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Definition of Job Costing – Combine with Your ERP Application


Job costing techniques are often overlooked in a lot of environments, especially in the manufacturing environment. In some environments each job is performed to the customer’s specifications. All job costing systems include keeping an account of all direct costs and indirect costs. These costs are the key factors running any system.

ERP Systems

Manufacturing ERP Software. Leverage the power of browser based thin client technology.

Many organizations are beginning to turn toward software for their job costing. Using a job costing software which is integrated with your current ERP (Enterprise Resource Planning) software system will allow you to show a great deal of information about the costing and where you are making or losing money.


Finding an Agile Job Costing Software



The right solution may be an out of the box software package or it could be a system which is configured for you. No matter what the system should always take care of a few basic questions you may have: 1) What do you want the software to show? 2) Which summaries do you care about? You can break your items down into different categories such as travel, engineering cost, inventory, sub-contractors or scrap. Some systems, more of the configured applications, will allow you to start out with one item and as time goes by add in more standards. For example you can start with your production standards and eventually move into a different item.

Another important aspect of your system is whether you will track direct or indirect cost and which you would like to see. Often direct labor is accounted for and indirect labor is forgot about or overlooked. Flexible Job Costing software systems will allow you to take both of these into consideration, giving you more of an advantage over your competition.

No matter what, make sure the job costing software system you purchase meets your largest points of pain, ensuring you will have the best possible solution for your needs.

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