Recoveries are used in Jiwa Job Costing to recover direct and indirect costs through a job or project. These costs may include labour, indirect labour, equipment, resources, or other costs that need to be allocated to the job.
This article explains how recoveries are used in Job Costing and how recovery transactions affect the job and related journal entries.
Before setting up or processing recoveries, we recommend confirming the recovery method with your accountant or finance team. You should have a clear understanding of which costs need to be recovered, how recovery rates are calculated, which staff or resource records are required, and how recoveries should appear in the Profit and Loss report.
Recoveries should be used carefully, as they affect job costs, work in progress, profitability reporting, and financial postings.
Staff
To record labour against a job each staff member must be setup as a staff record in the Job Costing module.
Staff are maintained through Job Costing | Configuration | Staff
The labour recovery account is setup against each staff record, this allows you to post to multiple labour recovery accounts if required.
Resources
To recover resource costs against a job each resource must be setup in the Job Costing module.
Resources are maintained through Job Costing | Configuration | Resources
The resource recovery account is setup against each resource record, this allows you to post to multiple resource recovery accounts if required.
Adding Costs to Jobs
Recoverable labour and resource costs can be added to a job through the following forms;
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Job Cost Entry, and
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Timesheets
When recoverable costs are added to a job and the form is activated a journal entry is created to move the recovery out of the recovery account and into WIP.
The following journal entry is created.
Invoicing Costs
When recoverable labour and resource costs are invoiced the costs are moved out of WIP and into Cost of Sales
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