Project view does not show project direct costs

[siyab]

Hi,

I would like to know the correct way of getting my project direct costs.

I will explain my scenario in as much detail as possible.

1. We deal with vinyl wraps and the material purchases are done in unit ‘SQM’.
2. Example, we got an order to install 60 sqm of vinyl from a client. Now we purchase this vinyl from the master distributor. How do we correctly enter this purchase so that is shows under Projects Direct Costs?
3. Also, need to show this 60sqm purchase as inventory, as sometimes the work gets done in under the purchase quantity, say for example, the work was done with 55 sqm. The client has paid for the entire quantity. But we will have 5 sqm of vinyl with us. So, this cost of 5sqm should be reduced from our “Cost of Materials” head.

If some one could assist with this issue it would be of real help.

[Tut]

Just select the project when creating the purchase invoice.

[siyab]

The Project tab does not show up in the Purchase Invoice window.

I have created the Project, it only shows up in the Purchase Order window, But not in the Purchase Invoice window.

[Ealfardan]

Provide screenshot for:

• The project in question
• The purchase order that is referred to in this invoice

[Tut]

What account type are you posting this purchase to? The Project field shows only when an account is chosen for which a project assignment makes sense.

[siyab]

Hi,

Sorry for the late reply as I was on vacation.

Here are the screenshots:

[Ealfardan]

Assuming that the item selected is an inventory item, it shouldn’t go to P&L, it should instead go to inventory.

[eko]

Your first screenshot is for a purchase order

Unlike most records in Manager, purchase orders have no financial or inventory impact. They do not involve actual provision of services, movement of inventory, or payment of money.

(read Issue purchase orders | Manager)

The second screenshot is a view screen with a “Sales - amount” which would be related to a Sales Invoice or a Receipt.

So not sure what you are trying to show but there is no relation between these two screenshots.

[Mark]

@eko

Your first screenshot is for a purchase order

Unlike most records in Manager, purchase orders have no financial or inventory impact. They do not involve actual provision of services, movement of inventory, or payment of money.

But Purchase Orders do add to the project’s direct costs, which I think is an error.

And as the OP states correctly, copying a PO in which a project is selected to a Purchase Invoice doesn’t copy the selected project, which I think is strange. Although I’ve seen that inventory items’ purchase invoices don’t add to the project’s direct costs but it seems that their direct project costs are determined by their average (inventory) cost.

Copying the purchase order to a purchase invoice for non-inventory items, the project becomes visible after selecting an account but only when no supplier is selected. When you select a supplier the project field disappears.

After copying to a new purchase invoice:

After selecting an account:

After selecting a supplier:

[eko]

I agree there is something wrong. I tried with a test business and can not create the expected Project Summary, it does not show the direct costs.

[ibadlon]

The way I do it:

@siyab

Example, we got an order to install 60 sqm of vinyl from a client.

1. Your invoice will have this information (for the purpose of illistration, 1sqm = $10), Sales - $600 and tag this to the Project.

@siyab

Now we purchase this vinyl from the master distributor.

2. Create purchase invoice with account choosing as INVENTORY $5/sqm (Balance Sheet = $300). Don’t tag this to any project.

@siyab

as sometimes the work gets done in under the purchase quantity, say for example, the work was done with 55 sqm.

3. During this time, you will then have to create a journal entry Debit “Cost of Material” $275 (55*$5) tag this to project, credit INVENTORY same amount. do not tag to a project.

With this, you will have remaining vinyl inventory, correct amount of cost of materials, project wise profit.

[eko]

@ibadlon the issue raised is that it does not show correctly in the Project – View. I am going to change the topic title as you properly indicate that the rest works well only not the Project view screen.

[Patch]

I suspect it is related to

Projects' Direct Cost Includes Purchase Orders

In the latest version (22.6.8.78), Project column on line items of purchase invoice won’t be visible if purchase invoice is linked to purchase order. This will avoid duplicate cost issue where both purchase order and purchase invoice have projects defined. This is simple solution but it’s important to keep this simple. When you click on the list of costs in the project, drilling-down into original entries need to be as straightforward as possible.

[siyab]

So is there any workaround for this?

is this a bug?

[ibadlon]

If it done as what i have mentioned above, the project view screen would show you

Sales - $ 600
Cost of Material - 275
Profit - 325

With regards to the Project not showing after selecting the supplier, the reason there is your quote is already tag to the project. Either you tag the project at PO creation or PI creation, but not both. However, if you want to see correct cost of material, then you do it by following the 3rd Step and not tag the project during PO/PI creation.

@ibadlon

During this time, you will then have to create a journal entry Debit “Cost of Material” $275 (55*$5) tag this to project, credit INVENTORY same amount. do not tag to a project.