Project management Accounting -1

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foreign

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us hello everyone welcome back uh today I am going to discuss about project

management module basic things and

before going to demonstration let's starts with basic thing what is

Project a project is normally it's

a group of activities uh or group of tasks designed to provide service

or produce a product or achieve any

type of results by consuming the resource and will

generate the financial results ah

like revenues or assets so in simple words like

if we are constructing a building that is a project so we are using the

resources and and producing a asset right so that is

one of the project so we have two types of projects

normally external and internal normally external projects doesn't have no need

to have contract and but internal sorry external

contracts has to create contracts it's supposed to have contracts internal

projects no contract required and

normally external projects or we are doing work for any customer uh like a a

building house for the customer or we are

providing a software to the customer we are building we are developing a

software for a customer those type of examples we can tell under external

projects uh it's the most important point is that

for external projects it requires contract and it will be associated with

the funding sources and internal project

internal present project doesn't require contract uh it will not create directory

Revenue actually and for example adding uh some additional uh

benefits to our office building or like internal goals for example will best

example is that in um in our organizations they will do some

mandated mandatory trainings or capability buildings

that is knowledge they are providing to the employees so that is one of the

we can say for that purpose we can create internal projects

so we are providing knowledge to the employees that will not provide a direct

Revenue but it will help us help our employees

and dimensions for a project normally it is

scope resources and cost is the dimensions and

for the project management accounting uh the stages or

um there will be three uh different uh

stages like initiate project execute project and analyze project in the

execute project stage normally will create and send

quotations and create a project contracts create project WBS create

project focus and budgets and build project team these are the activities

normally will perform in the initiate project stage and in the execute project is

enter the time and material time and expense and the main is forecast and badges procure procure product and

services Monitor and adjust WBS

and revenue recognition process project invoices invoices for

the projects these are the activities will perform under execute project

analyze project review profit and loss

review profit and loss counts and

analyze cash flows review invoices analyze utilization these are the tasks

normally we'll do under analyze stage

so coming to project management workspace and

navigation for the project management if you see here

the application this is the project management workspace

so normally I'll go with

one of the company ussi Maybe

so in this thing

go to or project management workspace

so in this project management work phase we have all projects tab in planning

project templates whatever uh there and we'll can create the journals from here

and project invoice proposal as well as projects and inquiries and reports uh

these are the some of the tasks which is provided in the workspaces uh parameters

setups these things cost price sales price sales price for expense for sales

price for however cost price for expense and God cost price for uh however and

you can create the new project from this form and coming to a navigation path we

have project management here and module

and the project management module you can go to the all projects from and you

can create the new project and this is one thing and coming to uh

project hierarchies such as a use of sub projects normally sub projects will use

um like for different differentiate use for for example header

project will be there uh below to the header project there are phase one phase

two of that project at that time we'll use a project and

uh if there is any special accounting requirement then we'll use the sub

project for example uh client request you to build the bill for

the time and material during a fixed surprise project then we'll use some projects things

uh and one more thing is that grouping of project history uh to the with this

we can understand the additional work on the top of the initial project

and coming to uh

project hierarchy concept A normally project hierarchy concept there will be

parent project under parent project there will be a parent or Sale Project a

parent product or top parent project maybe this header project there will be

no transactions under this project of child will call and undo that parent or

child there will be a few other projects so setup setup and create the project

hierarchy how to do that before going to uh create the

project hierarchy I'll go to setup

project management for parameters

and here we have General Tab and where we

can see the default setups default project type of

under project what is the default project type it is time and material whenever you are creating the project

the default project type will be Diamond material but you can change at the time

of creation of project and default sub project format

so how the sub project will create for example uh your first project is like uh

in001 and for sub project in001 Dot

um 0 1 it will come under sub projects

so let's go and create the project header project now

to create the header project go to all projects form

new

so here see you can see the default project type as time and material

so select any group I'm not creating the group now I'm just showing the

uh header project how to create it

I'm selecting the contract ID and project Group which is already there

this project group and the contract will discuss in coming uh topics

project manager you can assign here

it's creating project I'll come in

hmm okay once this project is created

in the project hierarchy tab you have option called header

I need to select this one then this this is only the

this is the project for only for uh

header project purpose not for posting let me show you that as well

so if you want to post any transactions to the project then it's supposed to be in

so this stages I need to explain I'll explain in

coming topics So currently it is

we have only these many stages

let's go on create the hover Journal

see project is created does not allow for recording

so it's

saying that create a stage we cannot create a post any transactions to the

project slow let's take project stage

currently it is created stage

I'll change into different stage estimated releases Maybe

so these stages I'll explain later normally you will have created in

process finish these type of stages will be there

normally but somehow here they changed in this ussi that I'll I'll explain a

bit later so if I create lines now

see as defined as header projects registration should be done also projects that means header project won't

