There are two ways to create a Builder Gain / Loss. The first is via Jobs > Job Financials > Builder Gain / Loss (refer to our separate article). The second way is via Finance > Bills > Select a specific Bill.
Builder Gain / Loss is any change to an estimated cost item after the contract is signed that is not a variation requested by the customer. This will either reduce or increase your profit on the job, as you will not pass it on to the customer.
To create a Builder Gain/Loss from a bill, complete the following steps:
Navigate to Finance > Bills > select the relevant bill.
Ensure that the bill is linked to a Job by clicking on the orange Link Job button.
Next, make sure to link the bill to a PO (if relevant) or budget items, so that the job budget for the relevant cost category will be updated. Clicking on the Link to PO button will bring up a list of all open Purchase Orders.
When you click on Link to Budget Items, you will then need to scroll down to Items > Unlinked section of the bill and use the dropdown box to select the relevant cost item. As you link bill items, they will be moved into the cost category linked section below. You can also add new cost items if this bill does not relate to any cost items in the original estimate. Make sure to Save once you have set your linked items.
Before you can create a builder gain/loss, the bill must be approved for payment. If you are happy with all the details, click Approve, and the bill will be moved to the status Approved for Payment.
To create a Builder gain/loss click on the ⋮ icon on the right side of a bill item and then click on + Create Gain / Loss.
The Add Builder Gain/Loss side menu will appear. Here, you must add a description and a reason for the gain/loss and click on Create in the bottom right.
Note: Reasons for Builder Gain / Loss can be set up in Settings > Data Setup > Budget Gain / Loss Reasons. Entering a Reason for the gain and loss will allow you to run reports globally or per job to identify the total value of gains or losses for a particular reason, E.g., supplier price rise.
You will be asked to enter the quantity of each item, the UOM will be auto-filled and the Price variance. To create a Gain, first enter a - / (minus symbol) / negative number in the quantity field, as this will show you are expecting to spend less on that particular item. If you enter a positive number, this will add extra cost or a Loss to the job. Adding a loss will reduce the expected profit from the job.
Make sure to Save the builder gain/loss and the amount will now be reflected in the Job Budget.