Change Requests: Implementation Activity

The following implementation activity will walk you through the process of configuring two-tier change management for projects.

Story

Suppose that you, as the system administrator, need to configure two-tier change management so that the change requests to projects can be processed in the system. Also, you need to configure the following price markups to be applied to the new projects:

• A default price markup of 25% to be applied to each individual change made with a change request
• A markup of 8% of the total costs to be applied to an entire change request
• A markup of 4% of overhead to be applied to an entire change request
• A markup of 5% of all the previously charged markups to be applied to an entire change request
• A flat fee of $100 per change request

You also need to configure an additional 10% markup to be automatically applied to the change request lines that relate to labor. Acting as the system administrator, you will perform these tasks.

Configuration Overview

In the U100 dataset, the following tasks have been performed for the purposes of this activity:

• On the Enable/Disable Features (CS100000) form, the Construction and Change Orders features have been enabled.
• On the Account Groups (PM201000) form, the LABOR, SUBCON, and REVENUE account group has been configured.

Process Overview

You will enable the Change Requests feature on the Enable/Disable Features (CS100000) form. You will then configure the default price markups on the Projects Preferences (PM101000) form and the Account Groups (PM201000) form. You will also create change order classes that support two-tier change management on the Change Order Classes (PM203000) form and specify the change order class to be used by default on the Projects Preferences form.

System Preparation

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

1. Launch the MYOB Acumatica website, and sign in to a company with the U100 dataset preloaded. You should sign in as a system administrator by using the gibbs username and the 123 password.
2. Open the Enable/Disable Features (CS100000) form, and on the form toolbar, click Modify.
3. In the Projects group of features, select the Change Requests check box.
4. On the form toolbar, click Enable.

Step 1: Specifying the Default Markups

To specify the default markups that the system will assign to change requests, on the Projects Preferences (PM101000) form, do the following:

1. On the General tab (General Settings section), select the Internal Cost Commitment Tracking check box, and save your changes to the project accounting preferences. This exposes the committed values of the budget.
2. On the General tab, in the Markups section, enter 25 in the Default Price Markup, % box.
3. In the Document Markups table, add rows with the following settings.

   Type	Description	Value
   %	Profit markup on cost	8
   %	Overhead cost markup	4
   Cumulative %	Default cumulative %	5
   Flat Fee	Additional charges	100

   The system will apply these document-level markups to the total amount of change requests by default. Also, these markups will be specified by default in the newly created projects.

4. Save your changes.

Step 2: Creating a Change Order Class for Cost Change Orders

To create a change order class for the change orders that affect only the project cost budget, do the following:

1. On the Change Order Classes (PM203000) form, add a new record.
2. In the Summary area, specify the following settings:
   • Class ID: INTERNAL
   • Description: Cost change orders
   • Two-Tier Change Management: Selected

     Because you have selected the Two-Tier Change Management check box, the Cost Budget and Commitments check boxes are selected by default and cannot be cleared.

3. On the Details tab, clear the Revenue Budget check box.
4. Save the change order class.

Step 3: Creating a Change Order Class for Revenue Change Orders

To create a change order class for the change orders that affect the project revenue budget, while you are still viewing the Change Order Classes (PM203000) form, do the following:

1. Click Add New Record on the form toolbar, and specify the following settings in the Summary area:
   • Class ID: EXTERNAL
   • Description: Cost and revenue change orders
   • Two-Tier Change Management: Selected

     Again, notice that on the Details tab, all of the check boxes are selected by default. The Cost Budget and Commitments check boxes are unavailable to be cleared; you will leave the Revenue Budget check box selected.

2. Save the change order class.
3. On the General tab of the Projects Preferences (PM101000) form, in the Default Change Order Class box, select EXTERNAL, and then save your changes.
4. On the Account Groups (PM201000) form, open the LABOR account group.
5. In the Summary area, specify REVENUE in the Default Revenue Account Group box.
6. In the Default Line Markup, % box on the Change Request Settings tab, enter 10.
7. Save your changes.
8. Open the SUBCON account group.
9. In the Summary area, specify REVENUE in the Default Revenue Account Group box.
10. Save your changes.

You have configured two-tier change management for projects and specified default project markups.