allow any postings that will be any transactions will be posted under

sub projects okay once uh Hydro project created Let's

uh click on the sub projects to create the sub project

see when I click sub project this is the pro header project number and sub

project is it's come up with hyphen01 based on the format defined render uh

parameters and here you can see that

phase one I'll give and I'm giving same things

okay see here this is the header project and the phase one so if you want to

create one more uh child or parent uh

sub project Under head then you need to select header and

click on sub project and give it will give the second number

phase two

and if there is uh any uh

sub projects under phase one you can select the phase one and you can create

the sub project under phase one

see here now iPhone 0 1 and iPhone maybe uh

install one I'll give

so this is the way we can create the

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in that way and if you want to see any project

statements uh you need to go to control Tab and you can check the project

statements

so you can check here General tab what are the transaction steps that need to

be included a penal account and wipe consumption in my hover it for this

particular project you can see that coming to next

concept like this project IDs or creating right to 0 0 1 to 80 it is

based on the param number sequence defined and the parameters you can

change the number sequence format this is a basic setup and I'm not going to

explain much so I'll just show the number sequence

that's it say this is the number sequence that is

speaking for project ID creation if I go inside this

I can see the format of the project ID creation so this is the project ID creation

format there is alphanumeric of heat length and Lead latest number is 153.

next number sorry next number and that's that is number sequence

uh coming to other thing copy projects

so before copy project I'll do one more creation of project

uh time and material on the copy project

template this is for using and this is for template

I'm creating one project how to create a project to use as a

template

filling all the details while creating the project and

create project

okay once the project created I'll select this one project template in the

hierarchy that means I am using this project creation thing as a template

a template for creating the other projects let me show you I'll

update the financial Dimensions one or two

I see already there it is 0 0 4 and financial Dimensions is there so with

this so with copy uh project functionality

I'll create the project using the template so let's go to Project

copy project will get a wizard

for creation of project let's take next

and here you can select the template view whatever you have created just we

created this one right I am using this as a template and do you have parent a project already

or a new project that needs to be created I am going with new project

once the new project and these the details will be filled on field based on

your template and next delivery address you can copy

and the financial Dimensions it will come from the template project

and you can uh fill these additional details as well project activities

required or if you want to update your sales price that and that will be

possible and we have select all option and clear all

option here

so once that is done here it is showing how many projects are creating for this

wizard and let's click on next and then

you have a finish option

existing 118 projects and quantity one project is going to create

this is the way to create the project using a copy wizard functionality

okay after this uh we'll go with the topic

project stages that in the later topic I told you I'll

explain bitly too and the project management parameters

we have project stages

see here we have project stages and when you create the time and material project

just now we created only time and material projects and we have these many

stages

okay here stay and project stage normally it is in process and they

changed into different naming conversion so for example if I go with standard

things in process and

save it then I can use this user defined also

normally we'll have created estimated schedule in process and finish stages

and one more thing you can create a stage rule here

so here a time and material project create beginning balances and create

forecast but just create quotation enable that means if you are enabling this tasks you can do these tasks under

that particular project type

say first for fixed price the estimates also there create journals

and reverse elimination also you can enable otherwise reverse elimination won't allow when the project type is

fixed price project while doing your element elimination

okay so you now we changed this to in browse

uh in process right let's go to all projects and see the stages

in process we have closed approved estimated and created these are the

stages uh in process is grayed out because uh

that project is already in progress and this if you take this project which

is in created status if you click this and the create status is grayed out and

you have that in process option to select it

and in the rules itself you can do at what stage what activity supposed to do

in the project stage level you have rules right you can Define there what

are the things you can do at this point of stage

for example in the created stage

create forecast create beginning balances create budget and if it is

estimated uh see here beginning balance is not

required focus on quotation if it is in process

we have create journals invoice proposals item tasks quotations

forecasts and budget beginning balance we can do these many activities at the

point of uh in process stage okay I think

these topics you understood and let's go to

other topics I told you the starting of this session

there are two types of projects external and internal external projects required

contracts internal projects not required contracts and external projects or

sorry external projects or time and material projects and fixed price project and

from and the internal prospective we have investment project internal project

cost project Time Project so we'll just I'll brief the uh

individual project types external types we have two types as I said time and

material and fixed price coming to time and material it will be invoiced based on the

material labor and expense consumed for a period of time for a particular period

of time what is the consumption of Labor or material for a particular period of

time that is time and material project where we can track the ability of cost

track the cost and the crude Revenue

for example construction product development Consulting these types of

projects will come will fall under time and material

so it's basically a consumption of material labor expense for a particular

period coming to next project type it is fixed

price project it's fall fall under external projects actually uh actuals

are not invised uh fixed contract amount uh on account transactions normally will

