Platform - Project Management

What is Project Management?

Project Management is a tool generally used to manage large commercial construction jobs that span many days or weeks and consist of multiple phases.  It is not typically used for residential installations or service jobs.

Project Management allows you to compare estimated cost and sale figures with actual cost and sale figures.  This is the primary purpose of project management.  This comparison is used to determine the percentage of completion for each phase of a project.  With this we can determine the amount of revenue earned, based on the estimated sale amount.  Project Management helps monitor performance and profitability of a project while it is still in progress. 

Use Project Management if you want to:

• Create cost and sales estimates.
• Record actual costs for a job/phase through the use of a/p invoices, timecards, and inventory and/or direct project cost adjustments.
• Compare estimated figures to actual figures to determine a percent complete, revenue earned (based upon percent complete), over and under billings, and cost in excess of billings.
• Utilize AIA Certificates.

Keep in mind that an ordinary job can:

• Span multiple days.
• Be used to process A/R and A/P retainage.
• Report cost via invoice item detail.
• Have multiple invoices.

Module Setup

Project Management Reference Tables

When creating projects you will need to identify “phases” of the project. These phases must be added to the Phase Type table. Each Phase Type that is created will reference an existing Job/Call Type. If the Job/Call Type you wish to associate with a phase does not yet exist, it must be added to the Job/Call Type table before defining the Phase Type. The last table entry that needs to be added is information in the Job Cost column in the Expense Types table. If there are certain Expense Types that you wish to add to estimates by default, you can identify the Expense Types as Job Costs.

Job/Call Types

When creating Phase Types, you will be required to add an associated Job/Call Type to the phase. This Job/Call Type will form the basis for the job that is created for the phase. If there are jobs that you will perform in the course of project work that have not yet been defined in the Job/Call Type table, you must add them before creating your Phase Types.

The Job/Call Type list can be found by:

1. From the Main Menu, select Setup and click Reference Library.
2. Under the Customer Service drop-down, select Job/Call Types.
3. To add a job/call type, click the + Add Job/Call Types button.
4. To edit a job/call type, click the Edit link next to a current type.

Phase Types

Phases are managed in the ‘phases’ section of the project form.  You must predefine the phases of the project.  These phases will later be used to create the actual jobs.  For now, you just need to define them so that the project can be estimated on a per-phase basis.

The Phase Code is a two-character code used to uniquely identify phases of a project.  It is recommended that you use letters for your phase codes (i.e., “RI” for “Rough-in”, or “IE” for “Install Equipment”).  This two-character code will be automatically appended to the project number when creating job numbers for the phases.  For instance, the project number ‘AA2424’ could have jobs with the job numbers ‘AA2424.RI’ and ‘AA2424.IE’.

When defining your phase types in the ‘Phase Type’ reference library, your phase code must be unique.  

NOTE:  The same Phase Type cannot be used on more than one of the phases for a project. For example, if the Phase Type ‘RI’ is used for the first phase of a project, it cannot be used for any of the other phases of the same project.

1. From the Main Menu, select Setup and click Reference Library.
2. Under the Customer Service drop-down, select Phase Types.                   
3. To add a phase type, click the + Add Phase Types button.           
4. To edit a phase type, click the Edit link next to a current type.

Expense Type

When creating estimates in Project Management the estimate automatically loads the preset Job Cost categories.  These Job Cost categories are user defined within the Expense Type reference library.  Within this reference library, you can specify which expense types are considered default Job Cost categories.

1. From the Main Menu, select Setup and click Reference Library.
2. Under the Accounting drop-down, select Expense Types.                   
3. To add an expense type, click the + Add Expense Types button.           
4. To edit a expense type, click the Edit link next to a current type.

Project Manager Screen

The Project Manager screen is the main page that you will use to access projects that have been created through Successware. Use the Project Manager to view your projects in a list, and then click on a project to open and edit it.

Project Manager Filters

• All- when selected, will show a list of all projects, regardless of progress. Estimating, Open, Closed and Cancelled projects will display.
• Open- when selected, will show a list of all projects that have had their project progress setting set to ‘Sold/Open’.
• Estimating- when selected, will show a list of all projects that are in the ‘Estimating’ stage, as defined in the individual project’s progress setting.

Creating A Project

The process of creating a project in the Project Management module involves 5 main steps:

• Creating the project.
• Performing initial project setup.
• Defining the phases of the project.
• Creating project estimates.
• Then, depending upon whether or not the estimate is accepted, the project status must be updated to either Open/Sold or Cancelled.

