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Workover ERP

ERP for oil & gas service companies and machine shops — from lead to lien release, in one database.

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Estimate vs actual: why month-end job costing is too late

Most shops don't lose money on the jobs they know are bad. They lose it on the jobs they thought were fine — for three more weeks, until the month closes and the cost sheet says otherwise.

THE MONTH-END TRAP

Traditional job costing is archaeology: labor gets keyed from time cards, material gets reconciled from pick lists, and somewhere around the 20th of the following month you learn that the flange job you quoted at 34% margin actually ran at 21%. By then you've quoted — and maybe won — three more just like it.

WHAT "LIVE" ACTUALLY MEANS

Live costing means every event posts to the job the moment it happens: a machinist clocks onto operation 40 and labor starts accruing at loaded rates; bar stock issues from inventory and material cost lands with its heat number; an outside coating PO receives and its cost hits the job the same hour. The estimate from the quote sits alongside as the baseline, so variance is visible while the part is still on the machine — early enough to fix the routing, re-price the next quote, or have the hard conversation with the customer.

JOB LEVEL AND SALES-ORDER LEVEL

Per-job costing tells you which part hurt. Rolling jobs up to the sales order tells you which customer PO hurt — because a three-line order can hide one loser behind two winners. In Workover ERP, each PO line item becomes its own work order, tracks estimate vs actual independently, and rolls up to a live SO-level margin. That's the number that should drive your next quote to that customer.

LET THE MACHINE WATCH THE VARIANCE

Nobody rereads cost sheets hourly — that's the point of the Job Cost agent, which compares burn against estimate on every open work order and flags drift with the exact operation behind it. Month-end stops being a reveal and becomes a formality.

See it on your data. Bring one real job — a quote, a traveler, and the invoice — and watch it flow end to end in a 30-minute live demo.


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