#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.


To be Continue…


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Date: 29 April 2013

Sage 300 ERP Project and Job Costing (PJC) module seamlessly integrates with the other financial and operational modules of Sage 300 ERP.

To Run PJC the mandatory modules required are System Manager, Accounts Receivable and Accounts Payable. In addition to these mandatory modules PJC integrates with General Ledger, Inventory control, Order Entry and Purchase Order module of Sage 300 ERP. PJC also integrates with US and Canadian payroll module to pass the time card entries from PJC to payroll module and calculates employee’s wages from there.

PJC Integration with Sage 300 AP and AR Module

When a billing worksheet is posted in PJC, it creates Invoice batches in Accounts Receivable; here we can edit and post the batches. We can also enter job related invoices, and credit  and debit notes in Account Receivable and Accounts Payable that will update the contract in the PJC module. The customers in Accounts Receivable are stored in the PJC Contract and also Vendor from Accounts Payable is used to create a sub-contract in PJC Module.

What happens when you post job related Batch in AP or AR?

When Job Related Batch get posted in Accounts Receivable or Accounts Payable, the respective program creates a journal entry to update receivable or payable control account and also billing and Work in Progress (WIP) Accounts depending on the type of transaction. The batch will also update the project, category and/or resource (for slandered contract) in the PJC Module. Accounts Payable and Accounts Receivable also update the respective contract in PJC when job related receipt, Payment or refund is posted.

Accounts Payable also post the Retainage amount to the relevant PJC contract as commitment if tax is reported in retainage of Accounts Payable.

PJC Integration with Sage 300 ERP GL Module

PJC can directly create batches in the GL Module when we post a batch in PJC. We can choose to create the GL batch at the time of posting the batch in PJC or at later stage by “Create GL batches” function available in PJC “Periodic Processing ”. We can also select what information needs to be send when creating GL batch from PJC. GL batches can be created consolidated or with full details.

Integration with Sage 300 ERP Inventory Control Module

If Inventory Control module is in use then the WIP and Inventory Control Account will be updated for the material usage and material return transactions. Also the cost of the item used is calculated. This all will be done automatically when Day End process of Inventory Controls runs.

Integration with Sage 300 ERP Purchase Order Module

Purchase Order and receipts will update the committed and actual quantities and cost in the respective Contract, Project, category and resources in PJC Module.

Integration with Sage 300 ERP Order Entry Module

While creating the Quote in Order Entry we can also create a corresponding contract in PJC and the Quote in Order Entry will update the contract estimates in PJC. Once we post the order it will change the status of the contract from active to open. The contract will be updated for every job related shipment done. It  will also do the billing for all Shipment that use project invoicing.

Cost and billing amount in Order entry will be calculated on the basis of the default method that has been set in the project maintenance form in PJC.

To Be Continue…


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Posted by on April 28, 2013 in Accpac Hot Fix


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#20 Understanding Project and Job Costing Life Cycle

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.


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.


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…



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


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#19 Sage 300 Project and Job costing

Date: 2 April 2013

Sage ERP Project and job costing (PJC) module is a project management module to assist organizations in developing plans, estimates, assigning resources to tasks, tracking progress, managing budget, costing, billing and analyzing workload so that Work can be delivered on time and be in budget only to be more profitable.
If in an organization where project managers are spending too much time on tracking there projects and related activities then it will be a wise choice to go for Sage ERP 300 PJC Module. Benefit will not only that all project managers will able to track and maintain their projects at a central place but also get lot of added advantage in term of budgeting, estimating, allocate resources, cost and billing to be name few. Not only it will eliminate the time spend by project managers to track projects they are working on but also it will help to consolidate all the project company is working, so consolidated reporting can be generated, hence provide an eagle eye to the decision makes so that better decision making can be done.
Sage PJC assist to maintain categories that are easily customized to meet virtually any specification needed, it’s flexible enough to manage large or small projects for any business environment. Featuring streamlined integration with key Sage ERP 300 modules and extensive custom reporting capabilities, Project and Job Costing puts you in control of project costs with better tracking, enhanced efficiency, and greater accuracy.
With PJC you can:

• Keep track of committed against actual costs with Purchase Order integration.
• Set up, track, and maintain jobs at multiple levels of detail.
• Quickly assign staff, material, subcontractors, equipment, miscellaneous items, and overheads to each project within each job.
• Track and bill inventory items by contract, project, or category as well as by cost types.
• Track and bill equipment usage by contract, project, or category.
• Empower employees to easily manage their own time and billing records using an Internet browser anywhere.
• Manage and track time spend by people on various projects
• Mix and match accounting methods to fit any job or project from very complex to very simple.
• Automatically generate invoices based on the transactions that are due to be billed.
• Easily review contract or project changes and instantly update revenue and cost estimates.
• And Much More!!!

PJC Module integrates seamlessly with other key Sage ERP system modules like Purchase order, Account Receivable and General Ledger. This will insure that you can control your job revenue and cost with PJC more effectively and efficiently.

In nut sell you can keep your eye on the bottom line with extensive, robust analytical capabilities. With Project and Job Costing, you can track retainage, calculate overhead, gauge profitability, and access numerous analytical reports. At the micro-level, you’ll be able to spot errors, inconsistencies,
or overages before you’ve sent the final bill. And at the macro-level, you’ll be able to understand what kinds of jobs tend to earn you the highest margin, which kinds of jobs are draining your resources, and why.

To be continue …



Posted by on April 9, 2013 in ERP


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#18 MS Excel as Business Intelligent Tool

Date: 5 April 2012

ERP- Enterprise resource planning as name suggests it is to plan about the resources in an Enterprise. When we say planning that means forecasting future and making decision that will help an Enterprise to grow at the steady pace. Good decisions which define the fate of an organization can only be made by peeping into the piles of data which have been accumulated by the course of organization’s operation. As a saying goes “One cannot make bricks without mud”, similarly one cannot make good decision if there is no data to work on. Further this data should be used efficiently to make forecasting dissension. One of the advantages of ERP is that it securely builds that heap of data to be used for the future forecast.

