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.
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.
To be Continue…