Open

Use the Project Management functionality to organize the manufacturing of large capital projects. Through this advanced feature set, you can create, monitor, and finish complex projects that require significant organization and planning.

The program you primarily use is Project Entry. You use this flexible program to organize your project through Work Breakdown Structure (WBS) Phases or project Milestones. If you use WBS Phases, you can define multiple parent and child WBS Phases within each project. These phases can in turn have multiple jobs and tasks assigned to them. If you use Milestones, you define specific completion points within the project. You also indicate which quotes, sales orders, and purchase orders are required to finish the project. As work progresses, you then leverage this program to track the costs of each phase and the total cost for the project.

You can also create projects for non-manufacturing functions like claim invoicing and progress invoicing, and these projects are billable through various methods. When you use progress claim invoicing, each progress claim is created and managed against projects. When you use cost plus invoicing, the normal rates for labor and burden are used as the base value for the costs. You add a set of mark up percentages to the labor, burden, and material costs to calculate a total invoice amount. When you use time and materials invoicing, the contract defines the rates charged for the roles required to satisfy the contract. These roles are defined through physical resources, and the material and burden costs are calculated using a percentage factor.

With this functionality, you also have the ability to export a project to Microsoft^® Office Project 2010^® and 2013^®. Within the Microsoft application, the project can be changed as you need. You can then import the project back into the Epicor application where the revised project is incorporated into your database.

Leverage this complete set of features to track and bill your capital project from start to finish.

Setup

Company Configuration

1. Navigate to the Modules > Services > Project Billing sheet.

2. Select a default revenue recognition method.

Open

This field specifies the default revenue recognition method used in Project Entry. This becomes the default for the Revenue Recognition Method.

There are a number of ways in which revenue can be recognized in an organization's income statement. This method is used to recognize all of the revenue and profit associated with the project. Later in the course you will recognize revenue during various project stages. The Recognize Revenue program selects all transactions that have invoicing and revenue scheduling rules and that haven't yet been processed since the last submission of the program. This includes new transactions, unprocessed transactions, and partially processed transactions.

Available options include:

• On Invoice - Recognize revenue once you invoice a customer.

• Manual Recognition - Recognize revenue manually during various project stages.

• None - Do not run the Revenue Recognition process, nor recognize revenue in Project Entry.

• POC-Cost-to-Cost (Percentage Of Completion) - Specifies a comparison of the contract cost incurred to date to the total expected contract cost. The cost of items already purchased for a contract, but not yet installed, should not be included in the determination of the percentage of completion of a project, unless they were specifically produced for the contract. Also, allocate the cost of equipment over the contract period, rather than up-front, unless title to the equipment is being transferred to the customer.

• POC-Efforts (Percentage Of Completion) - Specifies the proportion of the effort expended to date in comparison to the total effort expected to be expended for the contract. For example, the percentage of completion might be based on direct labor hours, machine hours or material quantities.

• POC-Units-of-Delivery (Percentage Of Completion) - Specifies the percentage of units delivered to the buyer to the total number of units to be delivered under the terms of a contract. Use only when the contractor produces a number of units to the specifications of a buyer.

3. If required, select the Allow Revenue Recognition Method to be Changed per Project check box. This gives you the option to change the default revenue recognition at the Project Entry level.

Example If you wanted to automatically recognize revenue once the AR invoice is posted, you would select the On Invoice method. Similarly, if you wanted to recognize labor and burden cost once the hours are approved, you would select the Labor Booking Recognition.

4. In the Revenue Recognition Journal Reversal field, select the required option. You are specifying the journal reversal process for project billing.

• Reverse in Following Period

• Reverse on Project Close

• Reverse on Invoice/Shipment The application default is set to Reverse on Project Close.

The Reverse in Following Period option is only available when the project recognition method is set to Manual Recognition.

5. If you need to recognize revenue at the project WBS phase level, select the Revenue Recognition at WBS Phase Level check box. Selecting this check box allows you to recognize revenue at the WBS phase level independently of the entire project.

Business Scenario

As a revenue manager, you can have multiple performance obligations in a single project. Therefore, you need to review costs and recognize revenue at the WBS phase level. First, you associate separate jobs, sales order lines, and parts with each WBS phase and choose whether you want to recognize revenue for those jobs and whether you want to recognize it on the same schedule. You also need to use different GL Controls on each WBS phase to determine the revenue account used when recognizing revenue.

Example A single order results in two separate jobs for two different products, which requires that revenue and costs are directed into different GL accounts. Therefore, you link each job to a separate WBS phase where you define two different GL Controls. This way you can recognize revenue for each phase independently.

Time Types

The time type functionality can be used for Time and Material projects and requires the Project Billing license.

Menu Path: Service Management > Time Management > Setup > Time Type To create a time type code:

1. Click New on the Standard toolbar.

2. Enter a unique identifier for the Time Type. This value displays on several programs and reports.

3. Enter a Description for the time type.

4. If this time type is no longer in use, select the Inactive check box. This time type will then not be available as an option from Time Type drop-down lists.

5. Click Save.

Burden Codes

1. Click New on the Standard toolbar.

2. Enter a unique identifier for the Burden Code. This value displays on several programs and reports.

3. Enter a Description for the burden code.

4. Select the Project Roles sheet to indicate what roles within the project are included with this burden code.

5. Select the Use All Project Role Codes check box to add all roles to the current burden code.

6. If you only want to use some roles, use the Arrow buttons to select and remove specific roles from the current burden code.

Burden Sets

Use the burden set functionality with Time and Material, Cost Plus, and Progress Payment projects. Using this functionality requires the Project Billing license.

Menu Path: Service Management > Project Management > Setup > Burden Set To create a burden set:

1. Click New on the Standard toolbar.

2. Enter a unique identifier for the Burden Set. This value displays on several programs and reports.

3. Enter a Description for the burden set.

4. Click the Down Arrow next to the New button; select New Burden Code.

5. The Burden Codes sheet displays. Use the Processing Sequence field to define the sequence through which the burden set calculates the burden codes.

6. Select the Burden Code you want to add to this burden set.

7. Use the check boxes in the Apply Burden On section to specify what is calculated by the invoice process (labor, contract labor, and so on) using the selected burden code.

8. Click the Down Arrow next to the New button; select New Effective Date.

9. The Burden Codes > Effective Dates sheet displays. Enter the Effective Date you need for the burden code.

10. Enter the Provisional Percent you need for the burden code.

11. Continue to add the effective dates you need. When you finish, click Save.

Burden Code Actual Percentage

1. Click New on the Standard toolbar.

2. Click the Burden Code button to find and select the burden code.

3. In the Actual Rate field, enter the current actual burden percentage.

4. Enter the Effective Date when this rate becomes active.

5. Continue to enter actual rates for all the burden codes you need. When you finish, click Save.

Role Codes

You also use roles within the Customer Relationship Management, Case Management, and Engineering modules. Within Project Management, role codes can be used with Time and Material projects.

Menu Path: Service Management > Project Management > Setup > Role Code To create a role code:

1. Click New on the Standard toolbar.

2. Enter a unique identifier for the Role Code. This value displays on several programs and reports.

3. Enter a Description for the role code.

4. Select the Resource Group Billing Rates check box to indicate the billing rates defined for the selected resource group are used in project billing.

5. You can click the Primary Resource Group button to find and select the resource group you need.

6. Use the check boxes in the Time and Expense Options section to specify approval permissions for the role. If you select more than one approval role option, tasks will be created for all individuals matching those role criteria. See the Time and Expense chapter for more information on the approval process.

7. Click the Down Arrow next to the New button; select New Role Rate.

8. Enter the Effective Date when the rate becomes active.

9. Enter the base Currency and the Charge Rate.

10. Select the Time Type for the rate. Time Type codes establish different charge rates for different times recorded on a project. You create time types within Time Type Maintenance; this program is described in a previous section.

11. Click Save.

Employees

1. Click the Down Arrow next to the New button on the Standard toolbar; select the New ID option.

2. Enter a unique identifier for the Employee. This value displays on several programs and reports.

3. Optionally, select the Person / Contact identifier for this employee record, if one exists. If one does not exist, the application uses the values in the employee information fields to automatically create a person/contact record. If you have an individual who needs to be defined on multiple records, like a shop employee who is also a buyer, you can define this person in Person/Contact Maintenance first and then link this person record to other records throughout the application. To learn about this functionality, review the Personnel chapter in the Epicor ERP Implementation Guide.

4. Select the Contract Employee check box to indicate this employee is paid on contract rather than through payroll. This value is used when the application determines costs through an advanced billing invoice.

5. Select the Production Info sheet.

6. Select the Resource Group and Resource you want to associate with this employee.

7. Click the Down Arrow next to the New button; select New Role Code.

There are several options in Company Configuration that determine how the role codes function for projects. For more information, see the Project Billing Role Code fields in Company Configuration > Modules > Services > Project Billing.

1. The Role Codes > Detail sheet displays. Click the Role Code button to find and select a role code. Role codes contain role code rates which define the effective date and end date, the currency associated with the charge rate, and time type codes.

2. Continue to make the changes you need. When you finish, click Save.

Markup Codes

Use Markup Maintenance to enter markup percentages for specific part classes or against specific project role codes. These percentages are linked to a markup record. You must create the markup record before you can define markup percentages.

You also use markup codes within the Customer Relationship Management and Quote Management modules.

To enter and edit the primary information for a markup record:

1. Click the Down Arrow next to the New button; select New Quote Markup.

2. Enter a unique identifier for the Markup. This value displays on several programs and reports.

3. Enter a Description for the markup code identifier.

4. Select the appropriate Percent Type option, Markup or Profit. These options change how the markup percentages are calculated. If you select Markup, the cost is increased directly by the markup percentages. If you select Profit, the percentage is subtracted from 100%; the cost is then divided by this percentage.

5. Enter the markup rates as needed for this markup identifier.

6. Click Save.

Enter Material Markup Percentages for Part Classes To enter material markup percentages for specific part classes:

1. Click the Down Arrow next to the New button; select New Material Markup.

2. Click the Class drop-down to select a class identifier from the list of the codes assigned to uniquely identify the Part Class codes.

3. Enter the Mtl Markup% for materials within the selected part class. All materials assigned to this part class receive this markup rate.

4. Select the appropriate Percent Type option, Markup or Profit. These options change how the markup percentages are calculated. If you select Markup, the cost is increased directly by the markup percentages. If you select Profit, the percentage is subtracted from 100%; the cost is then divided by this percentage.

5. Click Save.

Enter Material Markup Percentages for Role Codes To enter markup percentages for specific project role codes:

1. Click the Down Arrow next to the New button; select New Role Code Markup.

2. Click the Role Code drop-down to select a role code identifier from the list of previously assigned role codes.

3. Enter the Role Code Markup% for the selected role code. This information is used when project roles require a different markup percentage from the percentage defined on the Markup > Detail sheet.

4. Click Save on the Standard toolbar.

Operations

Project Entry

1. Click New on the Standard toolbar.

2. In the Project ID and Description fields, enter a unique identifier and a description for the project.

3. The Revision field indicates the revision level of a project. For a new project, this value is always set to 1. When the Build Project Analysis process is run, you can increase the revision level using the next available number. You can then keep the project data from the previous version for use on the next project.

4. The Start Date defines when the project will be launched.

5. The End Date defines when you expect to finish the project.

6. Optionally, use the Warehouse and Bin fields to indicate where the parts are staged during the project.

7. By default, the Active check box is selected. This indicates you can add or update records to the project. However, if this check box is clear, the project becomes inactive and no changes can be made to it.

