At times a change order is billed on a T&M (Time and Material) basis when the job is based on a contract amount. A T&M change order requires a different setup and process method than a contract change order. Follow the steps in this section for details on creating and billing a T&M change order. Review the Jobs > Creating Change Orders section for details on creating change orders for contractual jobs.
All job expenses that require billing on a T&M basis should be listed in separate stages. Do not mix contract and T&M expenses within the same stage. Go to Job Costing > Jobs > Job Stages tab to setup additional stages within the job for T&M change orders.
Create a stage group named T&M change orders. Insert all T&M stages into the folder. The user can arrange the T&M folders and stages to accommodate the job. No budgeted costs or billings will be added to the T&M stages since they are not based on a contract or budget. Quotes will not need to be added to the Budgets tab for T&M changes.
Enter costs from the Purchase Order / Expense Invoice window, inventory transfer, or timecard window the same as any job costs are entered. Enter the job code and the T&M stage for each cost as the costs are incurred.
Click on the Stage Properties button
and set the T&M stage Status to
Closed after the change order is complete and all costs have
been entered. This will bar any user from adding additional costs
to the T&M stage after billing is
completed.
Complete the following steps to bill costs accumulated in a T&M stage(s).
Open the Billings tab
of a T&M job and click on the
New button;
the following wizard will appear:
Select the Time and Material Sales Order from Expense
Transactions option. Click the Next button.
Enter a billing date so that all
expenses accumulated to date will be billed; click Next.
All job-costing expense general
ledger accounts will be listed in either list. The list on the left
side of the window will display all accounts that will be scanned
for expenses; the right window lists all accounts that will be ignored.
If the Determine
Direct Job Cost Accounts option is turned
OFF within the Job
Costing > Options > General tab all
general ledger expense accounts will be listed in either pane. If
the option is turned ON only the general ledger expense accounts that
are direct job cost accounts will be listed.
Use the Remove
and Add
buttons to shift general ledger expense codes from
one list to the other.