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Tracking Costs

Job Costing automatically aggregates costs from multiple sources to give you a complete picture of project spending. Understanding how costs flow into the system helps you maintain accurate job cost data.

Cost Sources​

Job Costing pulls data from several areas of Readybuild:

SourceCounts AsDescription
Estimate EntriesEstimated CostOriginal contract amounts by cost code
Change OrdersChange Order CostApproved scope additions
Purchase OrdersCommitted CostApproved vendor commitments
BillsBilled CostVendor invoices received
Time Entries (Unapproved)Committed CostLabor not yet locked
Time Entries (Approved)Billed CostLabor costs locked in
Field ReceiptsBilled CostJob site material expenses
Variance BillsVariance CostBudget overrun tracking
Owner InvoicesAmount InvoicedWhat's been billed to homeowner

Understanding Cost Types​

Estimated Cost​

The original budgeted amount for each cost code from your signed contract. This comes from the estimate assemblies in your proposal and represents your baseline for comparison.

Total Cost (Budget)​

Estimated Cost plus any approved change order amounts. This is your current "budget" after accounting for scope changes the homeowner has approved.

Formula: Total Cost = Estimated Cost + Change Order Cost

Committed Cost​

Money you've committed to spend but haven't been billed for yet. This includes:

  • Approved Purchase Orders - Vendor commitments awaiting invoices
  • Unapproved Time Entries - Labor recorded but not yet approved

Committed costs help you forecast cash flow and identify potential overruns before they happen.

Formula: Committed = Approved POs + Unapproved Time

Billed Cost (Actual Cost)​

Money you've actually been charged. This includes:

  • Bills - Vendor invoices you've received
  • Approved Time Entries - Labor costs that have been locked/approved
  • Field Receipts - Job site material purchases

Billed costs are your actual spending to date.

Formula: Billed = Bills + Field Receipts + Approved Time

Variance Cost​

Budget overruns tracked via variance bills. When actual costs exceed budget, variance bills capture the difference. This helps you understand which cost codes had unexpected costs.

Projected Cost​

The system's best estimate of what you'll spend when the cost code is complete:

  • If NOT marked complete: The higher of (Budget + Change Orders) or (Actual Billed)
  • If marked complete: Actual Billed + Variance

This calculation assumes you'll spend at least your budget unless actual costs already exceed it.

Cost to Complete​

How much more you expect to spend on this cost code.

Formula: Cost to Complete = Projected Cost - Billed Cost

When a cost code is marked Complete, Cost to Complete becomes zero (no more spending expected).

The Complete Checkbox​

Each cost code has a Complete checkbox. When checked:

  1. Projected Cost equals actual billed cost (no future spending assumed)
  2. Cost to Complete becomes $0.00
  3. Margin calculations use actual rather than projected numbers

Use this to lock down cost codes when work is finished and no more costs will be incurred.

When to Mark Complete​

  • All materials have been received and billed
  • All labor for that cost code is approved
  • No more vendor invoices are expected
  • The work scope for that category is finished

Viewing Cost Details​

Click any cost code row to expand and see the line items that make up each cost:

Assemblies Section​

Shows estimate entries from your signed contract for this cost code. These are the individual assemblies that roll up to the cost code total.

Bills/POs Section​

Lists standard bills associated with this cost code, showing bill numbers and amounts.

Bills/POs (Variance) Section​

Shows variance bills that track budget overruns. These costs impact profitability but were not in the original budget.

Bills/POs (Purchase Orders) Section​

Lists approved or received POs, showing the vendor commitment before billing.

Change Orders Section​

Shows change order estimate entries that added to this cost code's budget.

Client Invoices Section​

Lists owner invoices released to the homeowner for this cost code.

Field Receipts Section​

Shows job site material purchases recorded as field expenses.

Time Clock Sections​

Two sections show labor costs:

  • Unapproved - Time entries that count as committed cost
  • Approved - Time entries that count as billed cost

Cost Calculation Timing​

Job costs are calculated when you load the Job Costing page. The system:

  1. Gathers all cost data from various sources
  2. Calculates totals for each cost code
  3. Stores results for quick access (cached for 1 hour)

If you've just entered costs in another area (bills, time entries, etc.), the Job Costing page will reflect those changes when you load or refresh it.

Tips for Accurate Cost Tracking​

  1. Assign cost codes to everything - Ensure POs, bills, and time entries have cost codes assigned
  2. Approve time promptly - Move time entries from committed to billed regularly
  3. Use variance bills - Track unexpected costs separately for better visibility
  4. Mark complete when done - Lock down finished cost codes for accurate projections
  5. Review regularly - Check Job Costing weekly to catch issues early