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AcumaticaERP Projects

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AcumaticaERP Projects

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End-User Guide

Projects
2022 R2
Contents | 2

Contents
Copyright............................................................................................................................................. 10
Project Accounting in Acumatica ERP..................................................................................................... 11
Creating Account Groups....................................................................................................................... 13
Account Groups: General Information............................................................................................................13
Account Groups: Configuration Prerequisites................................................................................................14
Account Groups: Implementation Activity..................................................................................................... 14
Account Groups: To Create an Oﬀ-Balance Group.........................................................................................16
Account Groups: Related Reports and Forms................................................................................................ 16
Creating Billing Rules............................................................................................................................18
Billing Rules: General Information..................................................................................................................18
Billing Rules: Configuration Prerequisites......................................................................................................20
Billing Rules: Progress Billing......................................................................................................................... 20
Billing Rules: To Configure a Progress Billing Rule........................................................................................ 22
Billing Rules: Time and Material Billing..........................................................................................................23
Billing Rules: To Configure a Time and Material Rule....................................................................................25
Billing Rules: To Configure a Combined Billing Rule..................................................................................... 27
Billing Rules: To Modify a Billing Rule............................................................................................................ 30
Billing Rules: To Modify a Billing Rule to Track New Expenses..................................................................... 34
Creating Project Tasks.......................................................................................................................... 38
Project Tasks: General Information................................................................................................................ 38
Project Tasks: Tracking the Task Completion................................................................................................ 40
Project Tasks: Configuration Prerequisites.................................................................................................... 41
Project Tasks: Implementation Activity..........................................................................................................42
Project Tasks: Related Report and Inquiry Forms......................................................................................... 45
Creating Project Templates and Common Tasks...................................................................................... 46
Project Templates and Common Tasks: General Information...................................................................... 46
Project Templates and Common Tasks: Configuration Prerequisites.......................................................... 47
Project Templates and Common Tasks: Implementation Checklist............................................................. 48
Project Templates and Common Tasks: Process Activity.............................................................................. 48
Creating Labor Items............................................................................................................................ 53
Labor Items: General Information.................................................................................................................. 53
Labor Items: Rules of Billing........................................................................................................................... 54
Labor Items: Configuration Prerequisites...................................................................................................... 55
Labor Items: To Configure a Labor Item.........................................................................................................56
Contents | 3

Labor Items: Labor Cost Rates in Projects..................................................................................................... 58

Labor Items: To Define Labor Cost Rates....................................................................................................... 59
Labor Items: Labor Cost Rates in Construction............................................................................................. 61
Labor Items: Related Forms............................................................................................................................ 63
Creating and Processing Projects........................................................................................................... 65
Project Creation and Processing: General Information.................................................................................65
Project Creation and Processing: Project Security Configuration................................................................ 66
Project Creation and Processing: Configuration Prerequisites..................................................................... 69
Project Creation and Processing: To Create a Fixed-Price Project................................................................70
Project Creation and Processing: To Create a Cost-Plus Project...................................................................73
Project Creation and Processing: Project Lifecycle....................................................................................... 76
Project Creation and Processing: To Process a Fixed-Price Project..............................................................78
Project Creation and Processing: To Process a Cost-Plus Project.................................................................81
Project Creation and Processing: Related Report and Inquiry Forms.......................................................... 84
Managing Multicurrency Projects........................................................................................................... 85
Multicurrency Projects: General Information.................................................................................................85
Multicurrency Projects: Project-Related Documents in Multiple Currencies................................................86
Multicurrency Projects: Implementation Checklist....................................................................................... 87
Multicurrency Projects: Related Reports and Forms..................................................................................... 88
Tracking Project Inventory.................................................................................................................... 89
Project Inventory Tracking: General Information.......................................................................................... 89
Project Inventory Tracking: Item Availability Tracking..................................................................................91
Project Inventory Tracking: Implementation Checklist.................................................................................92
Project Inventory Tracking: To Track Project Inventory by Quantity............................................................94
Project Inventory Tracking: To Track Project Inventory by Quantity and Cost............................................ 97
Project Inventory Tracking: Generated Transactions.................................................................................. 101
Tracking Project Inventory by Warehouse Location............................................................................... 104
Project Inventory Tracking by Warehouse Location: General Information................................................ 104
Project Inventory Tracking by Warehouse Location: Purchases of Materials and Services....................... 105
Project Inventory Tracking by Warehouse Location: Implementation Checklist....................................... 108
Project Inventory Tracking by Warehouse Location: To Purchase Materials and Services for a Project....110
Project Inventory Tracking by Warehouse Location: Generated Transactions...........................................113
Billing Projects................................................................................................................................... 115
Project Billing: General Information............................................................................................................. 115
Project Billing: Implementation Checklist....................................................................................................116
Project Billing: Progress Billing.....................................................................................................................117
Contents | 4

Project Billing: To Bill a Project by Progress................................................................................................ 118

Project Billing: Time and Material Billing.....................................................................................................121
Project Billing: To Bill a Project for Time and Material................................................................................122
Project Billing: To Bill a Project with Combined Rule..................................................................................124
Project Billing: Recurring Billing................................................................................................................... 128
Project Billing: Related Reports and Forms................................................................................................. 129
Project Billing: Mass Processing of Documents........................................................................................... 130
Project Billing: Reversing AR Documents..................................................................................................... 130
Project Billing: To Correct the Actual Income of a Project.......................................................................... 131
Billing Employee Time.........................................................................................................................134
Employee Time Billing: General Information...............................................................................................134
Employee Time Billing: Implementation Checklist..................................................................................... 136
Employee Time Billing: To Enter a Project-Related Time Activity ..............................................................137
Employee Time Billing: To Enter a Project-Related Time Card................................................................... 138
Employee Time Billing: Process Activity...................................................................................................... 140
Employee Time Billing: Mass Processing of Documents............................................................................. 144
Employee Time Billing: Related Report and Inquiry Forms........................................................................ 145
Employee Time Billing: Generated Transactions......................................................................................... 145
Paying AP Bills by Project.................................................................................................................... 148
Vendor Payments for a Project: General Information..................................................................................148
Vendor Payments for a Project: Implementation Checklist........................................................................ 152
Vendor Payments for a Project: To Process a Payment for Multiple Bills................................................... 153
Vendor Payments for a Project: To Process a Payment of Bill Lines...........................................................155
Vendor Payments for a Project: Generated Transactions............................................................................158
Vendor Payments by Project: Related Report and Inquiry Forms.............................................................. 159
Managing Billing Rates........................................................................................................................ 160
Billing Rates: General Information................................................................................................................160
Billing Rates: Configuration Prerequisites....................................................................................................161
Billing Rates: To Create a Billing Rule with Rates........................................................................................ 162
Billing Rates: To Configure Employee-Specific Rates.................................................................................. 165
Billing Rates: To Configure Employee- and Item-Specific Rates ................................................................ 167
Billing Rates: Rate Selection Rules............................................................................................................... 172
Billing Rates: To Bill a Project with Diﬀerent Billing Rates..........................................................................174
Billing Rates: To Bill a Project with Employee-Specific Rates..................................................................... 176
Billing Rates: To Bill a Project with Employee- and Item-Specific Rates.................................................... 179
Processing Project Transactions...........................................................................................................184
Contents | 5

Project Transactions: General Information.................................................................................................. 184

Project Transactions: Implementation Checklist.........................................................................................186
Project Transactions: Process Activity..........................................................................................................187
Project Transactions: Generated Transactions............................................................................................ 190
Project Transactions: Related Reports and Forms.......................................................................................191
Project Transactions: Mass Processing of Documents................................................................................ 192
Processing Pro Forma Invoices.............................................................................................................193
Pro Forma Invoice: General Information......................................................................................................193
Pro Forma Invoice: Implementation Checklist.............................................................................................195
Pro Forma Invoice: To Process a Pro Forma Invoice for a Project.............................................................. 197
Pro Forma Invoice: Making Adjustments......................................................................................................201
Pro Forma Invoice: To Make Adjustments.................................................................................................... 202
Pro Forma Invoice: Deferred Revenue in Projects....................................................................................... 206
Pro Forma Invoice: Generated Transactions................................................................................................ 207
Pro Forma Invoice: Related Reports and Forms.......................................................................................... 209
Pro Forma Invoice: Mass-Processing of Documents....................................................................................210
Pro Forma Invoice: Billing Limit Validation..................................................................................................210
Managing the Project Budget...............................................................................................................211
Project Budget: General Information........................................................................................................... 211
Project Budget: Implementation Checklist.................................................................................................. 213
Project Budget: To Configure and Update the Budget................................................................................ 215
Construction Project Budget: Budget Control on Document Entry............................................................218
Project Budget: To Control the Budget During Document Entry................................................................ 220
Project Budget: Locking of the Budget........................................................................................................ 223
Project Budget: To Lock Project Budget.......................................................................................................224
Project Budget: Related Reports and Inquiries............................................................................................225
Project Budget: To Review Project Balances................................................................................................226
Project Budget: Mass Processing of Documents..........................................................................................230
Project Budget: Update of Budget Lines...................................................................................................... 230
Project Budget: Auto-Generating the Revenue Budget............................................................................... 233
Project Budget: Recalculation of the Project Budget.................................................................................. 233
Project Budget: To Restructure the Budget................................................................................................. 236
Processing Project Quotes................................................................................................................... 240
Project Quotes: General Information............................................................................................................240
Project Quotes: Creation of Project Quotes from Opportunities................................................................ 242
Project Quotes: Creation of a Project from a Project Quote....................................................................... 243
Contents | 6

Project Quotes: Implementation Checklist.................................................................................................. 247

Project Quotes: Process Activity................................................................................................................... 248
Project Quotes: Related Report and Inquiry Forms.....................................................................................253
Purchasing Services for Projects.......................................................................................................... 254
Purchasing Services for Projects: General Information...............................................................................254
Purchasing Services for Projects: Implementation Checklist..................................................................... 255
Purchasing Services for Projects: Process Activity...................................................................................... 256
Purchasing Services for Projects: Generated Transactions......................................................................... 258
Purchasing Materials to Project Site..................................................................................................... 260
Purchases to the Project Site: General Information.................................................................................... 260
Purchases to the Project Site: Implementation Checklist...........................................................................263
Purchases to the Project Site: Process Activity............................................................................................264
Purchases to the Project Site: Generated Transactions.............................................................................. 268
Purchasing Materials to Project Site with Receipt..................................................................................269
Purchases to the Project Site with a Receipt: General Information............................................................269
Purchases to the Project Site with a Receipt: Implementation Checklist.................................................. 272
Purchases to the Project Site with a Receipt: Process Activity................................................................... 273
Purchases to the Project Site with a Receipt: Generated Transactions...................................................... 277
Tracking Changes to Project Budget..................................................................................................... 279
Single-Tier Change Management: General Information..............................................................................279
Single-Tier Change Management: Implementation Checklist.................................................................... 282
Single-Tier Change Management: To Track Changes to the Project Budget.............................................. 284
Single-Tier Change Management: Locking Commitments..........................................................................286
Single-Tier Change Management: To Prevent Direct Changes to Commitments.......................................287
Single-Tier Change Management: Revenue Change Number..................................................................... 289
Single-Tier Change Management: Related Report and Forms....................................................................290
Single-Tier Change Management: Mass Processing of Documents............................................................ 290
Processing Change Requests................................................................................................................292
Change Requests: General Information........................................................................................................292
Change Requests: Implementation Checklist.............................................................................................. 295
Change Requests: Implementation Activity................................................................................................. 297
Change Requests: Process Activity............................................................................................................... 300
Change Requests: Related Report and Forms..............................................................................................307
Change Requests: Configuration of Markups...............................................................................................308
Change Requests: Limitations to Processing Change Orders......................................................................309
Tracking Cost Commitments................................................................................................................ 310
Contents | 7

Committed Costs: General Information....................................................................................................... 310

Committed Costs: Implementation Checklist.............................................................................................. 312
Committed Costs: Process Activity............................................................................................................... 315
Committed Costs: Generated Transactions..................................................................................................318
Committed Costs: Related Reports and Forms............................................................................................319
Committed Costs: External Commitments................................................................................................... 320
Committed Costs: Mass Processing of Documents......................................................................................321
Tracking Changes to Commitments...................................................................................................... 322
Change Orders for CommitmentsNegative CommitmentsChange Orders for Commitments: General
Information.................................................................................................................................................... 322
Change Orders for Commitments: Commitment Reopening......................................................................325
Change Orders for CommitmentsNegative CommitmentsChange Orders for Commitments: To Create a
Change Order Class....................................................................................................................................... 326
Change Orders for Commitments: Process Activity.....................................................................................327
Forecasting Budgets by Periods........................................................................................................... 333
Project Budget Forecasts: General Information...........................................................................................333
Project Budget Forecasts: Implementation Checklist................................................................................. 334
Project Budget Forecasts: Process Activity.................................................................................................. 335
Project Budget Forecasts: Generation of Periods........................................................................................ 338
Project Budget Forecasts: Example of Rounding.........................................................................................339
Project Budget Forecasts: Related Reports and Inquiries........................................................................... 339
Reclassifying Project Expenses............................................................................................................ 341
Project Expense Reclassification: General Information...............................................................................341
Project Expense Reclassification: Implementation Checklist..................................................................... 344
Project Expense Reclassification: Generated Transactions.........................................................................344
Project Expense Reclassification: Limitations..............................................................................................346
Project Expense Reclassification: Related Reports......................................................................................347
Reclassifying Project-Related GL Transactions...................................................................................... 348
Transaction Reclassification: General Information......................................................................................348
Transaction Reclassification: Implementation Checklist............................................................................ 351
Transaction Reclassification: Generated Transactions................................................................................351
Transaction Reclassification: Related Report and Inquiry Forms............................................................... 352
Transaction Reclassification: Mass-Processing............................................................................................ 353
Transaction Reclassification: Limitations.....................................................................................................353
Accounting for WIP Costs in Cost-Plus Projects ..................................................................................... 355
WIP Costs in Cost-Plus Projects: General Information.................................................................................355
WIP Costs in Cost-Plus Projects: Implementation Checklist....................................................................... 357
Contents | 8