Creating a New Project

In order to begin a new project you must open an existing customer record. If the customer for whom you are creating a project does not exist you must create them.

1. From the Main Menu, select Customer Service and click Project Management.
2. Click the + New Project button in the top right corner to get started.

This will open the new project screen.

 

Setup

When you create a project, the first screen you will encounter is the Project Setup tab. The Project Setup tab is where the initial information about the project is listed, and how it will be constructed.

1. To begin the process of project setup, fill in the form fields. Note that many are required.
2. Choose the method you will use for creating estimates.
3. Checkmark whether you want to withhold retainage from your project’s AR invoices.
4. Be sure that the project progress indicator for estimating is selected.
5. Click the Save button to save the project setting, or click the Cancel button to cancel the project.

Field	Description
Description	Enter a brief description of the project (i.e., ‘City Hall Furnaces’).
Project/Job Number	When a project is created, like a job, it will automatically receive a job number.  You may override the assigned job number and enter your own number.  In order to differentiate automatically generated numbers from user-entered numbers, the number you enter must include at least one letter (alpha character). Required Field
Department	The default department for the project.  This department will carry through as default to the jobs, quotes, invoices created for this project. Required Field
Project Manager	The employee responsible for the project. Required Field
Default Forman	This employee will be the default foreman for each phase created for the project.
Sales Tax Code	This code will be used on all invoices created for the project. Required Field
Sales Tax Exemption Number	Enter the tax-exempt number to be used on the project if necessary.
Lead Source	The lead source that generated this project. This lead source will carry through as default to the jobs, quotes, invoices created for this project.
Sales Person	The employee/sales person that is selling/sold this project.  This sales person will carry through as default to the jobs, quotes, invoices created for this project.
Estimate Type	This specifies how you will maintain the project estimate.  You can maintain estimates manually or automatically from quotes. Manual Estimate—for this type of estimate you will manually key in the estimated figures. Quoted Estimate—for this type of estimate you will enter either ‘Quick Quotes’ or ‘Cost-Plus Quotes’.  These quotes can then be used to automatically update the estimate’s figures.  (Quotes, while similar to A/R invoices do not post to receivables.) Required Field
Receivable Retention and Percentage	If this option is selected, invoices created for the project will default to this configuration for sales retainage.
Progress	Use this control to manually maintain the current progress of this project: Estimating –not open or sold; currently building estimates and selling. Open/Sold—estimate has been accepted; jobs can be created and processed for these projects. Closed/Finalized—these projects are finished, including paperwork.  No transaction will be allowed for finalized jobs/phases/projects throughout the system. Canceled—these are projects that have not been sold.  The estimate was not accepted.  Any jobs that have been created for a project must be canceled before you can cancel the project. Required Field

Creating Phases

The next step in creating a project after initial setup is to identify the phases of your project. Once the project is marked Open/Sold, these phases will form the basis for your project jobs. Each phase will equal one job. For now you just need to define them so that the project can be estimated on a per phase basis. Your Project may contain as many phases as you require, however the same phase type cannot be used more than once in the same project.

1. From the Main Menu, select Customer Service and click Project Management.
2. Click the + New Project button in the top right corner.
3. In the Phases subtab, you can add in phases by clicking the +New Phase link.                                                     
4. Click the Save button when done. 

Creating Estimates

The project estimate consists of estimated hours, cost and sales figures. These figures will be compared to actual figures as the project progresses.  This comparison will be used to estimate the percentage of completion and aid in determining over/under billing.

The project estimate is managed from the estimate section of the project form.  Projects estimates consist of estimated labor hours, estimated cost, and estimated sale price.

Project estimates can be created in two ways:

• Manual Estimates- these are estimates for which there is no detail, but only a value entered for total hours, cost and sale amount. If you are generating your estimates by hand or using another software application, the Manual Estimate will allow you to enter these values into the project.
• Quoted Estimates- quoted estimates are created based upon project quotes. A project quote is built similarly to an AR invoice in that it allows the recording of cost and sales amounts using items from the PriceBook. Unlike AR invoices, quotes do not post to the General Ledger. Each line item on a project quote, whether you are using the Quick Entry or Cost Plus method, must be associated with a specific phase of the project.

Manual Estimates

For Manual Estimates, figures are manually entered; estimated hours and cost figures by expense type for each phase, and estimated sale price by part sale, labor sale and misc sale for each phase.

