### Job Costing

You can now track your gross profit and margins using Service Fusion with just a few clicks.

First, you will need to enable it by going to My Office > Company Preferences and set the "Track Costs On Estimates & Jobs" to Yes. (Note: this feature is available on Starter Plus and Pro plans only)

*Please click the above image to enlarge*

Once this is done, you will see a new set of fields in the Estimate/Job Charges sections.

*Please click the above image to enlarge*

The Cost of each product or service can either be set in advance inside the Add/Edit product or service screens, or right inside the job or estimate screens.

For Services, "Internal Cost"

*Please click the above image to enlarge*

For Products, "Average Cost"

*Please click the above image to enlarge*

Costs can be added on jobs to the Drive & Labor Times section.

*Please click the above image to enlarge*

Cost is automatically calculated based on the employee's regular pay rate in Workforce Management. In this example, our technician Keith is paid $75/hour and worked for 2 hours and 30 minutes, for a total cost of $187.50. The rate we are billing the customer for this 2 hours and 30 minutes of labor is $100, which gives a 25% positive margin. If drive or labor time is not billed, the margin will show as 0%, but the cost will still be present, and will still impact the overall job cost.

Costs can be added to Expenses on jobs as well.

*Please click the above image to enlarge*

Please note, due to the size of the Purchased From text input field, there is a slight skew on the remaining fields. Amount refers to the cost, Billable is the checkbox (mark for billable and a line will be added to the job, or leave unchecked to keep the expense cost internal), and Reimburse To is for the drop down, where a technician can be selected if they needed to purchase supplies out of pocket. For more information on expenses, click here.

So how is gross profit calculated? The formula used is as follows:

**[(job subtotal - discounts - job cost )/ job subtotal ] * 100 %**

Using a real job as an example, let's plug some numbers into the formula.

This job has a service with cost, sales tax, and a discount.

*Please click the above image to enlarge*

This job also has some cost calculated on the labor time...

*Please click the above image to enlarge*

As well as some expenses.

*Please click the above image to enlarge*

Taking our formula from above, **[(job subtotal - discounts - job cost )/ job subtotal ] * 100 %**

Our job subtotal is $140.22 (from the service) + $250 (from the billable labor time) for a subtotal of $390.22

Our total discounts is $20

Our total job cost is $98.47 (from the service) + $187.50 (from the labor time) + $25 (from the expenses) for a total job cost of $310.97

So, 390.22 - 20 - 310.97 = 59.25

Moving on to the next part of our formula, we divide 59.25 by our subtotal, 390.22, which gives 0.151837 etc. Rounded to the hundredths decimal place, this is .15. Multiply by 100 to get our percentage, 15.18% which is exactly what is shown at the bottom of this job.