Change Order Tracking

Approved change order information should be entered into the system as soon as possible so that the change order may be billed in a timely manner.  Pending change orders where costs are incurred before an actual signed change order is received should also be entered into the system as soon as possible.  Entering the change order information will not only prevent losing track of the pending change order but will also prevent the percentage of completion on the job from being inaccurate.  

Change Order Tracking        

If you own the Project Management module, then change orders should be entered through that module and linked to the accounting side of the program.  The auto link to the accounting system is an optional feature, and when enabled, allows the change order request breakdown items to create/update the job cost detail items.  Please read the documentation in the Project Management Manual for complete information.  In addition, there are various reports in Reports > Project Management for tracking change order requests and change orders.  If you do not utilize the PM module, then you will need to manually update the job detail items as follows:

The change order information is entered in the same method as any other detail item.  Each change order should be entered with an estimated cost breakdown as well as with a contract billing breakdown (assuming that the change affects your billing to the customer).  The change order number should be noted in the estimate and billing descriptions along with a brief description of the changes.  A change order detail item must be flagged as a change order by clicking on the Change Order box on the Estimate Items Tab.  The item is considered 'pending' until the Approved box is checked.

There are two reports on the Job Cost Reports menu that will help you to track change orders:

•List of All Items - Select Job Detail Items > Item List to view all budget and contract items on a job.  This report will display which items are change orders and whether or not they are approved.

•Contract Change Order Analysis - Select Job Detail Items > Change Order Analysis to view all budget and contract items in order of the billing phase.  This report will display in separate columns which items are part of the original contract, which items are pending change orders and which items are approved change orders.

The Print Contract Billing Worksheet option on the Job Cost menu is also a good report for tracking change orders.  This worksheet will show every item on a job with a billing phase and whether the item is pending change order.