To manually enter the figures for a project estimate:

1. From the Main Menu, select Customer Service and click Project Management.
2. Click on a current project, or the + New Project button.
3. Within the Estimate subtab, manual estimates can be added in.                                         
4. New expenses can be added by clicking the + New Quote button in the top right corner of the screen. 
5. Current expenses can be edited by hovering over the Actions column, and clicking Edit Quote.
6. If known, add in the type of expense, and the number of hours needed for labor.
7. Below the Manual Estimate section, the estimate costs are calculated. Clicking the Phase Type drop-down will allow you to see the costs for each phase type, or an estimated cost for the whole project. 

8. Save changes to the phase estimate by clicking the Save button.

Quoted Estimates

Another way of preparing project estimates is by recording sale items and cost detail on one or more quotes for the project.  Project phases must be identified for each sale item on the quote.  This sale and cost information can then be summarized into the project estimate.  When using quoted estimate preparation, the estimate cannot be directly modified through the ‘Estimate | Detail’ section of the project form.  Instead, you must modify the estimate’s quotes to change the estimate.

 To create a quoted estimate:

1. From the Main Menu, select Customer Service and click Project Management.
2. Click on a current project, or the + New Project button.
3. Within the Estimate subtab, quoted estimates can be added in.
4. Click on the Add Existing Quote drop-down to select the quote. (The Add Existing Quote drop-down is only accessible if Quoted Estimate is the selected Estimate type that was chosen during the initial project setup.)

From the ‘Estimate’ subtab of the project form, you can:

• Choose ‘New Quote’ to add a new quote to the estimate. When you save the quote it will be added to the estimate. 
• Once all phases of the project have sales and cost recorded, click the Save button.

Creating Project Quotes

Project quotes are similar to the A/R invoice.  These quotes can be presented to the customer for evaluation and the cost and sales figures can be used to complete project estimates and change orders.  On project quotes, you must associate each line item with a phase of the project.  The phase is a column in the line item grid for project quotes and invoices.  The phase defaults to the first phase of the project or the phase of the line item focused when ‘New Item’ is selected.

Each line item must be associated with a phase before it can be locked.  When you lock a project quote, the cost and sale figures will be summarized into the project estimate.

Updating Project Status

Once your estimates have been sent on to the customer, the customer will decide whether or not you have the job. Depending upon whether or not the project has been sold or not, you will have to update the project status appropriately.

To update project status:

1. From the Main Menu, select Customer Service and click Project Management.
2. Click on a current project, or the + New Project button.
3. In the Setup subtab, the Progress can be changed. You may need to click the Edit button to change the items.
4. In the Progress section of the setup screen click on the Sold/Open radio button if the project estimate has been accepted.                                                                                           
5. If the estimate has been rejected and the project will not proceed, click on the Cancelled radio button.

NOTE: If the projects estimates have been rejected, but can be resubmitted, you can go to the estimates section, unlock, and make adjustments to your project estimates. The estimates can then be resubmitted to the customer. The project does not need to be cancelled and recreated.

6. Click on the Save button to update the project.

Maintaining a Project

Once the project has been opened, you will create an associated job for each phase of your project. Once the job is created for the phase, it can be scheduled, dispatched and information recorded for the job just like any other type of job.

The creation of timecard entries, miscellaneous wage entries and related inventory transactions and AP invoices will update the progress of your project by comparing the actual values to the project’s estimated values.

If there are changes to the scope of a project once the project has begun you will add these changes through the use of Change Orders. Change Orders allow you to adjust labor and other costs with either positive or negative entries.

Another aspect of maintaining the project will be billing of the sale. Successware will allow you to create scheduled or unscheduled billings.

Once all the jobs for a project have been closed and finalized, you can close/finalize the project.

Creating Jobs

Jobs for the project are created from the Phases tab of the project. A single project job must be created for each phase of the project.

The department number assigned to the job will be inherited from the default department of the phase’s Job Type. Otherwise, the default department of the project will be used.

To Create a Job for a Phase

1. Open the project and navigate to the Phases subtab.
2. Hover over the Actions column next to the phase for which you want to create a job.
3. Select Create Job. This will open the new job in the job form.

NOTE: The job number for the newly created job will be the project number and phase type separated by a period (<project no>.<phase type>).  For example, “P101.RI” might be a job or phase number for the project numbered “P101”.  The job number for a phase of a project cannot be modified.  The same phase type cannot be used on more than one of the phases for a project.

4. Fill out the required fields.
5. Save the job.

Scheduling Jobs

When working with project jobs you have a number of options when scheduling, assigning and recording job progress.

Scheduling can be done as you would normal jobs through the Call Handling screen and job progress entries can be made to create timecard entries.

