QuickBooks can be configured to track expenses associated with a production of a title.
The 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.
Step 1. 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.
Step 2. 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.
Step 3. When entering production bills, charge each expense to its related work-in-progress general ledger account and the related job. The billable checkbox for the job is unchecked.
The image below shows a printing bill 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.
This report shows production expenses by expense class and expense type. It shows the vendor for each expense and the amount for each expense.
Tip: You can export this report to Excel and create a pivot table that allows you to summarize expenses by job, expense class (PREPRESS or PPB), expense type, and vendor.