MYOB Account right does not process job costing properly in terms of standard accounting principles as has been described in all accounting text books which means that the profit and loss that is bei...
A number of people have stated that job costing is actuallu\y used as cost centres and that setting up job costing as propsed would destroy the ability to use cost centres in this manner. In actual fact this does not have to happen because in the methodology that has been proposed, The sales/cost of sales accounts occupy the Gross Margin section of the P&L whilst expenses which you may want to allocate to cost centres occupy the P&L in the expenses section.afyer the Gross Margin
When you set up a job number, you determine whether that job number is a cost centre or a job. If a job then the user will determine the Sales, Cost of Sales (but should be predermined as the matching Cost if Sale account for that Sales account) and work in progress account. If it is a cost centre then you do not need any accounts but any account to which that job/cost centre is allocated to must be an expense or any P& L account which is not posted to automatically by the inventory module or the proposed job costing methodology. If you wish to post Jobs or inventory to a cost centre then this can be set up by allocating a cost centre when you allocate the GL accounts you will be automatically posting to. You will then have a capability to have profit centres rather than just cost centres.
The important point about the above processes is that there will be integrity in the P&L reporting if a business wants to have Profit/Cost centre reporting , a quality that MYOB at the moment does not necessaily have unless users are extremely diligent.
No doubt I shall have people telling me that this will be extremely costly and this is NOT what MYOB is but I can't see how these ideas can be much of a challenge to a competent programmer to implement. There is also no reason why MYOB shouldn't be using basic accounting principles to make its product more user friendly and do what it purpots to be. Accounting packages need to be producing today's financial information, not what we produced in the past where we did not have the power of the computer to make our job easier, not harder.
Michael