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questions_123123
April 21, 2022
Question

Changing Account Numbers/Job Costing

  • April 21, 2022
  • 1 reply
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When you change an account number in the Chart of Accounts, does it make all historical entries to the old account number show up as if they were made to the new account number?

 

How does Quickbooks handle job costing? Does it track jobs by job number? Are there limitations as to the job number format? i.e., could we use job number 10-XXXX to represent job number XXXX which is a job assigned to our specific location #10? 

 

How do costs get applied to a specific job?

 

Payroll

- Does the system require a payroll module in order to fully apply proper payroll to specific jobs?

- Can costs be applied directly to jobs through general journal entry?

 

Purchasing

- Same question regarding application through journal entry

- Are job costs applied at the time of P.O. through purchases journal or some other way?

1 reply

C
ChristineJoieR
April 21, 2022

It's nice to see you here in the Community, @questions_123123. I’ll gladly share with you information on how to manage transactions your mentioned within your QuickBooks Account.

 

QuickBooks organizes all of your accounting using your chart of accounts. You can make the old ones inactive if you wish to get rid of them. This effectively removes it. Inactive accounts are hidden from lists and menus in QuickBooks, but historical transactions are kept on your reports.

 

Here’s an article on how to delete and restore an account for more detailed information. This gives you instructions on how to get access to the accounts in case you need them in the future.

 

You may easily add new transactions to your project, such as invoices, expenses, and estimations. Adding transactions to projects has no effect on how they're classified or on your accounts. You're merely tagging them as part of the project so you can keep track of the income and expenses for that particular project.

 

There are two methods for adding new transactions to your account. You can construct the transaction in QuickBooks just like any other. Simply select the project from the customer/project dropdown menu. Or, from within projects, refer to step #3 on how to start a new transaction: Set up and create projects in QuickBooks Online.

 

Furthermore, we can use timesheets to tracks your contractor or employees job in QuickBooks Online. Check out this link for more details: Track and manage timesheets in QuickBooks Online.

 

Return to this thread if you want to know more information about how to manage your QuickBooks account. I'll be there shortly. 

Q
questions_123123Author
April 22, 2022

Thank you Christine! We have 3 clients that use various versions of QB (Enterprise version of QB Manufacturing & Wholesale 21.0, QB Premier, and QB Enterprise Solutions: Contractor 21.0 Release R8P), and we are trying to generate a new Chart of Accounts that will be standardized across all 3 companies. However, this will require us editing the CURRENT CoA for each company, and what is of most importance to us is

1. making sure that we CAN edit the CoA for each company in their respective QB versions

2. Ensuring that we fully understand what will happen to historical transactions if/when we simply change the account number for an account

 

With that said, can you confirm what will happen when we make a manual change to a CoA? How will the historical transactions be classified? Under the new or old CoA?

 

Furthermore, on job costing, thank you for clarifying some of those points for me. My remaining point of confusion is on how jobs are tracked (job number?) and if so, what are the limitations to the job number format?

 

Thank you in advance!!!

L
LollyNino_C
April 22, 2022

Greetings, @questions_123123. 

 

In QuickBooks Online (QBO), the Project feature works like Job Costing in QuickBooks Desktop. This feature helps you to be organized and track all moving parts. 

 

Yes, you can create a dummy customer for tracking projects. QBO will allow you to do this. On the other hand, you can also use the Class tracking feature to help track income, expenses, or profitability by business segment.

 

To have a better view, take a look at these articles:

Let me know if you have other questions concerning QuickBooks. I’m here to help. Have a great day!

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