Projects and Job Costing

Preview · from QuickBooks Online Step-by-Step

In this chapter

• Working with Estimates
• Using the Projects Center
• Using Progress Invoicing
• Creating Purchase Orders from Estimates
• Tracking Progress On Estimates
• Managing Customer Prepayments
• Managing Vendor Deposits
• Billable Expense Reimbursement
• Using Two-Sided Items
• Labor Costing
• Running Job Costing Reports
• Do It Yourself: Projects and Job Costing

Chapter review: Estimates, Progress Invoicing, and Job Costing

8 practice questions. The answers are in the book.

1. Creating an Invoice from an Estimate:

   • Has no effect on the financial statements.
   • Eliminates the need to manually enter Estimate details on the Invoice.
   • Can affect the P&L because creating an Estimate itself affects the P&L.
   • Can take up to several hours because some Estimates are very complex.

2. Which statement is false?

   • Progress invoicing allows you to charge your customers a portion of the total estimate for each stage of the job.
   • QuickBooks Online can track how much of the Estimate has been invoiced, and how much remains to be invoiced.
   • Progress Invoicing can create an Invoice for the entire Estimate, but only after the Estimate is closed.
   • Progress Invoicing allows you to create an Invoice for some of the Estimate’s line items.

3. If you do not have enough stock on hand to fill orders, you can:

   • Create a Purchase Order from an Estimate using QuickBooks Online Plus or Advanced.
   • Send the Customer an order delay receipt.
   • Replace the order with another item the customer did not ask for.
   • Both b and c.

4. In QuickBooks Online you are allowed to pass through billable expenses to customers:

   • Only if you paid by credit card.
   • If you used a bill, check, or expense and assigned the customer or project to the expense.
   • If you used a bill, check, or expense, assigned the customer or project, and marked the expense as Billable.
   • None of the above.

5. In an invoice, you can automatically add markup to pass-through expenses. This income appears in:

   • The Sales Income on a Profit and Loss Report.
   • Markup Income on a Profit and Loss Report
   • The Cost of Goods section of a Profit and Loss Report.
   • None of the above.

6. Two-sided items can be used for:

   • Reimbursable expenses.
   • Custom order parts.
   • Subcontracted labor.
   • All of the above.

7. To see a detailed listing of all the billable expenses that you have not passed through to invoices:

   • Create an Unbilled Charges report.
   • Create an Unbilled Time report.
   • Create an Unbilled Costs by Project report.
   • None of the above.

8. Setting up the Project App’s Employee Cost calculator allows you to:

   • Flow costs through to payroll.
   • Calculate fully-burdened labor costs.
   • View time reports by employee or service.
   • Both b and c.