Collect Job Direct Expenses And Control Job Profit
It is critical for any business to know how much it costs to run a job. Operations and Financial managers often have to come up with ad-hoc tools and methods to capture, analyze, and report job costing data. The problem is that manual processes are time-consuming and error-prone. So, what if we told you that there’s a better way to manage job costing using the same system where you create field tickets, manage inventory, track time – in other words, manage your oilfield operations?
There is a solution that can give you not only table data, but also visual charts for Job Costing metrics in just a few clicks. The RigER configuration with a Job Costing Module enabled can shed a light on operational Job Costs, i.e. how much was spent on Materials, Labor, Travel, some other expenses, and the Total Amount. Managers can view and analyze Job Profitability metrics through dashboards and reports. Also, dashboards and reports could be filtered by period and by the client. That information is retrieved fast as all the necessary data is originated and stored in RigER databases, so there is no more need for ad-hoc workarounds.
Job Costing Setup
The Job Costing module must be set up so that all costs and expenses are correctly identified and allocated. The first place to start is the Job Costing Structure table. Its settings require that parameters from both business structure and job structure are assigned.
The next step is Cost Types. Generally, we recommend having three cost types: Labor, Materials, and Other expenses. However, this table is highly configurable and allows users to create as many cost types as they need. The best practice is to keep processes lean, hence all system settings should be practical and usable.
Right after Cost Types, Cost Codes need to be set up. This process is similar to the Cost Type. The setup table is configurable in accordance with user requirements.
Finally, when Job Costing Structure, Cost Types, and Cost Codes are set up, the next step is to map all these settings to RigER documents. This is done in Cost Code Mapping table.
Here is the minimum set of documents in RigER:
Rental Service Agreement
Depending on the chosen RigER configuration, other documents could include Inspection Cards, Repair Cards, Maintenance Tickets, and Cards, etc.
Job Profit Dashboard
All these documents capture Job-related costs and expenses; however, these costs and expenses are not so obviously seen inside the documents. Job Profit Dashboard can help you see the full picture. It is designed to show all Jobs, both active and closed, associated Revenue, Expenses, such as Parts, Labor, and Other expenses. Is also shows calculated Total Job Cost, calculated Job Profit, and Gross Margin. The Data is presented in both tabular and visual views.
In addition to the dynamic Job Profit Dashboard there is also an option to generate RigER reports.
Below are a few noticeable benefits that you get if you chose RigER as your ultimate Oilfield Service Management System:
No more need to find an ad-hoc solution for Job Costing, it is done for you.
A wholistic approach as all input data necessary for operational Job Costing is originated and stored in RigER.
Deep analysis and access to your Job Profitability Dashboards and Reports.
Access to Reports, Dashboards, and visual metrics just with a few clicks.
Data integrity and validation, no need to export it from third party software, manually manipulate it, etc.
Operational job costing and profitability metrics availability, allowing you to spend time analyzing and improving results, rather than wasting this time on building templates, calculations, imports, and data re-entry.
Features To Explore
Streamline weekly and monthly rental charges and let the system automatically prorate periodic fees for each billing cycle.