As previously covered in the Knowledge Base article “3 Kinds of Committed Costs”, BIS handles three kinds of Committed Costs reflecting their respective functions within the job costing functionality:
- The unbilled portion of Purchase Orders.
- The unbilled portion of Subcontracts.
- Labor entered in Payroll Hours and Adjustments, but not paid (not yet processed).
So, Net Commitments may be determined as follows:
Net Commitments = Net Labor + Net Material + Net Subcontract + Net Other.
Net Labor = Entered in PR Hours: dollar amount for Hours (regular and certified) + Work Comp Company amount + Union Company amount + Other Burden amount + Additions amount.
Both the Job Cost Status and Job Cost Summary of Billings and Cost Projected Profit reports provided Net Commitments. Both will show payroll entries (job cost labor) that have not been posted as Net Commitments.
Negative Net Commitments
Question: What will cause negative Net Commitments on the Job Cost Status and Job Cost Summary of Billings and Cost Projected Profit reports?
Answer: Have a negative amount entry or a net negative amount in the Subcontract.