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The Project Costing module of FirstBIT FirstBit ERP enables the users to create projects, enter budget estimates, monitor the project progress, compare the budgets to actual revenues and costs, and view the project profits or losses.

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For details on creating projects, see Projects.

Adding Project Tasks

If project tasks are enabled, you can add tasks to the project by using the Project Costing > Master Data > Project Tasks form. For a task, you need to specify the project, planned dates of start and finish, and the employees responsible for task execution. Also, you can indicate the order of task execution by specifying a predecessor for a task or you ca group multiple tasks by specifying a parent task.

For more details, refer to Project Tasks.

Project statuses

For each project, on its path from the initial idea to planning and then execution, you can indicate a new stage by changing the appropriate status.

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You can enter cost estimates with different levels of details for different projects. You can use the following levels of details (analytics parameters):

• DepartmentsDepartment
• Business ActivitiesActivity
• Company
• Project Task 
• Cost ElementsElement (Employee standing for the associated labor costs; Items, such as materials, stock items, or services, and Fixed Assets standing for related depreciation costs in case you need to use special equipment, devices, vehicles for the project)

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Use this method if you need to set estimates for costs and revenues independently. Selection of the method brings the Revenues and Costs tabs which you can use to enter planned revenues and costs, respectively.

If the Estimates By Period option is selected for the project, you can specify how the costs and revenues are distributed within the defined project duration. For this, you can select the appropriate planning period: Week, Month, Quarter, Half Year, or Year. Then, you can split all the amounts evenly by period or only the selected amounts evenly by period. Also, you can distribute the costs and revenues manually so that the total amount is equal to the sum of period amounts.

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• The Revenues table is intended for the revenue objects and their estimates (or planned revenue amounts). First, to define the kind of revenue, you need to select analytical parameters. The estimates for revenue objects are calculated based on costs and markups.
• The Costs table lists the planned direct costs for each of the revenue objectskinds.

For each each  revenue object (defined by a specific set of analytical parameters), you can specify direct costs and provide the cost estimates. Then on the Overhead tab, you can list the estimates for various overheads and allocate them to costs.

To calculate the revenue estimates based on direct cost estimates and overhead cost estimates, you use markups.You  You can enter markups in the following ways:

• As percentage applicable to the sum of all costs related to the specific revenue object. For this, you enter a markup in each row of the Revenues table. The revenue estimate will be calculated as the total of costs increased according to the specified markup.
• As percentages applicable to particular costs (with the specified analytical parameters). For this, you enter a markup in each row of the Costs table. Then, the revenue estimate will be calculated as total of the sum of costs with each cost amount increased by its own markup percent.

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If the Estimates By Period option is selected for the project, you can specify how the costs and revenues are distributed within the defined project duration. For this, you can select the appropriate planning period: Week, Month, Quarter, Half Year, or Year. Then, you can split all the amounts evenly by period or only the selected amounts evenly by period. Also, you can distribute the costs nad and revenues manually, so that the total amount is equal to the sum of period amounts.

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Also, you can define the proportion in which each amount should be distributed between projects or import an Excel spreadsheet with all the allocation data. For details. refer to Project Cost Allocations.

As the project is being executed, you can monitor the project progress by using the Diagrams tab of the Project form. for details, refer to Adding a Project. The Diagrams tab.

Revenue Recognition

Analysis of project costs and revenues

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For more information, refer to Project Costing: reports.