QuickBooks can be configured to track expenses associated with a production of a title.
The customized QuickBooks Premier report below shows expenses assigned to the title “Blue Sky”. The name field shows the expense class; Prepress or PPB, and expense types such as cover design, copy editing, proofing, printing or freight. The source name field shows the vendor. The memo field displays a note associated with the vendor’s bill.
When a title is published, PPB (paper, printing, and binding) expenses are moved to inventory and prepress expenses are moved to plant costs. Plant costs are amortized over the expected life of a title; usually one year for fiction titles.
Configuring QuickBooks to track work-in-progress is a three-step process.
First, in your chart of accounts create a work in progress sub-account for each job (title). The example below has a separate WIP account for 4 titles.
Second, create a customer for each expense class and a customer job for each expense type.When expenses are assigned to a title’s WIP account you will also assign a job to each expense. The customer list example below has a customer for PPB (printing, paper, and binding). The PPB customer has three jobs; Author alterations, Freight-in and Printing. There is a second customer for prepress expenses. There are eight jobs associated with the prepress customer.
Third, when entering production bills charge each expense to its related work-in-progress account and the related job. The billable checkbox for the job is unchecked.
The bill below for Hamilton Printing is assigned to the work in process account for the title Blue Sky. The customer name assigned to the job is PPB: Printing. The billable check box is not selected. The memo text box is used to record the quantity printed associated with this bill.
Recording bills in this manner will allow you to create the QuickBooks report below.
Exporting this report to Excel will allow you to create additional reports with Excel Pivot Tables. In Excel, create separate columns for expense class and expense type by using Excel formulas to extract the expense class and expense type from the Name column. After this is done you can create a pivot table that summarizes expenses by class; PPB and Prepress, for each title and a pivot table that shows a summary of expenses for each vendor by title.
Questions? If you have any questions about the information presented in this post please email firstname.lastname@example.org