Proposed Project Management Module


To provide accounting for larger projects which span multiple activities and where turnover will be taken on the basis of percentage of completion of the whole project. Given that we already have contract costing module, we can make use of the existing contract functionality to allow bills of materials and other costs to be set up against a contract. The project is a level above the contract where each project will be made up of 1 or more "contracts" from existing webERP functionality.

Each contract can currently have its own bill of materials constructed plus any number of other "nominal" cost items that are not currently defined as "stock" items in the stockmaster. Purchase orders and invoices can specify individual contracts to be allocated to. A project will have a single project sales order for a dummy "project" item all subsequent variations will appear as additional project item lines with the narrative line for each order line describing the project and variations.

Creating the project will allow for input/editing :
1) Selection of the customer
2) Selection of the project type from the list of project items defined in stock master. The dummy project item will have a "project stock category" record that will determine how it is posted and also the stock category it belongs to will allow the set up of the COGS GL posting and Sales GL Posting GL codes.
3) Summary description of the project to appear on searches
4) More detailed description of the project
5) Customer�s PO number
6) Project Manager � from a new table of employees (where project manager flag is true) and Project designer from the same table of employees (where the employee is flagged as a designer).
7) company quote reference
8) Any number of lines spelling out the specific requirements of the project with estimated costs (the NPA � "New Project Advice" from the project costing) Each line can have any number of labour type quantities extended at each labour type rate. Eg. Design, Engineering, Manufacturing
9) The agreed price of the project to the customer (in the customer�s currency)
From this entry the sales order will be created for the project dummy item and the webERP contracts created for each line.

Need 4 tables:

projectmanager FK employees
designer FK employees

contractid - this will only be populated when the project is created - creating the contracts
reference - the line reference
description - line description/activity
materialbudget - excluding the labour

reference - line number
labouritem - determines type of labour
hours - budgeted hours for this line

id autoincrement
firstname varchar(20)
lastname varchar(20)
initials varchar(4)
projectmanager bool
designer bool
labouritem - FK stockmaster with patent stockcategory of a labour type

Project Reviews (AKA: Sales Values)

Provided there are no outstanding uncompleted sales values. At any point in time a process to create a sales value worksheet that summarises the costs incurred on a project (across all contracts for that project) the current project value from the sales order and the costs expected to go for each labour type defined. Before any sales value worksheets have been created these expected costs to go will be derived from the total NPA as summed across all contracts less any costs incurred. Similarly, the labour types defined will have the labour to go calculated in the same way across all contracts. The sales value worksheet will allow for the materials yet to go to be over-ridden and similarly for the amount of labour hours for each defined labour type. Also a confidence factor that can be used to abate the proportion of turnover/profit taken on the project. Each worksheet will have a status that can be:

1) Awaiting review
2) Updated
3) Authorised
4) Completed

New tables required:

Project id
As at date
Total project value � from the project sales order as at date
Variations � not yet on the project sales order as at date
Material costs as at date
Material costs ordered not yet received � from outstanding POs for the project contracts (lines)
Expected material costs to go not ordered � input field but calculated in the first instance
Confidence factor

Project id
As at date
Labour type
Hours yet to go

Once the sales value worksheet has been reviewed the project manager should set the status to updated.
The person responsible for reviewing the sales value worksheets should then work through those with status updated and set the status to authorised. When the status of a sales value worksheet is set to authorised (or completed) then no further entries are possible to over-ride the figures.
When all sales value worksheets are authorised:
1) Then a process to calculate the relevant proportion of turnover to take on the job can be run.
2) Then a report to be run showing an analysis of the turnover and gross profit to be taken on each project.
3) Modifications to sales value worksheets can be made by authorisers after the calculation is run, the calculation can then be re-run and a new analysis report created.
4) Once happy with the turnover/GP taken the sales values a final process can post to the GL the turnover to be taken (GP drops out of the turnover less the COGS � posted directly as each project cost goes directly to the COGS GL codes). GL postings of turnover are just the incremental amounts based on the new sales value less any previous turnover already taken on this project. A field in the project master records the turnover taken and is updated by this process.
5) As well as the GL posting, the sales analysis records will be created for the project based on the turnover taken.

Project Invoices

New functionality is required to create Sales invoices for these project items � without specifying a quantity � but allowing for entry of a narrative and amounts. Eg. Progress instalment 20% $100,000. Creating a project invoice will not create any GL entries to income but instead CR progress billings/Taxes and DR Debtors
Contract Works orders are used as for other contracts, but works orders for project lines are for dummy project items and therefore the recosting of these items on closing of the work order will have no impact on stock values. Also, the work order is actually only part of the cost of the item as the other non-stock items need to be included as per any other contract.
When stock is issued to a work order normally it is coded to work in progress, but for project work orders the cost needs to be coded to the cost of sales. Similarly for items purchased for a project contract these also need to be coded to the cost of sales directly.
Project GL posting is set up by reference to the project dummy item selected for the project sales order. The project item will belong to a project stock (dummy) category and the usual tables for COGS and Turnover will be used based on the customer sales area, the stock category inventory location etc.

Modification to Purchase orders

When a purchase order is created it should be possible to select an open contract and for the items purchased to be directly allocated against the contract and the GL entry based off the project glcodes table above.

Timesheet entry allows entry of labour � need new table of employees and each related to a labour type. GL posting in accordance with �stock� category for this labour type.

Project Inquiries

Project summary showing NPA and actual costs, labour quantity and $ by labour type for each line (contract) of the project.
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