OVERVIEW OF SALES ORDERS 2 - ACCOUNTING FOCUS
This article and associated video will cover such Sales Order processes as cost verifying the materials and labor (AP), billing the Customer (AR), and financial evaluation tools located within the job screens. The features shown are applicable in both systems, JobRunner and FloorManager.
There are additional Project Management features unique to the commercial version, JobRunner, that will be covered in yet another article, OVERVIEW OF SALES ORDERS 3 - JOBRUNNER FOCUS.
In the FloorManager or JobRunner system, a Sales Order is an important document that lists all the materials and labor required to get the job done. From this Sales Order, all other documentation is generated such as Purchase Orders, Inventory Records, Complimentary Payable Headers for the AP Dept, Labor Work Orders, and AR Invoices to Customers.
Proper and timely management of the Sales Order and associated Payables is very important as it reflects real-time progress and financial projections for Project Managers. The system can only reflect the information it has been told. The system tracks the status of each Purchase Orders, Labor Orders, and Accounting document. Job Details and Reports will reflect the percentage of completion, how much of the Budget has been used and what Budget allowance remains.
Video 30 minutes
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AP: Material Cost Verification
- Each Purchase Order line creates a material inventory record
- Material Inventory Records are linked to the material line in the job
- Each Inventory Record gets "Verified" by the Accounts Payable process
- On the job's Status tab, each material line gets a "Verified" word
- On the Profits tab, each material line gets a red "V" (Verified)
AP: Labor Cost Verification
- Each Work Order gets "Accepted" or "Accept & Posted" (to auto-create AP records)
- Installer Holdback deductions are optional
- Each AP Payable gets Approved for payment by the AP Dept
- On the job's Status tab, each labor line gets a "Verified" word
- Expanded View shows WO Descriptions
- On the Profits tab, each labor line gets a red "V" (Verified)
Profits Tab
- Material verified by Accounts Payable gets a red "V" under the Actual column
- Labor verified by Accounts Payable gets a red "V" under the Actual column
- The dark blue "Entry" column comes from the original price estimates as entered during the Proposal phase
- The light blue "Actual" column is predicting anticipated costs or reflecting final (actual) costs per AP Dept entry
- Any variance (drift from Budget) gets noted in the Difference column ( + or - )
- The "Budget" total comes from the original price estimates as entered during the Proposal phase
- The "Projected" total comes from either the Budget info or any new information received by input during Receiving or AP Cost Verification
- Launch "Material Cost Analysis" or "Labor Cost Analysis" screens to view AP records
- Additional Transactions area (lower left) will list non-PO, non-WO associated costs (miscellaneous job purchases)
AR: Bill the Customer
- Transfer the job to an Accounts Receivable Invoice
- Select specific lines, specify a partial billing amount, percentage, or invoice remaining
- Choose the presentation level of billing details (Itemized versus Bundled)
- Email the AR Invoice from the system directly to the Customer
- CRM tab tracks Customer correspondence
Financial Assessment Tools
- Profits tab: Variances are highlighted
- Profits tab: the Difference column shows drift above/below Budget (comparison of Entry column versus Actual column)
- More Details: Projected column protects the company by "projecting" anticipated costs
- More Details: Compare Projected (anticipated) column to Cost to Date (Actual cost processed by AP Dept)
Reports
- Job Costing > Job Progress Custom
- Enterprise Financials > Journal Entries