WIP Costs in Cost-Plus Projects: Implementation Activity.......................................................................... 358

WIP Costs in Cost-Plus Projects: Process Activity........................................................................................ 360
WIP Costs in Cost-Plus Projects: Generated Transactions........................................................................... 364
WIP Costs in Cost-Plus Projects: Related Reports and Forms..................................................................... 365
WIP Costs in Cost-Plus Projects: Mass-Processing of Documents...............................................................365
Accounting for WIP Costs in Fixed-Price Projects ...................................................................................367
WIP Costs in Fixed-Price Projects: General Information.............................................................................. 367
WIP Costs in Fixed-Price Projects: Implementation Checklist.....................................................................369
WIP Costs in Fixed-Price Projects: Implementation Activity....................................................................... 370
WIP Costs in Fixed-Price Projects: Process Activity......................................................................................372
WIP Costs in Fixed-Price Projects: Generated Transactions........................................................................ 376
WIP Costs in Fixed-Price Projects: Related Reports and Forms.................................................................. 377
WIP Costs in Fixed-Price Projects: Mass-Processing of Documents............................................................ 377
Capturing Project Overhead.................................................................................................................379
Overhead in the Project Budget: General Information................................................................................379
Overhead in the Project Budget: Implementation Checklist...................................................................... 380
Overhead in the Project Budget: Implementation Activity......................................................................... 381
Overhead in the Project Budget: Process Activity....................................................................................... 383
Overhead in the Project Budget: Generated Transactions.......................................................................... 385
Overhead in the Project Budget: Related Reports and Forms.................................................................... 386
Overhead in the Project Budget: Mass-Processing of Documents..............................................................386
Processing Expense Receipts with Corporate Credit Cards......................................................................388
Expense Receipts with Corporate Cards: General Information................................................................... 388
Expense Receipts with Corporate Cards: Implementation Checklist..........................................................391
Expense Receipts with Corporate Cards: Implementation Activity.............................................................393
Expense Receipts with Corporate Cards: To Process Expense Receipts..................................................... 395
Expense Receipts with Corporate Cards: Generated Transactions............................................................. 399
Expense Receipts with Corporate Cards: Related Reports and Forms........................................................400
Expense Receipts with Corporate Cards: Mass-Processing of Documents................................................. 401
Expense Receipts with Corporate Cards: Bank Reconciliation....................................................................402
Expense Receipts with Corporate Cards: To Reconcile Bank Statements...................................................404
Grouping Invoices............................................................................................................................... 407
Grouping Invoices: General Information...................................................................................................... 407
Grouping Invoices: Configuration Prerequisites.......................................................................................... 408
Grouping Invoices: Implementation Checklist.............................................................................................408
Grouping Invoices: Process Activity..............................................................................................................408
Contents | 9

Grouping Invoices: Related Reports and Inquiries...................................................................................... 412

Approval of Projects and Project-Related Activities............................................................................... 414
Taxes in Projects................................................................................................................................. 416
Appendix............................................................................................................................................ 418
Reports........................................................................................................................................................... 418
Report Form.......................................................................................................................................... 418
Report....................................................................................................................................................423
Form Toolbar..................................................................................................................................................424
Table Toolbar................................................................................................................................................. 431
Copyright | 10

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Soware Version: 2022 R2

Last Updated: 01/30/2023
Project Accounting in Acumatica ERP | 11

Project Accounting in Acumatica ERP

In Acumatica ERP, a project is defined as a one-time eﬀort planned for execution within specific time and cost
limits, and with an expected budget and revenue. A project can consist of one task or multiple tasks, and you
can associate individual projects and tasks with workgroups. You can define projects and specify their settings,
including defining tasks and populating projects with employees, resources, and equipment.
The project accounting functionality helps you monitor and manage costs and budget, and predict expected
revenue. You can associate any entered document with a specific project, which ensures that all project-related
activity will be accounted for. You can manage projects of varying complexity across diﬀerent project types and
industries. The following sections briefly describe the specifics of project accounting in Acumatica ERP.

Integration with Other Functional Areas

Integration of projects with other Acumatica ERP functional areas makes it possible to maintain complete project
information as the project-related data is entered into the system. Integration with accounts payable and inventory
and order management gives users the ability to track project costs and re-bill them with or without a premium
and manage billing information. Because employee time and expenses can be tracked in projects, users can track
labor costs related to specific projects and bill the employee labor.

Labor Time and Cost Accounting

Acumatica ERP supports labor accounting through the attribution of labor hours to specific projects and tasks
within projects. To this end, the time that employees spend on projects is recorded in time cards.

Flexible Budget Tracking

You can easily compare actual project costs with the original and revised budgets. As a project progresses, you can
also continuously track budget execution, including whether actual costs match the budget, and act appropriately
by either adjusting expenditures or revising the budget. In Acumatica ERP, you can also implement continuous
budgeting.

Fixed-Price and Cost-Based Projects

Acumatica ERP supports two types of projects: fixed-price and cost-based. With fixed-price projects, the price for
the project is defined at the beginning of the project and is not changed until the end of the project. With cost-
based projects, the final price of the project depends on the overall cost of fulfilling the project, and the costs may
be invoiced again with or without a premium. You can also run projects with a cap.

Work-in-Progress Accounting
When maintaining project accounting in Acumatica ERP, you can track the work in progress (WIP) performed
in the project. Work in progress is the amount of work that was performed but not yet invoiced. By using this
functionality, you can use for billing only those project expenses that are relevant for specific billing periods.

External and Internal Projects

By using the project accounting functionality, you can manage both external and internal projects. Generally,
the scope of internal projects is limited to the physical and organizational boundaries of an organization; these
projects serve the needs of the organization and never produce any revenue. On the other hand, an external project
is revenue-driven, and the key objective is balancing costs and income to make sure the organization remains
profitable, while meeting project goals and maximizing customer satisfaction.
Project Accounting in Acumatica ERP | 12

Flexible Rate Calculation

By using the flexible rate calculation engine in Acumatica ERP, you can implement complex pricing and accrual
models that require the consideration of a large number of parameters. With this project management engine, you
can diﬀerentiate rates depending on the project, task, account group, and employee class. You can even define
diﬀerent rates for specific dates or date ranges.

Billable Revenue Tracking

You can track future revenues as a project progresses from task to task. By using Acumatica ERP, you can
accommodate complex pricing models with a high level of granularity.

Templates for Projects and Tasks

If your company routinely performs standardized projects (for instance, the building of standard houses), you do
not need to create these projects from scratch and each time go through the entire procedure of defining a new
project and its tasks. Instead, you can create templates for standard projects and tasks and use them each time you
start a new project. For details, see Creating Project Templates and Common Tasks.

Commitment Tracking
Acumatica ERP supports tracking purchase orders by project as the project cost commitments. These
commitments aﬀect the execution status of a project. A user can track the budget and actual amounts of a project,
as well as the original commitments that remain open. For details, see Tracking Cost Commitments.

Pro Forma Invoice Workflow

You can enable pro forma invoice workflow for a particular project to agree upon details with a customer before
sending the final accounts receivable invoice. You can review and modify the dra invoice and reach agreement
about the document with all required parties before the accounting team prepares the final accounts receivable
invoice with all information copied from the pro forma invoice. With this process, the company can minimize
corrections of accounts receivable documents. For details, see Pro Forma Invoice: General Information.

Automated Project Billing and Invoicing

As a project progresses from milestone to milestone or when it is completed, you can define the project to
automatically generate billing information and generate invoices for customers. This saves time, reduces errors,
and helps you improve the cash flow in your organization.

Project Security
Acumatica ERP provides you with the variety of options that can be used to set up security of specific projects. For
more information, see Project Creation and Processing: Project Security Configuration.
Creating Account Groups | 13

Creating Account Groups

During the configuration of Acumatica ERP, you create account groups to facilitate the aggregation, tracking,
control, and management of information related to the project budget, costs, and future revenues. This chapter
explains how to define account groups and map general ledger accounts to these account groups.

Account Groups: General Information

An account group is an entity in Acumatica ERP that you map to a subset of general ledger accounts and then
specify in project-related documents. Because they are mapped to general ledger accounts, account groups
facilitate transfer of the project-related financial information between the general ledger transactions and project
transactions.

Learning Objectives
In this chapter, you will learn how to do the following:
In this lesson, you will learn how to do the following:
• Prepare the system for the creation of account groups
• Create an account group and map accounts to this group
• Review the chart of accounts and find the account group associated with a particular GL account

Applicable Scenarios
You may need to create an account group in the following cases:
• When you are initially configuring project accounting functionality
• When you are going to track a particular type of expenses or another type of project balances separately

Types of Account Groups

You create account groups on the Account Groups (PM201000) form. An account group can belong to one of the
following types: Asset, Liability, Expense, Income, or Off-Balance. An account group may include any number of
general ledger accounts of particular types:
• An account group of the Asset or Liability type may include asset or liability accounts. Transactions posted
to these account groups are displayed on the Project Budget (PM309000) form and on the Balances tab of
the Projects (PM301000) form, but are not displayed on the Revenue Budget and Cost Budget tabs of the
Projects form.
• An account group of the Income or Expense type may include accounts of any type (income, expense, asset,
or liability). Transactions posted to these account groups are displayed on the Project Budget form, on the
Balances tab of the Projects form, and on the Revenue Budget and Cost Budget tabs of the Projects form.
• Account groups of the Off-Balance type are not mapped to any general ledger accounts.
You can use account groups of the Off-Balance type to collect and track project statistical and other
information that is unrelated to finance. The transactions posted to account groups of this type will not
update the general ledger. For example, you might define an off-balance group for unrecognized revenue:
You may want to see the amount in your project reporting, but you do not want to post to the general ledger
until the actual billing is done and thus the revenue is recognized. As another example, you can create an
off-balance group for recording all work hours spent by employees on the project if you want to know the
total amount associated with the number of work hours spent, but you do not want to post this amount
to the general ledger. In addition, you can select the Expense check box to track the amounts in the off-
Creating Account Groups | 14

balance account group as expenses. The system displays the transactions posted to this account group on
the Project Budget form and on the Balances and Cost Budget tabs of the Projects form.

Recommendations for Creating Account Groups

Before you define account groups, you should identify the accounts that will be used in project-related
transactions. We recommend that you consider the following rules and limitations as you plan the account groups
you will create:
• Each general ledger account can be mapped to only one account group.
• Accounts receivable accounts (accounts debited by project billing) and accounts payable accounts
(accounts credited by vendor bills) should not be included in account groups.
• Accounts that are linked to cash accounts—that is, accounts for which the Cash Account check box is
selected on the Chart of Accounts (GL202500) form—should not be included in account groups.
• Allocation and billing rules select transactions by account groups. If transactions of two accounts should
follow different allocation or billing rules or use different rates, these two accounts should be included in
different account groups. If the transactions usually use the same rate, consider including their accounts in
one group.

Account Groups: Configuration Prerequisites

Before starting to create account groups, you must be sure that the system has been configured properly and that
all required entities have been created, as described in the following sections.

Enabling the Needed Features

On the Enable/Disable Features (CS100000) form, the Projects feature, which provides the basic project
management functionality, must be enabled.

Configuring the System

Before you create account groups, you need to make sure that on the Chart of Accounts (GL202500) form, all GL
accounts that are necessary for performing the financial operations of the company have been configured, as
described in General Ledger: To Create a Chart of Accounts.

Configuring the Account Group Identifier

The ACCGROUP segmented key on the Segmented Keys (CS202000) form defines the structure of identifiers of
account groups. By default, this segmented key specifies that the account group identifier is an alphanumeric
string of up to 10 characters. For the key, you can define how many segments it is to have, what values may be
used, whether these values should be validated, and whether auto-numbering should be used in one of the
segments. You can also divide account group identifiers into segments with specific values. For more information
on configuring segmented keys, see Segmented Identifiers.

