Ideally speaking and from the corporate environment prospects, project based accounting can be as follows:
Company XXX
Projects XXX
GL XXX
Customers XXX
Suppliers XXX
Employees XXX
Divisions can be either Departments like HR, Finance, Operations etc
In the absence of Cost Centers (CC), we may likely to use Divisions as CC….
In the current scenario, the financial reports may not give ideal results if PL, BS are based on Divisions, however if Divisions can be replaced by Projects, this may solve many issues….
@AJD we are not discussing cost centres as never available in Manager, you are correct for projects accounting prospects,the idea here is reporting not only accounting…
I can agree that many user wouldn’t agree for this.
but at least the system should give more flexibility to allow us to choose project for all GL and Control Accounts
I have seen before for division it was not agreed by many users to track balance sheet items but later on others started to ask for this which as implemented. therefore we need the flexibility to have option to choose project for every voucher line item.
it is good to have the same aspects and feature which is now in division to be same as project since both of there two feature has almost same concept
I disagree with this observation and think that it stems from what is considered a project. In non-profit we do not talk about gross profit margins but add overhead costs on annual fixed determined basis to allowable costs and expenses.This in essence generates overhead income that can be used for other expenses, even those that would not be allowed as project expense. In essence many non-profit organizations “earn” this way funds that keep them afloat. So while overhead is charged on top of the expenses made this should be recorded as non-taxable income. Also international non-profits often have diplomatic status that makes them tax exempt for purchases and revenue (from grants, overhead, etc).
You seem to only review projects from a business implementation, if anything I realize most of Manager is driven, in my view justifiably, by helping businesses with their tax burden. However, with some adjustments it could serve so many more purposes and that requires better implementation of non-taxable revenue / income and possibility to have overhead managed as described.
I think the reason he wanted to move away from the Overhead concept was to make it easier for people like me to use projects. A lot of what you have just said in your last post - I don’t really understand any of it! Projects won’t work if non accountants like me don’t know what to do. Manager has always been aimed at small business owners rather than accountants.
Some more explanation (has nothing to do with size of business or being accountant or not). I actually am not sure if Manager is aimed at small business owners.
Well more aimed at people who are not accountants who are using manager to run their “institution”. I doubt enterprises per se are using Manager as it does not have the necessary auditing procedures that an enterprise would need. So, more aimed at smaller outfits where chain of command is not quite so structured.
Im a plumbing contractor and this is fantastic. Ive been waiting for this from you for years. Ive been working around it with adding my own ‘projects’ to custom fields but this is certainly the best way to go.
Project accounting focuses on tracking three critical variables of the project: time, materials, and labor. Here’s a brief rundown of these variables.
Time – The timelines and statuses of the project in relation to meeting specific milestones to achieve desired completion date.
Materials – Materials are the tools, resources, supplies, and other things needed to complete the project. Project accounting specifically tracks the availability and costs of these things.
Labor – The time that staff, contractors, or other workers must be tracked to ensure that payroll costs align with budget. This also indicates the project’s progress.
Time tracker and milestones are quite essential for project accounting to compare Actual vs Budget…
I’m considering to add new tab called Tasks. This could integrate with Projects but also with Sales Orders and Purchase Orders. This would allow orders to close automatically once all tasks are completed, goods received/delivered and orders invoiced.
This is already implemented.
This could be solved by new tab called Timesheets. This would allow to add labor costs to the project but also integrate with payslips so new payslips can be created out of timesheets automatically.
I think that the initial concept of allocating Overhead(fixed/indirect) costs as a percentage of direct costs was not the best way to approach it, but I do think that there needs to be an allocation of overheads at some point which needs to be based on actual overhead costs.
This could possibly be incorporated into the Project reports when they are developed and may need flagging Chart accounts that represent fixed/indirect costs (overheads),
Very excited by this thought / possibility - [quote=“lubos, post:57, topic:37244”]
This could be solved by new tab called Timesheets. This would allow to add labor costs to the project but also integrate with payslips so new payslips can be created out of timesheets automatically.
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Good Day to all
I think @lubos has done very good job with this addition and basically replaced the old tracking system wit a better way. The only one suggestion if I could add
When someone creates a project (at least I can say I do that) than calculates the estimated basic costs (budget) and then further starts working with it when I receive the purchase order from my client for a specific project I already know how much I have planned to spent, the real costs are (in my example) dependent on something like exchange rates, price fluctuation that normally raizes, some unforeseen costs. I would be fantastic to be able just to put on the project the original estimates and measure against them as well even if this would be just a number without any percentage calculations. Most of the times the original estimate cost is higher (specially for equipment) but sometimes we are losing on it and that would be good to see on one page
Good, but I wish if it was applied to whole the invoice not item by item or under project tab itself so we can create all sales, purchases, expenses, payments, receipt ….etc. all will belong to this project automatically and it is very accurate to track any project profit & lost .
project name > sales, purchase, receipt, payments, expenses…etc.
