Warehouse & Inventory · SOP

Job Costing Data Entry From Time Sheets

Accurate labor cost allocation is essential for job profitability and financial reporting. This procedure standardizes the entry of employee time sheet data into the job costing system, ensuring that every hour billed is correctly attributed to the appropriate job, phase, and cost category.

Estimated Time

45 min

Difficulty

Intermediate

Regulation

CRA Record Keeping

Version

1.0

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Purpose

To ensure that labour hours from employee time sheets are accurately and consistently entered into the job costing database, enabling real‑time project cost tracking, accurate WIP (work‑in‑progress) valuation, and compliance with CRA record‑keeping requirements. This SOP reduces mispostings and eliminates delays in month‑end close.

Scope

This procedure applies to all hourly and non‑exempt employees in production, warehouse, and field service departments who record time on paper or digital time sheets. It covers data entry of regular and overtime hours, job number assignment, and the reconciliation process with payroll summaries. It does not cover salary allocation, benefit adjustments, or payroll processing itself.

Safety Precautions

DATAEnsure all time sheets are stored in a locked file cabinet or password‑protected digital drive to prevent unauthorized access to employee personal information.
ERGOUse an adjustable keyboard tray and monitor stand. Take a 5‑minute break every 30 minutes of continuous data entry to reduce the risk of repetitive strain injury.
AUDITNever alter a time sheet after data entry; if a correction is needed, complete a formal correction form signed by the employee and supervisor. Keep all original documents for audit trail.

Required Tools & Materials

Completed employee time sheets (paper or digital)
Job costing software or ERP module (e.g., JobBOSS, Sage, QuickBooks)
Current job order number list (master job list)
Payroll summary for same period (from HR/payroll)
Red pen for flagging discrepancies
Calculator (optional)

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Procedure: Step-by-Step

1 Collect and organize time sheets. Gather all completed time sheets from the designated collection tray or digital upload folder. Sort them alphabetically by employee last name and by pay period end date. Verify that each sheet includes employee name, employee ID, date, job number, hours worked, and supervisor signature. Place any incomplete sheets in a "needs review" folder.

2 Review time sheets for accuracy. Scan each time sheet for arithmetic errors (e.g., daily hours that don't add up to total hours), missing job codes, and overlapping time entries. Check that overtime (hours > 8/day or > 40/week) is noted and approved. Use a red pen to flag any discrepancies; return flagged sheets to the supervisor for correction before proceeding.

3 Input labor hours into the costing system. Log into the job costing module. Select the correct pay period and batch. For each time sheet, enter: employee ID, job order number (from the master job list), date worked, regular hours, overtime hours, and double‑time hours if applicable. Use the tab key to move between fields. Save each entry immediately.

4 Reconcile total hours with payroll. After all entries are complete, run a summary report from the costing system grouping by employee ID and totalling all hours. Compare this report to the payroll summary for the same period. The total hours per employee should match within 0.5 hours. Investigate any variance greater than 0.5 hours; correct any data entry errors before finalizing.

5 Approve and finalize entries. Once reconciliation is acceptable, set the batch status to "Approved" in the costing system. This locks the records against future modifications. Notify the project manager via email that job costs have been updated. Archive the physical time sheets in the project's paper file (or digital folder) by pay period.

Job Costing Data Entry From Time Sheets

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