How Jobpac Links Project Costs to the General Ledger

Jobpac links project costs and revenue to general ledger accounts so that project reports and financial statements stay aligned. This article explains the main linking methods and why they are important.

Why linking job costs to the general ledger matters

Linking job costs to the general ledger ensures that:

• project cost and revenue information in Jobpac matches the profit and loss statement
• you can reconcile project results to company financials
• stakeholders see a consistent view of performance in both project and finance reports

Without this link, it would be difficult to trust project level results or explain differences between project and financial information.

Linking at cost type level

One method Jobpac uses is linking at cost type level. In this approach, each cost type is connected to one or more general ledger accounts.

Key characteristics of cost type level linking:

• cost types such as labour, materials and subcontract are defined for the company
• each cost type is associated with general ledger accounts in a link setup
• when a transaction is posted to a job, the cost type determines which general ledger account is updated

This method is widely used because it is straightforward to maintain and provides consistent posting rules across many jobs.

Linking at cost centre level

The other method is linking at cost centre level, where the combination of cost code and cost type determines the general ledger account.

Key characteristics of cost centre level linking:

• each cost centre can have its own general ledger account link
• you gain more detailed control over how costs are posted
• there is more setup and maintenance, especially if you use many cost centres

This method is useful when different parts of a project need to post to different accounts for reporting or control reasons.

Choosing a linking approach

When you set up Jobpac, you choose whether to link costs at cost type level or at cost centre level for each job.

Points to consider:

• use cost type level linking when you want simpler, company wide posting rules
• use cost centre level linking when specific parts of a project need distinct general ledger accounts
• consider the effort required to maintain links when projects change or new cost centres are added

In many cases, organisations use cost type level linking as their standard and reserve cost centre level linking for special projects.

Keeping job and general ledger information aligned

To keep job and general ledger information aligned in Jobpac, it is important to:

• ensure all direct project costs and revenue carry a job number
• review general ledger link setups when you change cost structures
• use period end processes to compare project reports with profit and loss statements

When linking is designed and maintained carefully, you can reconcile job costs and revenue to the general ledger and trust the results in both project and financial reporting.