The suspense account is created automatically when we create Purchase Order. There is no suspense account in the summary. It can only be seen when we create Projects.
Go to Projects, create new Project, then we can view the report. Whenever we create Purchase Order, it will be placed on suspense, because we cannot assign it to any account in Purchase Order.
Btw, have you got no problem on Projects? No double calculation on direct cost?
As for now, I think the workaround that I can do is not assigning items in the Purchase Order to a Projects. But I hope there will be a better way than this
Something isn’t right with your case, can you show the edit screen of one of the POs?
I suspect they’re not POs but retitled Purchase Invoices, right? Because POs have no effect on the General Ledger and shouldn’t have an effect on Projects either.
Your screen shots are inadequate. The status shows the purchase order has been invoiced. You need to show evidence it hasn’t been. When you discover it actually has been, show the Edit screen for the invoice and related payment.
The Purchase Invoice hasn’t been paid, so I can conclude that the report derived from Purchase Orders for Suspense, and Purchase Invoice for Harga Pokok Penjualan
You need to look towards the beginning of your process rather than the end. In Step #1, after entering PO220401, you already have accumulated direct costs for the project. But purchase orders have no financial impact whatsoever, anywhere in the program. So, somewhere else, you had already entered either a payment or purchase invoice and assigned it to that project. To discover where, drill down by clicking on the direct cost figure. The program will display the transactions contributing to the direct costs.
You’ve also been told you need to clear the Suspense account before doing anything else. You apparently have not done that. So drill down on the Suspense balance and show the result. (You also contradicted yourself in post #10, where you said, “The suspense account is created automatically when we create Purchase Order. There is no suspense account in the summary.” Either Suspense is there or it is not. It is where Manager stores mistakes until you correct them.)
I have shown you the direct cost details, it shows amount from Purchase Orders and Purchase Invoices, no other places that contribute to the direct cost.
I think you misunderstand Projects’ report and Summary, the Suspense is not in Summary because we are not creating Account called “Suspense” in Chart of Account, but when we create Projects, the Projects automatically generate report. And when we create Purchase Orders, the report in Projects will automatically generate Suspense. Here is for example for a new Project that I created, let’s say it’s Project A,
Then we create Purchase orders and assigned it to this Project A
Voila, now we have a Suspense on Projects’ report generated by creating Purchase Orders. How do you explain this? I’m amazed you don’t understand this, or have you never use Projects module before?
Can you please show a summary shot of the whole equity part in the Summary Screen of Manager (the opening screen). You can blank out the amounts relating to capital and net profit / loss but should leave the suspense account there. As @Tut explains the suspense account gets created by Manager every time you do something that is not allowed in Manager and you must fix it.
@iman, I don’t need to read a post I already read. But you need to follow the troubleshooting steps I outlined. Do not just keep repeating the same insufficient information.
Detail of direct-cost? I already gave it
Evidence of purchase order hasn’t been invoiced? I already gave it
Show the edit screen for the invoice? Already gave it also
Clear suspense account? I already gave a screenshot of new Project where there is no suspense account reported there, and as soon as I created Purchase Orders, suspense account showed up.
Then drill down on its balance and show the result. I asked you to do that six posts ago. You need to understand that anything that appears there comes from something you have entered. I am trying to understand that source.
@iman, you have finally posted enough information so I can tell what is happening. There is a bug, and I have moved this topic into the bugs category. I also edited the subject to more accurately reflect the problem.
Here is what happened. On your purchase orders, you have entered descriptions, but you have no defined items, such as inventory items. If you did, you would have identified income and/or expense accounts to which purchases or sales of the items would be posted. In that case, nothing would show up with the “Suspense” description. But since you have not created items, they show up as “Suspense.” But, because purchase orders have no financial impact, the transactions are not reported in the Suspense account of the Summary. In fact, they should not be reported in a project view at all.
@lubos, the bug is that purchase orders should not be accrued to a project in the first place. The Project field might be included so that the project would already be identified when copying the purchase order to another transaction, such as a purchase invoice. But it should have no effect. This mistake occurs in the same fashion for all line items, irrespective of whether they are defined inventory or non-inventory items. The only difference is that when an income or expense account is defined for an inventory or non-inventory item, the accrued direct cost is not reported as “Suspense,” but as the appropriate account.
This is not a bug. It’s a feature. In order to have complete view of project profitability, we need to have mechanism to assign uninvoiced costs to projects. Purchase orders serve as a good mechanism for that. Otherwise project profitability would not be known until all suppliers invoice you and that is not in your control when your suppliers do it.
So the main issue here is how we prevent double-up. Basically right now, if you assign costs to project from purchase order, then you are not meant to assign them again from purchase invoice. But this requires remembering and cross-checking.
What I suggest is this…
If purchase invoice is linked to purchase order, then it won’t be possible to select project on purchase invoice. It is assumed it was already selected when linked purchase order was created.
This will rule out possibility of two expenses being doubled-up. Thoughts?
But this is quite confusing to me – summing of planned and actual costs together – and I assume that that’s the case with other users as well judging by this thread.
I remember another thread where some members asked for project budgets and I managed to get this using a quick search:
If we can agree that POs are just planned costs until they’re actually invoiced, then maybe we can summarize all orders in a separate column called “budget” and call it a day.
To take it one step further, I think that a hybrid approach could be best suited since I acknowledge that there are some benefits to the method you propose @lubos. This method has three columns summarizing different aspects of cost:
Summary Column
Includes
Justification
Planned cost
POs, SOs
Purely for budgeting purposes
Incurred cost
GL entries referencing project
Purely for tracking what has actually been incurred
Revised cost
POs, SOs + GL entries - double counting
To refine the plans in light of incurred costs that hasn’t been budgeted
I concur with this. In international organizations and those non-profit ones that operate on grants it is normal to assign annual budgets to the P&L side because their “revenue” is already earned and need expending over agreed periods in agreed accounts (often use cost center jargon here) as stipulated in the project document. Financial monitoring is related to so called burn rates which is actually related to the accuracy and timeliness of expenditures agains budgets. An organization’s income from having these projects is earned through overhead costs that can only be earned based on actual expenses made. So it is important to keep continuous track of expenses against budget to prevent large over- and under- expenses. Treating project accounting as @Ealfardan describes would help with this.
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.
I have updated to the latest version, and it seems that the project column on purchase invoice won’t be visible if purchase invoice is linked to purchase order, so the issue of double cost is solved…
But here’s another issue, because in the purchase order, we cannot assign an item to an account (cost of goods sold, expense, etc), so the Project Summary listed this cost as Suspense…
So, any workaround on this? I think @Ealfardan suggestion to differentiate Purchase order as planned cost, and purchase invoice for incurred cost is good idea
using a quick search: