Issue/Symptom/Question

When using the Change Job OU / Job Type window to modify a job's Job Type what transactions result from this process if you elect to create transfer entries?

Applies To

• PENTA for Windows
• Project Management
• Change Job OU / Job Type window
  • Create Transfer Entries? Y/N
  • Include Prior Fiscal Year? Y/N

Resolution/Fix/Answer

The Change Job OU / Job Type window allows you to change / update the Job Type value for a job if the following criteria are met:

• the new & old Job Types have the same "revenue recognition" method 
• all of the Cost Types that exist for the old Job Type also exist for the new Job Type
• the new Job Type must be active

When changing a Job Type on a job PENTA provides the option to create general ledger entries, you would typically elect to create transfer entries if the Cost of Sales and Sales accounts are different between the old and new Job Type codes.

• If the Create Transfer Entries is set to "Y" yes PENTA requires the entry of a Transfer Date, this date is used when creating transfer entries for costs, billings and earned revenue entries that are dated in the current fiscal year, and are equal to or less than the Transfer Date.
• If there are costs, billings or earned revenue transactions for a job dated greater than the Transfer Date, PENTA creates general ledger entries by accounting period end date for each period where transactions exist.
• If the prior fiscal year has not been closed for the job's legal entity organization unit, PENTA will allow entry in the Include Prior Fiscal Year field (if the prior fiscal year is closed this field is non-enterable). If the prior fiscal year is not closed, and the value of Include Prior Fiscal Year is = "Y", PENTA will generate general ledger transactions to transfer costs, billings and earned revenue entries for the prior year values and dates these transactions as of the last day in that fiscal year period (one document for the prior year amounts). This is limited to the amounts in the prior year only, it does not include amounts that may exist in years prior to this year.

Caution - when changing a job's Job Type that results in the transfer of amounts between cost of sales and/or sales accounts may result in back dated financial statements and job schedules to not tie (this would occur if the job schedules are filtered / limited to specific Job Type codes). This is due to the transfer entries being summarized to the Transfer Date. If the reports/schedules are back dated to period end dates prior to the Transfer Date the financial statements will reflect amounts per the original accounts (prior Job Type) where as the job schedules display amounts based on the current Job Type, not what the Job Type was at a prior date. This scenario can occur in situations where a Job Type is setup for tracking bid and proposal costs while a job is in the bid phase. The costs associated with the bid process are accumulated in indirect cost accounts in the general ledger (must be PENTA edit rule COS accounts), when a job is awarded the Job Type is updated to a Job Type used for tracking actual construction work. When the Change Job OU / Job Type process is initiated costs are transferred out of the indirect GL accounts into the direct cost of sales accounts associated with for the new Job Type, dated per the rules noted above. If a project schedule report, such as the Job Cost/Revenue Summary report is setup to include only the Job Types where construction projects are assigned (excludes the Job Type for Bid & Proposal jobs) a back dated job schedule report and financial statement (or Trial Balance report) will not tie. If you want to avoid this situation we recommend you setup a new job number when a bid job is awarded and link the bid job as a child job to the new construction job. This gives you the option to roll the two jobs together to see the total cost when needed.

NOTE: When updating the Job Type on a Job, the new Job Type must have the same Job Class or PENTA will not allow this

Cause 

Summary job reports/schedules intended for reconciling the job cost module with financial statements, where the job reports/schedules are limited by Job Type codes may not reconcile with financial statements when the Change Job OU / Job Type process is performed.