8. Click the Create Project Job button to generate a new job using the next available job number. This number is assigned to the primary job. When you create a project job from the Project Entry window, it will be created for the same site as the project. Likewise, if you add the primary job manually, it must be on the same site, still be open, and it should not be assigned to another WBS phase or project.

9. The Job field defines the project’s primary, or parent, job record. Any jobs created for a WBS phase are linked to this parent job.

10. The Assembly and Material fields define the specific assembly and material sequence that is linked to all jobs within the WBS phases.

11. When you finish, click Save.

Define Project Approvals

You can define the approvals for all time and expense transactions against the project. You can select a different approval method for the time workflow and the expenses workflow.

1. Navigate to the Project > Approvals > Time > Detail sheet.

2. Select the Approvals Method. Available options:

• Employee - Project time is approved for specific employees as defined in Employee Maintenance.

• Project - Project time is approved by the approval workflow group designated for the project on this sheet.

• Automatic - Project time is automatically approved when these records are submitted.

• 3. Select the approval Workflow Group.

• 4. Click Save on the Standard toolbar.

You follow the same process to assign an expenses approvals method to a project. For more information on creating time and expense workflows, review the Time Management and Expense Management chapters.

WBS Phases

You organize each project through a series of optional Work Breakdown Structure (WBS) phases. These WBS phases can contain a series of checklist tasks and a phase job. Each phase can either be the parent or a child of another WBS phase. Use these phases to structure the entire project. You can set up as simple or as complex a series of WBS phases as you need to complete the project.

Once the project begins, you can then use the WBS phases to track your progress. You can also use the WBS functionality to record the costs that accumulate for each phase.

To create a WBS phase:

1. Click the Down Arrow next to the New button; select New WBS Phase.

2. The WBS Phases > Detail sheet displays. In the WBS Phase ID and Description fields, enter a unique identifier and a description for the specific phase.

3. If this phase is a child of another phase, select a Parent WBS Phase from the drop-down list. In this example, the phase is a parent phase, so this field is blank.

4. Indicate how this phase is placed in relation with the other parent or child phases through the Display Sort Sequence field. If you enter 1, for example, the phase is the first phase within its level (parent or child) of phases.

5. Click the Status drop-down list to define whether the phase has Not Started, is In Process, or is Completed.

6. The Start Date defines when this phase is planned to start.

7. The Due Date defines when this phase is planned to end.

8. Click the Date Complete field to define when this phase was actually finished.

9. Use the Duration drop-down list to define how long the phase takes to complete. This value is used as the time value for its corresponding project task and can be passed along to Microsoft Office Project. You can enter this value in hours or days.

10. Use the Create WBS Phase Job button to create a service-oriented job (a job that does not produce a finished good to be shipped to a customer) to be completed during the phase. You can also add the job to the schedule from here.

11. When you finish, click Save on the Standard toolbar.

After you save the WBS phase, you can no longer edit the fields within the WBS Phase Job Details section. These fields are only active when you initially create a WBS phase.

Define Invoicing Method for WBS Phases

Use the Invoicing and Recognition sheet to select a specific Invoicing Method and Revenue Recognition Method. The application supports multiple invoicing methods, each tied to a revenue recognition method that captures financial data.

1. In the Tree View, select the WBS phase for which you want to define revenue recognition methods.

2. Navigate to the WBS Phases > Invoicing and Recognition sheet.

3. Select an Invoicing Method. Customer Shipment and Milestone Billing are standard options. With the Project Billing license, additional choices are available. See below for definitions of all methods:

• None - Use this method for a project that does not require customer billing. If you select this option at the WBS Phase level, the Epicor application skips the WBS Phase when you generate the customer invoice(s).

• • Customer Shipment - Use this method to indicate that the customer will be invoiced only once the product is shipped.

• Example You design/manufacture a product sample, which is part of the project, and send it to your customer for approval. You bill your customer to cover the design and manufacturing cost only after you ship the sample.

• Milestone Billing - Use this method to distribute the total amount to be billed over multiple billing dates in the billing plan when pre-defined milestones are reached. As each milestone is successfully reached,

Example A company executed a $100,000 project and require a $10,000 payment at the start of the contract, $20,000 at the midpoint and $70,000 at the contract conclusion.

• Fixed Fee - Use this method to divide the costs between each milestone. This method defines costs that occur during each milestone level within the project.

• Time and Materials - Use this method when you use the rates for each role assigned to the project to calculate the total cost on the project.

• Cost Plus - This method uses the defined rates for labor and burden as the base value for all costs. You can add a series of markup percentages to the labor, burden, and material costs to calculate the total invoice amount.

You do not need to select an Invoicing Method or a Revenue Recognition Method on child WBS phases. If you leave either the Invoicing Method or the Revenue Recognition Method blank, the methods selected on the Parent WBS Phase are used by default. You select this parent WBS phase on the WBS Phases > Detail sheet.

4. Select the required revenue recognition method. This field specifies the revenue recognition method being used for this WBS phase. Even though the field value displays as empty when a new phase is added, the value is inherited the project. You can use this field to specify a revenue recognition method that will be used for this WBS phase if it differs from that of the project. If you update a revenue recognition method on a WBS phase and then create a child WBS phase, the child WBS phase inherits the revenue recognition method defined on the parent WBS phase. However, you can change the method as required.

Available options include:

• On Invoice - Recognize revenue once you invoice a customer.

• Manual - Recognize revenue manually during various project stages.

• None - Do not run the Revenue Recognition process, nor recognize revenue in Project Entry.

• POC-Cost-to-Cost (Percentage Of Completion) - Specifies a comparison of the contract cost incurred to date to the total expected contract cost. The cost of items already purchased for a contract, but not yet installed, should not be included in the determination of the percentage of completion of a project, unless they were specifically produced for the contract. Also, allocate the cost of equipment over the contract period, rather than up-front, unless title to the equipment is being transferred to the customer.

• POC-Efforts (Percentage Of Completion) - Specifies the proportion of the effort expended to date in comparison to the total effort expected to be expended for the contract.

The method is based on direct labor hours, machine hours or material quantity. The method measures the percentage of labor hours incurred to date as compared to estimated total labor hours for the contract.

When you select this method, the Epicor ERP application will recognize the cost that has been incurred to date on jobs for labor, burden, subcontract (material or labor), and material.

Example You have a contract for 1000 units that require material, resources, and machine hours. This information is normally captured in Job Entry (materials, operations, and scheduled resources). Since it takes three months to complete production, a company accountant would like to recognize revenue at the end of each month rather than when the production completes. To accomplish this, the application needs to consider the production effort incurred at the end of each month till the production completes. The revenue calculations come from the job linked to the project or WBS Phases.

Example You committed to deliver 50,000 units by the end of the current quarter with the Billing Budget of USD 150,000.

The revenue is calculated using the following formula:

(Actual Quantity to Date/Budget Total Quantity) * Budget Billing Amount = Ea rned Revenue Amount

The calculation is affected by the option you select in the Load Relieved By field located on the Company Configuration > Modules > Production > Job sheet. Using this field, you can select the Quantity, Cost, and Hours options. For more information about this field, refer to the Application Help.

If you use this revenue recognition method, you must define quantity budget on cost categories. If you don't, the application will not recognize revenue.

• POC-Units-of-Delivery (Percentage Of Completion) - Specifies the percentage of units delivered to a buyer under the terms of a contract. Use this method if you produce a number of units according to buyer specifications.

• Part 1 was delivered to the customer (Qty = 3)

• Part 2 was delivered to the customer (Qty = 4)

• POC = (3 * USD 150 + 4 * USD 250) /

(10 * USD 150 + 20 *USD 250) = 22. 30 %

Revenue = POC * (Contract Amount) = USD 22,300.00

5. Select the Recognize Revenue at Child Phase Level check box, if required.

This check box dictates whether you want to include child/grandchild WBS phases in a parent WBS phase for revenue recognition and costs.

If you clear the Recognize Revenue at Child Phase Level check box, revenue and percentage of cost (POC) calculations are based on the entire WBS phase (parent and all children). If you click the Recognize button on the parent WBS phase, the revenue of all sub-phases are automatically recognized.

If you select the Recognize Revenue at Child Phase Level check box, revenue and percentage of cost (POC) calculations are based on the parent WBS phase only. All of its sub-phases (children) are recognized separately.

Previously, you could set amounts on the project level only and the amounts were always prorated to all WBS phases/jobs. Now, you can do it on each WBS phase.

Example In the following parent-child WBS phase relationship all the WBS phases use the Manual Revenue recognition method and each WBS phase includes a single job as follows: The To Be Recognized Cost amount for WBS Phase 1 is USD 100.00.

If you select the Recognize Revenue at Child Phase Level check box on the parent WBS phase, the amount of USD

100.00 is prorated down to jobs 1, 2, and 3. You can also change the cost amounts on WBS phases 2 and 3, if required. If the Recognize Revenue at Child Phase Level check box is cleared on the parent WBS phase, the amount of USD 100.00 is allocated to Job 1 only.

Example A project WBS phase (parent) includes a child WBS phase. If there are costs accumulated against the child phase and you select the Recognize Revenue at Child Phase Level check box on the parent phase, the costs are automatically added to the parent WBS phase, once you run the Build WBS Analyses process. You can then review the accumulated costs for the parent and child WBS phases using the WBS Phases > WBS Phase Costs and Revenue Recognition sheets.

7. The Prorated Net Contract Value field displays the portion of the contract that is relevant for the current

WBS phase and any child phases that are being rolled up. To understand how are child WBS phases being rolled up, review information about the Recognize Revenue at Child Phase Level field.

Define Approvals for Project WBS Phases You can define the approvals for all time and expense transactions against the project WBS phase.

1. Navigate to the WBS Phases > Approvals > Time > Detail sheet.

2. Select the Approvals Method. Available options:

• Project - Project time is approved by the approval workflow group designated for the project on this sheet.

• Employee - Project time is approved for specific employees as defined in Employee Maintenance.

• Automatic - Project time is automatically approved when these records are submitted.

• 3. Select the approval Workflow Group.

• 4. Click Save.

You follow the same process to assign an expenses approvals method to a WBS phase. For more information on creating time and expense workflows, review the Time Management and Expense Management chapters

Define General Ledger Controls for WBS Phases

You can assign a GL Control to a WBS Phase in order to determine the revenue account used when recognizing revenue. The revenue recognition method within a single project can be different per WBS Phase and you can run the recognition process at the phase level, or for the entire project at once.

To assign a GL control:

1. Navigate to the WBS Phases > GL Control > Detail sheet. Use the GL Control sheet to assign a GL Control record to the selected WBS Phase.

2. From the New menu, select New WBS Phase GL Control.

3. Click the Type button and search for and select the required type.

4. Click the Control button and search for and select the required GL control.

Root Phase

The Root Phase tracks and records all the completed activity against a project without referencing a separate WBS phase(s). As a result, you can recognize revenue for individual WBS phases, Root Phase or a complete project. The Root Phase displays as the top level in the WBS phases hierarchy with other phases linked directly to the Project. You cannot tie the Root Phase to a parent phase or add it as a parent to any other WBS phases.

To add the Root Phase:

1. On the Contract > Detail sheet select the Recognize Revenue at WBS Phase check box.

For more information about the Recognize Revenue at WBS Phase check box, refer to the Contract Details topic.

• Root Phase only

• WBS Phase One only

• WBS Phase Two only

• 4. Navigate to the WBS Phases > Detail sheet. The Root Phase displays as the top level in the WBS phases hierarchy with other phases linked directly to the Project. You cannot tie the Root Phase to a parent phase or add it as a parent to any other WBS phases. You cannot modify the Root Phase. If you select the Root Phase in the project tree view or the WBS Phase > List sheet, all the fields become inactive.