will create under this fixed price project Revenue recognization based

Revenue recognization also will be based on the accounting rule setup cost

can be classified to WAP accounts

example installation construction and Consulting a internal project

internal project uh falls under that

internal project category and if

normally internal projects that is financed by our organization uh like uh

as I said you uh like mandatory training those type of stuff

and coming to cost Concepts cost concept also it is very similar to internal

project type cost cannot be posted to WAP then coming to investment project no

immediate revenues under investment project uh fixed asset items from an

investment project typically creates

and Time Time Project labor recordings no Ledger

like a sick leave PTO Etc these are totally internal right we

we won't get any Ledger impact for this

to track the labor records like who who taken how many leaves and how many ptos

these are the types let me explain one more time there are two types of projects external and

internet in the external we have Diamond material and fixed surprise and in

internal internal investment and

ah internal investment time and cost projects these are the

four four types we have under internal projects

okay then coming to other things transaction types overview

normally we have transaction types of five transaction types

one is Harvard Journal uh one is above item and expense fee on account

for example for hover Journal it will be like uh example Consulting installation

setup of consuming hours those things items materials subcontractor services

will falls under items expenses airfare hotels and parking comes under expenses

fees service fee delivery fee Searchers will fall under visas and on account

it's basically for external projects prepayment for time and material and

schedule payment for fix it project ah coming to business documents

how else we have Diamond uh time timesheet and how was journals

item we have purchase order sales order production order

item Journal and item requirement AP invoice

and coming to expense we have expense report AP invoice Journal GL Journal

project expense Journal these are the documents and fee Journal we have only

Vision also on account on account transactions customer advances

however anyway we have time sheet and however Journal items we have purchase

order SVO Pro production order item Journal item requirement AP invoices

expense Journal we have expansionology Journal project expensive

we have Regional on account transactions

these are the things we have how many types of

transactions we have five types of transactions have

o item expense on account fees

understanding project transactions project categories

so in the project categories represents the cost of a new defined by your

organization categories uh will categorize the

similar type of expenses or revenues and this

project transactions project categories Behavior normally requires on all price

transactions requires for project forecasting and budget that means

category is required for project whole project transactions it requires for

forecasting and digesting Ledger postings different we can Define ledger

postings at the category level can help different cost of sales price

at the category level allow detailed reporting and Analysis purpose we can use categories

okay these things then coming to project category setup

and under setup we have

categories share root categories we have project categories we have and category groups

we have we can use uh for any legal entities if

I click share rate categories to show you

how it looks so in the shared category will create the category ID and category name and

where we can use can can be used in project if yes yes can be used in

production yes then s can be used in expense then select is if you select

this can be used in expense and you will get this mandatory field

expense type what um where you need to use this category

and coming to category group

this is shared categories and coming to category groups

we have category groups

we can group the categories into we can group similar type of categories

into one group see here here estimate is one of the

group estimate type of the journal we can select it what type of the Journal

of is for this particular type let me take new so it is not allowing

to edit

so let me take new to explain the fields

so coming to a here I'll take hours and we have type transaction type which

type free Journal hover Journal expense or item

so it is hover I have selected hover and group name you can give hours

and line property whether it is billable or non-billable you can select it

and here group level category group level laser postings you can select

which main account it's supposed to post at the time of transaction posting

so that you can do here

and coming to project categories

here you can select new again you can give the ID and nothing to mention here

we need to select already whichever created same things will come under category groups as well these things if

you want to categorize a project category level if you want to mention

this Ledger posting so you can Define and for project categories what is the category

group for this particular project categories and you can

using whether it is used in expenses or production you can select it

okay and active in journals

this was selected as

if you go to parameters we can see the default

default categories you can select project it is

category resources

and coming to a project pricing cost price sales price uh those details if

you come here

pricing sessions cost price for our cost price for

expense sales price for our expense fees subscription free transfer rate if you

click on cost price for our you can Define it a resource level or

project level or Price group level and category level

you can select whatever your requirement is and mention the

price here and same way you have cost price for

expense you can Define your cost price for your expense so it will be effective

date from when it will be applicable and you can select the category level and

resource level project ID level maybe you can use core rentals you can

select the resource if required if it is only used for only one project and

applicable for one project then give the project and it is for only customer

then you can give those details as well

and sales price of us

here you can Define the sales price for our

and space sales wise for expense also you can provide here

and once the price is defined

or maybe I'll use it

will use the project that we have created Maybe

so it is not appearing when I select all

and again going to filter with phase

so I have three projects let me take this one

this is ours and

if I select cost price nothing is there for at the project level

let's create the expense Journal

so it is in Creative stage it won't allow let me change the stage first

before creating the our Journal

oh sorry sorry

so in process now let's

okay selected project and category VM

so it is um

so not picking uh for example if I take 10 hours

let's post it

before posting go to General tab to show you the cost price

180 and sales price is 300.

let's go and check how from where the system is picking this 180.

project management accounting