Na2009 enus jc_in

MICROSOFT DYNAMICS NAV 2009

COURSE 50226: JOB COSTING

INSTRUCTOR NOTES

Contents and Timeline Chart

** Intended for Instructor Preparation Only ** Page i

Start the Class 1

Chapter 1: Jobs Overview and Setup 3

Chapter 2: Usage Posting and Invoicing 7

Chapter 3: WIP Posting 10

Chapter 4: Jobs – Advanced Facilities 14

Conclusion 17

Job Costing in Microsoft Dynamics NAV 2009

Page ii ** Intended for Instructor Preparation Only **

Timeline

Session Total Class Presentation: 4 hours

Chapter Description Minutes to Complete

Chapter

Page

Number

1 Introduction Presentation: 5 minutes 1

Chapter 1: Jobs Overview and Setup Presentation: 60 minutes 3

Chapter 2: Usage Posting and Invoicing Presentation: 60 minutes 7

2 Chapter 3: WIP Concepts Presentation: 90 minutes 10

Chapter 4: Jobs – Advanced Facilities Presentation: 60 minutes 14

Conclusion Presentation: 5 minutes 17

Instructor Notes

** Intended for Instructor Preparation Only ** Page 1

START THE CLASS

Timeline

Presentation: 5 min

Required Materials

Microsoft Dynamics® NAV 2009 Job Costing slide deck

Microsoft Dynamics NAV 2009 Job Costing Manual

Before the Class

If you are using the Cronus database, ensure that you have a clean database

installed. A clean database is required for the exercises to work correctly.

Opening Section

Display Microsoft Dynamics NAV 2009 Job Costing slide 1 as students come

into the room.

Display slide 2. Do the introductions.

Display slide 3. Give a general description about the course: the target audience,

training goal, and the process.

Display slide 4. Give a course outline, discussing what will be covered.

Display slide 5. Give the main course objectives.

Briefly have students write down their objectives on page 3 of the manual.


Page 2 ** Intended for Instructor Preparation Only **

Ask students if they have learning objectives not highlighted on the slide. If the

students voice an objective that is outside the scope of the class, identify that

objective as such; if appropriate, you can try to reference it if time permits.

Write their objectives on a flip chart sheet and post the sheet on a wall in the

room. Revisit these throughout the class and at the end during the course review

to ensure that all of the students’ learning objectives are met.

Instructor Notes


CHAPTER 1: JOBS OVERVIEW AND SETUP

Chapter Overview

The goals of this chapter are to:

Define jobs and their elements in Microsoft Dynamics® NAV 2009.

Examine how data flows between the elements of a job.

Set up an appropriate Role Center for working with the Job Costing

functionality.

Set up job posting groups.

Create and set up a job card.

Plan a job: job tasks and planning lines.

Set up job related prices and discounts.

Timeline

Presentation: 60 minutes

How to Teach this Chapter

Throughout the training, multiple scenarios are to be used to demonstrate the

principles the students need to learn. It is recommended that you walk through

these scenarios on screen and have the students perform the scenarios at the same

time on their computers.

Each session of the presentation begins with a Microsoft® PowerPoint® slide

containing the session objectives. Each session can contain two to four chapters.

Display slide 6: Session 1

Discuss the objectives of this session.

Jobs Overview

Display slide 7: What are jobs?

Give a general idea about jobs in Microsoft Dynamics NAV 2009.

Define jobs and their purpose, and then describe typical situations of

use.

Reference the Service functionality and point out how Job Costing is

different and what possibilities this module provides for users.

Workflow

Display slide 8: Workflow

Describe a job’s main phases:

Planning



o Give the job structure. Point out two elements of the job

planning: job task lines and job planning lines.

o Emphasize that the job planning lines are secondary and cannot

be created stand-alone.

o Point out that job tasks define major tasks for the job, and job

planning lines specify the detailed use of resources, items, and

various G/L expenses, in addition to the planned dates when they

will be used and/or invoiced.

o Emphasize that planning lines represent the expected usage of

the job and job tasks: the job phases.

o Explain that the job card is the starting point when a new job is

created.

o Mention that you will later discuss the general setup that must be

done before working with jobs.

Executing and monitoring the job

o Define the job usage in jobs.

o Describe why the job usage must be posted, and the consumption

of what it can include.

o Emphasize the importance of WIP calculation and posting.

o Explain that during this course, you will first handle a small job

that will not require WIP calculation, and during the second

session, a more complicated demonstration will follow.

o Explain that invoicing can be done in various stages of the job

costing workflow, depending on the job schedule. If the job has

no WIP posted to G/L, the invoicing can be the final stage of the

job.

Finalizing and Analysis

o Explain what types of entries are created as a job progresses.

o Describe the two possible scenarios of finalizing a job: with and

without WIP posted to G/L.

