M-Power is designed to capture the elements that define job costing so you can determine which jobs are profitable and which are not.
These elements are contained within the job summary screen which is accessible from many areas of the system.
The key elements that feed into a job costing are:
- Invoice Value
- Cost of Materials used in the Job
- Labour Time applied to the Job
The invoice value is the value of all invoices lines raised for the job. Note: This is taken from the individual lines with an invoice, which means than multiple jobs can be listed on one invoice yet the figure will still be correct. The invoice figure (and all other figures) are exclusive of GST.
Cost of Sales
The cost of sales is the value of material items used within the the job. A material can be committed to the job at the time the job is raised, or after the job. The percentage figure (20%) reflects the actual cost of sales percentage for the job. Patterns in this figure between jobs for a given product is important for understanding waste and margins.
Refer to this article to manage material items committed to the job
Labour Time (hours)
Labour time is derived from the scanning data and can be manually modified within the job summary screens.
Refer to this article to manage time segments
This is the gross profit of the job (invoice value less cost of sales) divided into the the number of hours committed to the job. This is an important figure as many companies charge their labour out at a factory rate that reflects their overheads and desired profit. If the return/hr is less than the factory rate then the job has not contributed to overheads