Account Groups: Implementation Activity

In the following implementation activity, you will learn how to create account groups.
Creating Account Groups | 15

This activity is based on the U100 dataset. If you are using another dataset, or if any system settings
have been changed in U100, these changes can aﬀect the workflow of the activity and the results of
the processing. To avoid any issues, restore the U100 dataset to its initial state.

Story
Suppose that you, as an implementation manager, are configuring project accounting for SweetLife Fruits & Jams
company. You need to create an account group for advertising expenses and map the general ledger account to
which the expenses will be recorded to this group.

System Preparation
To prepare to perform the instructions of the activity, launch the Acumatica ERP website, and sign in to a company
with the U100 dataset preloaded; you should sign in as system administrator by using the gibbs username and the
123 password.

Step 1: Creating an Account Group

To create an account group, do the following:
1. On the Account Groups (PM201000) form, create a new record.
2. In the Account Group ID box, type ADVERTEXP.
Notice that the Active check box is selected by default.
3. In the Type box, select Expense.
4. In the Description box, type Advertising Expenses.
5. On the table toolbar of the Accounts tab, click Add Row, and in the row, select the 61000 - Advertising
Expense account.
6. Save the account group.

Step 2: Reviewing the Chart of Accounts

To make sure that the account group has been configured correctly, do the following:
1. Open the Chart of Accounts (GL202500) form.
2. In the search box on the form, type 61000.
3. In the Account Group column of the only row, notice that ADVERTEXP is specified (as shown in the following
screenshot), which means that the account is mapped to this account group.

Figure: Account mapped to the account group

You have configured the account group and mapped a general ledger account to this group.
Creating Account Groups | 16

Account Groups: To Create an Oﬀ-Balance Group

In this implementation activity, you will learn how to create an account group to be used for collecting statistical
information.

Story
Suppose that you are a construction project manager who is configuring project accounting for the ToadGreen
Building Group company. You want to know the total amount associated with the number of work hours spent by
employees on construction projects (including an extra work beyond the budgeted number of work hours), but you
do not want to post these amounts to the general ledger because these expenses are billed monthly under separate
project budget lines related to labor.
You need to create an oﬀ-balance account group for tracking burden expenses in construction projects.

System Preparation
To prepare to perform the instructions of the activity, launch the Acumatica ERP website, and sign in to a company
with the U100 dataset preloaded; you should sign in as a construction project manager by using the ewatson
username and the 123 password.

System Preparation
To prepare to perform the instructions of this activity, sign in to the system as the construction project manager by
using the ewatson username and the password provided in the class.

Step: Creating an Account Group

To create an account group for tracking burden expenses, do the following:
1. On the Account Groups (PM201000) form, add a new record.
2. In the Account Group ID box, type BURDEN.
Notice that the Active check box is selected by default.
3. In the Type box, select Oﬀ-Balance.
4. In the Description box, type Burden Expenses.
5. Save the account group.

Account Groups: Related Reports and Forms

In the following sections, you can find details about report and inquiry forms that provide users with project
information broken down by account groups.
Creating Account Groups | 17

If you do not see a particular report or form that is described, you may have signed in to the system
with a user account that does not have access rights to the report or form. Contact your system
administrator to obtain access to any needed reports or forms.

Viewing Budget Summary by Account Groups

If you want to view details about budget summary broken by account groups, you can use the Budget Summary by
Account Group (PMPV0010) inquiry form. On this form, you can explore the particular amounts of project budgets
provided by the Budget Details (PMGI0010) generic inquiry form. The amounts are grouped by types of account
groups and then by account groups. You can edit the pivot table to reorganize and summarize the data of a generic
inquiry, so that you can view the data from diﬀerent perspectives. You can also click any link in the table to explore
the details of the budgets on the Drilldown Filter Applied filter tab of the Budget Details generic inquiry form.

Viewing Project Budget Amounts by Account Groups

If you want to view the account group balances for project tasks grouped by project, use the Project Balance
(PM621000) report. The balance of the account group is the total of all amounts posted to all the accounts
included in this account group. The balances in this report are listed along with their projected, revised, and actual
quantities and amounts.
Also, you can view the budget, revised budget, and actual balance of each account group in the selected project on
the Balances tab of the Projects (PM301000) form.
Creating Billing Rules | 18

Creating Billing Rules

The billing procedure in Acumatica ERP is based on billing rules that specify the conditions for which the system
calculates the amounts to be billed to customers. The topics of this chapter describe how to configure billing rules
for projects.

Billing Rules: General Information

In Acumatica ERP, billing rules are used to automate the calculation of amounts being billed to customers for a
particular project. You assign a particular billing rule to each project task, and the rule defines which transactions
should be used for billing and which accounts should be used to record the transactions that are generated in the
billing process.

Learning Objectives
In this chapter, you will learn how to do the following:
In this lesson, you will learn how to do the following:
• Configure billing rules for progress billing
• Configure billing rules for time and material billing
• Configure combined billing rules with multiple steps of diﬀerent types
• Use billing rates and item prices in billing rules

Applicable Scenarios
You configure a billing rule to specify how the customers should be billed based on the project conditions:
• You configure a progress billing rule if you need to prepare an invoice for the customer that includes the
services provided as a part of a fixed-price project.
• You configure a time and material billing rule if you need to prepare an invoice for the customer based on
the project transactions that record the time and material spent on the project.
• You configure a combined billing rule that includes both progress billing and time and material billing steps
if you need to calculate invoice amounts diﬀerently based on diﬀerent project stages.

Configuration of Billing Rules

The billing process is defined by the billing rule of each project task. A billing rule is assigned to each project on the
Summary tab (Billing and Allocation Settings section) of the Projects (PM301000) form. When a task is added to
the project on the Tasks tab of this form, by default, it is assigned the billing rule assigned to the corresponding
project, but a diﬀerent billing rule can be specified for the task.
You create billing rules on the Billing Rules (PM207000) form. In the le pane, you specify the sequence of steps for
the selected billing rule. Then in the right pane, you define the calculation rules and invoice settings for each step.
You can add either of the following to each billing rule:
• A single Progress Billing step to bill pending invoice amounts or quantities based on the progress of the
performed work
• A single Time and Material step (or multiple steps of this type) to bill transactions by diﬀerent account
groups
Creating Billing Rules | 19

A simple billing rule includes only one billing step. More complex billing rules consist of multiple steps with
diﬀerent conditions. Each step of a billing rule has a variety of settings, including the following, that depend on the
step type:
• The account group that is used as a filter to select the transactions for billing if this is a Time and Material
billing step.
When the billing procedure is run, the system selects all the transactions that are due for billing. Normally,
you use the same account group (or groups) for billing that you use for accumulating the unrecognized
revenue. By running billing for these account groups, you recognize the revenue.
• The formulas to define the description of the invoice and the description of each invoice line, to make the
system compose each type of description dynamically during the billing process.
• The formulas to calculate the amount and the quantity of the invoice lines if this is a Time and Material
billing step. In these formulas, you can use fields and attributes from such system entities as the project,
project budget, project task, project transaction, customer, vendor, employee, inventory item, and account
group. You can also use diﬀerent sources of the project rates: those from the rate tables can be configured
on the Rate Tables (PM206000) form, and those from sales price lists, which are defined on the Sales Prices
(AR202000) form.
• The sources of the sales account and the destination branch for each invoice line.
The billing process uses the originating branch from the project settings on the Projects form and the
destination branches from the sources according to the billing rules. When an accounts receivable invoice is
released, the accounts receivable account is updated under the originating branch of the invoice, while the
revenue amounts are recorded to the destination branches of the invoice lines.
• The invoice group, if you want to make the system create separate invoices (either pro forma invoices or
accounts receivable invoices, depending on the billing workflow of the project) for particular steps with the
same invoice group during the project billing.
• Non-billable transactions that do not contribute to the amount billed to the customer and that you may
decide to include in the invoice if this is a Time and Material billing step.
• Grouping criteria by date, employee, vendor, and inventory item for the invoice lines if this is a Time and
Material billing step.

Formulas and Parameters in Billing Rules

The parameters and objects listed in this section could be specified in allocation rules as well.

In formulas that are used in the settings of billing rules, you can use the @Rate parameter to refer to billing rates
defined in the rate tables on the Rate Tables (PM206000) form. For more information, see Billing Rates: General
Information.

For project transactions with associated stock or non-stock items, you can retrieve the eﬀective sales price of an
inventory item by using the @Price parameter. For instance, to implement a price model that estimates the project
billable amount as the billable quantity of the provided services multiplied by the price, you can use the following
formula: =[PMTran.BillableQty]*@Price.
Also, in formulas that are used in the settings of a billing rule, you can use the following data access classes to
retrieve the data:
• PMAccountGroup
• PMBudget
When you bill a project using a billing rule with a formula that uses the PMBudget data access class, for
each budget line of the project, the system retrieves the PMBudget records that are associated with the
same project budget key. The project budget key includes the project, project task, account group, and
inventory item, as well as the cost code if the Cost Code feature is enabled on the Enable/Disable Features
(CS100000) form.
Creating Billing Rules | 20

• PMProject
• PMTask
• PMTran
• Customer (the customer of the project transaction that is being billed)
• EPEmployee
• InventoryItem
• Vendor

Billing Rules: Configuration Prerequisites

Before starting to create billing rules, you must be sure that the system has been configured properly and that all
required entities have been created, as described in the following sections.

Enabling the Needed Features

On the Enable/Disable Features (CS100000) form, the Projects feature, which provides the basic project
management functionality, must be enabled.

Configuring the System

You need to make sure the following tasks have been performed in Acumatica ERP before you begin to create
billing rules:
• On the Projects Preferences (PM101000) form, the basic project accounting settings have been specified:
numbering sequences, non-project code, visibility settings, and posting settings. The actual combination
of settings you need to specify depends on the processes in your organization and on the features enabled
on the Enable/Disable Features (CS100000) form. For an example of configuring the basic project accounting
settings, see Basic Project Configuration: Implementation Activity.
• On the Account Groups (PM201000) form, the GL accounts used for labor items have been mapped to the
appropriate account groups. Otherwise, the transactions related to labor on projects will not be visible in
projects. For an example of configuring account groups, see Account Groups: Implementation Activity.
• Optional: On the Rate Tables (PM206000) form, billing rates have been specified in the rate table. For an
example of configuring billing rate tables, see Billing Rates: To Configure Employee-Specific Rates and Billing
Rates: To Configure Employee- and Item-Specific Rates .

Billing Rules: Progress Billing

For a billing rule defined on the Billing Rules (PM207000) form, you specify the sequence of steps in the le pane
and the settings of each step in the right pane, including the billing type, which can be Time and Material or
Progress Billing.
The following sections list the settings that you can specify for a billing rule step of the Progress Billing type, and
describes the process of billing a project for progress by using a simple one-step billing rule.

Configuration of a Billing Rule Step

Each billing rule can include only one step of the Progress Billing type. For the billing rule step of this type, you can
define the following settings:
Creating Billing Rules | 21

• A formula to define the description of the invoice and another formula to define the description of each
invoice line, to make the system compose these descriptions dynamically during the billing process.
• The source of the sales account and the source of the destination branch for each invoice line.
The billing process uses the originating branch from the project settings on the Projects (PM301000) form
and the destination branches from the sources according to the billing rules. When an accounts receivable
invoice is released, the accounts receivable account is updated under the originating branch of the invoice,
while the revenue amounts are recorded to the destination branches of the invoice lines.
• The invoice group of the steps of the billing rules to which the project tasks refer.

The Progress Billing Process

Progress billing is a simple billing workflow for the projects that are gradually billed at a fixed contract amount.
Progress billing does not involve project transactions. To bill a project task by its progress, you need to create a
billing rule on the Billing Rules (PM207000) form and configure a step of the Progress Billing type in this rule. Then
you assign the configured billing rule to project tasks on the Tasks tab of the Projects form.
The progress billing procedure could be initiated for a project that has at least one revenue budget line with billable
project revenue, or for a project with pending values of zero if the progress billing step of the billing rule assigned
to any project task has the Create Lines with Zero Amount and Quantity check box selected on the Billing Rules
form.
Each revenue budget line is billed based on amount or quantity, depending on the option selected in the Progress
Billing Base column on the Revenue Budget tab of the Projects (PM301000) form as follows:
• For a line billed by amount, you need to specify a nonzero amount, which may be a negative amount, in the
Pending Invoice Amount column. For these lines, the Pending Invoice Quantity, Dra Invoice Quantity,
and Actual Quantity values are always 0.
• For a line billed by quantity, you need to specify a nonzero quantity in the Pending Invoice Quantity
column. In this case, the system will calculate the Pending Invoice Amount of the line as the pending
invoice quantity multiplied by the unit rate specified in the line. The system will calculate the percentage of
line completion (Completed (%)) based on the specified values.
You can also specify the Completed (%) value on the Revenue Budget tab for the needed revenue budget lines to
indicate that the project tasks are being performed. The system will calculate the pending invoice values by using
the following formulas:
Pending Invoice Amount = Revised Budgeted Amount * ( Completed (%) / 100 ) -
Draft Invoice Amount - Actual Amount
Pending Invoice Quantity = Revised Budgeted Quantity * ( Completed (%) / 100 )
- Draft Invoice Quantity - Actual Quantity

Project-related invoices, debit memos, and credit memos that have been created manually on the
Invoices and Memos (AR301000) form are not included in pending invoice values.

