and now we will learn how to create estimates the main contract estimate shows the details
of each product or service provided on a project or job the estimates information comes from the
contract then it helps you track the progress of that contract you must activate estimates in the
Preferences window if you don't you will not be able to enter estimates or see any of the reports
that are there in this file estimates have not yet been activated if you click the customer pull
down menu you will not see a choice to create estimates the same is true for the reports main
menu under jobs time and mileage where all of the estimate reports usually are notice if you click
reports jobs time and mileage you will not see any reports for estimates because in this file
the estimates have not been activated if you want to activate the estimates you have to open
the Preferences window from the main menu click Edit preferences the choice on the left in the
Preferences window is jobs and estimates and then click company preference now it says here do you
create estimates we will click yes we will not yet not yet touch these two buttons here on the right
for now just click the yes then click OK you will notice your file has changed now when you click
customers from the main menu there is a choice to create estimates because you just activated
it you should also look at the reports main menu under jobs time and mount mileage and now you can
see there are specific reports for estimates that have been placed here after you activated
estimates in the Preferences window the first report that we will work with regarding estimates
is the estimates by job report that's because it shows every estimate ever entered into the file
that has not yet been deleted from the main menu click reports jobs time and mileage estimates by
job right now there are nothing make sure the date pulldown menu says all regardless of date so right
now there are no estimates in the file but we do need this report right after we make our first
estimates so at the moment this report window is the active window we go to the top left of
the main menu and click view add estimates by job to the icon bar click OK and now we have ourselves
a shortcut to one of the main estimate reports before we record our first estimate you should
know that estimates are not transactions they will not affect the customers balance regarding
how much they owe they will not affect the trial balance chart of accounts or general ledger they
will not show in the journal but they will show up on the audit trail report and they have their
own special reports like the one we just pinned to the top of the icon bar so example 1 January
1 we made estimate number one for the Hanson Place job under Brown company the items on the estimate
are 25 units of carpentry at $60 each 25 units of electrical work at $80 each 25 replacement parts
at $75 each and 25 units of steam cleaning at $55 each and we can refer back to this as
we record the estimate from the main menu click customers create estimates notice estimate number
one should come up first however mine came up as estimate number two because I was practicing with
creating estimates choose the job the customer is brown and the specific job is Hanson place date
of the estimate is January 1 and we will assume that's January 1 of 2017 now the items we will
read from the sheet a moment ago its carpentry electrical replacement parts and steam cleaning
carpentry replacement Pirkle replacement parts and steam cleaning now the quantity of each was 25
now the cost per item will have the read off here 60 80 75 and 55 so $60 each
push the tab key on your keyboard click OK for the price level warning $80 each just keep hitting
tab on your keyboard what were the remaining two seventy-five and fifty five $75 each and
fifty-five okay now we have all the information we need for our first estimate we click Save
and close and when we open the estimates by job report we see the estimate is here the
estimate is active here is the total amount and we could always double click go back and look
at the estimate and we could change anything we need let's try a second example January 2
we made estimate number two for the Mockingbird Lane job under the same company Brown company
its twenty five units of four different items and these are different items that were on you
know different from the previous estimate let's make them the same way from the main
menu well a few click save and close for this one from the main menu click customers create
estimate of course it's still brown company but this time it's Mockingbird Lane the date on the
second estimate is January two and the items are as follows D winterizing Mason work so
let's choose D winterizing and Mason work and now let's choose replacement types not parts
and steam-cleaning replacement pipes and steam cleaning and the quantity is 25 for each of them
and the unit cost for each is as follows let's just read it off the
sheet 65 85 70 and 50 so we have 65 85 70 and 50
okay now we have another estimate its estimate number 2 on January 2nd and even though it's
the same company it's still under its it's a different job it's Mockingbird
Lane when we click Save and close we can check it in estimates by job under
Brown company the Hanson place estimate has SiC has an estimate of six thousand
seven hundred fifty and the Mockingbird Lane job has an estimate for six thousand seven