Project management Accounting -4

hmm

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

I'm sorry

so I'm going to discuss about a basic project contracts now

in the morning session we discussed about adjustments and validations

so now I am going to start about basic project contracts

in this session I'll discuss about uh basic project

contract uh how the contract is assigned to different projects and funding shows

then we'll proceed with uh creation of some posting and journals

have a journal those type of stuff then fixed rate agreement these are the three

topics I am going to cover now so let's get started uh basic project

contracts uh what are the features for project contract project contract features are

associated customer associate a customer to the project so

in the if you see that uh up to to associate the customer to the

project we don't have option in the project master so whenever you are

assigning contract to the project the contract contains customer for billing

purpose so customer is associated to the contract contract is as uh Associated to the

project and we can uh different default billing information

like tag div tag tax defaults pricing information like cost

cost and sales billing address Financial Dimensions those those things can be

assigned in this level okay contract level and one we can maintain the we can

review the transactions and forecast at the contract level as well and in the

contract level will assign customer funding source we can maintain the

project transactions billing information and we can assign multiple projects to

the contract okay so let's create new project contract now

um contract

here

foreign

so it's taking time to load the phone

will create one contract let me create one contract

here by clicking new and we need to provide the name of the

contract and contract number will be from

number sequence basic contract I'll give and we have funding types there are four

types customer organization Grant and on all so these funding types will discuss

later but presently I am taking customer as a fundings uh type and funding source

when we select the um funding type what is the source of the

funding so it will be I'm selecting one

contesso Europe so let's

and clicking ok

so we are learning project management accounting Basics together uh if these

are a very basic level I am uh just learning together

this is not uh like whether I'm giving the entire project

management module whatever the knowledge and whatever the whatever I learned that

I am just sharing in this video to help others Maybe

if some other have more knowledge on the project management accounting maybe they

can share as well so that others will be benefited

okay see here we have General tab here uh basic contract we given name sales

currency euro is there log sales currency uh this field it allows only

that sales currency if you log this so sales currency is zero right we are

logging that currency so that's why it will work like uh it will allow only

European currency and

we have billing rules here let me add the building rule

so here we can uh contract is there building rule uh is there this is the

billing Rule and line type is Milestone progress time and material fee uh these

things are there but I'm taking Milestone as of now

um

and see customer it's automatically came when while creating the contract itself

we we have selected this uh funding resource and we have invites for

meds here detailed summary or it's showing only detailed Maybe

I think there will be three types uh detailed

summary and summary invoice by so maybe I'll talk about this later why it is

showing only one invoice format and then

we have this action pane we have it is very similar to uh

project master and we have sales uh where we can assign the

prices sales prices or hours prices for our cost prices for hours expenses sales

prices for hours expenses fees and subscription

and one more thing is that uh in the maintain tab we can assign the projects

currently just we created this uh contract and no project is as in to this

Pro contract so I'm going to assign few uh few of the

projects or I'm going to create one project here uh

then and I'm going to assign this to the contract so actually we are directly uh

creating the project from the contract level so it will automatically assign

when you uh create the project

okay maybe

Diamond material project group time and material it is

there we are in usmf company okay I am explaining in usmf company

and previous sessions we uh had a sessions under USSA legal entity

but unfortunately I forgot to change the legal entity before explaining so anyway

concept is concept anyway

so let's do in this legal entity itself

system it's bit slow actually if but it is okay I guess uh if it is even

if it is slow also we can go very slowly so that uh

we can understand not by a hurry hurrying like we need to

finish it soon like that if it is going very slow then that will be also one of

the advantage for us so so I just created the project

and we can pause the uh our Journal uh to that project and we can check the

transactions as well so basic uh we can see as I told you we

can check the transactions at the uh project contract level as well whatever

the transactions posted to the particular contract

so normally in the project posted transactions only uh that particular

project transactions will be available but here see now I am going to create

one more uh project uh fixed price project under the same uh

contract ID fixer price project

and project group or project groups itself not there

in this legal entity

oh fixed price project is not there

Excel price project group fixer price project group

foreign

fixed price type and cost template

and period I'm giving I'm selecting one thing but maybe we'll discuss later

about that and if you want to book these two penal

account you can book it or a balance sheet you can change it whatever your

requirement is

then select the project group

then project contract and customers came out automatically because we are

creating the project from the contract level contract came for contract uh

customer is assigned so it will come automatically

and so we have assigned two projects to this

contract for this contract we have assigned two

projects if you want to see you can sorry this is maintained

uh under control not under control I think

I

assignment projects I don't think so whether that option is available or not

but for this contract what are the projects

assigned

I think that option is not available Maybe let's try to post few transactions

and we'll post the invoice

if you see here here it is there I I thought it is it was not there

and let me take all

and uh project contract today we have created

related information here we have that option not in the inside

so basic contract this is a verbs

see two projects is just into this particular contract

okay I'll click here only again

[Music] let me go to this time and material

project

and go to Project our Journal

yellow

and lines project it is created status this anyway

we already discussed let's go and change the stage of the project

here it is showing only three stages we are in usmf company in the previous

sessions we discussed the concepts under ussi so that is the only change so

hmm these things we already discussed but I

am just showing one more time so that we can easily recognize how we can pose our

