b'BUSINESS MANAGEMENTContinued from page 42the box, pallet, bundle, but your inventory may be setspot, pop quiz.That told me what she understood and up to track by the piece, pail, roll, tube.Becausewhat she had yet to learn. And slowly we chipped lets face it- when the field needs something, its neveraway at the different scenarios, materials, purchase a pallet of rolls, its just one roll. Its never a box oforders, invoices, etc. so she could see how one tape, its 1 roll of tape to finish that last little detail.affected the other. Its never a box of caulk, its three tubes of caulk.SoIt is not an easy process, but it is one that is necessary you want to be sure that cost is not hitting your job atif you want your job cost and stock to read correctly. the full box price, just the tube price.This gives the project team accurate information so that they can make necessary changes during the job or on future bids.Accurate information can turn a losing job into a winning job. From Accounts Payable to Material Ordering and Job Costing:Jody Reed is a 15-year employee at Kreiling Roofing Co. These are some of the things we did that helped her to understand Material units at each step.She started in the company in payroll, then learned accounts Jenna teaching Stephanie howpayable with material purchases approved by the many pieces of 4x4 iso equal 1 square.Typically, materialpurchaser.As we worked together, we added related is ordered by the square, butknowledge as it made sense.We hired someone invoiced by the distributor by theelse to do payroll so she could do all of our material piece and/or nearest full bundle. So one must convert from thepurchasing and entry, approving the payables herself PO(Squares)totheInvoiceand started job costing and contract invoicing including (pieces or nearest full bundle) accordingly in terms of price andsovs and aias with associated waivers. Her next step count.will be to focus more on coordinating the needs of our commercial production department which will include many of her current duties less the accounts payable so she can focus on this area. Amazing transition!Jodys Tips to learning material units and costing:Most roofing contractors currently work with hundreds1.Highlight items commonly purchased for inventory items each with 3 units; especially if youre workingand jobs in manufacturers pricelist to help limit with multiple manufacturers and system types.Therethe number of items to be searched for info.are usually different estimated units, order/invoice units2.Set up computer generated pos to limit the items and the use units.Errors in conversion or entry canavailable to select and default units and pricing mean Job Cost isnt as it should be and causes WIP(default pricinglol)and sales reports to be inaccurate. 3.Add internal item numbers to manufacturers Someone has to oversee, understand, and keep allprice list for translationthat straight. An accounting system cant always do4.Add manufacturers item numbers to item data that for you!base for clarity when placing orderSo how do you teach these things?For me, it was5.Set up all 3 units in item data base for new itemshands on training and time. I walked down to the6.Update pricing for cost and sales in item data warehouse with our AP hire and showed her what abase, CRM and bid sheetssquare was - that it was 6.25 pcs of 4x4 and 3.1257.Train employees to access technical sheets for pcs of 4x8.I showed her a bundle of insulation.Imore detail on unitsgave her the charts to reference bundle packaging amounts.I showed her the pails, the pallets, the rolls,8.Post signs in the warehouse clearly stating etc. I showed her the pull lists and we watched theinternal item number, item name, unit of measure guys load the trucks.And then I quiz her!On theand established stock levelsContinued on page 45www.mrca.orgMidwest Roofer 43'