• 5. The Root Phase always displays a sequence number of zero. Any added WBS phase(s) and their sub-phases continue to have sequence numbers of 10, 20, 30, and so on.

WBS Phase Costs

You use the WBS Phase Costs sheet to review and update the costs for the current WBS phase. This sheet displays the costs in time through its Labor Hours and Burden Hours values. It also breaks out the monetary costs for Labor, Burden, Subcontract, Material, Mtl Burden (Material Burden), and Other Direct Costs (ODC). You can use this sheet to manually enter the planned budget and final cost to complete (CTC) values. If this phase is a parent WBS phase, you can also pull in these costs from any child phases linked to this parent phase.

To use this sheet:

1. If you need to enter the planned budget for this phase, enter these costs within the fields under the Budget column.

2. The Estimated column displays the predicted costs for this phase. To generate these values, from the Actions menu, select WBS Phase > Build WBS Phase Analysis.

3. As time and costs are reported against this phase from your manufacturing center, they display under the Actual column. To generate these values, from the Actions menu, select WBS Phase > Build WBS Phase Analysis.

4. Use the Manual CTC column to directly enter how much this phase cost to complete. You can manually enter the labor and burden hours that were accumulated, as well as the labor, burden, subcontract, material, and material burden costs.

5. The Calculated CTC column displays how much the application calculated that phase cost to finish. To generate these values, from the Actions menu, select WBS Phase > Build WBS Phase Analysis. You must use the Build Project Analysis function to populate the Estimated, Actual, Calculated CTC, and Quoted columns on this sheet. To learn how to run this process, review the Build Process Analysis section later in this chapter.

6. The Quoted column indicates the costs quoted to the customer. If a quote or quotes were added to this project or phase, the quoted costs that apply to this phase display in these fields. To generate these values, from the Actions menu, select WBS Phase > Build WBS Phase Analysis.

7. If you select the Roll Child Budgets to this Level check box, the budget values from any child WBS phases are pulled into this phase’s Budget column. You can no longer edit these costs.

8. If you select the Roll Child Manual Cost to Complete to this Level check box, the manually entered CTC values from any child WBS phases are pulled into this phase’s Manual CTC column. You can no longer edit these costs.

Build WBS Phase Analysis

The Build WBS Phase Analysis process allows you to build cost analyzes for individual Work Breakdown Structure (WBS) project phase(s). This way you can break down a cost summary for a specific WBS phase and review data for all the transaction records associated with the phase, as opposed to the whole project. You can run the Build Phase Analysis process at any project stage and based on a specific date. Once you fully complete the project and accumulate all the costs, you can then recognize and capture the project revenue, either at the project or WBS phase levels.

Example You are three months into a project and would like to review the accumulated costs. As a result, you run the Build Phase Analysis process and review the projects costs.

Using the Filter sheet, if you select a WBS phase (child) that is tied to another phase (parent), only the child phase is processed. If you select a WBS phase (parent) that includes another phase (child), all the phases are processed.

When you launch Build Phase Analysis, all the current project's WBS phases, per the As of date, are considered by the process, as indicated by the Phases field located on the Selection sheet (All Selected/Some Selected).

To run the process:

1. From the Actions menu, select the WBS Phase > Build WBS Phase Analysis option.

2. Before you proceed to select the build WBS phase analysis related settings, in the Project ID field, verify the correct project identifier displays.

3. Navigate to the Filter sheet and search for and select the WBS phase(s) you want to include in the process. If you want to include all the WBS phases, do not select any. By default, the process considers all the WBS phases tied to the project.

4. To capture Build WBS Phase Analysis information up to a specified point in time, select the As Of Date.

5. Select the Include Root Phase check box to build only the Root phase without including other WBS phases (parent/children). By selecting this check box you can build the net amounts of the documents linked to the project without having to build the rest of WBS phase amounts. If you keep this check box clear and you don't select any WBS phases using the Filter sheet, the process will build all the WBS phases except for the Root phase. The Root phase will not build unless you select this check box or run the Build Project Analysis process. If you select this check box, but also select WBS phases using the Filter sheet, the process will build the selected WBS phases and their child phases (if any), ignoring the Root phase.

The Root phase tracks and records all the completed activity against a project without referencing a separate WBS phase. As a result, you can recognize revenue for individual WBS phases or a complete project. The Root Phase displays as the top level in the WBS phases hierarchy with other phases linked directly to the Project. You cannot tie the Root Phase to a parent phase or add it as a parent to any other WBS phases.

The Root Phase always displays a sequence number of zero. Any added WBS phase(s) and their sub-phases

• You cannot delete the Root Phase. If you attempt to do so, the Manual deletion of Root Phase is not allowed. message displays.

• • The Root Phase is automatically created once you select the Recognize Revenue at WBS Phase check box and save. When the Root Phase is created and you clear the Recognize Revenue at WBS Phase check box and save, it will still display in the project tree view.

• The Recognize Revenue at WBS Phase check box is located on the Contract > Detail sheet.

• You cannot modify the Root Phase. If you select the Root Phase in the project tree view or the WBS Phase > List sheet, all the fields become inactive.

• You cannot add a new WBS Phase GL Control or WBS operation against the Root Phase.

6. If you want to consider the cost of the job that manufactures material that is consumed by another job on the same WBS phase in the cost of the WBS phase, select the Show Costs on Make from Job check box.

If you clear the Show Costs on Make from Job check box, WBS phase costs may look as follows:

1. If required, select the Re-Generate Phase Analysis check box to regenerate records in the WBS phase analysis table for all the transactions associated with a WBS phase(s). Clear this check box to regenerate records for only transactions that have been added since the last process run.

2. The WBS Phases field indicates whether the process run is considering all the WBS phases (default) or only some. The Only Some option displays if you select the required WBS phase(s) using the Filter sheet. If you don't, the All Selected option displays. You cannot modify this field.

3. Using the Schedule field, you can specify a schedule during which you would like the process to run. So you can run it now, by selecting the Now option, or you can use the Startup Task Schedule or Interval Processing options. These are the default options provided by Epicor, but you can set up other user-defined schedules created for your company.

To learn more about creating schedules, review the System Agent Maintenance > Schedules Details topic in the Application Help.

10. If you want the process to run on a repeating basis, select the Recurring check box. The check box is active only if you select a schedule other than Now.

11. When you are done, on the Standard toolbar, click the Process icon.

The process takes approximately twenty seconds to complete, depending on the number of WBS phases.

Checklist Tasks

In addition to jobs, each WBS phase can have multiple tasks. These tasks define the steps to complete during each WBS phase.

Besides defining the task, you can assign start and due dates. You may also define the person responsible for completing the task.

To add a task to a project:

1. Click the Down Arrow next to the New button; select New Task.

2. In the Checklist Task ID and Description fields, enter a unique identifier and a description for the new task.

3. Click the Checklist Task Type drop-down list to select the type that best applies to this task.

4. Click the Status drop-down list to define whether the task has Not Started, is In Process, or is Complete.

5. The Start Date and Due Date define when this checklist task is planned to both begin and end.

6. Click the Date Complete drop-down list to select the date when this task was actually finished. In this example, the task has not started yet, so the field remains blank.

7. Click the Person drop-down list to indicate who is responsible for this task.

8. Click the Project WBS Phase drop-down list to define the phase inside which you are placing this task. This phase is not complete until all tasks assigned to it are complete.

9. Use the People section to define who is responsible for work on the task. The people who you assign to this task display within the Available list.

10. Use the Right Arrow button to move these people to the Selected list.

11. When you finish, click Save on the Standard toolbar.

General Ledger Controls

You can assign a GL Control to a project or a WBS phase(s) in order to determine the revenue account used when recognizing revenue. The revenue recognition method within a single project can be different per WBS Phase and you can run the recognition process at the phase level, or for the entire project at once. The selected general ledger control(s) determine the accounts and journal codes used to post transactions against the project or the WBS phase.

Example A single order results in two separate jobs for two different products, which requires that revenue and costs are directed into different GL accounts. Therefore, you link each job to a separate WBS phase where you define two different GL Controls. This way you can recognize revenue for each phase independently.

3. Click the Type button to find and select the appropriate GL Control type. Each control on a project must belong to a different control type. Transactions then post to the different controls available on a control type. For example, project jobs require the Project Billing GL control type.

Add a Quote You can add quotes to either the entire project or to a specific WBS phase within the project.

1. From the Actions menu, select Project > Add > Add Quote To Project.

If you want to add a quote to a specific phase, first highlight the phase on the Tree View. Then, from the Actions menu, select Add Quote to Phase.

You cannot add a quote to a closed project. If the quote is already linked to a closed project, you cannot make changes to a quote line or its manufacturing details unless you reopen the project. However, you can make changes to the quote header irrespective of whether the project is open or closed.

1. The Quote Line Search window displays. Use this window to find and select the quote you want to add.

2. To begin, click the Search button.

3. Highlight the quote you want from the Search Results list.

4. Click OK.

5. The quote detail is added to the project. It displays on the Quotes sheet.

Add a Sales Order, Job, and Purchase Order You follow the same steps to add a sales order, job, or purchase order to the project.

1. Click the Actions menu.

2. To add a job, select Add Job To Project.

You cannot add a job to a closed project. If the job is already linked to a closed project, you cannot modify or add job's operations, assemblies, and materials. Moreover, you will still be able post transactions against the job. It is a responsibility of the end user to mark the job as closed, so no further transactions can be posted against it.

3. To add a sales order, select Add Order To Project. You cannot add a sales order to a closed project. If the sales order is already linked to a closed project, you cannot make changes to a sales order line or its release(s) unless you reopen the project. However, you can make changes to the order header irrespective of whether the project is open or closed.

4. To add a purchase order, select Add PO To Project. You cannot add a purchase order to a closed project. If the purchase order is already linked to a closed project, you cannot make changes to a purchase order line or its release(s) unless you reopen the project. However, you can make changes to the purchase order header irrespective of whether the project is open or closed.

Milestones

Milestones are specific points within the project that help you quickly measure the progress on a project. In some cases, you can also use milestones to indicate a payment is due for some aspect of the project. Use this optional functionality to help you track how work is progressing during the life of the project.

To add a milestone:

1. Click the Down Arrow next to the New button; select New Milestone.

2. The Milestones > Detail > Milestone sheet displays. In the Milestone ID and Description fields, enter a unique identifier and a description for the new milestone.

3. To add this milestone, click Save on the Standard toolbar.

4. If this milestone is complete, select the Complete check box. This check box is also selected if its Selection Criteria have been satisfied.

5. If a customer is required to pay for the engineering during this milestone, an invoice is generated and sent to the customer. If the invoice is posted within AR Invoice Entry, the Invoice Posted check box is selected.

Selection Criteria

Use the Selection Criteria sheet to define what project items must be finished before the current milestone is complete. You first define the type of selection criteria you use for the milestone. You then define the specific values that indicate when the milestone is complete. You can have multiple criteria for each milestone.

To define new selection criteria:

1. The Milestones > Detail > Selection Criteria > Detail sheet displays. Click the Type drop-down list to define the main criteria you use. Available options: Cost to Date, Fixed Date, Job Operation Complete, or Phase.

2. If you selected the Cost to Date type, the Material, Subcontract, Labor, Burden, and Material Burden fields become active. Enter values in one or more of these fields to indicate the milestone is complete when the costs equal one or more of these values.

