Job costing summary by date range

Understanding the profit of each job is crucial to knowing how the  company is effective with repairs.  When this report is run, it  itemizes the totals for parts, labor, and sublet.  Each is viewed  for cost, charge, dollar

margin, and profit percentage.  A total for  all workorders is provided at the end of the report.

The margin and  profit do not include costs of operations, and therefore are not the  true profit earned by the shop.  This information was displayed on screen during workorder  development, and should have been utilized to protect the shop from  finalizing an unprofitable service. However, the printed format is  used as a reminder for reviewing all services, and gaining a perspective about the gross margins being earned.

The percentage field is the key.  At some point while setting up the  system, a decision was made that the shop should have a minimum  margin, ie. 30%.  As you scan the job costing report, look for areas  where the margin slipped below that figure, and highlight them.  Then, review the workorder, and perhaps talk with the technician, to determine why the service was less profitable.  In most cases, the  job was more complex than what was being charged for the service.  By  performing this review, it will be possible to adjust fixed charges  for some services.

It is recommended that this report be run once per week, and retained permanently.  In this manner, you will be able to compare  results, and measure progress.