However, if you choose not to maintain your project jobs through the Call Handling screen you can leave the calls unscheduled and create timecard entries for the jobs. Once the entries are complete, the actual date and times of the call will be recorded.

Change Orders

Change orders are managed from the Change Order subtab of the Project Manager.  You can add a change order to the project anytime before the project is closed.  Change orders must be configured for ‘manual’ or ‘quoted’ preparation, similar to the project estimates.

Quoted preparation will allow for the negative entry of sales amounts, but not hours or cost. If you are making a negative adjustment to hours and cost, it must be performed through detail setup.

If you are making additions to the project, the recording of information through quoted preparation is the same as recording the original estimate.

Creating a Change Order:

1. Open the project and select the Change Orders subtab.
2. Click the + New Change Order button in the top right corner.
3. In the Date field, enter the date of the change order.
4. In the Comment field, you can enter a description or reason for the change order.

5. Click on the Save button button to save the change order setup.
6. Depending upon your choice of change order type, select either Manual or Quoted from the Estimate Type drop-down.
7. Close the change order when finished.

Updating Project Progress

Successware updates project progress in three areas; labor, parts and sales. These progress updates are calculated by comparing estimated labor hours and cost, part and miscellaneous cost and sales totals against actual labor, part/miscellaneous and sales values. 

Recording Actual Cost Activity

• Labor- actual labor hours and cost are recorded based upon the project related entries made in:
  • Timecard Entries- are used to record actual hours and for hourly and salaried employees, the cost of labor as well.
  • Miscellaneous Wage Entries (non-commission)- piecerate employees have their actual labor cost applied to the project through the creation of miscellaneous wage entries. Bonuses and commissions are not counted toward labor cost.

NOTE: In order for salaried employees to have their wages count toward project labor cost, they must be set up to expense their salary by timecard entry. They cannot be set to expense their salary as Salary Split, as this automatically applies their wages to defined departments, not the project.

• Parts- Part Cost is calculated based upon inventory transactions and accounts payable invoices related to the project jobs.
  • Receipts- when receipts containing part items have a project job number specified on them, the part item cost will count toward the part cost of the project when posted.

NOTE: Items purchased/received for a job into inventory (with a warehouse specified) will not be included in cost.  These items will eventually be requisition from inventory for the job and will show as cost at that time. 

• Requisitions- items requisitioned from inventory to a project job will count toward project part cost when the requisition is posted.
• Returns- items that are returned to inventory from a project job will have their cost subtracted from project part cost at the time that the return is posted.
• AP Invoices- AP invoice part items will be counted toward project part cost if the line item on the invoice specifies a project job number. If an item appeared on a receipt and was posted to a project job, the cost from the receipt will be overridden by the actual cost used on the AP invoice when it is posted.

• Miscellaneous Costs- miscellaneous items that are included in a project will be added to total part cost as they are used on the project.
  • Receipts- when receipts containing miscellaneous items have a project job number specified on them the part item cost will count toward part cost of the project when posted.
  • AP Invoices- AP invoice miscellaneous items will be counted toward project part cost if the line item on the invoice specifies a project job number. If a miscellaneous item appeared on a receipt and was posted to a project job, the cost from the receipt will be overridden by the actual cost used on the AP invoice when it is posted.

Recording Actual Sales Activity

Sales activity consists of a project’s posted receivable invoices.  Invoices are created for projects from the billing section of the project form.  Once created, these invoices are just like other receivable invoices with a few exceptions:

• Each line item of project invoices must be associated with a phase of the project.  This identification is important.  It allows Successware to calculate actual sales figures per phase of a project to compare to estimates.
• Besides printing the invoice, you can also print the AIA Certificate and Continue Sheet from project invoices.

Project Billing

Project billing is managed from the billing section of the project form.  You can predefine a billing schedule for each project that will help to ensure that invoices are prepared on time.  When preparing the schedule, you make an entry for each invoice that must be prepared. 

Project invoices are created form the billing section of the project form and are similar to ordinary A/R Invoices.  On project invoices, you must associate each line item with a phase of the project.  The phase is a column in the line item grid for project invoices.  The phase defaults to the first phase of the project or the phase of the line item focused when ‘New Item’ is selected.  You can enter either the phase number (1,2,3…) or the phase type, or select from the drop down menu.  Each line item must be associated with a phase before the invoice can be posted.  This phase relationship for the line item is displayed in the extended item information panel below the line item grid.