3. If you selected the Fixed Date type, enter a date within the Fixed Date field. On this date, the milestone is considered complete.

4. If you selected the Job Operation Complete type, enter the job that must be complete within the Job field. You can also indicate the specific Assembly and Operation that must be complete in order to satisfy this criterion.

5. If you selected the Phase type, enter the WBS Phase that must be complete to satisfy this milestone.

6. The Selection Criteria Description field displays the selected criterion.

7. Continue to add the criteria you need. When you finish, click Save on the Standard toolbar.

Billing

Use the Billing tab to establish billing criteria for the milestone; typically you bill customers for engineering or design tasks. This tab is valuable for linking work done (as defined in the Selection Criteria tab) with amounts to be billed. When Process Milestones is run, this information is updated as appropriate. In Invoice Entry, invoicing information is generated, according to criteria established here.

To link the work done on the Selection Criteria tab with Billing details:

1. Select the Billing Required check box to specify that billing is required when the milestone is satisfied. The other fields on the Billing sheet are active upon selecting this box.

2. In the Type field, select the type of billing for the milestone. Two types are offered: Cost To Date and Fixed Amount. Cost To Date means that, in terms of the accumulated costs for material, labor, and so forth, the costs are marked up and billed to the customer. When Cost To Date is selected, the Markup Percent fields are enabled and the Amount fields are disabled. Fixed Amount is used when, upon completion of a milestone, a fixed amount is billed to the customer. When Fixed Amount is selected, the Amount field is enabled and the Markup Percent fields are disabled.

3. Click the Order/Line button to search for and select the order to link to this milestone. Once selected, the Order Date, PO number and Part information displays.

Milestone billing is invoiced using this sales order line. When it is shipped and invoiced, the invoiced amount will be less what was invoiced in any milestone billings. Note also that multiple milestone billings can be done against a single sales order line.

Example A $1,000.00 frame rail item on a sales order is linked to a project for a customer. The first milestone billing linked with the line is for $250.00. The second milestone billing linked with the line is for $200.00. When the frame rail is shipped, the shipment invoice will total $550.00, as the remainder is billed as parts of two milestones.

1. If the billing type is set to Cost to Date, complete the Markup Percent fields. You can specify a markup percentage for the order based on material, subcontract, labor, burden, or material burden costs. If the billing type is set to Fixed Amount, instead specify an amount to be billed to the customer upon completion of the milestone.

2. Click Save.

Invoice

Use the Milestone Entry Invoice tab to view details about the milestone as billing information has been processed in Accounts Receivable. This tab is valuable when you want to see what invoice has been processed as a result of the milestone, if any.

1. The Customer field shows the customer ID from the invoice.

2. The invoice number, line, invoice date, and due date are also displayed.

3. The Amount field shows the amount on the invoice.

Contracts

You define the contract for the project using the Contract sheets. This series of sheets define the contract selected on the project, the variations that may occur as work on the project proceeds, billing methods for the contract, and the taxes calculated against the life of the contract.

You cannot modify or add contract details if the project is closed.

Contract Details To define the contract details:

1. Navigate to the Contract > Detail sheet.

2. If this contract is with a customer, click the Customer button to find and select the record you need.

3. If this customer has a different billing location, click the Bill To button to find and select the customer location that will send you payments on this contract.

4. Click the Project Level Invoicing Method drop-down list to select the method of payment you will use. The option you select defines how the contract is billed throughout the life of the project. Available options include Customer Shipment, Milestone Billing, Fixed Fee, Time and Materials, Cost Plus, and Progress Payments. For more information on each method, review the previous Define Revenue Recognition for WBS Phases section. A Project Billing license is required to use the Fixed Fee, Time and Materials, Cost Plus, and Progress Payments options.

5. Optionally, enter a value in the Contract Reference field. Use this field to enter the reference number you use with the current contract.

6. Enter the Total Contract Value for the current contract. This value defines how much the complete contract is worth.

7. Use the Contract Start Date and Contract End Date fields to define the overall length of the contract.

8. If you estimated a different end date for the contract, select this date in the Projected Contract End Date field.

9. Select how you are recording the revenues received from this project in the Revenue Recognition Method drop-down list.

Available options include:

• Actual Burden - Recognize Revenue based on the changes of Burden rates. You can only use this method with the Time and Materials, Cost Plus, and Progress Payment invoicing methods. You cannot recognize revenue for WBS phases using this method.

• On Invoice - Recognize revenue once you invoice a customer.

• Manual - Recognize revenue manually during various project stages.

• None - Do not run the Revenue Recognition process, nor recognize revenue in Project Entry.

• POC-Cost-to-Cost (Percentage Of Completion) - Specifies a comparison of the contract cost incurred to date to the total expected contract cost. The cost of items already purchased for a contract, but not yet installed, should not be included in the determination of the percentage of completion of a project, unless they were specifically produced for the contract. Also, allocate the cost of equipment over the contract period, rather than up-front, unless title to the equipment is being transferred to the customer.

Use the POC-Cost-to-Cost method to recognize the largest proportion of project revenue in the early stages of a project , since most of the direct material costs are incurred at the beginning of a project. Therefore, the revenue is calculated by dividing all cost posted to date on a project or job by the total estimated amount of costs that will be incurred for that project or job.

Example A job includes a single operation and is linked to a project. The job demand quantity is 100 units. The example uses the following setup:

Actual Burden Cost (USD) 1000

• POC-Efforts (Percentage Of Completion) - Specifies the proportion of the effort expended to date in comparison to the total effort expected to be expended for the contract.

The method is based on direct labor hours, machine hours or material quantity. The method measures the percentage of labor hours incurred to date as compared to estimated total labor hours for the contract.

When you select this method, the Epicor ERP application will recognize the cost that has been incurred to date on jobs for labor, burden, subcontract (material or labor), and material.

Example You have a contract for 1000 units that require material, resources, and machine hours. This information is normally captured in Job Entry (materials, operations, and scheduled resources). Since it takes three months to complete production, a company accountant would like to recognize revenue at the end of each month rather than when the production completes. To accomplish this, the application needs to consider the production effort incurred at the end of each month till the production completes. The revenue calculations come from the job linked to the project or WBS Phases.

Example You committed to deliver 50,000 units by the end of the current quarter with the Billing Budget of USD 150,000.

The revenue is calculated using the following formula:

(Actual Quantity to Date/Budget Total Quantity) * Budget Billing Amount = Ea rned Revenue Amount

The calculation is affected by the option you select in the Load Relieved By field located on the Company Configuration > Modules > Production > Job sheet. Using this field, you can select the Quantity, Cost, and Hours options. For more information about this field, refer to the Application Help.

If you use this revenue recognition method, you must define quantity budget on cost categories. If you don't, the application will not recognize revenue.

• POC-Units-of-Delivery (Percentage Of Completion) - Specifies the percentage of units delivered to a buyer under the terms of a contract. Use this method if you produce a number of units according to buyer specifications.

• Part 1 was delivered to the customer (Qty = 3)

• Part 2 was delivered to the customer (Qty = 4)

The POC and Revenue Recognition are calculated as follows:

• POC = (3 * USD 150 + 4 * USD 250) /

(10 * USD 150 + 20 *USD 250) = 22. 30 %

Revenue = POC * (Contract Amount) = USD 22,300.00

If there were several AR Invoices with different prices against the same sales order, the application would

10. Select the Recognize Revenue at WBS Phase check box.

Example Business Scenario - As a revenue manager, you can have multiple performance obligations in a single project. Therefore, you need to review costs and recognize revenue at the WBS phase level. First, you associate separate jobs, sales order lines, and parts with each WBS phase and choose whether you want to recognize revenue for those jobs and whether you want to recognize it on the same schedule. You also need to use different GL Controls on each WBS phase to determine the revenue account used when recognizing revenue.

11. Click the Project Manager button to find and select the individual responsible for administrating the contract. After you select a project manager, the Name of the person also displays.

12. Select the Allow Invoicing Over Ceilings check box to indicate the application can generate invoices when the costs rise above the estimates set up for the project.

13. Click the Hours To Be Used For Invoicing drop-down list to indicate whether Labor or Burden hours are used to calculate amounts on the project billing.

14. Click the Derive Project Rates From drop-down list to define from where the rates used for costs on the project are calculated. Available options:

• Hierarchical – Uses a rate located through the rate hierarchy. When the functionality locates a rate on the hierarchy, this rate is used for the contract. The hierarchy order is project, employee, and role. Rates found on a project are selected first, followed by the rates found on an employee record, followed by the rates found on a role record.

• Project – Only uses the rates defined on the current project.

• Employee – Only uses the rates defined for the employees assigned to the project.

• Role – Only uses the rates from the roles assigned to the current project.

• 15. Select the Validate Employee Role to Operation Role check box to indicate a project role must be one of the role codes assigned to an operation. If this check box is clear, an employee can enter any project role code defined on their employee record. Note your Company Configuration determines if this field is enabled on the project, and another that determines the default value for this check box.

• 16. Click the Revenue Recognition Journal Reversal drop-down list to select the method used to reverse the posted transaction. Available options:

• Reverse in Following Period

• Reverse on Project Close

• Reverse on Invoice/Shipping

• Reverse on Billing/Shipments

The Reverse in Following Period option is only available when the Manual Revenue Recognition Method is selected on the WBS Phase or the Contract.

17. To define the currency rates used to calculate the billing amounts, select the options you need on the Rate Type and Currency drop-down lists. The rate type defines how currency pairs convert using their various exchange rates, while the currency option defines the specific currency used on transactions for this contract.

18. If a contract does not exactly proceed as planned, enter this variant issue on the Variations sheet. Use this sheet to keep track of any issues that occur over the life of the contract.

19. When you finish, click Save on the Standard toolbar.

Contract Billing - Fixed Fee

Fixed fees define a cost set used throughout the duration of a project. These fees are different from Milestone fees, as milestone fees are used to define the billing costs that occur during one phase of the project. Use fixed fees to cost items needed across all the phases of a project.

To enter a new fixed fee:

1. The Billing Schedule > Detail sheet displays. Enter the Schedule ID you want to use for this Billing Schedule.

2. To exclude the Billing Schedule from the invoice generation process, select the Schedule Inactive check box.

3. Click the Schedule Frequency drop-down list to select a frequency option that defines how often to generate invoices.

4. In the Start Date field, enter the date when you want the first invoice to generate.

5. In the Total Value of Schedule field, enter the total contractual value for this Billing Schedule.

6. If you need to associate a sales order with this billing schedule, click the Order Number button to find and select a specific order, and the Line button to find and select a specific sales order line.

7. If you need, enter the Retention Percentage for the invoice.

8. When you finish, click Save on the Standard toolbar.

You can create as many Fixed Fee Billing Schedules as you need against a project. You can link one or multiple measured work elements to each fixed Fee Billing Schedule. For more information, review the Measured Works section later in this chapter.

Schedule of Works

You can define the Schedule of Works agreed upon with the customer for each project. These schedule of works define a specific set of related tasks required to complete the project. You have no limit to the number of schedules defined within the project.

To define a schedule of works:

1. Click the Down Arrow next to the New button; select New Schedule of Work.

2. The Schedule of Works > Detail sheet displays. Enter the Schedule of Work ID you need. This value displays on several programs and reports.

3. Enter a Description for the schedule of works.

4. If you need, select the Planned Complete Date and Estimated Complete Date. These dates are used for your reference, and they help you verify the progress that is made against each schedule of works.

5. When you finish, click Save on the Standard toolbar.

Each Schedule of Works can have any number of Measured Work records associated with them; for more information, review the next Measured Works section.