• The customer
• The customer location
• The Bill Separately setting of each project task defined on the Project Tasks (PM302000) form
If the project billing is performed by using the pro forma invoice workflow, the invoice lines that are produced by
the progress billing steps are shown in the prepared pro forma invoice on the Progress Billing tab of the Pro Forma
Invoices (PM307000) form. If you manually adjust the Amount to Invoice of a pro forma invoice line, the system
automatically recalculates the Total Completed (%). This is the percentage of the revised budgeted amount of the
revenue budget line of the project that has been invoiced by all the pro forma invoices of the project, including the
current one. However, the system does not update the Completed (%) of the corresponding revenue budget line
on the Revenue Budget tab of the Projects form accordingly. Also, the system does not update the Completed (%)
of the revenue budget line if the related pro forma invoice with the corresponding progress billing line is deleted.

Billing Rules: To Configure a Progress Billing Rule

The following implementation activity will walk you through the process of configuring a progress billing rule.

Story
Suppose that you, as the project accountant of the SweetLife Fruits & Jams company, need to configure a billing
rule to be used for billing a customer based on the progress of a project that your company completes for the
customer.

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

Process Overview
You will configure a billing rule for progress billing on the Billing Rules (PM207000) form.

System Preparation
Launch the Acumatica ERP website, and sign in to a company with the U100 dataset preloaded; you should sign in
as project accountant by using the brawner username and the 123 password.

System Preparation
Sign in to the system as the project accountant by using the brawner username and the provided password.

Step 1: Configuring a Billing Rule

To configure a billing rule to be used for progress billing, perform the following instructions:
1. On the Billing Rules (PM207000) form, add a new record.
2. In the Summary area, specify the following settings:
• Billing Rule ID: PRGRULE
Creating Billing Rules | 23

• Description: Billing projects by progress

3. In the le pane, add a row for the billing rule step, and specify the following settings in the row:
• Active: Selected
• Step ID: 10
• Description: Billing by progress
4. In the right pane, specify the following settings for the step (which is selected in the le pane):
• Billing Type: Progress Billing
• Invoice Description Formula: ='Invoice for '+[PMProject.ContractCD]
The system uses this formula to define the description of the invoice created based on the billing rule.
The PMProject.ContractCD data field stores the project identifier.
• Line Description Formula: =[PMBudget.Description]
The system uses this formula to define the description of the invoice line created based on the billing
step. The PMBudget.Description data field stores the description of a project budget line.
• Use Sales Account From: Account Group
The system uses as the sales account the default account of the account group of a revenue budget line
of a project.
• Create Lines with Zero Amount and Quantity: Cleared
You clear this check box to add to the created invoice only the lines with nonzero amounts.
5. Save the billing rule you have created.

You have configured the billing rule that can be used for billing a fixed-price project based on its progress. To bill
a project by using this rule, you need to assign the rule to the project tasks. To review how a project is billed when
you use a progress billing rule, complete the Project Billing: To Bill a Project by Progress activity.

Billing Rules: Time and Material Billing

For a billing rule defined on the Billing Rules (PM207000) form, you specify the sequence of steps in the le pane
and the settings of each step in the right pane, including the billing type, which can be Time and Material or
Progress Billing.
The following sections list the settings that you can specify for a billing rule step of the Time and Material type, and
describes the process of billing a project for progress by using a simple one-step billing rule.

Configuration of a Billing Rule Step

For a billing rule step of the Time and Material type, you can define the following settings:
• The account group that is used as a filter to select the transactions for billing by the Time and Material billing
steps. When the billing procedure is run, the system selects all the transactions that are due for billing and
have this account group. Normally, you use for billing the same account group or groups that you use for
accumulating the unrecognized revenue.
• A formula to define the description of the invoice and a formula to define the description of each invoice
line, to make the system compose these descriptions dynamically during the billing process.
• A formula to calculate the amount of the invoice lines created by the Time and Material billing steps, and
another formula to calculate the quantity of these invoice lines. In these formulas, you can use fields and
attributes from such entities as the project, project budget, project task, project transaction, customer,
vendor, employee, inventory item, and account group. You can also use diﬀerent sources of the project
rates: those from rate tables, which can be configured on the Rate Tables (PM206000) form; and those from
sales price lists, which are defined on the Sales Prices (AR202000) form.
• The source of the sales account and the source of the destination branch for each invoice line.
Creating Billing Rules | 24

The billing process uses the originating branch from the project settings on the Projects (PM301000) form
and the destination branches from the sources according to the billing rules. When an accounts receivable
invoice is released, the accounts receivable account is updated under the originating branch of the invoice,
while the revenue amounts are recorded to the destination branches of the invoice lines.
• The invoice group, which can be used during billing to make the system create separate invoices (either
pro forma invoices or accounts receivable invoices, depending on the billing workflow of the project) for
particular steps with the same invoice group during the project billing.
• Non-billable transactions that do not contribute to the amount billed to the customer and that you may
decide to include in the invoice.
• Grouping criteria by date, employee, vendor, and inventory item for the invoice lines created by the Time
and Material billing steps.

The Time and Material Billing Process

The time and material billing workflow is provided for project tasks that need to be billed based on project
transactions. Time and material billing can be performed only for project tasks of a project that is pending billing
—that is, if the project has at least one unbilled transaction that is ready to be billed on the invoice date. The Time
and Material billing steps can be run once the project transactions that match the selection criteria have been
processed. Optionally, the allocation process can be executed for these transactions before billing.
To bill a project task for time and material, you need to create a billing rule on the Billing Rules (PM207000) form
and configure a step or multiple steps of the Time and Material type in this rule. Multiple Time and Material steps
are used in a billing rule for diﬀerent account groups of transactions that should be used to determine the invoiced
amounts by using diﬀerent formulas. You assign the configured billing rule to project tasks on the Tasks tab of the
Projects (PM301000) form.

The system creates an invoice based on the unbilled project transactions with amounts calculated by using the
billing rules of the project tasks. In the billing, the system includes the transactions with a date that is earlier than
the billing date and does not include the transactions with a date that is later than the billing date. If a project task
is billed with a billing rule that includes only Time and Material billing steps, during the billing process, the system
ignores any pending invoice amount of the revenue budget lines.
The transactions with the same date as the invoice date are billed if Include Trans. created on billing date is selected
as the Billing Cut-oﬀ Date on the Projects Preferences (PM101000) form; if Exclude Trans. created on billing date is
selected, the system skips the transactions with the same date as the invoice date.
During the billing process, the system groups the billable amounts into separate invoices based on the following:
• The invoice group of the steps of the billing rules to which the project tasks refer
• The customer
• The customer location
• The Bill Separately setting of each project task defined on the Project Tasks (PM302000) form
If the project billing is performed by using the pro forma invoice workflow, the invoice lines that are produced
by the Time and Material billing steps are displayed on the Time and Material tab of the Pro Forma Invoices
(PM307000) form.
Creating Billing Rules | 25

Billing Rules: To Configure a Time and Material Rule

The following implementation activity will walk you through the process of configuring a time and material billing
rule.

Story
Suppose that you, as the project accountant of the SweetLife Fruits & Jams company, need to configure a billing
rule to be used for billing customers for the materials that have been spent on providing services as part of the
project, and for the time that has been spent by SweetLife's employees performing work for the project.

Process Overview
You will create a billing rule for time and material billing on the Billing Rules (PM207000) form, and add to this rule
two steps for billing diﬀerent account groups.

System Preparation
Before you start configuring a billing rule, you need to launch the Acumatica ERP website and sign in to a company
with the U100 dataset preloaded. To sign in as a project accountant, use the brawner username and the 123
password.

System Preparation
Sign in to the system as the project accountant by using the brawner username and the provided password.

Step 1: Configuring a Billing Rule and Adding a Step

To configure a billing rule to be used for time and material billing and then add a step for billing for materials,
perform the following instructions:
1. On the Billing Rules (PM207000) form, add a new record.
2. In the Summary area, specify the following settings:
• Billing Rule ID: MATTIME
Creating Billing Rules | 26

• Description: Billing rule for materials with markup

3. In the le pane, add a row for the billing rule step, and specify the following settings in the row:
• Active: Selected
• Step ID: 10
• Description: Billing for materials (cost with markup)
4. In the right pane, specify the following settings for the step (which is selected in the le pane because it is
the only step):
• Billing Type: Time and Material
• Account Group: MATERIAL
This step of the billing rule will be used for processing project transactions related to the account group,
which includes expenses for materials.
• Invoice Description Formula: ='Invoice for '+[PMProject.ContractCD]
The system uses this formula to define the description of the invoice created based on the billing rule.
The PMProject.ContractCD data field stores the project identifier.
• Line Quantity Formula: =[PMTran.BillableQty]
• Line Amount Formula: =[PMTran.Amount]*1.25
The invoiced amount is calculated as the amount of a project transaction multiplied by 1.25.
• Line Description Formula: =[PMTran.Description]
• Use Sales Account From: Inventory Item
• Create Lines with Zero Amount and Quantity: Cleared
You clear this check box to add to the created invoice only lines with a nonzero amount and quantity.
5. Save your changes.

Step 2: Adding One More Step to the Billing Rule

To add and configure a step for billing for labor, do the following:
1. While you are still viewing the MATTIME billing rule on the Billing Rules (PM207000) form, In the le pane, add
a row for the second step of the billing rule, and specify the following in the row:
• Active: Selected
• Step ID: 20
• Description: Billing for employee time
2. In the right pane, specify the following settings for the new step (which is selected in the le pane):
• Billing Type: Time and Material
• Account Group: LABOR
This step of the billing rule will be used for processing project transactions related to the account group,
which includes expenses for employee labor.
• Invoice Description Formula: ='Invoice for '+[PMProject.ContractCD]
The system uses this formula to define the description of the invoice created based on the billing rule.
The PMProject.ContractCD data field stores the project identifier.
• Line Quantity Formula: =[PMTran.BillableQty]
• Line Amount Formula: =[PMTran.Amount]*1.25
The invoiced amount is calculated as the amount of a project transaction multiplied by 1.25.
• Line Description Formula: =[PMTran.Description]
• Use Sales Account From: Inventory Item
• Create Lines with Zero Amount and Quantity: Cleared
Creating Billing Rules | 27

3. Save the created billing rule.

You have configured the billing rule that can be used for billing the cost-plus project for the time and material spent
on the services related to the project. To bill a project by using this rule, you need to assign the rule to the project
tasks. To review how a project is billed when you use a time and material billing rule, complete the Project Billing: To
Bill a Project for Time and Material activity.

Billing Rules: To Configure a Combined Billing Rule

The following implementation activity will walk you through the process of configuring a combined billing rule so
that you can bill a fixed-price project in two stages based on the time and material that was spent.

Story
Suppose that the Thai Food Restaurant customer has ordered a juicer from the SweetLife Fruits & Jams company,
along with the installation and training of the company's employees on operating the juicer. Both companies have
agreed that the customer will be billed in two stages. In the first stage, the customer will pay for the juicer, and for
40% of the services, which have a fixed price. In the second stage (aer the project is completed), the customer will
pay for the remainder of the services.
Acting as the project accountant, you need to configure the appropriate billing rule.

Process Overview
You will create a combined billing rule on the Billing Rules (PM207000) form to be able to bill diﬀerent stages of a
project with diﬀerent billing settings.

System Preparation
Before you start configuring a billing rule, you need to sign in to the system as the project accountant by using the
brawner username and the provided password.
Creating Billing Rules | 28

Step 1: Configuring a Billing Rule and a Step with Billing for Progress
To configure a billing rule and add a step to bill the customer for progress, do the following:
1. On the Billing Rules (PM207000) form, create a new record.
2. In the Summary area, specify the following settings:
• Billing Rule ID: COMBRULE
• Description: Combined billing in two stages
3. In the le pane, add a row for the billing rule step, and specify the following settings in the row:
• Active: Selected
• Step ID: 10
• Description: Billing for progress
4. In the right pane, specify the following settings for the step (which is selected in the le pane because it is
the only step):
• Billing Type: Progress Billing
• Invoice Description Formula: ='Invoice for '+[PMProject.ContractCD]
The system uses this formula to define the description of the invoice created based on the billing rule.
The PMProject.ContractCD data field stores the project identifier.
• Line Description Formula: =[PMBudget.Description]
• Use Sales Account From: Account Group
• Create Lines with Zero Amount and Quantity: Cleared
5. Save your changes.