NOTE: Phases that have not yet been created as jobs, as well as canceled phases/jobs cannot be referenced on the line items.  Jobs that are referenced on invoices, in turn, cannot be canceled.

A billing schedule is not required for multi-phase projects.  Multiple invoices can be created for a project without ever creating a schedule.

Invoices cannot be created for ‘estimating’, ‘finalized’ or ‘canceled’ projects.

Scheduled Billings

Scheduled billing involves two steps, creating the billing schedule and then creating the actual invoice.

1. Open the project and select the Billing subtab.
2. Click the Action button, and select the Create Billing Schedule option.                     
3. Fill in the following fields:

Field	Description
Estimated Sale	This is the amount to be billed on the invoice.  This amount can be selected from the drop-down menu, which maintains the scheduled billing balance for the project and each phase.  The phase balances are only valid if billing by phase and entering the option phase field as mentioned below.
Prepare Date	This is the date by which the invoice should be prepared/posted/delivered.
Phase (optional)	This field can be used if billing by phase.  It will relate the estimated sale with a phase of the project and allow SuccessWare to calculate the estimated sale balance to be billed to assist with creating a billing schedule.

4. Press Save to save the scheduled billing.

5. To create the actual invoice, click on the More Options in the Action column and select Create/Open Selected Invoice.

6. Complete the invoice as you normally would, be sure to import timecard entries and verify/resolve all inventory tags.
7. Post the invoice when finished.
8. Continue to create your scheduled billings and create the invoices as needed.

 

Non-Scheduled Billings

You do not need to create scheduled billings. If you choose to simply create a billing as needed, open the billing subtab, click on the Action button, and choose Create New Unscheduled Invoice.  This will open a project invoice that you can create as you normally would.

Billing Retainage

Once a project billing is complete, if you have withheld retainage, you will need to bill for the retainage amount.

To bill for total retainage, all previous invoices must be posted, however, you can bill for retainage at the end of a phase if you wish.

1. Open the project and select the Billing subtab.
2. Click the Action button, and select the Create New Unscheduled Invoice option.
3. Enter the invoice date.
4. Save the line item.
5. In the Actions column, select Invoice Retainage Setup.

5. In the Invoice Retainage window, click the Bill Retainage subtab.
6. Add a check to the box listed as, "Add/Update Retainage Billing Items For Balance Above".
7. Click the Save button.

The line item for retainage will show with a zero sale amount, however the balance of the invoice will reflect the retainage amount.

8. Post the invoice.

Closing Phases

In order for you to close a phase of the project, the job that was created for the job must be both closed and finalized. This requires that calls are completed, timecard entries are recorded and invoiced, all parts that were used on the job and included on the invoice are verified, and finally the invoice is posted.

Closing a Project

In order to close/finalize a project, all of the phases must be closed and finalized. Before you finalize your project, be sure that you have completed all of your project billings. To close/finalize the project go to the Project Setup section and select Closed/Finalized in the Progress area.

 

Project Beginning Balances

For situations when you are adding a project to Successware that is already in progress, you can make opening balance adjustments to a project. These opening balance adjustments can be made to both cost and sales information and will be counted toward project completion just as if they had been added using the standard methodology.

Requirements for Making Cost Adjustments or Opening Billing Balances

In order for you to make cost adjustments or enter opening billing balances, there are a few conditions that your project must first meet.

1. The phases for the project must be created.
2. The estimates for the project must be created.
3. The Project Progress must be marked as Sold/Open.
4. In order to make cost adjustments, the phase you are adding cost to must have it’s associated job created.

Opening Billing Balances

Opening billing balances allow you to record amounts billed for phases of your projects, prior to the creation of the project itself. These amounts billed will not be included on Accounts Receivable invoices and therefore will not be recorded to the General Ledger. In addition to recording previously billed amounts for labor, parts and miscellaneous, you can also manually record amounts withheld for retainage as well as retainage billings.

To Record Opening Balance Billings

1. Go to the Billings subtab for the project
2. Click on the Action button and choose Add A New Open Balance Billing Entry.                                                                                                                               
3. Enter the date of the billing that you are recording.
4. Choose the phase to which you are applying the billing.
5. In the Part, Labor and Misc Sale fields, enter the amount billed for each type.
6. In the retainage withheld and retainage billed fields, enter the amounts if any.

7. Click Save to save the billing entry.

Viewing Updated Cost and Billing Information

After entering initial cost and billing adjustments, the effects of these adjustments can immediately be seen in relation to progress of the project. By going to the Phases or Change Order screens for the project and clicking in the lower half of the screen, current project progress can be displayed.

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