General Setup

Display slide 9: General Setup

Specify the main application areas that must be set up before one starts working

with the Job Costing module.

Display slide 10: Role Center

Remind students about the Role Center functionality.

Ask the audience to give a general description of Role Center since

most will have had prior experience with this area.

List the roles that are engaged in Job Costing and explain that you

are going to base the presentation on the Program Manager Role

Center.

Instructor Notes


Show how to set up the Role Center in Microsoft Dynamics NAV

2009. Students will perform the same operation on their computers.

Display slide 11: Job Posting Groups

Give a general idea why is it necessary to set up job posting groups.

Demonstrate the Job Posting Groups window.

Go to Departments > Jobs > Job Posting Groups to open the Job

Posting Groups window. There is already a SETTING UP posting

group set up in the demo database.

In the Job Posting Groups window, mention some of the most

important fields, such as Job Cost Adjustment Account and Job

Sales Adjustment Account. Rather than describing each field in the

setup, refer students to the manual and online Help for more detailed

information.

Point out that if WIP does not need to be run for a project, the

account fields do not need to be filled in. However, the Code field

must be set up in this window since job cards require job posting

groups, regardless of WIP.

Job Setup

Display slide 12: Job Setup and Planning

Outline the procedure of setting up a job.

Describe the hierarchy of job elements and the succession in which

they must be set up.

Open the Job Card window. Go to Home > Jobs and double-click a

DEERFIELD, 8 WP job line in the Jobs window.

Display slide 13: Job Card

Introduce the Job Card window.

Highlight mandatory and other important fields on the job card, and

then proceed to the creation of a new job.

Change the work date to March 3, 2009 and advise your students to

do the same. This will simplify data entry.

Create a new job card and fill in the mandatory fields.

Explain to students that they can set up special prices for the items,

resources, and G/L accounts that are part of one’s job.

Job Planning

Display slide 14: Job Task Lines

Describe and demonstrate the first phase of planning a job – creating job task

lines.

Open the Job Task Lines window from the previously-created job

card.



Briefly introduce the structure of job task lines.

Highlight the similarity to Chart of Accounts.

Demonstrate the creation of job task lines for a small job.

After the job task lines are created, show the Indent Job Tasks

function and describe what it does.

Emphasize that it is preferable to set up special job prices and

discounts before you proceed to setting up job planning lines if you

want to have new pricing applied to the planning lines automatically.

Otherwise, you will have to manually adjust prices and discounts on

the job planning lines.

Display slide 15: Job Planning Lines.

Describe and demonstrate the second phase of planning a job – creating job

planning lines.

Mention that for each job task, planning lines describe the expected

consumption of items, resources, and other costs.

Describe the various types of job planning lines. Emphasize that only

lines of type Contract or Both Schedule and Contract can be

invoiced.

Create a couple of planning lines of Both Schedule and Contract type

for job task line of the Posting type. Note that planning lines are

created only for posting job tasks.

At this point, you can also describe the possibility of splitting Both

Schedule and Contract planning lines into two separate lines and

why it can be necessary.

Lab 1.1 Planning a Job

Suggest that students perform Lab 1.1 in the training manual. Give

approximately 10 minutes for this task. Provide assistance if requested.

Test Your Knowledge

As a home assignment for this chapter, suggest that students answer the questions

from the “Test Your Knowledge” section of chapter 1 and check their answers in

the “Solutions” section of that same chapter.

Instructor Notes


CHAPTER 2: USAGE POSTING AND INVOICING

Chapter Overview


Post job consumption.

Post additional expenses.

Post extra usage.

Invoice the job.

Analyze the job.

View job statistics.

Copy a previous job.

Timeline



Display slide 16: Job Usage

Give an overview of posting job usage.

Explain that you will teach usage posting by first reviewing how job

usage is recorded and posted.

Explain that you will create purchase orders and job journals to

record those costs for the job created in the first part of the session.

Define job usage and describe the ways it can be posted.

Job usage can be posted through a job journal, job G/L journal, or

purchase line.

Discuss the typical situations when different methods of job usage

posting are used.

Posting Consumption of Items and Resources

Demonstrate the usage posting procedure for items and resources for the

previously created job.

Briefly introduce the job journal and the main fields in the journal.

When you are at the stage of creating job journal lines, mention and

use the Calc. Remaining Usage function for creating the lines.

Include posting of additional expenses and extra usage into the

demonstration.

Ensure that students understand when and how various types of job

usage must be posted.



Highlight a possible scenario when an item used in the job is not

available in the inventory and that, in this case, the job usage for

such an item is posted from the purchase line. ]

Stress the importance of the Job Line Type field during the usage

posting.

Mention that the value in this field defines whether the

corresponding job planning lines will be created after they have

posted the job usage.

