How to Set Up Job Costing in QuickBooks?

setup job costing in quickbooks
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QuickBooks is excellent and robust accounting software designed for small and medium-sized businesses. QuickBooks Desktop allows you to easily set up job-costing and item tracking for payroll expenses.
Job costing is an accounting term and this process involves tracking job expenses and then comparing expenses to the revenue you have generated. QB’s job costing tools enable you to know how much money is being spent and made for a job.
This article will show you how you can set up job costing in QuickBooks. When as a QB user, you will set up preferences, QB will automatically track expenses by job for company payroll expenses.

Steps to set up job costing in QuickBooks

  • Go to the QuickBooks’ main menu.
  • Choose the Edit menu.
  • In the menu items list, select Preferences.
  • Preferences window gets opened.
  • On the left side of the Preferences window, look for Accounting and click it.
  • Now, choose the tab with the name – Company Preferences.
  • Look for Use class tracking. Place a checkmark against it if in case it is not there. If there is no checkmark in the box, then those options would not be available that that allow assigning one class for one entire paycheque or earnings item.
  • Look for the OK button on the right side of the window and click it.
  • Again, go to the QuickBooks’ main menu. Choose the Edit menu.
  • In the menu items list, select Preferences. Preferences window gets opened.
  • On the left side of the Preferences window, look for Payroll and Employees, and click it.
  • Now, choose the tab with the name – Company Preferences.
  • Look for the box with the name – Job Costing, Class and Item tracking for paycheque expenses.
  • Place a checkmark against this box.
  • Now, you are required to choose whether you want to track my entire paycheque or you want to track by earnings item.

Steps to track expenses by job

QuickBooks displays a checkbox when a user creates or edits payroll items that can be classed under the following – additions, deductions or company contributions. Follow the steps given below to track expenses by the job –

  • Go to the QuickBooks’ main menu.
  • Choose Lists menu.
  • In the menu items list, select the Payroll Item List.
  • Do a right-click on the Payroll Item.
  • After that, you have to choose Edit Payroll Item.
  • Now, look for Track Expenses by Job and choose it. You have to take into consideration that following the above-given steps for setting up job costing preferences is important. If you have not set up job costing in QuickBooks, you would not be able to see Track Expenses by Job option when you choose to edit payroll item.
  • Now go on clicking the Next button, until you the Finish button appears.
  • Click the Finish button.
  • This finishes the process for one payroll item. You have to repeat these steps for each of the payroll items that you wish to track.

You have to note that placing a checkmark against Track Expenses by Job would not add a column with the name Customer: Job to the payroll items that are listed under Other Payroll Items on a paycheque. Also, when you turn on Track Expenses by Job, existing transactions would not be affected.
If you are not able to set up job costing in QuickBooks by following above given steps, immediately call our QuickBooks Support Number 1-855-857-0824.

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