Step 2: Configuring a Billing Rule Step to Bill for Materials

To add and configure a step to bill the customer for materials, do the following:
1. While you are still reviewing the COMBRULE billing rule on the Billing Rules (PM207000) form, in the le pane,
add a row for the second billing rule step, and specify the following settings in the row:
• Active: Selected
• Step ID: 20
• Description: Material cost plus markup
2. In the right pane, specify the following settings for the new step (which is selected in the le pane):
• Billing Type: Time and Material
• Account Group: MATERIAL
This step of the billing rule will be used for processing project transactions related to the account group,
which includes expenses for materials.
• Rate Type: Empty
This step of billing rule does not use billing rates, so the rate type is not needed.
• Invoice Description Formula: ='Invoice for '+[PMProject.ContractCD]
The system uses this formula to define the description of the invoice created based on the billing rule.
The PMProject.ContractCD data field stores the project identifier.
• Line Quantity Formula: =[PMTran.BillableQty]
• Line Amount Formula: =[PMTran.BillableQty]*1.25
The invoiced amount is calculated as the amount of a project transaction multiplied by the fixed 1.25
coeﬀicient.
Creating Billing Rules | 29

• Line Description Formula: =[PMTran.Description]

• Use Sales Account From: Inventory Item
• Create Lines with Zero Amount and Quantity: Cleared
3. Save your changes.

Step 3: Configuring a Billing Rule Step with Billing for Labor

To add and configure a step to bill the customer for employees’ labor, do the following:
1. While you are still reviewing the COMBRULE billing rule on the Billing Rules (PM207000) form, in the le pane,
add a row for the third step of the billing rule, and specify the following settings in the row:
• Active: Selected
• Step ID: 30
• Description: Employee labor
2. In the right pane, specify the following settings for the new step, which is selected in the le pane:
• Billing Type: Time and Material
• Account Group: LABOR
This step of the billing rule will be used for processing project transactions related to the account group,
which includes employee labor expenses.
• Rate Type: Empty
This step of billing rule does not use billing rates, so the rate type is not needed.
• Invoice Description Formula: ='Invoice for '+[PMProject.ContractCD]
The system uses this formula to define the description of the invoice created based on the billing rule.
The PMProject.ContractCD data field holds the project identifier.
• Line Quantity Formula: =[PMTran.BillableQty]
• Line Amount Formula: =[PMTran.Amount]*1.25
The invoiced amount is calculated as the amount of a project transaction multiplied by the fixed 1.25
coeﬀicient.
• Line Description Formula: =[PMTran.Description]
• Use Sales Account From: Inventory Item
• Create Lines with Zero Amount and Quantity: Cleared
3. Save your changes.

Step 4: Configuring a Billing Rule Step with Billing for Subcontractors’ Services
To add and configure a fourth step to the billing rule for billing customers on services provided by subcontractors,
do the following:
1. While you are still reviewing the COMBRULE billing rule on the Billing Rules (PM207000) form, in the le pane,
add a row for the fourth step of the billing rule, and specify the following settings in the row:
• Active: Selected
• Step ID: 40
• Description: Re-invoice subcontractor services
2. In the right pane, specify the following settings for the new step, which is selected in the le pane:
• Billing Type: Time and Material
• Account Group: SUBCON
Creating Billing Rules | 30

This step of the billing rule will be used for processing project transactions related to the account group,
which includes services provided by subcontractors.
• Rate Type: Empty
This step of billing rule does not use billing rates, so the rate type is not specified.
• Invoice Description Formula: ='Invoice for '+[PMProject.ContractCD]
The system uses this formula to define the description of the invoice created based on the billing rule.
The PMProject.ContractCD data field stores the project identifier.
• Line Quantity Formula: =[PMTran.BillableQty]
• Line Amount Formula: =[PMTran.Amount]*1.25
The invoiced amount is calculated as the amount of a project transaction multiplied by the fixed 1.25
coeﬀicient.
• Line Description Formula: =[PMTran.Description]
• Use Sales Account From: Inventory Item
• Create Lines with Zero Amount and Quantity: Cleared
3. Save the billing rule.

You have configured the combined billing rule that can be used for billing the first part of project for progress and
the rest of the project for time and materials. To bill the project by using this rule, you need to assign the rule to the
project tasks. To review how a project is billed when you use a combined billing rule, complete the Project Billing: To
Bill a Project with Combined Rule activity.

Billing Rules: To Modify a Billing Rule

In this activity, you will learn how to update the settings of an existing billing rule, and review how this aﬀects the
documents generated by the project billing process.

Story
Suppose that as part of a contract to provide juicers to multiple restaurants, the Thai Food Restaurant customer
has ordered a juicer from the SweetLife Fruits & Jams company, along with the following services: site review,
installation, and training of employees on operating the juicer. The SweetLife project accountant has created a
project to account for the provided work and has generated a pro forma invoice for the project. Then suppose that
the project accountant has reviewed the prepared pro forma invoice, and has decided that the following changes
should be made:
• The invoice’s description should be corrected to be more clear. The updated description will say Invoice for
followed by the identifier of the project.
• The processing of the travel expenses related to the project needs to be added to the billing rule. Per the
agreement with the customer, these will be billed with a fixed margin coeﬀicient of 1.4.
• The invoice lines should be grouped by inventory item.
Acting as the project accountant, you need to update the billing rule and verify that invoices are generated in the
appropriate format.
Creating Billing Rules | 31

Process Overview
You will bill the project on the Projects (PM301000) form; you will also review how the current billing rules work,
and how the prepared pro forma invoice looks on the Pro Forma Invoices (PM307000) form. Then you will delete
the pro forma invoice, to cancel billing, and modify the billing rule on the Billing Rules (PM207000) form. You will
change the description of the invoices to be created, add a new step to a billing rule for processing the travel
expenses, and configure the grouping of project transactions for employee labor to a single line.
Aer you make these changes to the billing rule, you will bill the project again on the Projects form. Finally, you will
review the pro forma invoice created with the modified billing rule on the Pro Forma Invoices form.

System Preparation
Before you begin performing the steps of this activity, perform the following instructions to prepare the system:
1. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset preloaded; you should
sign in as Pam Brawner by using the brawner username and the 123 password.
2. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to 1/30/2023. If a diﬀerent date is displayed, click the Business Date menu
button, and select 1/30/2023 on the calendar. For simplicity, in this activity, you will create and process all
documents in the system on this business date.

Step 1: Billing the Project

To bill the project for the Thai Food Restaurant customer, do the following:
1. On the Projects (PM301000) form, open the TOMYUM10 project, and on the Cost Budget tab, review the cost
budget of the project. In the lines with the PHASE3 task, notice that travel expenses are associated with the
TRAVEL account group, while the employee's labor on conducting training is associated with the LABOR
account group.
2. On the form toolbar, click Run Project Billing to review the pro forma invoice the system creates for this
project with the existing TIMEMATERIAL billing rule.
The system creates a pro forma invoice and opens it on the Pro Forma Invoices (PM307000) form. Review the
details of the pro forma invoice, which should be improved on in the following regards:
• The pro forma invoice description is Invoice for TOMYUM10. While the description is correctly noting the
project identifier in the system, you would like the invoice description to also include the description of
the project.
Creating Billing Rules | 32

• On the Time and Material tab, there is no line with the TRAVEL inventory item because the line has
not been processed by the billing rule, which does not include a step configured for the billing of the
expenses related to the TRAVEL account group.
• On the Time and Material tab, there are three lines with the PHASE3 task and the TRAINING inventory
item. For a more typical and easier-to-grasp way of presenting invoice lines, multiple lines with the same
inventory item should be grouped into one line.
3. On the form toolbar, click Delete to delete the pro forma invoice.

Now you need to modify the billing rule, and perform the billing process for the project again.

Step 2: Modifying the Billing Rule

To change the TIMEMATERIAL billing rule, do the following:
1. On the Billing Rules (PM207000) form, open the TIMEMATERIAL billing rule.
2. To modify the description of invoices created with the billing rule, do the following:
a. In the le pane, click the 10 - Material cost plus markup step so that you can modify the settings of this
step.
b. In the right pane, enter the following formula in the Invoice Description Formula box:
='Invoice for '+[PMProject.ContractCD]+'('+[PMProject.Description]+')'
c. Save your changes.
d. In the le pane, click the 20 - Labor from non-stock price step and in the right pane, enter the following
formula in the Invoice Description Formula box:
='Invoice for '+[PMProject.ContractCD]+'('+[PMProject.Description]+')'
e. Save your changes.
f. In the le pane, click the 30 - Re-invoice subcontractors step and in the right pane, enter the following
formula in the Invoice Description Formula box:
='Invoice for '+[PMProject.ContractCD]+'('+[PMProject.Description]+')'
g. Save your changes.
3. To add a billing step to bill travel expenses with a fixed margin coeﬀicient of 1.4, do the following:
a. In the le pane, add a new row, and specify the following settings in the row:
• Active: Selected
• Step ID: 40
• Description: Travel cost plus markup
b. In the right pane, specify the following settings for the step selected in the le pane (see the screenshot
below):
• Billing Type: Time and Material
• Account Group: TRAVEL
With this step of the billing rule, the system processes the project transaction that debits accounts
mapped to the TRAVEL account group.
• If @Rate is Not Defined: Set @Rate to 0
• Invoice Description Formula: ='Invoice for
'+[PMProject.ContractCD]+'('+[PMProject.Description]+')'
• Line Quantity Formula: =[PMTran.BillableQty]
The system uses the quantity of the project transaction as the quantity of an invoice line.
• Line Amount Formula: =[PMTran.Amount]*1.4
Creating Billing Rules | 33

The system uses the amount of the project transaction multiplied by 1.4 as the amount of the invoice
line.
• Line Description Formula: =[PMTran.Description]
The system uses the description of the project transaction as the description of the invoice line.
• Use Sales Account From: Inventory Item

Figure: The new step of the billing rule

4. To group project transactions with the LABOR account group into a single invoice line if they also have the
same inventory item, do the following:
a. In the le pane, click the 20 - Labor from non-stock price step.
b. In the right pane, in the Aggregate Transactions By section, select the Inventory ID check box.
5. Save your changes to the billing rule.

Step 3: Billing a Project With the Updated Billing Rule

To bill the project with the billing rule that you have modified and review how the changes to the billing rule aﬀect
the prepared pro forma invoice, do the following:
1. On the Projects (PM301000) form, open the TOMYUM10 project.
2. On the form toolbar, click Run Project Billing.
The system creates a pro forma invoice and opens it on the Pro Forma Invoices (PM307000) form. Notice the
following changes to the pro forma invoice, which are shown in the screenshot below:
• The description of the pro forma invoice is now Invoice for TOMYUM10 (А juicer with the installation and
training for employees).
• On the Time and Material tab, a line with the TRAVEL inventory item has appeared.
• On the Time and Material tab, there is only one line with the PHASE3 task and TRAINING inventory item.
Creating Billing Rules | 34

Figure: The pro forma invoice generated by the updated billing rule

3. Click the line with the PHASE3 task and TRAINING inventory item, and on the table toolbar, click View
Transaction Details to review the list of project transactions corresponding to the invoice line. Make sure
that three transactions were grouped into one line during the billing, based on the aggregation setting of
the billing rule you have modified.

You have modified the billing rule and prepared pro forma invoice for the project based on this updated rule.

Billing Rules: To Modify a Billing Rule to Track New Expenses

This activity will walk you through the process of modifying a billing rule by adding a new step, so that you can bill
a new type of expenses within projects.

Story
Suppose that the West BBQ Restaurant customer has contacted the SweetLife Fruits & Jams company and
requested a maintenance service for a juicer. This is a new type of service that the company has not previously
provided for any customer. SweetLife's employee has visited the customer and provided two hours of the new
maintenance service.
Acting as the project accountant of SweetLife, you need to update the billing rule used in the project to track the
new type of expenses and bill the customer for the provided services.

• On the Non-Stock Items (IN202000) form, the MAINTSERV inventory item has been created. The 54500
(Maintenance Expense) account has been selected as the expense account of the item and the default price
has been set to $80.
• On the Customers (AR303000) form, the WESTBBQ customer has been configured.

Process Overview
On the Billing Rules (PM207000) form, you will add a new step to the billing rule; for the step, you will configure
processing transactions related to the new maintenance service. Then you will create a new project on the Projects
(PM301000) form that includes a task for the maintenance service and uses the updated billing rule. You will also
create project transactions on the Project Transactions (PM304000) form to record the provided maintenance work
and update the actual project values. Finally, you will bill a project and review the prepared pro forma invoice on
the Pro Forma Invoices (PM307000) form.

System Preparation
To prepare to perform the instructions of the activity, launch the Acumatica ERP website, and sign in to a company
with the U100 dataset preloaded; you should sign in as project accountant by using the brawner username and the
123 password.

System Preparation
To prepare to perform the instructions of this activity, do the following:
1. Sign in to the system as the project accountant by using the brawner username and the password provided
in the class.
2. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, click the Business
Date menu button, and select 1/30/2023 on the calendar.