Further to utilize the data accumulated by ERP, effective Business intelligence tool is required. There are various tools available in the market that may be good what they claim. But what can be better than the one which is already known to most of the people. Especially in the management teams around the world there are hardly anyone who doesn’t know Microsoft Excel. Yes, MS-Excel can be used as BI tool also as they say “Known devil is better than unknown angel”.

Let’s take an example to see how we can use excel as BI tool. There is a sales head that wants to see the past performance of the company to make various decisions. Let’s see how we can accomplish this in MS-Excel and how we can easily convert data to a graph.

Microsoft Excel shipped with a very handy tool called Microsoft query. Microsoft query give power to the users to extract data from almost any data source. We just need to create an ODBC in the System DSN. In MS Excel “Data” tab there is option to extract data from “Other sources”.

There is an option called “From Microsoft Query”. When you select this option you will get the screen to select the data source.


Select your data source and click “OK” to open Microsoft Query screen as bellow:


Here in Microsoft query you can enter you SQL statement to extract the sales data. Once you did that you can press “Return Data” button to send the data on you selected excel sheet. The data looks like as follows:


Now the same data can easily be converted to graph or any other type of diagram that user wants to represent data in much better way:


Now it’s up to the capability of the individual to make it more and more interactive. Above is an easy example, but we can make and design much complex reports as well where user can enter parameters to extract the data that he wants and see it in different formats like table, bar diagram, pie chart etc.


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Posted by on April 5, 2012 in Accpac Hot Fix


#17 Advantage and Disadvantage of ERP

Date: 24 July 2011

Enterprise resource planning (ERP) integrates internal and external management information across an entire organization, embracing finance/accounting, manufacturing, sales and service, customer relationship management, etc. ERP systems automate this activity with an integrated software application. Its purpose is to facilitate the flow of information between all business functions inside the boundaries of the organization and manage the connections to outside stakeholders

Advantage and Disadvantage



Integration can be the highest benefit of them all. The only real project aim for implementing ERP is reducing data redundancy and redundant data entry. If this is set as a goal, to automate inventory posting to G/L, then it might be a successful project. Those companies where integration is not so important or even dangerous tend to have a hard time with ERP. ERP does not improve the individual efficiency of users, so if they expect it, it will be a big disappointment. ERP improves the cooperation of users.


Generally, ERP software focuses on integration and tends to not care about the daily needs of people. I think individual efficiency can suffer by implementing ERP. The big question with ERP is whether the benefit of integration and cooperation can make up for the loss in personal efficiency or not.

Cost reduction

It reduces cost only if the company took accounting and reporting seriously even before implementation and had put a lot of manual effort in it. If they didn’t care about it, if they just did some simple accounting to fill mandatory statements and if internal reporting did not exists of has not been financially-oriented, then no cost is reduced.

Fewer personnel

Same as above. Less reporting or accounting personnel, but more sales assistants etc.


No. People are accurate, not software. What ERP does is makes the lives of inaccurate people or organization a complete hell and maybe forces them to be accurate (which means hiring more people or distributing work better), or it falls.



This entails software, hardware, implementation, consultants, training, etc. Or you can hire a programmer or two as an employee and only buy business consulting from an outside source, do all customization and end-user training inside. That can be cost-effective.

Not very flexible

It depends. SAP can be configured to almost anything. In Navision one can develop almost anything in days. Other software may not be flexible.


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Posted by on July 24, 2011 in ERP


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#16 Accpac Finder

Date: 17 July 2011

The Finder is a pop-up window that displays records in a column format for a view. Records are displayed in one of two formats, selected by the user. The user can also select the order for record display. If desired, the caller can provide a filter to restrict the records displayed by the Finder.

Uses of the Finder
The Finder can be used for:

Inquiry In this case, the Finder provides a detailed list of items. The user can select the fields to be displayed by the Finder.
Searching In this case, the user chooses the Finder button to initiate the search for a specific item. The selection is placed in a buffer and the Finder is terminated. For this purpose, the Finder should be started modally by the calling program, so that no further work can be done by the caller until a selection has been made.
Selection In this case, the Finder selects an item to be operated on by another object. After the item has been selected, an object is started, and the selection is passed to it. After the object has been started, the Finder can either remain or terminate. If the Finder remains, the object started by the Finder is modeless. Subsequent Finder selections can be made and further instances of the object started. The objects started can be either peers or children of the Finder. If an object started is a peer, the user can terminate the Finder, but any other objects started by the Finder will not be terminated. If an object started is a child of the Finder, terminating the Finder causes all the Finder’s children to also be terminated.
If the Finder terminates after starting an object, the object obviously must have been started as a peer. The Finder provides the primary key for the selected item in the key area of the object that is started. It is also possible for the caller to provide a user area to be passed to the object started by the Finder.

Following is the code to call the finder that will show the item form ICITEM table in Accpac

Private Sub Cmditemfrm_Click()
Dim fnd As AccpacFinder.ViewFinder
Set fnd = New AccpacFinder.ViewFinder
fnd.Session = AccpacSession
fnd.ViewID = “IC0310”
fnd.DisplayFieldIDs = Array(7, 3, 5, 1, 8 )
fnd.ReturnFieldIDs = Array(7, 3)
fnd.Filter = “” ‘condition here
fnd.AutoTabAway = False
If fnd.Finder = True Then
‘Code here
End If
End Sub


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Posted by on July 17, 2011 in Accpac Macro, Accpac Support, Sage Accpac


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