Invoicing a Job

Display slide 17: Invoicing a job

Describe and demonstrate the procedure of invoicing a job.

Explain the posting mechanism in job posting.

Mention that there are two possible scenarios of completing a job.

o The first scenario is when there is no WIP calculated and posted

to G/L. In this case, the job invoicing is the final stage of the job.

o The second scenario is when there is WIP posted to G/L. In this

case, the WIP must be recalculated and posted again when the

job receives status Completed.

Point out that in the first session, you will demonstrate the first

scenario by invoicing the previously created job.

Highlight that invoicing can be done at various stages of the job

depending on the job schedule.

You can also briefly describe the types of entries created after

invoicing: Usage and Posting.

Invoice the job and change the job status to Completed. The

possibility to reopen the job can be mentioned at this stage.

Job Analysis and Statistics

Display slide 18: Job Analysis and Statistics

Introduce various types of monitoring and analyzing a job (use the job created

and invoiced during session 1 as an example).

Note to instructor: There has been no WIP and recognition calculated/posted for

the invoiced job; therefore, no statistics are displayed on the WIP and

Recognition FastTab on the job card. Explain that you will demonstrate this

method of monitoring during session two when you will handle more

complicated jobs with WIP.

Lab 2.1 Carrying Out and Invoicing a Job

Suggest that students perform Lab 2.1 from the training manual. Give


Note to instructor: This is the end of session 1.

Instructor Notes


Display slide 19: Session 1 Summary.

Review the key concepts. You can ask students to describe what was covered for

each bullet point.

Test Your Knowledge






CHAPTER 3: WIP POSTING

Chapter Overview


Examine WIP concepts in Microsoft Dynamics NAV® 2009.

Calculate WIP and recognition.

Post WIP and recognition to G/L.

Finalize a job.

Exclude a task from WIP calculation.

Timeline



Display slide 20: Session 2

Discuss the objectives of this session.

WIP Concepts

Display slide 21: WIP Concepts

Give an overview of WIP concepts in Microsoft Dynamics NAV 2009.

Define WIP and mention that WIP and recognition in Microsoft

Dynamics NAV 2009 are calculated and posted simultaneously.

Describe the advantages of calculating and posting WIP, mentioning

that it helps eliminate inaccuracy of a company’s financial statement,

if only expenses have been posted.

Display slide 22: WIP Amounts and Methods

Introduce five methods of WIP calculation:

Cost Value

Sales Value

Cost of Sales

Percentage of Completion

Completed Contract.

Give a typical business situation when each of them can be used.

Explain that only the first two methods (Cost Value and Sales Value) are going to

be used in this session’s demonstrations. Therefore, you can discuss the

remaining three methods further.

Instructor Notes


For example, you can mention that the revenue and profit (or loss) of

the job are recognized when the job is invoiced to the customer (Cost

of Sales method).

The typical situation for the Percentage of Completion method is in

the Construction industry when the total cost plan is estimated to be

done when a certain percent of work is completed.

The Completed Contract method is used when the whole job is sold

as a one-off result: the job is a single entity and no part of it is

considered to be finished until the whole job is completed.

After you explain all five WIP calculation methods, highlight their influence on

the process of finalizing a job.

For jobs with the WIP method Completed Contract, changing the job

status to Completed allows the user to post the recognition of

revenue and costs for the job.

For jobs with WIP methods other than Completed Contract,

changing the job status to Completed allows the user to reverse the

last recognition postings for the job and post the final recognized

profit for the job (the invoiced sales value less the total usage cost).

Calculating WIP and Recognition

Display slide 23: Calculating WIP and Recognition

Describe and demonstrate the procedure of calculating WIP and recognition.

Discuss the basic concepts about WIP calculation.

Demonstrate the procedure of calculating WIP in Microsoft

Dynamics NAV 2009 using the Cost Value and Sales Value

methods.

Emphasize that WIP methods are generally not changed often, at

least not within an accounting year. But the program allows

switching the methods and recalculating WIP with the newly

selected method.

Mention the necessity to reverse the posted calculations to G/L,

which will be demonstrated later.

Calculate WIP for the job you posted usage for.

Display the results of WIP calculation the WIP and Recognition

FastTab on the job card.

Posting WIP and Recognition to G/L

Display slide 24: Posting WIP and Recognition to G/L

Describe and demonstrate the procedure of posting WIP and recognition to G/L.

Discuss the temporary nature of the WIP calculation and that the

calculated WIP must be manually posted to G/L.

Describe the entries created after posting WIP and recognition to

G/L.



Open the Job Post WIP to G/L batch job and demonstrate the

procedure of posting WIP to G/L. Then, open the WIP and

Recognition FastTab on the job card to view the results.

Note to instructor: After every posting process, display the created entries to

view the posting results. This refers also to WIP calculation and other procedures

during the course. You can ask students to use one of the methods of analysis

they learned about during the first session.

