The project costing functionality of FirstBIT ERP allows Project Costing module of 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.

If you need this functionality, you can turn on Project Costing as a feature The module becomes available only after you select the Enable the Project Costing Module option on the Administration > Settings > General Settings form. Project Costing form.  

Once the functionality module is turned on, you will be able to link to projects any related documents.

The options available for Project Costing

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• On Purchase: To enable cost calculation on purchase of items, that is using project-related Invoices Received and Advance Reports.
• On Usage: To calculate material costs only when the items will be issued from warehouses according to Inventory Write Offs and Invoices.

If you selected to calculate material costs on purchase, you can use the Account for Material Costs option to indicate to the system how you want to be able to analyze the material costs:

• By Business Activity: You will need to specify a particular business activity for each cost incurred for the project.
• By Department: You will need to specify the department which is responsible for the incurred project costs.
  

Project life cycle

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Workflow

In FirstBIT ERP, projects are created as master records. For details, see Projects. For each project, you can specify two project teams that will work for the project: from your company's side and from the customer's side. At the stage of planning, you can enter the project's planned budget: cost and revenue estimates. You can enter estimates with different levels of details for different projects. At any time, you can edit the estimates or create a new version of estimates. Once a project is created, any document related to the project can be linked to this project. If you need to specify multiple projects in a document—link different items to different projects—you can move the Project field from the document heading (the Main tab) to the list of items or services (the Inventory and Services tabs). The actual costs are calculated according to the settings that are common for all projects and defined on the Administration > Settings > General Settings form. While actual direct costs are calculated based on the documents that are linked to projects, indirect costs can be allocated by using Project Cost Allocations. To allocate the labor costs, overhead and indirect costs, you can manually select the documents and projects for allocation, specify percentages (or factors) and perform the allocation, or import an Excel spreadsheet with all the allocation data. As the project is being executed, you can monitor the project progress by using the Diagrams tab of Projects. For reports, which provide you with up-to-date detailed information on projects in all statuses, refer to Project Costing: reports. enabled, you can create projects, project tasks and link to projects and project tasks any related documents.  

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