Project management Accounting -14

hmm

hello everyone welcome back again uh

today we are going to discuss about uh

project management accounting billing

rules

Concept in the project management

accounting

so

as we discussed in previous episodes uh

other topics like building rules how to

add create funding sources those type of

stuff we discussed today we are going to

discuss about building rules currently

what is billing rule uh billing rule is

a billing rule means when you when we

negotiate the project contract with the

customer will Define how and when the

invoice to the customer that means in

the billing rule will mention the how

and when the invoice we need to do for

the customers those rules and all we

need to mention in the billing rule

and uh

and we can add the controls around the

project invising process based on these

billing rules we can add the controls

for the project invoice process existing

projects are prerequisites of billing

rule that means projects needs to be

there to to

add the building rule

so there are different types of billing

rules

will go by one by one

uh first one is that

billing rule type Milestone Milestone uh

Milestone building rule means it is the

centralized way to Define contract value

only applicable for the fixed price

project

so the first will do one thing

will create one project

for the Milestone purpose

and we have different types actually

building rules ah Milestone progress fee

time and material unit of delivery so

let's start with Milestone first

we'll create one project and the project

contract as well

oh it's I mean different

come here's some of alcohol

I'll use usmf legal entity or ussi

anything fine

maybe I'll use USSA

so new project

so yes it is applicable for only a fixed

price project I'll select the fixer

price type

while creating the project

I'll give milestone

name

and

I'll use one of the

fixer price group and

I'll create one more pro project

contract as well

or I can do from creating the project

contract first and then I can add though

then I can assign the

project to the project contract

so I'll use the same namings

funding source I'll use some customer

click ok

but any way I can do like first creating

the contract and assigning the project

or project create creating the pro sect

and

assigning the project contract

I'll go back to the oh this is Project

contract list

and I'll assign the

milestone

okay

then create project

okay so once the contract is as a hand

I'll go to the contract first

ah before that I will do this as well

we'll change the project stage to in

process

or in progress

here in this case it is released

next I'll go to the project contract

form

to add the buildings

so this is the project contract

that we just created

let me check is there any point that I

missed

for building a rule milestone

once again

okay

so add the rule

when I click add billing by default it

will be Milestone So currently we are uh

taking going with line type milestone

so

here these all the fields are grayed out

and I'll add the Milestones here

uh

I need to show one more point I'll do

what I'll do is that I'll add one more

project to this contract

because

I want to show a it doesn't applicable

for the

time and material project

for

milestone

test

okay

so I am I defined two projects for this

contract one is ah

fixed price and another one is uh

another one is

time and material project

okay

let's go to

contract

train

related project there are two projects

one is Milestone and another one is

Diamond material

let's go to billing rule again

and I'll add here

building rule

and

some test one description I am adding

I'm selecting the hero Milestone project

let me delete it because I just created

time and material project just now right

uh

I'll

I created one more time

milestone

see here we can see only Milestone here

time and material it is not showing that

means

um

it is applicable to the

time and material sorry fixed price

project

okay next test to

2019

okay let's save it

so now it is in my status chargeable

let's go back

so

contract value is three thousand

okay once this once the billing rule

defined we can go to manage contract

status

before this I'll show one more thing

I'll go back to the project

this is fixed price project

um under manage tab

on account transactions we can see

these are the two transactions just now

we created in the billing rule

ok

so

after that

and we'll come back to the project

contract form let me go to

milestone

okay

let me change this as well to

release stage

let me go to the project

so project contract

I'm just adding one more line

okay three thousand that means six

thousand is uh

contract value

okay

contract value is six thousand now what

I need to do is that

in the maintain tab

main is contract state

in this screen

update milestone

so for example this Milestone is Rich

then select it and click ok

so once you click OK button then

go to invoice proposal

to raise a invoice

so

select it

click ok

and pause the invoice once you post the

invoice it will reflect in the billing

rule that means you have already invoice

2000 and contract value is six thousand

remaining is 5000 it's supposed to show

in that way

so let me post it once I once the

invoice posted I'll show the billing

rule balance contract value balance

it is posting now meanwhile I'll connect

charger to my left

okay once this is done

you can check the view details as well

this is fully invized if you go to

invoice lines

the here we can see the

date invoice and those details

if you click voucher you can see the

voucher transactions it is a customer

customer always debited when you are

invoicing and WIP in WIP invoice on

account is

uh credited

so it is from the posting

profiles of the project

project posting profiles

so if you want to analyze that as well

let me go

let me duplicate the tab

to check the voucher

credit is this one one six zero six

hundred

um

let's go to project management

accounting

all projects

milestone

okay

laser for Strings

so

WAP

so it's Revenue right so I will IAP

in

WAP

[Music]

project WAP invoice

so WAP

on account

this is the one

Honor Code 160 600 is the

account

uh

so actually I'll stop here I got one

important call

so I'll start after that call I'll stop

here

and later on I'll discuss with uh and

currently we discussed about Milestone

building and we have uh building rules

time and material fee and progress unit

of delivery these are the types we have

those all the types will create one one

example and we'll do other testing

invoicing those type of stuff okay

so I'll stop here I'll come back within

maybe half an hour