Knowing how much it costs to run a job is critical for any business. Operations and Financial managers often have to come up with ad-hoc tools and methods to capture, analyze, and report job costing data. But manual processes are prone to errors and are time-consuming. So, what if we told you that there’s a better way to manage job costing using the same system where you do 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 to operational Job Costs, i.e. what was spent on Materials, Labor, Travel and 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®, thus 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. First place to start is the Job Costing Structure table. In these settings, required dimensions from both business structure and job structure are assigned.
Next, setup Cost Types. Generally, we recommend having three cost types: Labor, Materials, and Other expenses. However, this table is highly configurable and allows to create as many cost types as needed. The best practice is to keep processes lean, hence all the system settings should be practical and usable.
Right after Cost Types, Cost Codes need to be set up. The Cost Code setup is similar to the Cost Type setup, the setup table is configurable per any 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 minimum set of documents in riger®:
Depending on the chosen riger® solution 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. To see the full picture, use the Job Profit Dashboard. The dashboard is designed to show all Jobs, both active and closed, associated Revenue, associated 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.
There is also an ability to generate riger® reports in addition to the dynamic Job Profit Dashboard.
Below are few noticeable benefits if you chose to use riger® as your ultimate Oilfield Service Management System:
Manage Equipment Rental Operations
Be Always in Control