Introduction to Cost Adjustments
Introduction to Job Costs in Gojee
The cost adjustment add-on feature is designed to enable users to take more control over how the job costs captured in Gojee are represented and tracked in Xero. There are two main aspects at the core of the system:
- To capture the true cost of your jobs and make the relevant adjustments journals in Xero to ensure you have a clear picture of your cost of sales versus operating expenses.
- To enable users to track Work in Progress (WIP) as jobs progress, and temporarily store these costs in a balance sheet account in Xero, until the appropriate time to expense the WIP to cost of sales accounts.
In Gojee, by default the cost adjustments are turned off, which means that no cost recovery adjustments will be made for labour and assets until the user turns on this module. In the default mode, Inventory that is used on jobs will be expensed to the nominated expense account at the time it is consumed onto a job. Regardless of when it is expensed, you can modify the Journal Date (Effective Date) for each transaction, allowing the adjustment to be recorded in the Xero period you choose.
It's recommended that you speak with your accountant or bookkeeper prior to turning this feature on as you will need to select the appropriate Xero accounts to post the cost adjustment transactions.
Note: Once you turn on the Cost Adjustment module, you will not be able to revert to default Gojee.
This is a powerful feature and it will provide both you and your accountant/book keeper a lot of insight into the true cost of your jobs. You can use this information to make timely adjustments to your job estimating and pricing to ensure your bottom line is always trending in the right direction.
To get started, you will firstly need to choose which module you'd like to use, and then set up the Cost Adjustments module accordingly. The links below provide detailed information on each option and how to complete the setup.
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