Step 1: Modifying a Billing Rule

To add to an existing billing rule a billing step to bill maintenance expenses with a fixed margin coeﬀicient of 1.2, do
the following:
1. On the Billing Rules (PM207000) form, open the STANDARD billing rule.
2. In the le pane, add a row, and specify the following settings for it:
• Active: Selected
• Step ID: 40
• Description: Maintenance cost plus markup
3. In the right pane, specify the following settings for the step selected in the le pane:
• Billing Type: Time and Material
• Account Group: MAINTSERV
In this step of the billing rule, the system processes a project transaction that debits accounts mapped to
the MAINTSERV account group.
• If @Rate is Not Defined: Set @Rate to 0
• Invoice Description Formula: ='Invoice for '+[PMProject.ContractCD]
• Line Quantity Formula: =[PMTran.BillableQty]
The system uses the quantity of the project transaction as the quantity of each invoice line.
• Line Amount Formula: =[PMTran.BillableQty]*1.2*@Price
Creating Billing Rules | 36

The invoiced amount is calculated as the billable quantity of the project transaction multiplied by the
price of the related inventory item with the markup.
• Line Description Formula: =[PMTran.Description]
The system uses the description of the project transaction as the description of the invoice line.
• Use Sales Account From: Inventory Item
• Create Lines with Zero Amount and Quantity: Cleared
4. Save your changes to the billing rule.

Step 2: Creating a Project

To create a project that represents the maintenance work SweetLife will do for the West BBQ Restaurant customer,
do the following:
1. On the Projects (PM301000) form, adda new record.
2. In the Summary area, specify the following settings:
• Project ID: WESTBBQ
• Customer: WESTBBQ (West BBQ Restaurant)
• Description: Maintenance service for a juicer
3. On the Summary tab, specify the following settings:
• Revenue Budget Level: Task
• Cost Budget Level: Task and Item
• Change Order Workflow: Cleared
• Billing Period: On Demand
• Create Pro Forma Invoice on Billing: Selected
4. To add a task to the new project, on the table toolbar of the Tasks tab, click Add Row on the table toolbar,
and specify the following settings in the new row:
• Task ID: SERVICE
• Type: Cost and Revenue Task
• Description: Maintenance service for a juicer
• Billing Rule: STANDARD
This is the billing rule you have modified in the previous step.
• Status: Active
5. Save the project.
6. On the form toolbar, click Activate Project. The system assigns the project the Active status.

Step 3: Creating and Processing a Project Transaction

To update the actual values of the project, create and process a project transaction for two hours of maintenance
work by doing the following:
1. On the Project Transactions (PM304000) form, create a new transaction, and in the Summary area, specify PM
as the Module and Maintenance service for WESTBBQ as the Description.
2. In the table on the Details tab, click Add Row on the table toolbar, and specify the following settings in the
row:
• Project: WESTBBQ
• Project Task: SERVICE
• Cost Code: 00-000
Creating Billing Rules | 37

• Account Group: MAINTSERV

• Inventory ID: MAINTSERV
• Quantity: 2
• Unit Rate: 80.00
3. On the form toolbar, click Save, and then click Release.
4. On the Projects (PM301000) form, open the WESTBBQ project, and on the Cost Budget tab, notice that a line
with the cost of the provided maintenance service has appeared with an Actual Amount of $160.

Step 4: Billing the Project and Reviewing the Billed Amount

To bill the project and review the document prepared for the customer, do the following:
1. While you are still reviewing the WESTBBQ project on the Projects (PM301000) form, on the form toolbar,
click Run Project Billing.
The system creates a pro forma invoice and opens it on the Pro Forma Invoices (PM307000) form.
2. On the Time and Material tab, review the invoice line that the system has created for the project
transaction that you processed in the previous step. The Billed Amount, which is calculated by using the
line amount formula you have specified for the new step of the billing rule, is $192, which is the project
transaction quantity (2) multiplied by the default price of the inventory item ($80) and then multiplied by
1.2.
3. On the form toolbar, click Remove Hold to assign the pro forma invoice the Open status, and then click
Release. The system closes the pro forma invoice (which is now assigned the Closed status), and creates an
accounts receivable invoice based on the pro forma invoice.
4. On the Financial tab, right of the AR Ref. Nbr. box, click the Edit button to open the accounts receivable
invoice that the system created on the Invoices and Memos (AR301000) form.
5. On the form toolbar, click Remove Hold to assign the accounts receivable invoice the Balanced status, and
then click Release to release the invoice.
6. On the Projects (PM301000) form, open and review the WESTBBQ project, which is shown in the following
screenshot. Notice that in the Summary area, the Actual Income box now shows $192, which is the total
amount of the invoice that you have processed. The Actual Expense box shows the amount of the project
transaction that you have processed earlier ($160).

Figure: Updated project balances

You have updated the project billing rule and billed the project for time and material by using this rule.
Creating Project Tasks | 38

Creating Project Tasks

A project typically consists of separate project tasks, which are clearly defined units of work that can be tracked
and managed easily. A project task is used to identify an essential step or activity within the project that must
be completed within a particular time frame or by a particular date, so that the project as a whole remains on
schedule.
This chapter explains how to create project tasks in Acumatica ERP, specify additional settings for them, and track
task completion.

Project Tasks: General Information

In Acumatica ERP, each project can consist of one project task or multiple project task. A project task is the smallest
identifiable piece of work that is a part of the project, and you can select a billing rule for each project task to
determine how it will be billed. In the following sections, you will find information about creating project tasks.

Learning Objectives
In this chapter, you will learn how to do the following:
In this lesson, you will learn how to do the following:
• Create a project task for a particular project
• Configure the rules of the project task completion
• Configure a project task to be billed separately from other project tasks
• Set a project task as a default for a project

Applicable Scenarios
You create a project task in the following cases:
• When you are configuring a new project from the beginning
• When you need to add a new project task to an existing project

Project Task Settings

You create new project tasks in a project by adding a row for each task to the Tasks tab of the Projects (PM301000)
form. You can then review the settings of the project task on the Project Tasks (PM302000) form. Each project task
is linked to a particular project and has a unique identifier. Project tasks are always defined within the scope and
limitations of a specific project; a particular project task may have additional limitations within the scope of the
project.

You can create new project tasks directly on the Project Tasks form by specifying the identifier of
the project to which the project task relates, the identifier of the new project task, and the settings
specific for the project task. You then save the newly created project task.

For a project task, you can define the following settings, which are specific to the task and do not extend to the
project:
• Date range: You can narrow the date range of the task, as long as it remains within the start and end dates
of the project. The start and end dates are specified for informational purposes and do not aﬀect any
processes performed for this project task.
Creating Project Tasks | 39

• Billing rule (and optional rate): By default, the system assigns to the added project task the billing rule that
is specified on the Summary tab of the Projects form for the project. Billing rules are defined on the Billing
Rules (PM207000) form.
If complex billing rules have to be configured for billing the project task, you also need to assign the
appropriate rate table to the project task.
• Separate billing: You can select the Bill Separately check box on the Summary tab of the Project Tasks form
to make the system create a separate invoice for the project task.
• Allocation rule: You can define the allocation rule for a particular project task.
By default, the system assigns to a newly added project task the default allocation rule of the project which
is specified on the Summary tab of the Projects form.
• Method of calculating task completion percentage: You can define the project task to be completed
manually or based on the budgeted quantity or amount.
• Visibility settings: The project task may be visible only in the parts of the system in which the associated
project is visible. You can leave these default visibility settings, or apply additional visibility limitations for
the project task.
In addition, you can specify that one task is the default task of the project.

Insertion of Default Project Tasks in Document and Transaction Lines

When you create a project-related document, you must specify a project task for each document line. If you have
specified one of the project's tasks as the default one for the project, the system will automatically insert this
project task in the lines of documents when you select the project, thus speeding data entry.
When you process an AR invoice or AP bill related to the project, the system may automatically generate additional
GL transaction lines—for instance, to include a discount or freight charge. To automatically associate these
transaction lines with specific project tasks, you need to map particular general ledger accounts to specific project
tasks within the project in the Default Task for GL Account table on the Defaults tab of the Projects (PM301000)
form. In the automatically generated transaction lines posted to the GL account mapped to a project task, the
system will specify this project task by default.
When you select a GL account mapped to a project task in the Account column in a line of a project-related AR
invoice on the Invoices and Memos (AR301000) form, the system will automatically specify the mapped project
task in the line. If the account is not mapped to any project task, the default project task (if one is specified for the
project) is inserted in the line.

The defined account mapping does not aﬀect the entry of project-related bills on the Bills and
Adjustments (AP301000) form. In the bill lines, the system inserts the default task of the project if it is
configured on the Tasks tab of the Projects form.

Statuses of Project Tasks

A project task can be assigned the following statuses:
• In Planning: The task is a dra; this status is automatically assigned to a new task. Project tasks with the
In Planning status cannot be selected in any documents, except for the employee activities and project
commitments. However, these documents can be processed further only aer the project task is assigned
the Active status.
• Active: The task is active and available for selection on data entry forms. The documents in which this
project task is specified can be processed. An active task can be assigned the In Planning status.
• Completed: The task is completed. A completed task can be activated again.
• Canceled: Task execution has been stopped before task completion. A canceled task can be activated again.
Creating Project Tasks | 40

Project Tasks: Tracking the Task Completion

A project task is the smallest identifiable piece of work that is a part of the project. A project task may require
more than one financial period to complete, and the project task may be billed when it is completed or when the
entire project is completed. The allocation rules for projects are usually straightforward and use the percentage-of-
completion scheme to evaluate the revenue earned during a specific financial period.
For each project task in a project, you can select which method will be used to evaluate the completion percentage
of the project task in the Completion Method box on the Project Tasks (PM302000) form (in the Task Properties
section of the Summary tab). The following sections describe the available methods that can be used to evaluate
or calculate the percentage of project task completion.

The statuses of individual project tasks do not aﬀect the status of the corresponding project.

Manual Completion of a Project Task

In the Completion Method box on the Project Tasks (PM302000) form (in the Task Properties section of the
Summary tab), you select Manual if it is not possible to select one cost line whose actual amount or quantity would
reflect the overall project task progress. This may be the case if diﬀerent cost lines are expressed as quantities
measured in diﬀerent UOMs, or some of the lines have budgets expressed as amounts with other line budgets
expressed as quantities.
With this method, you evaluate the project task progress by using all the available information and manually
specify the project task completion percentage in the Completed (%) box. You can change the value as oen as is
needed; we recommend that you update it before you perform an allocation for the project.

Completion by Budgeted Quantity

In the Completion Method box on the Project Tasks (PM302000) form (in the Task Properties section of the
Summary tab), you select Budgeted Quantity to calculate the project task completion percentage for all cost
budget lines associated with the project task for which the Auto Completed (%) check box is selected on the Cost
Budget tab of the Projects (PM301000) form. The method is applicable for only the project tasks having a separate
cost budget line whose actual quantity reflects the project task's overall progress, so that you select the Auto
Completed (%) check box for only this cost budget line.
The system calculates the percentage based on the quantities in the Actual Quantity and Revised Budgeted
Quantity columns on the Cost Budget tab by using the following formula:
Completed (%) = SUM (Actual Quantity) / SUM (Revised Budgeted Quantity),
where the actual quantities and revised budgeted quantities are summed up by all the cost budget lines related to
this project task (the UOMs specified in cost budget lines are ignored).
For example, suppose that a project task has a budget for 100 hours of consulting (at a cost of $100 per hour) for a
customer company and a budget for 25 round trips (at a cost of $10 per hour) to the customer location. If you select
the consulting cost for tracking the project task completion, with 40 hours of consulting completed, the percentage
of the project task completion is calculated as 40%. Splitting or merging consulting sessions may change the
number of required round trips; however, the project task progress should be measured by the actual hours of
consulting performed.

Completion by Budgeted Amounts

In the Completion Method box on the Project Tasks (PM302000) form (in the Task Properties section of the
Summary tab), you select Budgeted Amount for a project task if all cost lines have budgeted amounts. With this
Creating Project Tasks | 41

method selected, the system calculates the project task completion percentage for all the cost budget lines
associated with the project task for which the Auto Completed (%) check box is selected on the Cost Budget tab of
the Projects (PM301000) form.
The system calculates the percentage based on the amounts in the Actual Amount and Revised Budgeted
Amount columns on the Cost Budget tab by using the following formula:
Completed (%) = SUM (Actual Amount) / SUM (Revised Budgeted Amount)
where the actual amounts and revised budgeted amounts are summed up by all the cost budget lines related to
this project task (the UOMs specified in cost budget lines are ignored).

Project Tasks: Configuration Prerequisites

Before starting to create project tasks, you must be sure that the system has been configured properly and that all
required entities have been created, as described in the following sections.

Enabling the Needed Features

On the Enable/Disable Features (CS100000) form, the Projects feature must be enabled.

Configuring Project Task Identifiers

The PROTASK segmented key on the Segmented Keys (CS202000) form defines the identifier of the project tasks.
By default, this segmented key specifies that the project task identifier is an alphanumeric string of up to 10
characters. For the key, you can define how many segments it is to have, what values may be used, whether these
values should be validated, and whether auto-numbering should be used in one of the segments. You can also
divide item identifiers into segments with specific values. For more information on configuring segmented keys,
see Segmented Identifiers.

