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Monthly Archives: May 2013

#25 Periodic Processing in Sage 300 ERP PJC Module


Date: 26 May 2013

This post describes the various processing and reporting tasks you perform at period‐end or at other regular intervals in your Project and Job Costing system. The icons available to do the periodic task in PJC are:-

1

• You use icons from the A/R Billing folder to generate, edit, and post entries for invoice batches that Project and Job costing sends to Accounts Receivable.
• You use icons in the Revenue Recognition folder to generate and post entries to recognize project revenues and matching costs.
• You use icons in the Reopen Closed Projects folder to create and post worksheets that reopen projects and reverse revenue that was recognized on completion of the projects.
• If you do not use the option to create general ledger transactions during posting, you choose the Create G/L Batch icon from the Periodic Processing folder to produce batches of general ledger transactions.
• You use the Clear History icon to remove from your database printed posting journals, posted documents, closed contracts, transactions for closed contracts, and posting error journals that you no longer need.

Icons from A/R Billing folder:

2

• You use the Create Billing Worksheet form to generate invoice entries for projects that you want to bill. The entries are added to a billing worksheet, which you can view, edit, and post.
• The Billing Worksheet form lets you edit the invoice entries you generated using the Create Billing Worksheet form. You can change the debit amount and the credit amount, as well as the percentage complete (for projects that use a percentage completion accounting method). For some time and materials transactions, you can change a non-billable detail to billable. The Billing Worksheet form also lets you post individual worksheets.
• You use the Post Billing Worksheets form to post a range of billing worksheets. Unless you use the option to append invoices to an existing invoice batch, Project and Job Costing sends each worksheet as a separate invoice batch to Accounts Receivable.

Icons from Revenue Recognition:

3

• You use the Create Revenue Recognition Worksheet form to generate entries to recognize revenue for all your projects or for a selected range of projects or project categories. Revenue recognition also closes projects that you have marked Completed.
• You use the Revenue Recognition Worksheet form to review the revenue recognition entries before posting them. For projects that use a percentage complete accounting method, you can change the percentage complete, and then recalculate the amounts. Once you are satisfied that the entries are correct, you post the entries from the Revenue Recognition Worksheet form.

Icons from Reopen Closed Project:

4

• You use the Create Reopen Projects Worksheet form to select closed projects that you want to reopen and to generate reversing entries for any revenue that was recognized on completion of the projects. The entries are added to a Reopen Projects Worksheet that you can view, edit, and post.
• You use the Reopen Projects Worksheet form to check or delete the entries generated by the Create Reopen Projects Worksheet form. You also use the form to post the worksheet.

Note: You can close a project that has outstanding retainage payable or retainage receivable, however, you will have to reopen the project if you need to post retainage invoices, later.

Aggyey

 

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#24 SAGE 300 ERP PROJECT AND JOB COSTING – CONTRACT MANAGEMENT


Date: 13 MAY 2013

In Sage 300 ERP Project and Job Costing (PJC), Contract Maintenance form is used to add and maintain the contract and their associated projects and categories. Before adding a new contract the following records must be added in PJC:-
• Account Sets
• Projects
• Categories
• Employees
• Equipment
• Subcontractors
• Miscellaneous Expenses
• Overhead Expenses
• Charges
• Optional Fields
Also if you plan to raise Job Related invoices in Account Receivable with items then you have to create items in Account Related. For General Ledger you need to create the following accounts in the Chart of Accounts:-
• Work In Progress
• Cost of Sales
• Billings
• Revenue
• Payroll Expenses
• Employee Expenses
• Labour
• Overhead
• Equipment
• Cost
The Contract Maintenance form is used to perform the following tasks:-
• Specify the contract setting, for example when to recognise revenue, Project type etc.
• Default tax group.
• Assigning Projects (i.e. the revenue stream) to the contract.
• Assign resources and cost categories to the projects within a contract. Further PJC will match the cost with the revenue they generate .
• Enter estimates for the projects that will make up the estimate of the contract as a whole.
• Allow to change the status of the contract and projects.
• Use project, category and resource to track the cost for each element of the contract.
• View the summary information for contract and individual projects.
You can use Contract Maintenance form to create and maintain the contract, project and categories. As shown in the figure below:-

ContractMaintain

By clicking the Zoom button (Blue triangle button on the top) you can open a wizard where you can specify the default setup to open a new contract. Then you can add a new project to the contract and categories to the project. As a visual cue the project icons are in different colours depending on their status. The detail is as follows:-

PJCFolder

At the time of defining new contract it will pick all the setting from the options screen in the PJC Settings, but you can change the settings at contract and at project level.

