Software: MoneyWorks accounting software
Monitoring of fund allocation is never easy, especially when there are multiple funds and projects. A school may receive funding from MOE (Ministry of Education) to upgrade the computer lab, pocket money fund for the children, or allocate a fund internally to maintain the canteen. An easy way of tracking the funding is using the job feature in MoneyWorks, create a job code for each funding and tag it to a ‘client’, the organisation that giving the fund. Assuming you received a few funding from MOE in the year 2018, you may use a job code such as MOE1801, MOE1802, etc. to differentiate it.
Use a Receipt transaction to record the fund received and tag it to the job. The entry debits the bank and credits the income account. Then, use the job code in payment or purchase invoice transaction when there are expenses related to the job. Next, use the Job Allocation report, a new report in MoneyWorks version 8.1.5, to monitor how the fund has used once related entries have recorded.
Unlike external funding, internal funding requires to move the fund out from the bank and receiving back to indicate as a fund ‘received’ for the project. In the payment transaction, issue the fund out from the bank to a Fund Received income account, and then use a negative value on the second detail line to move the money back to the bank and tag it to the job. The payment debits the Fund Received and credits the Bank, and then debits the Bank and credit back to the Fund Received account. The transaction gross is zero as these are memo entries, you will see a deposit and a withdrawal when reconciling the bank which you can knock off without affecting the book. Similar to the external funding, you record the project related expenses via the payment and purchase invoice transaction and tag it to a job; then use the Job Allocation report to monitor the fund.
Job Allocation report helps monitor fund received and expenditures of both related expenses and assets purchased. Do consider upgrading to version 8.1.5 if job tracking is your priority.
Cognito has released MoneyWorks version 8.1.5 update. The complete change history (a list the bug fixes and improvements) of version 8.1.5 is available at Cognito website.
A project-based business may consider using the job tagging feature in MoneyWorks to track the profitability of each job. You can tag a job code to the income and expenses, and then use the new job allocation report which comes with the new 8.1.5 update to serve as cost control and monitor the profitability.
For a non-profit organisation such as charities and schools may use job tagging feature to track project like upgrading facilities or social works, and use the job allocation report to monitor how they have used the fund which given by the parent or government body.
Check with your MoneyWorks consultant on how to use the job tagging feature for your organisation.
Software: MoneyWorks accounting software
It’s essential for the job or project-based businesses to measure job profitability. It gives the business owner a breakdown of the job-related income, expenditures, and a bottom line of whether the job is making money.
You have an option of enabling the full job costing and time billing feature, or just showing the job column to enter the job references in the transaction when turning on the job function from the Document Preferences of the MoneyWorks accounting software.
By showing the job column alone allows you to tag a job code on the GL (general ledger) account when recording a transaction such as Sales Invoice, Purchase Invoice, or Payment.
On the other hand, if you do keep stock (inventory) for both trading and project, or require job sheet to enter the time cost or resources used; then turning on the full job function is a better consideration.
MoneyWorks debits the cost of goods sold and credits the accounts payable (or bank) when a product has tagged to the job in a purchase invoice (or payment). On the other hand, the product cost transferred from inventory assets to the cost of goods sold when the product transferred from the existing warehouse to the job via a job sheet entry.
Job account summary, job profit and loss detail, etc. are job reports which can print from the report menu once transactions have recorded; or you may create an analysis report from the File menu based on your requirement. It gives an income and expenses overview of the job and eases the tracking of the job profitability.
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Posted in Accounting, Accounting Software Singapore, MoneyWorks
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