journal what will be the entry what will be the impact at the time of invoicing

those type of stuff we can will come to know if we do many scenarios

[Music] seven hours buildable are given post

so as as we know uh when we post the our Channel it will be a project cost and

payroll allocation that is our transaction right as you

know very well in previous sessions we discussed many times about this project

cost and payroll allocation and cast how it is speaking from where

it is speaking based on what that we already discussed and let's do the

invoice proposal for this

so this is the only one project doesn't

okay this is not our Journal

this is motor tall hover Journal um

this is Milestone it is there

project contract project why it is taking this one this

is the project that we created I think same only

foreign

proposal to create but we have posted transaction

let's check in Google we'll see

this is actually showing Milestone project but

how it is

okay

Milestone where we given let me go to Project contract

for rules rules okay

let me remove it this my these things uh billing rules

we'll discuss later maybe I'll

how much Milestone reach that we need to tell if it is

[Music] if you have building rules okay

so now see our Journal came

so I just want to show one for one point here

so that's why I'm creating one more hover Journal as we have discussed how our Journal

many times but I'm going to do one more time because I want to show one more uh

thing see here we have invoice formats anyway

and let's post it directly

not changing anything as we know that when we book the invoice

uh for a project so customer will be debited and revenue

for the project will be credited so that is the entry that we already discussed

and I I'll go to that part Club customer meanwhile from

accounts receivable all customers

so it's posted actually to see the invoice Journal click on

invite journals

let's check the voucher

um

come back

hmm

what happened

okay this is the account project investor Revenue it is booking and uh another will be customer

which customer I

[Music]

um okay

foreign

you can see the transaction from the customer point of view

transactions

so this is the one

today we posted this is the one it's books okay

foreign

that is fixed rate agreement normally fixed rate

agreement means so the agreement with the bank

agreement with the bank for a fixed exchange rate

when there is heavy fluctuation in the market so for example uh

one USD equal to 50 rupees and

and we add an agreement with the bank

for a fixed exchange rate of one USD

equal to 50 rupees whenever the market heavily Disturbed and it's fluctuated

heavily then it's went to 60 or 70 or 60 or 70 then we'll uh this fixed rate

agreement will be very benefited benefitable so that will go with uh will

go for the fixed rate agreements with the banks normally this business will do

that so how to assign the

I'll go to ussi company so in that I'll show you a fixed rate fixed

exchange rate sorry fixed rate agreements and uh how it will work

together so normally it's like if you have fixed

uh rate agreement as normally system will pick the rate

from the fixed rate agreement if fixer rate

agreement is not available then it will go for the default exchange rate from

the GL [Music]

o so let's go to Project foreign

all projects

I'll go to the project that we have created

so this is the one so for this one contract is this

in the contract level we have option called fixed rate agreement

s here here you can Define the fixed rate agreement

sales currency uh I'll go back again let me check the currency there in the

contract level it is USD here

and

foreign

let me take 150 here

okay close it

so this is the setup where we can mention the fixed rate agreements this

is the place uh when you and you have this option uh forward cover number uh

that forward cover number if you have a number you can provide here

so this is the suggest setup and when you post the transaction uh it will if

the contract has a fixed rate agreement then it will pick uh this exchange rate

instead of uh default exchange rate from the GL

O Okay so let's create one hover Journal Maybe

no category validation we kept right

earning whether I have assigned the category

validation uh category validation for the project

I don't think so whether we assigned for this project

let's go and design the category

go to Project app I'm not sure

plan

we have travel

days

obviously

let me go to the resource

resource will be under human resource module and

this is the resource we have 300 sales price and 180 cross

price and legal entity USSA and

we can check the design projects and design categories as well

and we can set up the cost price and uh sales price for the resource

four hours I am giving

so worker record corresponding to them okay resource is not there

so validations I'll stop anyway morning we discussed right I am not going to add

the resources every time to remove that

validations go to project management accounting

and parameters

okay

and parameters we have none sorry I'm in

asmf is to say

none none none

let's go back and build the invoice oh sorry non-buildable we given

okay let's go and change adjust the transactions then we have option right

morning only we discussed about adjust transactions go to post trans posted transactions

