Not knowing the cost of a project, be it internal or external, can be vexing—a problem that originates from the ever-evolving needs of project deliveries. Keeping track of these needs, reporting them and analyzing their eventual financial implications requires a specialized type of accounting, better known as Project Accounting.
Given that project accounting keeps track of revenues and expenses for a specific project, Microsoft Dynamics GP users find incredible value in leveraging it to ensure project delivery success. Key reasons that drive the use of Project Accounting in Microsoft Dynamics GP include:
- Tracking the progress of internal projects like building a new asset and knowing the status on repairs and/or maintenance assignments
- Setting up a sub-project for each work-in-progress asset and/or in-the-works repairs and maintenance assignment to enable cost tracking
- Tracking external projects that are underway for customers/clients—for instance, external projects may have employee, contractor, inventory, purchased material, equipment, and miscellaneous charges posted on them that can be billed or not billed to a client depending on contract requirements.
Project Accounting also works well for placement companies, or those operating in the non-profit, construction, technology and/or professional services spaces.
With Project Accounting, you can track different types of projects—time and material, cost-plus fixed fee contracts, and so on. The most helpful feature? Entering data only once since Project Accounting interfaces with other modules in Microsoft Dynamics GP, eliminating the need for repeated entries.
Project accounting timesheets can help you can capture employee time and depending on your configuration, you can choose to post the timesheets to only payroll or to both project accounting projects and payroll. You can also use timesheets to enter time for contractual employees that need to have their work durations against a project posted.
- You can enter employee expenses in project accounting. Once posted, these in turn get posted to Accounts Payable to be paid
- You can enter inventory transfer entries if your inventory items are being used in a project
- You can purchase material not on hand and post to the project, as well as onto Accounts Payable
- You can use your own equipment or contracted equipment and charge those to a project as cost incurred
- You can record costs that were not entered by the methods above but have already hit the General Ledger through miscellaneous log entries
- You can bill your client if it is an external project. You can also choose to not bill an internal project
The Project Accounting edge
Project Accounting for Dynamics GP is a robust resource for organizations that function on a project basis. Especially when the advantages include:
- Capturing employee time and expenses accurately and easily
- Reporting on project progress, probability and utilization
- Recognizing revenue when/if conducting cost-plus or fixed price
- Simplifying the billing process for clients
- Personalizing the numerous invoices available
Project Accounting lets you use numerous customer, contract and project billing invoice formats. You can also choose to send more than one format to a client in one of the several report types available (using SmartList, SmartList Builder or Designer).
For more information on how Project Accounting in Microsoft Dynamics GP can help you track internal and external projects, feel free to contact me directly at firstname.lastname@example.org.