.00. Customer changes their mind and cancels product 3.
Total cost to customer is now $2700.00.

To make the changes in Job Cost to reflect the cancellation of part of the job....
Step 1. In Job Cost, we create a change order for -$1350.00.
In estimates, do we change the current estimated cost to "0" for product 3?
I'm questioning this because that's what I did today, but when I printed the
Job Estimates Audit report it shows the job estimate as a negative dollar
amount.
If this is the correct procedure, great, if not, please let me know how to input the changes properly.
Thanks so much!
Karen

Hi Karen,

The Job Estimates Audit report reflect net changes, not new amounts. So if you reduce the Current Estimated Amount of an estimate by $1000, then you correctly will see an amount of -$1000 on the Estimates Audit report.

The same would be the case if you increased the Current Estimated Dollars - the amount that prints on the report would be the net increase.

As you are using Change Orders to reduce the Contract Price for the customer, and editing the Estimate to reduce the Cost, I believe you are doing everything correctly.

Whew...thanks so much! It's great to know we're doing SOMETHING right!!!!!