Finalizing a Job

Display slide 26: Finalizing a Job

Remind students about the small job created during the first session, which did

not involve WIP calculation. Then you can proceed to the description of the two

possible scenarios of finalizing a job.

With WIP posted to G/L (demonstrated during the first session).

Without WIP posted to G/L.

Finalize the job from the current demonstration.

When you are at stage of reversing the last recognition postings and

posting the final recognized profit for the job, mention that the

procedure applies to all WIP methods but Completed Contract.

For the Completed Contract method, the final stage is posting the

recognition of revenue and costs for the job.

Explain that the procedure of finalizing a job with WIP calculated by the

Completed Contract method is different because the job in that case is considered

as a whole entity and no intermediate postings are done as the job progresses.

Lab 3.1 Calculating WIP and Finalizing the Job



Excluding a Task from WIP Calculation

Display slide 26: Excluding a Task from WIP Calculation

Briefly introduce the possibility of excluding a task from the WIP calculation and

demonstrate the example from the manual.

Create a new job, with multiple tasks to describe the process of

excluding a task from WIP calculation.

State why excluding a task from WIP calculation can be helpful.

Lab 3.2 Excluding a Job Task from WIP Calculation

Suggest that students perform lab 3.2 from the training manual. Give


Instructor Notes


Test Your Knowledge






CHAPTER 4: JOBS – ADVANCED FACILITIES

Chapter Overview

The goal of this chapter is to:

Handle job payment by installments.

Issue a credit memo for a job.

Handle and invoice a job in a foreign currency.

Examine item tracking in jobs.

Timeline



Display slide 27: Payment by Installments.

Payment by Installments

Introduce the possibility of handling long term projects by installments when the

whole job payment is split into several parts.

To handle a job by installments, it is necessary to perform proper job

planning.

Each installment is represented by a planning line of the Contract type,

which in its turn is created from a task line of the Posting type.

An invoice is created from the corresponding planning line on the agreed

date.

Mention that payment by installments allows doing a prepayment for a job, for

example, by invoicing the first installment in advance.

Demonstrate an example of handling job payment by installments

provided in the manual.

o Highlight that it is also necessary to create a task posting usage.

o If the job usage is in not included in the installments, the

planning lines are of the Contract type and must be invoiced

separately.

o If the payment for job usage is covered by the installments, lines

of the Schedule type are created but not invoiced.

Lab 4.1 Payment by Installments in FCY



Instructor Notes


Handling a Job in Foreign Currency

Display slide 28: Handling Jobs in Foreign Currency

Introduce the possibility of handling jobs in foreign currency.

Describe two scenarios of handling a job in FCY.

Create a new job card and introduce the fields on the Foreign Trade

FastTab.

Demonstrate both scenarios based on the examples from the manual.

Mention the Change Job Dates function that bulk updates the

currency rates.

Issuing a Credit Memo

Display slide 29: Issuing a Credit Memo.

Describe and demonstrate the procedure of issuing a credit memo for a job.

Describe how one can issue a credit memo for a job planning line.

Highlight the necessity to create a planning line with the negative

value to reverse the transaction.

Issue a credit memo to one of the planning lines from the previously

demonstrated examples.

o When you are at the stage of creating a planning line, mention

that credit memos can only be issued for job planning lines of

type Contract or Both Schedule and Contract.

This ensures that the job planning line is always updated to

reflect the correct planned invoice/credit memo lines for the job

prior to posting of sales invoices and credit memos.

o When you are in the Job Transfer to Credit Memo batch job

request window, highlight that it is not necessary to always

create a new credit memo; instead one can append the planning

line to another credit memo, if any, from the same batch job.

Lab 4.2 Issuing a Credit Memo for a Job

Suggest that students perform lab 4.2 from the training manual. Give


Item Tracking in Jobs

Display slide 30: Item Tracking in Jobs

Give a brief overview how item tracking is used in Job Costing.

Note to instructor: You do not have to provide a lot of information on item

tracking functionality in jobs; the principles are the same as throughout Microsoft

Dynamics NAV 2009.

Mention where item tracking information can be specified from.

o Purchase line



o Job journal line

Refer students to the “Inventory Management in Microsoft

Dynamics NAV 2009” manual for more information.

Display slide 31: Session 2 Summary

Note to instructor: This is the end of session two.

Summarize the key points and answer the questions.

Test Your Knowledge




Instructor Notes


CONCLUSION

Chapter Overview

The goal of this chapter is to review the key points that have been covered in this

class.

Timeline



Display slide 32: Course Summary

Note to instructor: This is the end of the course.

Review the list of key points with students. Have everyone review their list of

objectives and ensure that questions have been answered.

Technology

Na2009 enus jc_in