Configuring the System

You need to make sure the following tasks have been performed in Acumatica ERP before you begin creating
project tasks:
• On the Projects Preferences (PM101000) form, the basic project accounting settings have been specified:
numbering sequences, non-project code, visibility settings, and posting settings. The actual combination
of settings you need to specify depends on the processes in your organization and on the features enabled
on the Enable/Disable Features (CS100000) form. For an example of basic project configuration, see Basic
Project Configuration: Implementation Activity.
• On the Projects (PM301000) form, the project for which you are going to create a task or multiple tasks has
been created. For an example of creating a project, see Project Creation and Processing: To Create a Fixed-
Price Project and Project Creation and Processing: To Create a Cost-Plus Project.
• Optional: On the Billing Rules (PM207000) form, each billing rule that you will assign to a project task has
been created. For an example of creating a billing rule, see Billing Rules: To Configure a Progress Billing Rule,
Billing Rules: To Configure a Time and Material Rule and Billing Rules: To Configure a Combined Billing Rule.
• Optional: On the Allocation Rules (PM207500) form, each allocation rule that you will assign to a project
task has been created. For an example of configuring an allocation rule, see WIP Costs in Cost-Plus Projects:
Implementation Activity and WIP Costs in Fixed-Price Projects: Implementation Activity.
• Optional: On the Rate Tables (PM204200) form, each rate table that you will assign to a project task has
been created, and the rate table has been configured on the Rate Tables (PM206000) form. For an example
of configuring billing rates, see Billing Rates: To Configure Employee-Specific Rates and Billing Rates: To
Configure Employee- and Item-Specific Rates .
Creating Project Tasks | 42

Project Tasks: Implementation Activity

In the following implementation activity, you will learn how to add a project task to an existing project.

Story
Suppose that the SweetLife Fruits & Jams company is managing a project for the HM's Bakery and Cafe customer,
which has ordered the installation of two juicers. A project for this work is currently in progress; the installation of
the juicers is 75% completed and is supposed to be completed by 1/30/2023.
Further suppose that the customer notifies you that its employees need training on operating the juicers; you need
to add a project task for this activity to the project and add to the cost budget a cost budget line related to this task.
You are planning to start training on 1/30/2023. You want to bill the customer separately for the conducted training,
and to close the project task based on the budgeted quantity, which is 16 hours of training.
Acting as a SweetLife project accountant, you need to add a new project task for the employee training to the
existing project, and specify the settings of the project task. Because the other project tasks are going to be
completed soon, you also will set the newly added project task as the default task of the project, so that the system
will populate this task automatically in all related documents in which a user will select this project.

Process Overview
In this activity, you will add a new project task to the existing project on the Projects (PM301000) form, and specify
the standard settings of the project task. Then you will enter specific settings for the project task on the Project
Tasks (PM302000) form.

button, and select 1/30/2023 on the calendar. For simplicity, in this activity, you will create and process all
documents in the system on this business date.

System Preparation
To prepare to perform the instructions of the activity, in the info area, in the upper-right corner of the top pane of
the Acumatica ERP screen, make sure that the business date in your system is set to 1/30/2023. If a diﬀerent date is
displayed, click the Business Date menu button, and select 1/30/2023 on the calendar. For simplicity, in this activity,
you will create and process all documents in the system on this business date.

System Preparation
To sign in to the system and prepare to perform the instructions of the activity, do the following:
1. Sign in to the system as the project accountant by using the brawner username and the provided password.
2. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to 1/30/2023. If a diﬀerent date is displayed, click the Business Date menu
button, and select 1/30/2023 on the calendar. For simplicity, in this activity, you will create and process all
documents in the system on this business date.

Step 1: Adding a Project Task to the Project

To add a new project task to a project, do the following:
1. On the Projects (PM301000) form, open the HMBAKERY15 project.
2. On the Tasks tab, add a new row, and specify the following settings in the row:
• Task ID: TRAINING
• Type: Cost and Revenue Task
• Description: Employee training
• Billing Rule: TM (specified automatically)
• Status: Active
• Start Date: 1/30/2023
• Default: Selected
3. Save your changes.

Step 2: Configuring Advanced Settings for the Project Task

To review the newly added project task and specify advanced settings for it, do the following:
1. On the Project Tasks (PM302000) form, select HMBAKERY15 as the Project ID and TRAINING as the Task ID.
2. On the Summary tab, in the Completion Method box, select Budgeted Quantity.
3. In the Billing and Allocation Settings section, select the Bill Separately check box to make the system
create a separate invoice for this project task during the billing of the project.
4. Save your changes.

Step 3: Adding the Related Cost Budget Line

To add the costs related to conducting the training to the budget, do the following:
1. On the Projects (PM301000) form, open the HMBAKERY15 project.
Creating Project Tasks | 44

2. On the Cost Budget tab, add a line with the following settings:
• Project Task: TRAINING (selected automatically as the default project task)
• Inventory ID: TRAINING
• Account Group: LABOR
• Description: Training for employees
• Original Budgeted Quantity: 16
• UOM: HOUR
• Unit Rate: 40
• Auto-Completed (%): Selected
3. Save your changes to the project.

You have added a new project task to the project, configured the project task settings, and budgeted the new
project task.

Step 4: Testing of Settings

To make sure that all settings have been specified correctly, perform the following steps:
1. On the Project Transactions (PM304000) form, create a new record.
2. In the Summary area, make sure that PM is selected in the Module box, and enter An 8-hour training
session as the Description.
3. In the Details tab, add a new line with the following settings:
• Project: HMBAKERY15
• Project Task: TRAINING (selected automatically as the default project task)
• Cost Code: 00-000
• Account Group: LABOR
• Inventory ID: TRAINING
• UOM: HOUR

The unit of measure must be the same as the one specified in the cost budget line.

• Quantity: 8.00
• Billable: Selected
• Unit Rate: 45.00
4. Make sure that the Total Amount in the Summary area is 360.00, and save the project transaction.
5. On the form toolbar, click Release to release the project transaction.
6. On the Projects (PM301000) form, open the HMBAKERY15 project.
7. On the Cost Budget tab, review the cost budget line with the TRAINING project task. Notice that Actual
Amount in this line is now 360.00 and the Actual Quantity is 8, meaning that the project transaction that
you have processed has aﬀected the cost budget (see the following screenshot).
Creating Project Tasks | 45

Figure: The cost budget line aﬀected by the project transaction

8. On the Tasks tab, review the Completed (%) box in the line with the TRAINING task, and notice that 50% of
the task has been completed.

You have added a new project task to the existing project and processed a transaction that updates the cost budget
line with this project task.

Project Tasks: Related Report and Inquiry Forms

In the following sections, you can find details about the reports and inquiry forms you may want to review to gather
information about particular project tasks.

Finding Project Transactions Related to a Project Task

To find the project transactions that are related to a particular project task, you can view the cost budget lines
or revenue budget lines grouped by project task. To do this, you select the Group by Task check box on the Cost
Budget tab or Revenue Budget tab, respectively, of the Projects (PM301000) form. Then you click the aggregated
line on the tab, and on the table toolbar, click View Transactions. The system opens the Project Transaction Details
(PM401000) form with the list of project transactions that are related to this project and project task.

Printing Task Information

To generate a printable report with the project task information, you use the Project Tasks (PM632000) report form.
The report provides a list of either all the project tasks, grouped by customer, or only the project tasks for the
customer you select.
Creating Project Templates and Common Tasks | 46

Creating Project Templates and Common Tasks

Your organization may plan to perform projects that are similar to one another, and the projects may have tasks
that are like other tasks in the same project or tasks in other projects. In this case, you can expedite the process of
creating projects by using project and task templates. You can create any number of templates that include all the
boilerplate parameters for all types of projects and for all types of tasks.
This chapter describes how to configure project templates and common tasks, how to create a new project based
on a project template, and how to create a project template based on the project.

Project Templates and Common Tasks: General Information

In Acumatica ERP, you can create project templates from scratch by adding every detail that you think will be
required for a typical project of specific type. Alternatively, you can create a template based on an existing project
which you think is a typical representative of projects of specific type.
When users create projects based on the templates, they can change any settings for particular projects—templates
are used only to provide the default settings, thus making the project creation easier for users.

Learning Objectives
You will learn how to do the following:
• Create a project template
• Create a common task
• Create a project based on the project template
• Add a task to the project by using the common task

Applicable Scenarios
You create project templates and common tasks if you need to ease the creation of typical projects and typical
tasks for existing projects, respectively.

Templates Created from Existing Projects

You can create a template based on an existing project. On the Projects (PM301000) form, select a project that is a
typical project of specific type and click Create Template on the More menu. A template will be created with all the
tasks that were included in the project. You can modify the created template as you want. You can delete some of
the tasks and add new tasks.

Templates from Scratch

A project template is an entity that you select when creating a new project to auto-populate the budget, settings,
and attributes of the project with default values that are appropriate for projects of the type. (You can override
these values, if needed.) You can create project templates from scratch by using the Project Templates (PM208000)
form.
When you create a project template, you can specify as many settings as you want, including the following:
• General information: The broad information about the projects, including the default account and
subaccount, default accrual account and subaccounts, and billing period. In the Status box on the Summary
area of the form, you can see whether the specific project template is available for creating new projects.
You can create projects only by using project templates with the Active status.
Creating Project Templates and Common Tasks | 47

• Visibility settings: The list of functional areas where the projects based on this template will be visible.
• Template tasks: The tasks to be included in the projects based on this template. Tasks for the project
template can be added by using the Project Template Tasks (PM208010) form.
• List of employees: The employees who will work on the projects and the project manager who will be
monitoring projects of the type. You also specify labor items and hourly rates for employees working on this
project. Also, you can specify whether only the listed employees can work for the project.
• List of equipment: The equipment to be used for the projects with appropriate non-stock items designating
setup, run, and suspend rates and respective prices specific for projects of the type. You can specify whether
only the listed equipment can be used for these projects.

Template Tasks and Common Tasks

A project template may include tasks that are actually templates of tasks that can be included in projects based on
the template. You can add task templates to the project template.
You add the tasks to the project template and specify the settings for these tasks by using the Project Template
Tasks (PM208010) form. When you create a new template task, you can specify whether it is automatically included
in all projects based on the project template.
Template task settings include the following:
• General settings are overall information about the task, including approver, tax category, default
subaccount, and billing period. The general settings also include Visibility Settings, the list of functional
areas in which this project task must be visible. You can make tasks visible only in the functional areas in
which the parent project is visible—the scope for the task cannot be wider than the scope for the project.
• Recurring billing can be used to implement the flat-price scenario with recurring payments when your
future project uses flat rates for services or products you provide to your customer regularly. For more
information about recurring billing, see Project Billing: Recurring Billing.
When a user creates a new project based on a project template, the user can add to the new project any of the tasks
associated with this project template and any of the existing common tasks.
Common tasks are also templates of tasks, but they are not linked to any specific project template and can be
added to any new or existing project. You create common tasks on the Common Tasks (PM208030) form. Generally,
you provide the same types of settings for common tasks as for the template tasks: general, budget, and recurring
billing settings.

Project Templates and Common Tasks: Configuration Prerequisites

Before starting to create project templates and common tasks, you must be sure that the system has been
configured in a proper way and all required entities have been created, as described in this topic.

Enabling Features
In Acumatica ERP, you can project transactions if the Project Accounting feature is enabled on the Enable/Disable
Features (CS100000) form.

Configuring Basic Project Accounting

You make sure that basic project accounting preferences are configured to ensure that the system is ready for
creating project templates and common tasks, as described in Basic Project Configuration: Implementation Checklist.
Creating Project Templates and Common Tasks | 48

Project Templates and Common Tasks: Implementation Checklist

To ensure that the system is configured properly for creating project templates and common tasks, make sure that
the features and settings listed in the table are configured as described in the following table.

Form Task to Perform

Enable/Disable Features (CS100000) form Make sure that the Project Accounting check box is
selected.

Projects Preferences (PM101000) form Make sure that all necessary settings of project ac-
counting have been specified.

Account Groups (PM201000) form Make sure that all the necessary account groups have
been configured.

Project Templates and Common Tasks: Process Activity

This activity will walk you through the process of configuring project templates. You will create a common task and
add this task to a project. You will also learn how to create a new project based on a project template.

Story
Suppose that the Lake Cafe customer has ordered a juicer, along with the following services from the SweetLife
Fruits & Jams company: site review, installation, and training of employees on operating the juicer. SweetLife's
project accountant has analyzed the past projects and realized that customers are usually doing typical fixed-
price projects that involve the sale of a juicer, along with the services of installation and site review. Sometimes
customers' projects also involve training on operating the juicer.
The project accountant decides to create a new project template for such a project, and to create a common
task for training on operating juicers (so the task can be quickly added to projects as needed). Then the project
accountant creates a project for the customer based on the created project template and common task.
You will perform the needed actions in the system, acting as the project accountant.