To be Continue…

Aggyey

 
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Posted by on May 19, 2013 in Accpac Hot Fix

 

#22 Understanding Sage 300 ERP Project and Job Costing Settings


Date: 6 May 2013

Sage 300 ERP PJC settings screen allows us to define how PJC is going to work for a particular organisation. It starts with the naming conversion of contract, Project and Categories. Sage PJC allows naming the contract, project and category to the company specific naming conversion. For instance if in a company contract is called as agreement and each project under agreement is called assignment then we can change the level 1, 2 names in “PJC Setting” to be agreement and assignment. Sage 300 ERP will respect the naming convention defined in PJC settings in all its modules.

Following is the Sage 300 ERP PJC “Settings” screen where we can define the setup.
PJC setup screen

Default labour Type: is the method how Labour cost is going to allocate to the projects. It gives you three options “None”, “Flat Rate Per Labor Hour/Unit”, “Percentage Of Labor Cost”.

  • None – System will not allocate labour cost to the Projects.
  • Flat Rate Per Labor Hour/Unit– System will allocate the predefined fixed labour cost per unit (Defined in Labor Rate field) to the Project.
  • Percentage of Labor cost– System will allocate the percentage of the actual labour cost (Defined in Labor Percentage field) to the Project.

Default Overhead Type: Overheads are the cost that cannot be directly allocated to the project but are necessary to complete the project like periodic expenses, such as utilities, rent, and administrative salaries are indirect costs that you often need to allocate to projects on some rational basis. “Default Overhead type” allows defining method how overhead cost is going to allocate to the projects. It gives you three options “None”, “Flat Rate per Unit”, “Percentage of Cost”.

  • None – System will not allocate Overhead cost to the Projects. You can allocate overhead manually by assigning overhead expenses to categories within a project.
  • Flat Rate Per Unit– System will allocate the predefined fixed overhead cost per unit (Defined in Overhead Rate field) to the Project. This method will be used when overhead cost is in the proportion to the number of units of equipment used in the project.
  • Percentage of cost– System will allocate the percentage of the Overhead cost (Defined in Overhead Percentage field) to the Project. This method is used if the overhead is in the proportion to the total project cost.

Force Listing of Transactions: if selected, this option will force you to print the transaction listing before you can post the transaction.

Default Accounting Method: Accounting method determines how the system will recognise the revenue. Accounting Method selected in the “Default accounting method” field will be the default for the new contract or project. The options that we can select in this field are:

  • Completed Project
  • Total Cost Percentage Complete
  • Labour Hours Percentage Complete
  • Billings and Costs
  • Project Percentage Complete
  • Category Percentage Complete
  • Accrual Basis

Each accounting method will recognise revenue differently. I will explain each accounting method in detail in my next post.

Default Contract Style: Style tells system at which level to track the cost for each project. Selected contract style will be default for new contract but can be changed for each contract. Similarly selected style for contract will be the default for the project under that contract but can be change for each project. Different contract styles that are available under this option are:

  • Standard- Under Standard style the cost is tracked at the resource level. System allows you to use separate forms to assign resources to a project.
  • Basic- Under Basic style you can only track cost at up to category level.

Default A/R Item Number: For “time and materials” and “fixed price” projects if “item type” Invoice is issues it will take default A/R item selected in this option. Default item on the item type invoice can be set different for each project.

Default A/R Unit of Measure: Unit of measure selected in this option will be default for the item-type invoices. Each project can have different Unit of measurement as default.

Aging Periods: Here you can define five aging periods that can be used to classify the documents as current and overdue on reports.

Update Budget: If selected, system will update the budget whenever you process a transaction. System will take long time if it needs to update the budget for each transaction. So select this option only if you need to update the budget for each transaction.

Update Payroll: If this option is selected system will use the payroll expense and employee expense accounts from PJC when update Payroll option is used in PJC. If not selected system will use the accounts specified in US/Canadian Payroll system.

Percentage Complete Method: In this option we can specify when to clear billings and WIP Accounts for “Percentage Complete Accounting Method” Projects. Options are:

  • Clear Billings and WIP during Revenue Recognition: Generally used for short term contracts.
  • Clear Billings and WIP during Project Close.

Aggyey

To be Continue…

 

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