Measured Works

You use measured work activity records to help track the cost of a specific work activity required to complete a phase of the project. Each measured work must be associated with either a Fixed Fee Schedule or a Schedule of Works, and it can contain as many measured work activity details as you need.

To define a measured work activity:

1. Click the Down Arrow next to the New button; select New Measured Work.

2. The Measured Works > Detail sheet displays. Define the Measured ID for the measured work activity and its short Description.

3. Click the Activity Unit drop-down list to select a measure work activity detail.

4. Click the Quantity Surveyor button to find and select a shop employee to assign as Quantity Surveyor. This individual controls the part quantity used within this Measured Work activity.

5. Enter the Price Per Unit using the activity unit charged to the customer.

6. In the Total Amount field, enter the contractual amount in the activity unit.

7. If required, select the Parent Billing Schedule and Parent Schedule of Works from the drop-down lists.

8. Use the Percentage of Contract field to indicate how much of the project contract the current measured work item satisfies.

9. When you finish, click Save on the Standard toolbar.

Contract Billing – Project Billing Invoicing

Use the sheets under the Project Billing Invoicing > Time & Material and Cost Plus tab to define the settings to use when a project is invoiced through either a Time and Material or Cost Plus basis. You use the sheets under this tab to control any overrides used for project roles, employee ceilings, supplier ceilings, and markup percentages. When a project does not use ceilings, fees, or burden sets, you can leave them at a zero or blank value to prevent using them within the project billing.

To activate these sheets, you must select either the Time and Materials or Cost Plus invoicing method on the Contract > Details sheet.

To set up a project billing:

1. Navigate to the Contract > Project Billing Invoicing > Time & Material and Cost Plus > Details sheet.

2. If you need to associate a sales order with this project, click the Order Number button to find and select a specific order, and the Line button to find and select a specific sales order line.

3. To use a specific markup code to apply against this project activity billing, click the Cost Markup button to find and select this record. The Material Markup, Labor Markup, Subcontract Markup, and Other Cost Markup fields now display a value and cannot be changed. The values defined for these fields on the markup code are used instead to calculate the billing amounts. You need markup percentages for Cost Plus billing. You create markup codes within Mark Up Code Maintenance. For more information on this program, review application help.

4. The Retention Percentage defines what percentage of the billing to retain. Enter a percentage value in this field.

5. Click the Retention Processing drop-down list to select an option that defines how the application will use the retention percentage to calculate amounts. Available options:

• Maximum of Contract Value – This percentage is calculated against the highest value on the contract.

• Percent of Invoice Value – This percentage is calculated against the value of invoices sent to the customer.

• 6. To define a maximum cost for any fees placed against the project, enter a value in the Fees field. If you leave this field blank, there is no limit to the cost of the fees.

• 7. Likewise, define a maximum cost for the entire project within the Project Total field. If you do not enter a value in this field, there is no limit to the total cost of the project.

• 8. You can activate cost ceilings on suppliers, employees, and project roles by selecting the respective check box. You can then enter the cost limits for each category on the respective sheet. If you select the Individual Ceilings on Suppliers check box, use the Supplier Ceilings sheet to enter the ceiling you need on each supplier involved with the project. (To add a supplier ceiling, click the Down Arrow next to the New button and select New Supplier Ceiling; then enter the values you need on this sheet.)

• 9. If you select the Individual Ceilings on Employees check box, use the Employee Ceilings sheet to enter the ceiling you need on each employee involved with the project. (To add an employee ceiling, click the Down Arrow next to the New button and select New Employee Ceiling; then enter the values you need on this sheet.)

• 10. If you select the Individual Ceilings on Project Roles check box, use the Role Codes sheet to enter the ceiling you need. (To add a project role ceiling, click the Down Arrow next to the New button and select New Project Rate; then enter the values you need on this sheet.)

• 11. Add any fees you need to include with the project on the Fees sheet.

• 12. If you need to include burden sets with the project activity billing, click the Down Arrow next to the New button; select New Activity Billing Burden Set.

• 13. A new row displays on the Burden Sets grid. Enter the identifier for the set within the Burden Set field.

• 14. When you finish defining your Time and Materials or Cost Plus billing, click Save on the Standard toolbar.

Contract Billing – Progress Payments

When you bill a customer using the Progress Payment method, you invoice the customer periodically based on a percentage of the costs of labor, materials, and burden generated so far against the project. Use this method when product quantities are shipped before a contract is formally negotiated. You first send out the shipments, and then the final price is agreed upon within the contract. You then invoice the customer on the difference between the amounts on the progress payments and the final negotiated contract amount. The costs created for each invoice depends on a percentage defined on the Progress Payments sheets.

You must select the Progress Payments invoicing method on the Contract > Details sheet to activate the Progress Payments sheet.

To set up progress payment billing:

1. Click the Order Number button to find and select a specific order, and the Line button to find and select a specific sales order line from the order.

2. Enter the Progress Payment Allowable Percentage. This value defines the markup percentage you use on the costs of material, labor, and burden used on the project.

3. Select the Hold Product Invoices check box to indicate customer shipments will not be invoiced immediately. During customer shipment entry, any packing slips for the current sales order detail line are placed on hold to prevent them from being selected for invoicing. When you are ready to generate invoices, clear this check box.

4. The Total Progress Payments to Date field displays the total value of the invoice amounts received so far against this project. You cannot modify this value.

5. The Total Amount Liquidated to Date field displays the total value of any liquidations taken place so far as part of the customer shipment process. You cannot edit this value.

6. The Outstanding Balance field displays the remaining amount owed on the current project. This value is calculated by subtracting the Total Amount Liquidated to Date from the Total Progress Payments to Date. You cannot change this value.

7. You can define a maximum cost for the entire project within the Project Total field. If you do not enter a value in this field, there is no limit to the total cost of the project.

8. To add the burden sets you need to the progress payments, click the Down Arrow next to the New button; select New Progress Payment Burden Set.

9. A new row displays within the Burden Sets grid.

10. Enter the identifier you need within the Burden Set field.

11. Continue to add the burden sets you need. When you finish, click Save on the Standard toolbar.

Contract Billing – Taxes

You use the Taxes sheet to define the tax categories associated with a transaction type on the current project. During the invoicing process, the application uses these categories to calculate the amount of taxes owed against the various financial transactions generated through the project.

To define the project tax categories:

1. Select the Contract > Taxes sheet.

2. You select a tax category for each project transaction type. Click the Material drop-down list to select a tax category for material transactions.

3. Click the Labor drop-down list to select a tax category for labor transactions.

4. Click the Other Direct Cost drop-down list to select a tax category for miscellaneous direct cost transactions.

5. Click the Burden drop-down list to select a tax category for burden transactions.

6. Click the Subcontract drop-down list to select a tax category for subcontract work on the project.

7. Click the Fee drop-down list to select a tax category used to asses taxes on fees.

8. Click the Billing Schedule drop-down list to select the billing schedule tax category used for tax calculations.

9. When you finish, click Save on the Standard toolbar.

Copy Projects

You can duplicate an existing project and then modify the copied project to fit the requirements for the new project. Note that if you duplicate a project, the new project will remain on the original site. It cannot be duplicated to another site.

To duplicate a current project:

1. In the New Project ID, enter the identifier for the project.

2. Enter a Description for the new project.

3. If you want to automatically create WBS job records for the duplicated project, select the Create WBS Phase Job check box.

4. Lastly, select the Start Date you need for the new project. All copied items within the project use this date value to calculate their start dates.

5. Click OK. The new project displays within Project Entry, and you can modify it as you need.

Project Entry - Tree View Project Entry uses Tree View icons unique to this program. Available icons and what they represent:

1. This graph icon indicates a WBS Phase for the project.

2. This wrench icon represents a Job contained within the project.

3. This binoculars icon indicates a Milestone.

4. Sales Orders are indicated with this green shopping cart icon.

5. This orange shopping cart icon represents a Purchase Order (PO).

6. Quotes are represented with this document icon. The document icon is also used to identify a Schedules Of Work, Billing Schedule, and Measured Works A Task is indicated with this check mark icon.

When an item is complete, a red check displays on top of the icon. For an example, refer to step five.

Project Costs

You use the Project Costs sheet to review and update the costs for the entire project. This sheet displays the costs in time through its Labor Hours and Burden Hours values. It also breaks out the monetary costs for Labor, Burden, Subcontract, Material, Material Burden, and Other Direct Costs

Use the Project Costs sheet to manually enter the planned budget and final cost to complete (CTC) values. You can also pull in the costs from all the WBS phases within the Budget and the Manual CTC columns.

To use this sheet:

1. The Quoted column indicates the costs that were quoted to the customer. To generate these values, from the Actions menu, select Project > Build Project Analysis. To learn how to add quotes to a project or phase, read the Add a Quote section found earlier in this chapter.

2. The Estimated column displays the predicted costs for the project. To generate these values, from the

Actions menu, select Project > Build Project Analysis. The cost for the Labor (Estimated), Labor Hours (Estimated), Burden (Estimated), and Burden Hours (Estimated) fields are calculated as the sum of the production and setup costs.

You must use the Build Project Analysis function to populate the Estimated, Actual, Calculated CTC, and Quotes columns on this sheet. To learn how to run this process, review the Build Process Analysis section later in this chapter.

3. As time and costs are reported against this project from your manufacturing center, they display under the

Actual column. To generate these values, from the Actions menu, select Project > Build Project Analysis. The cost for the Labor (Actual), Labor Hours (Actual), Burden (Actual), and Burden Hours (Actual) fields are calculated as the sum of the production and setup costs.

4. If the Roll Project Phase Manual Estimate to Complete Values to Project check box is cleared, you can manually enter the cost to complete (CTC) amounts for the project. You can enter the labor and burden hours that were accumulated – as well as the labor, burden, subcontract, material, and material burden costs. However, if this check box is selected, these fields are disabled and calculated from the WBS phases (The production and setup values are combined).

5. The Calculated Cost to Complete column displays how much the system calculated the project to cost to

completion. To generate these value, from the Actions menu, select Project > Build Project Analysis. Labor Hours, Burden Hours, and Costs are calculated as an estimate of the remaining required quantity on the job. The CTC Costs and Hours display zero when the job operation or the job are complete. Labor and Burden costs are calculated as the sum of Setup and Production costs. CTC production hours are calculated according to the qualifier of the job operation and the Company parameter (Load Relieved By).

6. The Projected Total column displays the projected costs for labor, burden, sub-contract, material, material burden, and other direct cost (ODC).

7. If you need to enter the planned budget for this project, enter these costs within the fields under the Budget column. If the Roll Project Phase Budgets to Project check box is selected, the project budget amounts are disabled and calculated as the sum of the WBS Phase costs (production and setup combined). If this check box is cleared, you can manually enter the amounts.

8. If you select the Roll Project Phase Budgets Costs to Project check box, the budget values from the WBS phases are pulled into the project’s Budget column. You can no longer edit these values.

9. If you select the Roll Project Phase Manual Estimate to Complete Values to Project check box, the manually entered CTC values from the WBS phases are pulled into this project’s Manual CTC column. You can no longer edit these costs.

Project Schedule

When you finish setting up the project, you can then incorporate this project’s jobs into your manufacturing center’s schedule.

1. Click the Actions menu; select Project > Project Schedule.

2. The Job Scheduling Board displays. Make any schedule changes you need.

Build Project Analysis

You can generate and review the overall costs of the project through the Build Project Analysis function. Use this function to total Estimated, Actual, Calculated Cost to Complete (CTC), and Quoted costs. These costs are further broken down into labor, burden, subcontract, material, material burden, and other direct costs.

