Project management Accounting -13

hello everyone welcome back again uh it's welcome to project management

accounting basic concepts uh today we are going to discuss about uh funding

sources uh funding source users normally it will be customers Grant organization

on there are four types of funding source and funding limits funding rules

uh and billing rules uh those we are going to discuss about uh in this

session uh funding sources means uh the party responsible for the

payment based on the ter of the contract whatever the terms mention in the

contract uh for the payment that is funding source the party

responsible for the payment based on the terms of uh

contract what are the types of funding sources there are four types customer

assigning a existing customer as a responsible party here Grant a project

is funded by a grant when creating Grant you associate a customer to it and

organizational it is internally funded uh and on

hold used within coordination with the funding

limits when you go over the LI over your limit this funding source is used

so on hold normally it will be used if the funding SS over the

limit funding going uh going beyond the limit then we'll use this on hold

one next how many funding sources can we uh

have like we have any number of funding sources uh so there is no such

restriction and funding limits uh funding limit

uh funding limit is means the limit the

spent amount towards a specific activity or project so funding limit it will be

for any specific activity what is the amount spent for any activity or

transaction type project category

so and um when you when we exceed the funding

limit uh you can get hard stop at posting uh

normally it will stop for posting the on hold funding source will be used here

when the limit exceeds funding limits normally

applicable for the time and material project uh funding rules uh for funding

rules are the way to allocate the bill to your funding

source so that is funding rules and coming

[Music] to next thing uh funding rules we'll

discuss uh before that we'll create one project

contract

h

so go to Project

contracts maybe I'll use split spit

building and I'm using the customer here funding type see funding type we have

four types customers Grant organization on hold currently I'm using customer and

I'm selecting one of the existing

customer okay

once this is

done if you go here funding sources it will uh

automatically uh add this funding source because while creating customer we have

selected this and you can add add uh one more as well one more funding source as

well uh if you want to add any funding

source and

uh you can add a number of funding sources and funding limits we have here

in the funding limits uh it's normally if we add click on

ADD it will come all type of

transactions

and we have allocate here uh you can allocate with 100% only so maybe you'll

use 60%

here

so once this uh allocation done in the plan uh in the maintain

tab click on project so now C project we are going to

create for this contract

after creating the project let me create how journal for testing

purpose so currently project is in

cre

okay now try to create our

Journal so 10 hours

here here it is 200 cost price and

350 sales

price once it is done let's go

to uh manage tab invoice

proposal

see see two invoices has been created uh this one is for uh

2,100 and uh this is for 1,400 total is 3,500 350

into 10 select both of

the invoices and post it

okay both are

invited

so you can check V here it will be uh Revenue right

customer debit customer balance and project invoice Revenue it will be

credited so this is one scenario and uh let's try with different

fun project

contract organization

funding so one I'll give as customer and another will another one I'll add uh

organization funding

source here we can select the we'll have

uh business unit wise uh organization setup the purpose

is for funding source for example if I use AP business

unit

allocation

7525

i% creating the project

now

so after this let's change the

stage to

release

creating the H Journal

now

so after posting let's we'll go and check the poster transactions in the

project so this is the

one just see we'll have uh two

segregations one is for 500 and one is

for500 so so this is cost recognition right so 150 is the cost

into

10 total sales price cost price I think 200 is the

price uh let me check again

yeah

200 so once uh our Journal

posted let me create uh invo

proposal it will it will show only one invoice here that is for the

customer it won't show the

organization and if we post this as this also it will be it will show as a fully

invoice because organization is

internal this is the one project inv customer debit project

invo

next we'll try with funding limits and onh hold funding

source uh let me create one more

contract

for

the funding

limit I'll mention 4,000

here save it and uh creating the

project

this is the one once the project is created change

it to in

progress so how Journal I'm creating

it so it's posted now uh let's go to the project

now and we refresh

it

sorry so 3,500 already spent for this project

sorry for this

contract so when uh I'll go to the projects

Tab and I'll select the funding limit

project this

one

and when I try to create our

Journal

again I quantity let me post

it I go got an error Jour not posted and update is cancelled reason reason is

line number one Revenue could not be allocated verify the funding rules have

been set up to allocate Revenue it is over right so that's why

we are getting this error

so

now what we'll do is that we'll add the onh hold uh funding

source

so when I add the on holds

Source again going back to the hover Journal which is not posted this

one when I try to post

now it's posted so if we go back and check the

posted transactions for this project under manage

tab you can see first line is for uh 10 hours if you go to the voucher

it is Project cost and payroll

allocation and for the second one see

here

here it is Project cost uh location only but uh two lines

came okay now what I'll do is that invite proposal

and try to do

it

so let's check the invoice proposal now and voucher

transactions see customer and project inv

Revenue

so here on onh hold only you need to

click

okay uh I missed one point maybe I'll discuss later that particular

point if I remember okay this this is the thing

that I want to explain you uh funding limit funding sources allocation of funding sources

funding limit those details we discuss today uh

it will be like funding sources we have customer Grant organization on

hold and funding limits funding limits it will give the

error message funding rules funding rules are the way to

allocate the bill to your funding Source funding source is the source from

where the uh funding source means uh it

it will be the party responsible for the payment on the terms of

contract and uh second one is funding limits uh in the funding limits if it

exceeds the limit it will it will throw an error message funding limits

uh used for the time and material Project funding rules uh the rules that

are that will help to allocate the source to fund allocate the funding

source and uh funding rules and split building uh that uh where we can we

mapped 25% and 75%

we create we created project contract funding source added and uh we have um

posted our journal and we have posted the invoice for the same and funding

organization funding sources in the funding sources we have given again

created project and we take an organization type

in the funding sources and again created posted uh H

journal and uh posted the

transactions and funding limits and onh hold funding

transaction when it exceeds the funding source we got an error message and uh on

hold funding source we have

added Okay so that's about uh for

today maybe I'll come up with the building rules in the next

session thank you all