Job order costing answers a simple question the general ledger cannot: which specific job earned—or lost—the money?
Create the job cost record at award
Load the approved estimate by cost code, assign the job number, and require it on purchase orders, subcontracts, timecards, and bills.
Capture labor at useful detail
Hours need both a job and a work code. Apply a documented labor burden so job cost reflects payroll taxes, insurance, benefits, and productive-time assumptions.
Reconcile to accounting
The sum of job-cost transactions should tie to the relevant general-ledger accounts. Review uncoded costs, closed-job postings, duplicates, and timing differences each period.