The money on the job

Finding out at the year end that a job lost money.

Know what a job will make before it is finished

A cost value reconciliation is only worth having if its cost side is the ledger rather than somebody’s recollection. Here it is: the cost to date is what has actually been posted to the code, so the forecast moves when a bill is approved, and it says so in the month it happens rather than in the year-end accounts.

One month, one job

The reconciliation, opened up

Murgese
The running program on a sample company; every figure is invented.
  1. Where the job is heading The forecast margin at the end, against last month’s, and any loss that can already be foreseen.
  2. What nobody has looked at Cost codes whose cost to complete nobody has reviewed this month are named at the top, so the forecast is not signed off on a guess.
  3. The value side The latest application, what the customer certified, any adjustment, and the work done but not yet invoiced.
  4. Signed off, then frozen Signing off the month posts its journal and freezes the figures.
  • Budgets by cost codeSet on the job, and what the requisitions and orders are held against.
  • A reconciliation every monthCost to date from the ledger, certified subcontract work and accruals, cost to complete, forecast final cost and margin, and the month-end work in progress journal.
  • Early warning of a lossA code going over shows as it happens, not when the job is handed over.
  • Variations, request to agreedWhat is counted in the contract value and what is not, and the final account agreed and printed for signature.
  • Profit, cut your own wayBy region, by sector, or by any dimension the firm sets, adding up to the period’s profit. Job reports and the firm’s own dashboards.
The forecast moving as a cost posts A merchant’s bill for concrete is approved, and back on the reconciliation that cost code is up by the same figure, its cost to complete is used up, and it shows over budget.

The running program on a sample company; every figure is invented.

A job’s final account, agreed with the customer: the contract sum, a provisional sum as spent, the agreed variations and an agreed omission.
A job’s final account, agreed with the customer: the contract sum, a provisional sum as spent, the agreed variations and an agreed omission.
The final account printed on the letterhead for the customer to sign.
The final account printed on the letterhead for the customer to sign.

The running program on a sample company. The firm, its jobs, its people and every figure are invented.

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