Project Creation and Processing: To Process a Cost-Plus Project

This activity will walk you through the life cycle of a cost-plus project.

Story

Suppose that the Lake Cafe customer has ordered training of employees from the SweetLife Fruits & Jams company. SweetLife's project accountant has created a cost-plus project to account for the provided services. Twenty hours of training sessions have been conducted in the period from 1/1/2024 through 1/30/2024.

Acting as the project accountant, you need to support the project during the entire project life cycle.

Configuration Overview

For the purposes of this activity, on the Enable/Disable Features (CS100000) form, the Project Accounting feature has been enabled to support the project accounting functionality.

Process Overview

You will activate the project to indicate that it has been started. Then you will create project-related transactions on the Project Transactions (PM304000) form to record the provided services. You will run project billing for the project on the Projects (PM301000) form and review the prepared AR invoice. Then you will complete the project, and review the profitability report on the Project Profitability (PM624000) report form.

System Preparation

To sign in to the system and prepare to perform the instructions of the activity, do the following:

  1. Download the INSTLAKE02_Project_Transactions file to your computer.
  2. Create the INSTLAKE02 project, as described in Project Creation and Processing: To Create a Cost-Plus Project.
  3. Launch the MYOB Acumatica website, and sign in to a company with the U100 dataset preloaded; you should sign in as Pam Brawner by using the brawner username and the 123 password.
  4. In the info area, in the upper-right corner of the top pane of the MYOB Acumatica screen, make sure that the business date in your system is set to 1/30/2024. If a different date is displayed, click the Business Date menu button, and select 1/30/2024 on the calendar. For simplicity, in this activity, you will create and process all documents in the system on this business date.

Step 1: Activating the Project

To indicate that the INSTLAKE02 project has been started, do the following:

  1. On the Projects (PM301000) form, open the INSTLAKE02 project, which you have created in Project Creation and Processing: To Create a Cost-Plus Project.
  2. On the form toolbar, click Activate Project. The system assigns the project the Active status.

Step 2: Uploading Project Transactions

To upload and process the transactions of this project, do the following:

  1. On the Project Transactions (PM304000) form, add a new record.
  2. In the Summary area, make sure that PM is selected as the Module.
  3. In the Description box, type The conducted training for the INSTLAKE02 project.
  4. On the table toolbar of the Details tab, click Load Records from File.
  5. In the File Upload dialog box, which opens, click Choose File, select the file path to the INSTLAKE02_Project_Transactions file, and click Upload.
  6. In the Common Settings dialog box, which opens, leave the default settings, and click OK.
  7. In the Columns dialog box, which opens, leave the current column mapping, and click OK. The system uploads the transaction row.
  8. Make sure that the Total Quantity and Total Amount in the Summary area are 20 and 800.00, respectively.
  9. On the form toolbar, click Save to save the project transaction, and then click Release to release it.
  10. On the Projects (PM301000) form, open the INSTLAKE02 project, and make sure that the Actual Expenses box in the Summary area now shows 800.00.

    On the Cost Budget tab, review the cost budget line that has been updated on release of the project transaction. The quantity and amount that were initially planned (16 and 640.00) are now shown as the Original Budgeted Quantity and Original Budgeted Amount, while the Actual Quantity and Actual Amount columns have been populated with the amounts from the released project transactions (20 and 800, respectively).

Step 3: Billing a Project

To create an accounts receivable invoice for the project, do the following:

  1. While you are still reviewing the INSTLAKE02 project on the Projects (PM301000) form, on the form toolbar, click Run Project Billing. The system creates an AR invoice, which should look like the one shown in the following screenshot, and opens it on the Invoices and Memos (AR301000) form.

    Because the TM billing rule specified for the project task defines the line amount as the project transaction amount multiplied by 1.25, the customer is billed in the amount of $1,000.

    Figure 1. The AR invoice created during the billing


  2. On the form toolbar, click Remove Hold to assign the invoice the Balanced status, and then click Release to release the accounts receivable invoice.
  3. Return to the Projects form with the INSTLAKE02 project opened, and press Esc to refresh the form. Notice that the Actual Income box in the Summary area now shows 1,000.00, which is the amount the customer has been billed. The calculated margin for the project is 20%, as has been planned. On the Revenue Budget tab, the revenue line with the TRAINING task and the Actual Amount of $1,000 has been added.

Step 4: Completing the Project

To complete the project, do the following:

  1. While you are still reviewing the INSTLAKE02 project on the Projects (PM301000) form, on the Tasks tab, specify the following settings in the only table row:
    • Status: Completed
    • Completed (%): 100 (the system specifies this percentage automatically when you change the task’s status to Completed)
    • End Date: 1/30/2024 (the system specifies the business date automatically when you change the task’s status to Completed)
  2. Save your changes to the project.
  3. On the form toolbar, click Complete Project. The system assigns the project the Completed status.

You have finished working with the project.