Within Project Entry, this data is then populated within the Project Costs and WBS Phase Costs sheets for your review. To learn more about these cost sheets, read the WBS Phase Costs and Project Costs sections earlier in this chapter.

When the Build Project Analysis process is run, you can increase the revision level using the next available number. You can then keep the project data from the previous version for use on the next project.

To generate the analysis for the current project:

1. From the Actions menu, select Build Project Analysis.

2. The Build Project Analysis window displays.

3. If you want to regenerate records in the project analysis process table, select the Re-Generate Project Analysis check box.

4. If you want to save a copy of the project costs and analysis within your history, select the Save Copy check box. The saved project data is then available for the production of comparison reports as required.

5. If you want to schedule a time when this process should run, select an option from the Schedule drop-down list.

6. When you finish, click the Submit button on the Standard toolbar.

After the process runs, the costs display on Project Costs and WBS Phase Costs sheets.

Revenue Recognition

You can produce general ledger journals that recognize revenue for an ongoing project and WBS Phases using the Revenue Recognition sheet. The entries are based on the costs calculated from the Project and WBS Phase Analysis functions and the parameters you select. You can also close the project, which causes the application to automatically reverse these journals for the revenue recognized to date.

You use Revenue Recognition to recognize costs and revenue on long-term projects where invoicing does not occur frequently. Revenue Recognition provides a way to recognize costs and revenue independent of invoicing.

All journal transactions are reversed eventually based on the project setting. You can reverse journals on the Next Period or Billing depending on the Project Entry > Contract > Detail sheet setting defined in the Revenue Recognition Journal Reversal drop-down list.

Project Revenue Recognition

1. Navigate to the Revenue Recognition sheet.

2. Select a Sales Category to determine the department segment of the general ledger account numbers.

3. In the Calculation of To Be Recognized Revenue is Based On field, select an option (Quoted, Budget, Estimated, Project Total, Revenue Balance, or Manually Entered) to calculate the revenue in the Revenue Recognition section. If you select Manually Entered, specify the percentage to use for the calculation.

4. Click the Calculate button.

5. A suggested revenue recognition amount displays in the To Be Recognized field.

6. The sum of so far recognized values display in the Total Recognized field.

7. The total projected revenue amount for the project displays in the Projected Revenue field.

8. The total value of all posted invoices made against this project displays in the Invoiced to Date field.

9. The sum of all revenue recognized for the project with an Apply Date on or before the selected Recognition Date with the account context of Sales - Measured Work, Sales - Material, Sales - Subcontract, Sales - Project ODC, Sales - Project Fees, and Sales - Provisional Burden displays in the Recognized (Invoiced) field.

10. The labor and burden costs recognized to date via the Labor Booking Recognition method display in the Booked pane.

11. The cost of sales captured by the Capture COS process after a sales order release is shipped or invoiced displays in the Invoiced/Shipped column.

12. The Purged WIP to COS field is populated when no additional billing will be done and costs still exist when a job is closed. Any costs that are in work in process (WIP) will be purged from WIP to COS when the project job is closed. If a project job is on a WBS phase which is not invoiced by shipment, costs move from WIP to COS after Invoicing and execution of the Capture COS/WIP process.

13. The revenue manually entered to date displays in the Manual Entered column. Once these values have been posted, they are shown in the Manual Posted column.

14. The cost of sales amount recorded for the project with an Apply Date on or before the selected Recognition Date with the account context of Sales Recognized displays in the Recognized To Date column.

15. The amounts that should be recorded for the project and posted to cost of sales displays in the To Be Recognized column. The default can be overridden and negative amounts can be entered.

16. The sum of the values in the Recognized to Date and To Be Recognized columns displays in the Total Recognized column.

17. Click Save on the Standard toolbar after completing the entries. The Capture Project Revenue Recognition displays.

WBS Phase Revenue Recognition

For the fields to be active, you must select the Recognize Revenue at WBS Phase check box located on the Project Entry > Contract > Detail sheet. If this check box remains cleared, you won't be able to perform manual calculation.

To be able to manually calculate, you must first complete the Build WBS Phase Analysis process.

2. Select a Sales Category to determine the department segment of the general ledger account numbers.

3. In the Calculation of To Be Recognized Revenue is Based On field, select an option (Quoted, Budget, Estimated, Project Total, Revenue Balance, or Manually Entered) to calculate the revenue in the Revenue Recognition section. If you select Manually Entered, specify the percentage to use for the calculation.

4. Click the Calculate button.

5. A suggested revenue recognition amount displays in the To Be Recognized field.

6. The sum of so far recognized values display in the Total Recognized field.

7. The total projected revenue amount for the WBS Phase displays in the Projected Revenue field.

8. The total value of all posted invoices made against this WBS Phase displays in the Invoiced to Date field.

9. The sum of all revenue recognized for the WBS Phase with an Apply Date on or before the selected Recognition Date with the account context of Sales - Measured Work, Sales - Material, Sales - Subcontract, Sales - Project ODC, Sales - Project Fees, and Sales - Provisional Burden displays in the Recognized (Invoiced) field.

10. The labor and burden costs recognized to date via the Labor Booking Recognition method display in the Booked pane.

11. The cost of sales captured by the Capture COS process after a sales order release is shipped or invoiced displays in the Invoiced/Shipped column.

12. The Purged WIP to COS field is populated when no additional billing will be done and costs still exist when a job is closed. Any costs that are in work in process (WIP) will be purged from WIP to COS when a WBS Phase job is closed. If the WBS Phase job is not invoiced by shipment, costs move from WIP to COS after Invoicing and execution of the Capture COS/WIP process.

13. The revenue manually entered to date displays in the Manual Entered column. Once these values have been posted, they are shown in the Manual Posted column.

14. The cost of sales amount recorded for the WBS Phase with an Apply Date on or before the selected Recognition Date with the account context of Sales Recognized displays in the Recognized To Date column.

15. The amounts that should be recorded for the project and posted to cost of sales displays in the To Be Recognized column. The default can be overridden and negative amounts can be entered.

16. The sum of the values in the Recognized to Date and To Be Recognized columns displays in the Total Recognized column.

17. Click this button to recognize revenue.

18. Click Save on the Standard toolbar after completing the entries. The Capture Project Revenue Recognition displays.

Capture Project Revenue Recognition

The Capture Project Revenue Recognition process creates sales and cost of sales journals based on the information in the Revenue Recognition window. As stated previously, click Save to after completing the entries in Revenue Recognition to launch the Capture Project Revenue Recognition process. Alternatively, you can launch the process using the Project Entry > Actions > Project > Project Revenue Recognition > Capture Project Revenue Recognition Process command.

1. Select the starting date or accept the default. This field specifies the first date on which the recognition of revenue and cost of sales (COS) is calculated (captured).

2. Select the invoice date. This field also known as the As of Date specifies which project analysis record should be generated. This allows you to capture project analysis information up to a specified date. The Epicor application defaults to the current date.

3. This check box designates if transactions containing dates prior to the date specified in the Starting Date field should be calculated (captured).

4. If you select this check box during the Capture WBS Phase Revenue Recognition process, the calculation process for cost of sales (COS) and work-in-process (WIP) for standard jobs and project jobs is automatically executed. Keep this check box clear if you want to capture WIP only.

5. Select the required recognition method. This field specifies the revenue recognition method being used for

the WBS phase(s). The field default to ALL. The options include:

• Actual Burden - Recognize Revenue based on the changes of Burden rates. You can only use this method with the Time and Materials, Cost Plus, and Progress Payment invoicing methods. You cannot recognize revenue for WBS phases using the Actual Burden revenue recognition method. Currently, you can define Burden Sets on the Project header only and the Actual Burden value is calculated as a difference in its rates.

• On Invoice - This recognition method is used for project billing only and is set as the Epicor application's default method. The following invoice methods are supported by this recognition method:

1. Cost Plus

2. Fixed Fee

3. Progress Payments

4. Time and Materials

The On Invoice Recognition includes all transaction cost types - Labor, Burden, Material, Material Burden, Subcontract, and Other Direct Costs (ODC). The revenue recognized applies to both submitted Measures of Work and Project Fees.

• Labor Booking - This recognition method is used to recognize revenue for Labor transactions only. Labor transactions at the time of booking include the acts of labor entry, submittal, and approval. Labor Booking Recognition posts revenue for labor at the calculated charge amount based on the project role code charge rates, employee charge rates, or cost markups depending on the invoicing type defined on the project. The following invoice methods are supported by this recognition method:

1. Cost Plus

2. Progress Payments

3. Time and Materials

All transaction cost types other than labor such as material, material burden, subcontract, and ODC on a project with this recognition method of Labor Booking, is recognized using the On Invoicing recognition method.

• Manual - This recognition method provides an automated revenue recognition capability other than that generated through the shipment process. This method produces journals for on-going projects, reporting provisional revenue recognition based on costs from the Build Project Analysis process. The journals produced through this recognition method are then reversed in either the following financial period or once the project is complete depending on the defined Company Configuration setting. Once the Accounts Receivable (AR) Invoice is posted, the final recognition journals are produced using the On Invoice recognition method. The following invoice methods are supported by this recognition method:

1. Cost Plus

2. Fixed Fee

3. Progress Payments

4. Time and Materials

Manual recognition applies to all transaction cost types: labor, burden, material, material burden, subcontract, and ODC as well as Measured Works revenue.

• POC-Cost-to-Cost (Percentage Of Completion) - Specifies a comparison of the contract cost incurred to date to the total expected contract cost. The cost of items already purchased for a contract, but not yet installed, should not be included in the determination of the percentage of completion of a project, unless they were specifically produced for the contract. Also, allocate the cost of equipment over the contract period, rather than up-front, unless title to the equipment is being transferred to the customer.

Use the POC-Cost-to-Cost method to recognize the largest proportion of project revenue in the early stages of a project , since most of the direct material costs are incurred at the beginning of a project. Therefore, the revenue is calculated by dividing all cost posted to date on a project or job by the total estimated amount of costs that will be incurred for that project or job.

Example Using the Cost-to-Cost Method, the total project reflects the progress % of the WBS phase completed as below:

Calculation Name

Percent Completed

Period Revenue Recognition

Project Income

Calculation Logic

• Period Costs (an nual , quarterly , and so on)/ To tal Estimated Co st = Percentage Completed

• 20,000/150,000 = 0.133333%

• Percentage Compl eted * Total Pro ject Revenue = P eriod Revenue

• 0.13333 * 200,00 0 = 26,666

• • Period Revenue – Period Costs (A

• ctual) = Project Income

• 26,666 - 20,000 = 6,666.5

Comment

This is the percent completed.

• POC-Efforts (Percentage Of Completion) - Specifies the proportion of the effort expended to date in comparison to the total effort expected to be expended for the contract.

The method is based on direct labor hours, machine hours or material quantity. The method measures the percentage of labor hours incurred to date as compared to estimated total labor hours for the contract.

When you select this method, the Epicor ERP application will recognize the cost that has been incurred to date on jobs for labor, burden, subcontract (material or labor), and material.

Example You have a contract for 1000 units that require material, resources, and machine hours. This information is normally captured in Job Entry (materials, operations, and scheduled resources). Since it takes three months to complete production, a company accountant would like to recognize revenue at the end of each month rather than when the production completes. To accomplish this, the application needs to consider the production effort incurred at the end of each month till the production completes. The revenue calculations come from the job linked to the project or WBS Phases.

Example You committed to deliver 50,000 units by the end of the current quarter with the Billing Budget of USD 150,000.

