When you post a purchase invoice to a job in Business Central, you create job ledger entries of the type usage. You can then convert that usage into a sale, but only if you set it up correctly as a billable job planning line.
The job hierarchy model has three levels: the job, the job tasks, and the job ledger entries. Costs flow into the job at the job ledger entry level as usage entries.
Job planning lines come in two types: budget and billable. Only billable lines can be converted into a sales invoice line. Budget lines are never created on your sales invoice.
A single posted purchase invoice creates more than just job ledger entries. It also creates vendor ledger entries, G/L entries based on your posting setup, and item or resource ledger entries based on what you entered on the invoice.
The three levels of the job hierarchy model
The job structure in Business Central has three levels. At the top is the job itself. Below that are the job tasks. At the bottom are the job ledger entries.
When you talk about costs going into a job, you are working at the job ledger entry level. These are entries of the type usage.
How costs flow into a job from a purchase invoice
The typical scenario is that you receive a purchase invoice from a vendor and want to register it on your project. You may or may not convert that cost into a sales invoice afterwards.
When you register the cost, you can apply your price setup on the job. That lets you add an extra markup or give a discount before passing the cost on to the customer.
The usage you register on the job becomes a job ledger entry of the type usage. If you want to invoice that cost, you need to create it as a job planning line that is both budget and billable.
Budget versus billable job planning lines
Job planning lines have two types, and the difference matters when you invoice.
- Budget lines stay on the planning side and are never created on your sales invoice.
- Billable lines can be converted into sales invoice lines.
So when you want to bill a cost to the customer, make sure the planning line is marked as billable. Anything left as budget only stays in your planning and does not reach the invoice.
Which entries a posted purchase invoice creates
Posting a purchase invoice does more than register usage on the job. Because you are working in an ERP system, the posting touches several ledgers at once.
A posted purchase invoice creates:
- Job ledger entries of the type usage
- Vendor ledger entries on the relevant vendor
- G/L entries based on your posting setups
- Item ledger entries and resource ledger entries, depending on what you entered on the purchase invoice
Depending on how you handle the job, this usage can then be invoiced to the job customer.
Q&A
What type of job ledger entry does a posted purchase invoice create on a job?
It creates job ledger entries of the type usage.
Can budget job planning lines be invoiced to the customer?
No. Only job planning lines of the type billable can be converted into sales invoice lines. Budget lines are never created on your sales invoice.
What is required to convert a registered cost into a sale?
The usage you register on the job must be created as a job planning line that is both budget and billable. Only the billable portion can then become a sales invoice line.
Which ledgers are affected when you post a purchase invoice to a job?
The posting creates job ledger entries, vendor ledger entries on the relevant vendor, G/L entries based on your posting setup, and item or resource ledger entries based on what you entered on the invoice.
Can you adjust the price when passing a purchase cost on to the customer?
Yes. Based on your price setup on the job, you can add an extra markup or give a discount before billing the customer.