and uh this is the one we did and we have

process transactions

and they can sorry we are just accounting again I

clicked it uh just transactions are just a date

which transaction you want to adjust you you need to select

in the next screen select the transaction and change this

to oh sorry billable right

hmm line property

billable so we are changing it to

billable

adjust post it

I just adjusted it

foreign

[Music]

so then we have

see USD it is grayed out so we'll do one more thing

and I'll come here foreign

I'm going to contract

let me change the unlocked

currency and try to post it how system will

behave let's check it out our Journal lines

I'll give what currency we have been there

in the

let me go to projects again

to check the exchange rate fixed uh

fixer rate agreements in the fixed rate agreements I forgot which currency I

have given

Euro

foreign

cost price it's taken 200 based on the cost to prices defined and

sales price it is showing I think something it showed us

I forgot it

sales price is 350 it is showing

okay close this

and go to tab invoice proposal

foreign

2100

so I don't think so accounting currency and uh

accounting currency and uh reporting currency what is the

what is defined in the Ledger form for ussi

that actually we need to check it out

three thousand one fifty it is showing here it's because

see exchange rate 150 it's taken 158 is taken

and uh three one five zero let me take calculate

foreign

not six I think what is this 150 is the exchange rate so it's

converted uh this is Euro amount and this is USDA mode I think

so this is USD okay

let me take Excel first better understanding

foreign

exchange rate

0 equal to 150. so we posted in euros

we posted in euros

2100 Euros we pushed it

foreign

150.

so for one this is 3150 uh because uh one Euro uh

equal to sorry not one Euro we defined it fixed uh rate agreement as 150 uh if

it is uh one divided by 100 divided by 1.5 sorry 150 it will

come I think uh inverse uh

this is indirect quote actually so that's why it will be other formulas

that sorry not this way

150 divided by

100. so like this we need to define it

so that's about a fixed rate

agreement same scenario will book for uh one more

transaction we'll book one more transaction and

um but another agreement we need to have

for example this contract if doesn't have

fixed rate agreement then we can do this

so let's suppose transaction to this project our Journal but how we posted previously

what is the criterias we selected that we need to

cross check once so we need to provide the same way right so

this is the one right I think this is the one

pm Julia six of us we given I think

um better way is that to go to our Journal of this project to check it out

sorry last one is the one just we created it

PM Julia billable PM Julia

billable that is the things we selected go to hover Journal

create new lines

oh created stage let me delete it

change it in progress

and then go to forward Channel

take new lines

new today PM Julia billable six hours

and

you are save it

and post

and then done let's invoice it

post

see two eight seven six point one zero

so let's go to GL general ledger

uh Ledger Farm

exchange rates default

USD to Euro

let's remove it and take the latest

73 yeah

oh conversion factor it's taken 100 so that's why in uh previously it is 1.5

actually in the previous previous calculation

one USD equal to 100 conversion year so now

210 right in our case I think 210

yeah 210

sorry 100 conversion means it is 150 divided by 100 so we need to

convert that by dividing uh 100 by dividing with the 100 150

divided by 100 1.5 and if you calculate it

like this then 1350 and currently it is one USD equal to

73 divided by 100 Factor

and 2100 its calculation is

correct oh one five double Triva

one five double three oh it's

too much right let me check it out General tab

13 136.98 it is showing

which legal entity we are in ussi only

and USSA only

foreign

how it is possible

but it will be like this calculation if you

can do this

how it is from where it is taking one fifth 130 6.98

I'm not sure actually I need to

okay budget exchange rates we have

USD Euro

it is 173 only it's showing Okay this may be an investigate later

about this from where it's picking the transaction

but you understood right when it is fixed rate agreements available it will take

from the fixed rate agreements as we discussed in the previous scenario

but this one

exchange rate 136 point

1.36 it is taking then 136 point for example

136 point to one

136 136.98

um nine eight

this formula need to be changed

so 2 8 7 6 that is one

so but how from where this exchange rate is speaking that is our concern

but in the exchange rates I don't see any 136 points something

like that um

let me check

project management parameters

don't think so here exchange rate field is available

but let's check it out all the fields

under is it

okay I'll I'll check this one later maybe

I'll try to find out from where it is sticking

but but the topic I want to discuss in this

session we covered it and it is taking from the fixed rate agreement

when the fixed rate agreement is not available and it is

from where it is speaking that is our consent

let me check with the project contract level as well contract level I don't

think so uh exchange rates will be available

I'm sure about that

um

oh okay close this one

and

okay I'll check later otherwise if anyone found this from

where it is faking where it will pick if you anyone have an idea

please let me know so that maybe I'll learn from you as well so it is

suggested Landing session not its training session so whatever my knowledge I am just

making a video that's it yeah thank you

all bye