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#20 Understanding Project and Job Costing Life Cycle

21 Apr

Date: 21 April 2012

In Sage 300 PJC the work flow starts by building a contract in the system. Contract represents an agreement with the customer to do certain work for a give price in a certain period of time. Contract records various projects that define the work that needs to be done for the costumer and in turn are also the revenue stream. Further the cost incurred to accomplish the projects is recorded in categories and Resources under project.
Contract maintenance form is used to assign project to a contract and to assign categories and resources to each project in the contract. In Sage 300 PJC contract, projects and category terminology can be setup as per the company and industry where PJC implemented.

PJC1

Contract, Project and category (or Resources) need to be identified for each cost detail. Sage PJC will consolidate the cost at the project and contract level and further match the coat with revenue to get the profitability.
The PJC process starts with setting up contract in the system. This involves setting up contract, Projects and categories. Here we can put estimates and approve it to open the contract at each project level. As we can see in the dataflow diagram below how transactions are flowing to complete the PJC life cycle. It also explains the various transactions involve at each step.

PJC2

Cost Transaction is processed against each category and resources under project and contract, PJC match revenues to the cost that generate them. Contract of each project is the point where it is specified where to recognised revenue, how to bill to the customers.
To be Continue…

Aggyey

 

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Posted by on April 21, 2013 in ERP, Sage 300 ERP, Sage 300 ERP PJC

 

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