• POC-Units-of-Delivery (Percentage Of Completion) - Specifies the percentage of units delivered to a buyer under the terms of a contract. Use this method if you produce a number of units according to buyer specifications.

• Part 1 was delivered to the customer (Qty = 3, AR Invoice Price = USD 150.00)

• Part 2 was delivered to the customer (Qty = 4, AR Invoice Price = USD 250.00)

• POC = (3 * USD 150 + 4 * USD 250) /

(10 * USD 150 + 20 *USD 250) = 22. 30 %

Revenue = POC * (Contract Amount) = USD 22,300.00

• Qty= 1, AR Invoice Price = USD 150.00, Date 01/10/2019

• Qty= 2, AR Invoice Price = USD 140.00, Date 01/12/2019

1. Indicates whether the process run is considering all the projects (All Selected) or only some (Some Selected). The Some Selected option displays if you select the required WBS phase(s) or you launch the Capture Project Revenue Recognition process after you save the Revenue Recognition sheet entries. If you don't, the All Selected option displays. You cannot modify this field.

2. Select the schedule option during which you would like the process to run. Options include Now, Startup Task Schedule, Interval Processing, and any other user-defined schedules created for your company.

3. Indicates that the process should be run on a repeated basis. This check box is available only if a schedule other than Now is selected.

4. When you are done with your process selection, click the Generate Only icon. The application creates sales and cost of sales journals based on the amounts displayed in the To Be

Recognized field in the Revenue Recognition pane and the To be Recognized column in the Cost of Sales Recognition pane.

When the project is being closed and the accrual amounts are to be reversed, select the Close Project Accrual check box. This updates the To Be Recognized field and displays negative amounts in the fields of the To Be Recognized column to reflect the accruals. When saved, the Epicor application then posts the reversals for the journals that were previously created for the project by Revenue Recognition.

Capture WBS Phase Revenue Recognition

You can only capture revenue for WBS project phases using the Capture WBS Phase Revenue Recognition process. Before you run the process, you can select a single WBS phase or multiple phases, based on how many phases you want to include in the process. You can recognize revenue at different stages of a project.

To capture WBS phase revenue recognition:

1. From the Actions menu, select the WBS Phase > WBS Phase Revenue Recognition > Capture WBS Phase Revenue Recognition command.

2. Select the starting date or accept the default. This field specifies the first date on which the recognition of revenue and cost of sales (COS) is calculated (captured).

3. Select the invoice date. This field also known as the As of Date specifies which project analysis record should be generated. This allows you to capture project analysis information up to a specified date. The Epicor application defaults to the current date.

4. This check box designates if transactions containing dates prior to the date specified in the Starting Date field should be calculated (captured).

5. Select the Include Root Phase check box to include the Root Phase in the Capture WBS Phase Revenue Recognition process.

The Root Phase tracks and records all the completed activity against a project without referencing a separate WBS phase(s). As a result, you can recognize revenue for individual WBS phases, Root Phase or a complete project. The Root Phase displays as the top level in the WBS phases hierarchy with other phases linked directly to the Project. You cannot tie the Root Phase to a parent phase or add it as a parent to any other WBS phases.

• The whole project (includes the two WBS phases and Root Phase costs)

• Root Phase only

• WBS Phase One only

• WBS Phase Two only

1. If you select this check box during the Capture WBS Phase Revenue Recognition process, the calculation process for cost of sales (COS) and work-in-process (WIP) for standard jobs and project jobs is automatically executed. Keep this check box clear if you want to capture WIP only.

2. Select the required recognition method. This field specifies the revenue recognition method being used for

the WBS phase(s). The field default to ALL. The options include:

1. Cost Plus

2. Fixed Fee

3. Progress Payments

4. Time and Materials

The On Invoice Recognition includes all transaction cost types - Labor, Burden, Material, Material Burden, Subcontract, and Other Direct Costs (ODC). The revenue recognized applies to both submitted Measures of Work and Project Fees.

• Labor Booking Recognition - This recognition method is used to recognize revenue for Labor transactions only. Labor transactions at the time of booking include the acts of labor entry, submittal, and approval. Labor Booking Recognition posts revenue for labor at the calculated charge amount based on the project role code charge rates, employee charge rates, or cost markups depending on the invoicing type defined on the project. The following invoice methods are supported by this recognition method:

1. Cost Plus

2. Progress Payments

3. Time and Materials

All transaction cost types other than labor such as material, material burden, subcontract, and ODC on a project with this recognition method of Labor Booking, is recognized using the On Invoicing recognition method.

• Manual Recognition - This recognition method provides an automated revenue recognition capability other than that generated through the shipment process. This method produces journals for on-going projects, reporting provisional revenue recognition based on costs from the Build Project Analysis process. The journals produced through this recognition method are then reversed in either the following financial period or once the project is complete depending on the defined Company Configuration setting. Once the Accounts Receivable (AR) Invoice is posted, the final recognition journals are produced using the On Invoice recognition method. The following invoice methods are supported by this recognition method:

1. Cost Plus

2. Fixed Fee

3. Progress Payments

4. Time and Materials

Manual recognition applies to all transaction cost types: labor, burden, material, material burden, subcontract, and ODC as well as Measured Works revenue.

8. Indicates whether the process run is considering all the WBS phases (default) or only some. The Some Selected option displays if you select the required WBS phase(s). If you don't, the All Selected option displays. You cannot modify this field.

9. Select the schedule option during which you would like the process to run. Options include Now, Startup Task Schedule, Interval Processing, and any other user-defined schedules created for your company.

10. Indicates that the process should be run on a repeated basis. This check box is available only if a schedule other than Now is selected.

11. When you are done with your process selection, click the Generate Only icon.

12. Use the Filter sheet to select the required project WBS phase(s). If you don't select a WBS phase(s), the process considers all the WBS phases tied to the project.

13. To select a WBS phase(s), click the WBS Phases... search button.

WBS Phase Revenue Recognition Edit List Report

After you produce general ledger journals that recognize revenue for an ongoing project using the Revenue Recognition program, you can use the WBS Phase Revenue Recognition Edit List Report to generate an edit list report. In the report, you can see both the revenue recognition calculations and the accounts they will post to before you proceed to capture the calculated revenue. This allows you to see the revenue and respective accounts before you capture it.

1. From the Actions menu, select the WBS Phases > WBS Phase Revenue Recognition > Print Edit List command.

2. The Project ID and Description fields specify a unique project identifier and description.

3. You can use different report styles for your report by selecting a specific style using the Report Style field. However, you must first define the style in Report Style Maintenance. If you want to learn about how to create a report style in Epicor ERP, look for the Report Style Maintenance topic in the Application Help.

4. The Schedule field always defaults to Now and you are not able to schedule the report.

5. The Recurring check box is cleared and inactive as the default schedule is Now.

6. Enter how long you would like this report to remain available after it generates by selecting an option from the Archive Period drop-down list. As long as the application clock has not passed this time span, the report is available on the server to preview and print. After this Archive Period passes, the report is purged from the application.

7. Specify a brief explanation that describes your report run. The explanation you enter in the User Description field will display in the System Monitor once you run the process so you can easily search for the run status as well as any errors that may generate.

8. When you launch the program, the Books field displays All Selected by default . This is always the case. If you want to include a specific GL book record or multiple books, use the Filter > Books sheet to narrow down your selection of records.

9. The WBS Phases field displays All Selected by default . If you want to include a specific WBS Phase or multiple phases, use the Filter > Phases sheet to narrow down your selection of records.

10. When you are done, on the Standard toolbar, click the Generate Only icon. Alternatively you can click Print Preview.

Revenue Recognition Edit List Report

After you produce general ledger journals that recognize revenue for an ongoing project using Revenue Recognition, you can use the Revenue Recognition Edit List Report to generate an edit list report. In the report, you can see both the calculations and the accounts that relate to the project. You can then review the report before you proceed to capture the calculated revenue. This allows you to see the revenue and respective accounts before you capture it.

When you calculate revenue using Revenue Recognition and you click Save, then:

1. A prompt message displays giving you the option to generate the Revenue Recognition Edit List report.

2. If you click Yes to the message, the Revenue Recognition Edit List report generates. You can then review it before you capture revenue.

3. If you click No, you directly proceed to the Capture Project Revenue Recognition process.

The Print Edit List command is only active after the Build Project Analysis process completes.

To review the report:

1. From the Actions menu, select the Project > Project Revenue Recognition > Print Edit List option.

2. Specifies an identifier of a project you are running the report for.

3. You can use different report styles for your report by selecting a specific style using the Report Style field. However, you must first define the style in Report Style Maintenance. If you want to learn about how to create a report style in Epicor ERP, look for the Report Style Maintenance topic in the Application Help.

4. Using the Schedule field, you can specify a schedule during which you would like the process to run. So you can run it now, by selecting the Now option, or you can use the Startup Task Schedule or Interval Processing options. These are the default options provided by Epicor, but you can set up other user-defined schedules created for your company. To learn more about creating schedules, review the System Agent Maintenance > Schedules Details topic in the Application Help.

5. Enter how long you would like this report to remain available after it generates by selecting an option from the Archive Period drop-down list. As long as the application clock has not passed this time span, the report is available on the server to preview and print. After this Archive Period passes, the report is purged from the application.

6. Specify a brief explanation that describes your report run. The explanation you enter in the User Description field will display in the System Monitor once you run the process so you can easily search for the run status as well as any errors that may generate.

7. If you want the report to run on a repeating basis, select the Recurring check box. The check box is active only if you select a schedule other than Now.

8. When you launch the program, the Books field displays All Selected by default . This is always the case. If you want to include a specific GL book record or multiple books, use the Filter sheet to narrow down your selection of records.

9. Depending whether you select some book records using the Filter sheet, All Selected or Some Selected display in the Books field. By default, this field displays All Selected, meaning all the book records will be considered. If you select a single book or multiple book records, this field displays Some Selected.

10. When you are done, on the Standard toolbar, click the Generate Only icon. Alternatively you can click Print Preview.

Capture Actual Burden Project Revenue Recognition

Using the Actual Burden Project Revenue Recognition process you can only capture revenue for actual burden rates applied to a project or multiple projects. You can recognize actual burden revenue at different stages of a project.

For the actual burden project revenue to be captured, the project(s) you are running the process for must include the Actual Burden revenue recognition method.

Menu Path: Service Management > Project Management > Setup > Burden Actual Percentage Maintenance

1. From the Actions menu, select the Revenue Recognition option.

2. Use the Filter sheet to select the project(s) you want to include in the process run. If you don't specify a project, all projects will be considered.

3. Select the invoice date to capture actual burden project revenue up to a specified date.

4. Using the Schedule field, you can specify a schedule during which you would like the process to run. So you can run it now, by selecting the Now option, or you can use the Startup Task Schedule or Interval

Processing options. These are the default options provided by Epicor, but you can set up other user-defined schedules created for your company.

5. If you want the process to run on a repeating basis, select the Recurring check box. The check box is active only if you select a schedule other than Now.

6. The Projects field indicates whether the process run is considering all the projects (default) or only some. The Only Some option displays if you select the required project(s) using the Filter sheet. If you don't, the All Selected option displays. You cannot modify this field.

7. When you are done, on the Standard toolbar, click the Process icon.

Close Billing Schedule Process

You can close a project so the application creates invoices that contain retention values you need. You can then reverse these retention values from the General Ledger. If the project is for Fixed Fee invoicing, then the application checks whether all measured work activities are processed up to the posted stage.

When the Billing Schedules are closed, the process creates an invoice line for each Billing Schedule retention transaction, then posts the Invoice group, reverses the retentions, and marks the Billing Schedule as inactive.

To close the project:

1. To the message, click Yes.

2. To the Project is Closed message, click OK.

Export to Microsoft Project

A key Project Entry feature is its ability to export a project into the Microsoft Office Project 2010 or 2013 applications. If your company uses Microsoft Office Project, you can export the project out of the Epicor application and open it within Microsoft Office Project where you can edit the project.

To do this, you run an option from the Actions menu. After you define the aspects of the project you want to export, you generate a .csv file that you can then open within Microsoft Office Project. After you finish working on the project within Microsoft Office Project, you can then import the project back into your application.

To export a project:

1. From the Actions menu, select Project > Export to MS Project.

3. In the Calculate % Complete section, define the method that you want Microsoft Office Project to use for calculating how near the project is to completion. You can calculate this value by using either the time placed against the project or the quantities manufactured to date. You can also ignore this calculation. The Send Phase as Task check box is disabled until you select the Jobs check box. When you send a phase as a task, the WBS phase is sent twice to Microsoft Office Project. It is first sent as a summary and then also sent as a task for a job.

4. In the Download Items section, select which project items you want to include within the exported .csv file. You can download Predecessors, Checklist Tasks, WBS Phases, Jobs, Phases, Job Assemblies, and Job Operations.

5. Next, define the Operation Duration value. You can choose either Days or Hours.

6. In the MS Project Versions field, select the version of Microsoft Office Project you will be using. The choices are MS Project 2013 and MS Project 2010.

7. When you finish, click the Export button.

8. The Export File window displays. Use this window to place the .csv file into a folder you use for Microsoft project files.

9. In the File Name field, enter a file name.

10. Click Save.

11. The application now exports the file to the location you selected. A dialog box displays, indicating the export was successful. Click OK.

Launch the Import Wizard

1. Launch the file within Microsoft Office Project. When the Import Wizard window displays, click Next.

2. On the Import Wizard – Map window, keep the New map option selected to create your data settings from scratch.

1. On the Import Wizard – Import Mode window, keep the As a new_project option selected for how you want to import the file. Optionally, you can select to append or merge the data to an active project.

2. Click Next.

3. Select the types of data you want to import. The default is Tasks. Other types include Resources and Assignments.

4. Select the text file options. The Import includes headers check box is selected by default.

5. Click Next.

6. On the Import Wizard – Task Mapping window, review the fields from within the central grid that map the fields from the .csv file to the corresponding Microsoft Office Project field.

When a project is exported to Microsoft Office Project the data must be in a format the application uses. To do this, create a map within Microsoft Office Project using the data elements in the From: and To: fields that display on the Import Wizard - Task Mapping sheet. If additional data fields are added to an existing project, the new fields must be added to the end of the map.

11. On the Import Wizard – End of Map Definition window, click Save Map if you want to save the wizard

settings as a map to use again later.

To learn about the features within this application, review your Microsoft Office Project documentation.

Import from Microsoft Project

After you finish making changes within Microsoft Office Project, you can then import the updated project data back into your Epicor application. The Microsoft Office Project changes are then incorporated into the project. To import a project:

1. From the Actions menu, select Import from MS Project.

2. The Import From MS Project window displays. Click the File Name button to find and select the .csv file

you want to import back into the application.

3. Several import options exist. If you want to generate new phases based on the changes you made in Microsoft Office Project , select the Create WBS Phases check box.

4. If you want to generate new tasks based on the changes you made in Microsoft Office Project, select the Create Checklist Tasks check box.

5. If you want to update the Microsoft Office Project links you made within the application, select the Update Project/Job Links, Update WBS Phase/Checklist Task Links, or Update WBS Phase/Job Links check boxes.

6. To generate job records for each WBS phase, select the Create WBS Phase Jobs check box. If the Create WBS Phase Jobs check box is selected on the Import from MS Project window, the Operation used to create the job must also be in the Resource Group field within the import map.

7. Use these date check boxes to update the specific dates you need from the Microsoft Office Project file.

8. When you finish, click the Import button. The .csv file is pulled into your application. You can now open this file within Project Entry.

Link Sales Order Line to WBS Phase

If your application is configured to do so, you can link a sales order line to a specific WBS phase from within Sales Order Entry. Menu Path: Sales Management > Order Management > General Operations > Order Entry

1. In the Summary sheet, click the Sales Order button to find and select the sales order.

2. In the Tree View, select the specific sales order line you want to link to the WBS phase.

3. Navigate to the Releases > Project sheet.

4. Click the Project button to find and select the project identifier.

5. Click the WBS Phase button to find and select the specific WBS phase to be linked to the sales order line.

6. Review the Invoicing Method and Revenue Recognition Method fields pulled in from Project Entry. For an explanation of each method, review the previous Define Revenue Recognition for WBS Phases section.

7. Click Save.

Project Role – Jobs

Use the Project Billing functionality to assign a role code to an operation while you enter a job. You do this to prevent an employee who is not assigned to the role code from entering time against a job operation. Menu Path: Service Management > Project Management > General Operations > Job Entry To assign a role code to an operation:

1. On the Job sheet, click the Job button to find and select the job you want to assign a role code.

2. Select the Job Details > Operations > Role Codes sheet.

3. Highlight the roles from the Available Roles column.

4. Click the Right Arrow button to add them to the Selected Roles column.

5. Click Save on the Standard toolbar.

Project Role – Quotes

Use the Project Billing functionality to assign a role code to an operation while you enter a quote. You do this to prevent an employee who is not assigned to the role code from entering time against a job operation. Menu Path: Sales Management > Quote Management > General Operations > Opportunity/Quote To assign a role code to an operation:

1. On the Summary sheet, click the Opportunity/Quote button to find and select the quote you want to assign a role code.

2. Select the Line > Mfg Details > Quote Details > Operations > Roles sheet.

3. Highlight the roles from the Available Roles column.

4. Click the Right Arrow button to add them to the Selected Roles column.

5. Click Save on the Standard toolbar.

Project Invoice Preparation

You can prepare the project invoices for a specified fiscal period. Use this function to create and store detailed audit data of all the elements to include in the invoice, such as Labor, Materials, Subcontract, Other Direct Costs, Detailed Burden Analysis, and Material Burden. These detailed audit records are then summarized in the invoicing data required for the actual invoice document and kept for historical reference.

You can launch this program from either the Main Menu or from within Project Entry using the Project Invoice Preparation option on the Actions menu.

Menu Path: Service Management > Project Management > General Operations > Project Invoice Preparation

To prepare the project invoices:

1. Enter the Period End Date for the range used to prepare the invoices.

2. Enter the Invoice Date used when the invoices post to the general ledger.

3. If you want to schedule a time when this process should run, select an option from the Schedule drop-down list. For more information about assigning processes to a regular schedule, review the Automatic Schedules section within the Automatic Data Processing chapter of the Epicor ERP Implementation Guide.

4. In the Invoice Types pane, select the type of invoice you want to process. Available types include Cost Plus, Time and Materials, Fixed Fee, and All Types.

5. Use the Filter sheet to limit the invoices to a specific project or projects. If you launch the program from the Main Menu, all projects are selected by default. If you launch the program from Project Entry, the current project is selected by default. You can add or remove as many projects as you need.

6. When you finish, click the Submit button on the Standard toolbar.

Cost Plus Invoice Review

Use this process to review and update the Cost Plus invoices generated during the Project Invoice Preparation. You can also review the source data for invoices posted through this process. Menu Path: Service Management > Project Management > General Operations > Cost Plus Invoice Review To review the Cost Plus invoices:

1. Click the Project button to find and select the project. The invoice data displays.

2. The proposed Invoice Date displays. Invoice Totals display.

3. The Invoice Totals display in the column on the right.

4. Review the data. Click the Lines tab to update the rates and other items on the Cost Plus invoice. You can also delete lines that should be removed from this billing cycle. Any deleted lines will be included in the next billing cycle.

5. Click the Burden Amounts tab to make changes to the burden amounts.

6. Click the Ceilings tab to modify any ceiling values you require for roles, employees, and/or suppliers.

7. After you finish making your changes, from the Actions menu select Recalculate Invoice. All your new and updated values are included in the Cost Plus invoice.

8. You are now ready to complete the invoice. Select Approve Invoice. To the confirmation message, click Yes. The temporary invoice records are approved and you can no longer edit them.

9. To print a report of the Cost Plus Invoice Review, select Print Detail.

Fixed Fee Invoice Review

Use this process to review and update the Fixed Fee invoices generated during the Project Invoice Preparation. You can also review the source data for invoices posted to the general ledger. Menu Path: Service Management > Project Management > General Operations > Fixed Fee Invoice Review To review the Fixed Fee invoices:

1. Click the Project button to find and select the project. The invoice data displays.

2. The proposed Invoice Date displays.

3. The Invoice Totals display in the column to the right.

4. Review the data. Click the Line tab to update the rates and other items on the Fixed Fee invoice.

5. From the Actions menu, select Approve Invoice and to the confirmation message, click Yes. The temporary invoice records are approved.

6. To print the Fixed Fee invoice, select Print Detail.

Time and Material Invoice Review

Use the Time and Material Invoice Review process to review and update the Time and Material invoices generated

during Project Invoice Preparation. You can also review the source data for invoices posted to the general ledger. Menu Path: Service Management > Project Management > General Operations > Time and Material Invoice Review

To review the Time and Material invoices:

1. Click the Project button to find and select the project. The invoice data displays.

2. The proposed Invoice Date displays. and Invoice Totals display.

3. The Invoice Totals display in the right column.

4. Review the data. Click the Lines tab to update the rates and other items on the Time and Materials invoice. You can also delete lines you do not need.

5. Click the Burden Amounts tab to make changes to the burden amounts.

6. Click the Ceilings tab to modify any ceiling values you require for roles, employees, and/or suppliers.

7. After you finish making your changes, from the Actions menu select Invoice Recalculation. All your new

and updated values are included in the Time and Material invoice.

8. You are now ready to complete the invoice. Select Approve Invoice and to the confirmation message, click Yes. The temporary invoice record is approved and you can no longer edit it.

9. To print the Time and Material invoice, select Print Detail.

AR Invoices – Get Project Billing Invoices

AR Invoice Entry contains functionality you can leverage to pull in any AR invoices you created for a project. Use this feature to pull in Cost Plus, Fixed Fee, Time and Material, and Progress Payment invoices. Menu Path: Financial Management > Accounts Receivable > General Operations > Invoice Entry To pull in project billing invoices:

1. The Get Project Billing Invoices window displays.

2. You can limit the invoices you pull in by project. Click the Project button to find and select the project or projects you want to include.

3. To pull in all of the projects displayed, click the Select All button.

4. To only pull in specific invoices from the selected projects, click the Manual Selection button.

5. When you finish selecting the project billing invoices you want for the current AR invoice group, click the Close button on the window.

Project Tracker

You can use the Project Tracker to review current information about a selected project. The Project Tracker is a display-only version of Project Entry. You cannot add or edit records in this tracker. However, this tracker does provide supplemental sheets in addition to the Project Entry sheets. On these supplemental sheets, you can retrieve the information for the current project.

Menu Path: Service Management > Project Management > General Operations > Project Tracker

To retrieve a summary of project costs and hours in Project Tracker:

1. On the Project > Detail sheet, click the Project ID button to find and select the project you want to review.

2. Navigate to the More > Summary > Project sheet.

3. Click the Retrieve button to view the current project costs and hours for the selected project.

4. The Total Hours and Total Costs panes display the total hours and total costs for the current project.