Process Overview
You create a project template on the Project Templates (PM208000) form. You create a common task on the Common
Tasks (PM208030) form. Then you use the Projects (PM301000) form to create a project based on the created project
template and add the common task to the project.
Creating Project Templates and Common Tasks | 49

Step 1: Creating a Project Template

To create a new project template, do the following:
1. On the Project Templates (PM208000) form, add a new record.
2. In the Summary area, specify the following settings:
• Template ID: INSTALL
• Description: Installation project
3. On the Summary tab, specify the following settings:
• Project Properties section:
• Revenue Budget Level: Task and Item
• Cost Budget Level: Task
• Project Manager: Pam Brawner
• Billing and Allocation Settings section:
• Billing Period: On Demand
• Billing Rule: COMBINED
4. On the Tasks tab, add a new row, and specify the following settings in the row:
• Task ID: PHASE1
• Type: Cost and Revenue Task
• Description: Site review
5. Add one more row, and specify the following settings:
Creating Project Templates and Common Tasks | 50

• Task ID: PHASE2

• Type: Cost and Revenue Task
• Description: Installation
By default, the system inserts By Billing Period as the Billing Option of each project task and the COMBINED
billing rule as the Billing Rule.
6. On the Revenue Budget tab, add each line of the project revenue that is listed in the following table by
clicking Add Row and specifying the listed settings in the row.

Project Task Inventory ID Original Budgeted Unit Rate

Quantity
PHASE1 SITEREVIEW 2 50

PHASE2 JUICER10 1 1500

PHASE2 INSTALL 4 100

For each line, the system inserts REVENUE as the Account Group because the sales account specified in the
settings of the stock and non-stock items is mapped to this account group, which has the Income type.
7. Save your changes to the project template.
When you save the project template, the system automatically creates project template tasks corresponding
to the tasks you have added to the project template.
8. On the form toolbar, click Activate to assign the project template the Active status, which makes it possible
to use the project template for creating projects.
9. On the Tasks tab, in the Task ID column, click the PHASE1 link to open the task on the Project Template Tasks
(PM208010) form.
On the Summary tab of this form, which the system has opened in a pop-up window, notice that the
Automatically Include in Project check box is selected by default. With this setting, the project template
task will be automatically included in any project created based on the associated project template.

You have created a project template and project template tasks. In the next step, you will create a common task.

Step 2: Creating a Common Task

A common task is a task that can be added to any new or existing project (unlike a project template task, which is
associated with just one project template). To create a common task, perform the following instructions:
1. On the Common Tasks (PM208030) form, add a new record.
2. In the Summary area, specify the following settings:
• Task ID: TRAINING
• Description: Training on juicer usage
3. On the Budget tab, add a budget line with the following settings:
• Account Group LABOR
• Type: Expense (specified automatically when you select the account group)
• Inventory ID: TRAINING
• Cost Code: 00-000
• Description: Training on juicer usage
• UOM: HOUR
• Unit Rate: 50
Creating Project Templates and Common Tasks | 51

4. Save your changes to the common task.

You have created a common task. In the next step, you will create a project based on the project template you have
created.

Step 3: Creating a Project Based on the Project Template

To create a project based on template, do the following:
1. On the Projects (PM301000) form, create a new project, and specify the following settings:
• Project ID: INSTLAKE
• Customer: LAKECAFE
• Template: INSTALL
When you select the project template, the system fills in the relevant elements of the project with the
settings specified for the template, including tasks and revenue budget lines.
2. In the Summary area, enter Installation project for Lake Cafe as the Description of the
project.
3. On the Summary tab, clear the Change Order Workflow check box.
4. Save your changes to the project.
5. On the Tasks tab, make sure that the PHASE1 and PHASE2 tasks have been copied to the project from the
selected project template.
6. On the table toolbar of the tab, click Activate Tasks to change the status of the added tasks to Active.
7. On the Revenue Budget tab, make sure that three revenue budget lines have been copied to the project
from the selected project template.
8. In the line with the PHASE1 task and the SITEREVIEW item, specify 4 as the Original Budgeted Quantity.
When you enter the Original Budgeted Quantity in each line, the system automatically calculates the
Original Budgeted Amount as the Original Budgeted Quantity multiplied by the Unit Rate (see the
screenshot below).
9. In the line with the PHASE2 task and the INSTALL item, specify 8 as the Original Budgeted Quantity.
10.In the line with the PHASE2 task and the JUICER10 item, specify 2 as the Original Budgeted Quantity.

Figure: Revenue budget lines in the project

11.Save the project.

12.On the form toolbar, click Activate Project. The system assigns the project the Active status.

You have created the project based on the project template. In the next step, you will add the common task to the
project.
Creating Project Templates and Common Tasks | 52

Step 4: Adding the Common Task to the Project

To add the common task to the INSTLAKE project, perform the following instructions:
1. While you are still reviewing the INSTLAKE project on the Projects (PM301000) form, on the table toolbar of
the Tasks tab, click Add Common Tasks.
2. In the Add Tasks dialog box, which opens, select the check box in the unlabeled column for the line with the
TRAINING common task, and click Add Common Tasks.
The system adds the common task to the project and closes the dialog box.
3. On the Tasks tab, select Active as the Status in the line with the TRAINING task, which you just added.
4. On the Cost Budget tab, make sure that the line with the TRAINING common task has been added to the cost
budget of the project. Specify 1 as the Original Budgeted Quantity in this line.
5. Save your changes to the project.

You have finished configuring the project based on a project template and have added the common task to the
project.
Creating Labor Items | 53

Creating Labor Items

This chapter describes how to create a labor non-stock item that will be used in projects and define labor cost rates
to be used for billing projects.

Labor Items: General Information

Among other items your company sells, it may sell the labor of its employees. In Acumatica ERP, you can define
a certain type of labor available for sale (that is, a type performed regularly by your company) by creating a labor
item. A labor item is a non-stock item containing information that includes the default price and the sales account
to be used for transactions. Labor items are used in projects for recording information on the hourly rates of the
applicable employees, the GL accounts used for tracking labor in projects, and the taxes that apply to this labor.

Learning Objectives
In this chapter, you will learn how to do the following:
• Prepare the system for the configuration of labor items
• Create a new labor item
• Assign a labor item to an employee
• Configure labor cost rates for an employee

Applicable Scenarios
You may need to create a labor item in any of the following cases:
• When you are going to track the cost of employees' labor in a particular project
• When you need to sell the same type of labor at diﬀerent prices
• When you are going to add a new type of expenses to projects

Labor Item Settings

Non-stock items of the Labor type are used as a source of general ledger accounts for transactions that the system
generates in the process of project billing.
You create labor items and maintain information about their settings by using the Non-Stock Items (IN202000) form.
On this form, you can enter and maintain a variety of settings for a labor item, including the following:
• The identifier: You assign every labor item a unique identifier (in the Inventory ID box of the Summary area)
based on the INVENTORY segmented key. If you need to change the ID of an existing non-stock item (that is,
one that has already been saved), you can click Change ID on the More menu of the Non-Stock Items form.
• The item type: The item type is selected in the Type box of the General tab (Item Defaults section). When
creating a labor item, you select the Labor item type.
• The valuation method: When you select the Labor type for the item, Standard Cost is inserted in the Cost
Based On box of the Price/Cost tab (Cost Accrual section).
• Units of measure (UOMs): For each labor item, in the Unit of Measure section of the General tab, you can
select the unit of measure used as the base unit for the item.
Creating Labor Items | 54

The system must be able to convert the base unit of measure of the labor item into minutes.
That is, the conversion rule from a minute to the base unit of measure selected for the labor
item must be specified on the Units of Measure (CS203100) form.

• General ledger accounts: Each labor item must have the expense account specified on the GL Accounts tab;
the expense account must be mapped to the appropriate account group. If needed, you can also specify
sales and expense accrual accounts.
• Price information: On the Price/Cost tab, you can specify settings related to the price and cost of the item,
including the default price defined for a labor item (in the Default Price box of the Price Management
section), which is used as the unit rate in the revenue budget lines.
To ensure that the system will be able to obtain the required settings from each labor item when an invoice is
generated, you need to associate this labor item with the appropriate entity (that is, an employee, a case, a project,
or a contract), which may depend on the type of the billing process that you use. If no labor items are specified for
the entities associated with the invoice, the system will not generate the invoice.

Labor Items in Time Cards

You can use time tracking for your activities to facilitate the process of labor tracking and costing. For instance,
with time activities, you can bill projects based on the billable time spent on related activities. In Acumatica ERP,
to account for work hours and overtime hours spent on projects, employees use time cards. To calculate the cost
of labor, the system uses the labor cost rates defined for each employee on the Labor Rates (PM209900) form. The
cost of overtime labor is calculated based on the employee work hour rates multiplied by the factor specified in the
Multiplier column of the Overtime earning type on the Earning Types (EP102000) form. For more information, see
Employee Time Billing: General Information.

Labor Items: Rules of Billing

If the Time Management feature is enabled on the Enable/Disable Features (CS100000) form, you can bill projects
for employee time spent working on these projects. The system uses data from labor items for each invoice that the
system generates when a time activity or case has been billed. The following sections explain in which order the
system selects the labor items for activity billing and case billing.

Time Activity Billing

When time activities, which are created on the Employee Time Activities (EP307000) form, are being billed, the
system determines the labor item to be used in the invoice and inserts it automatically in each applicable line of
the invoice on the Document Details tab of the Invoices and Memos (AR301000) form. The system uses the first
labor item that it finds in a search of the following places in the system (listed in the order in which the system
searches the location for a labor item value):
1. The Employees tab of the Projects (PM301000) form for the project associated with the activity being billed,
in the Labor Item column of the Overrides table for the employee who is the owner of the activity being
billed. This table contains a list of labor items for a particular employee associated with the project, with
one specific labor item for each earning type of the particular activity.
2. The Labor Item Overrides tab of the Employees (EP203000) form for the employee who is the owner of the
activity being billed. In the table on this tab, a specific labor item can be specified for each earning type.
3. The General Info tab of the Employees (EP203000) form for the employee who is the owner of the activity
being billed: On this tab, a labor item can be specified that is to be used for the employee regardless of the
earning type of the particular activity.
Creating Labor Items | 55

Case Billing
During the billing of a case that has been created on the Cases (CR306000) form, the system determines the labor
item to be used in the invoice and inserts it automatically in the invoice line. For the cases whose case class has the
Per Case billing mode specified, the system always uses the labor item and overtime labor item specified on the
Details tab of the Case Classes (CR206000) form.
For cases whose case class uses the Per Activity billing mode, the system uses the first labor item that it finds in a
search of the following places in the system (listed in the order in which the system searches the location for a labor
item values; the search ends when the system finds a value):
1. The Labor Items tab of the Case Classes form for the case class of the case being billed. In the table on this
tab, a labor item can be specified for each earning type; the listed labor items and earning types are not
associated with any specific employee. If a row with the earning type of the activity is specified on this tab,
the same default price and the same sales account (those specified for the labor item) are used for all case-
related activities of the class with the same earning type, regardless of their owner.
2. The Employee Override tab of the Customer Contracts (CT301000) form for the contract specified for the
case being billed. In the table on the Employee Override tab, a specific labor item can be specified for a
particular employee (selected in the Employee column) related to the contract. The table can also include a
row with All Employees selected in the Employee column and a particular labor item that will be used for all
other employees. Additionally, on this tab, a separate labor item can be specified for each earning type.
3. The Employees tab of the Projects (PM301000) form for the project associated with the activities related
to the case being billed, in the Labor Item column of the Overrides table for the employee who is the
owner of the activity being billed. This table contains a list of labor items can be specified for each particular
employee associated with the project, with one specific labor item for each earning type.
4. The Labor Item Overrides tab of the Employees (EP203000) form for the employee who is the owner of the
activities related to the case being billed. In the table on this tab, a specific labor item can be specified for
each earning type for the employee.
5. The General Info tab of the Employees (EP203000) form for the employee who is the owner of the activities
related to the case being billed. On this tab, a labor item can be specified that is to be used for the employee
regardless of the earning type of the particular activity.

For further information about the billing of contract-related cases, see Usage-Based Contracts. For details on how
you can use labor items to set up employee rates for contracts, see Employee Rates for Contracts.

Labor Items: Configuration Prerequisites

Before starting to create labor items, you must be sure that the system has been configured properly and that all
required entities have been created, as described in the following sections.

Enabling the Needed Features

On the Enable/Disable Features (CS100000) form, the Projects feature must be enabled.

Configuring the System

You need to make sure the following tasks have been performed in Acumatica ERP before you begin creating labor
items for projects:
• On the Projects Preferences (PM101000) form, the basic project accounting settings have been specified:
numbering sequences, non-project code, visibility settings, and posting settings. The actual combination
of settings you need to specify depends on the processes in your organization and on the features enabled
Creating Labor Items | 56

on the Enable/Disable Features (CS100000) form. For details, see Basic Project Configuration: Implementation
Activity.
• On the Account Groups (PM201000) form, the GL accounts used for labor items have been mapped to
appropriate account groups. (Otherwise, the transactions related to labor on projects will not be visible in
projects.) For details on configuring account groups, see Account Groups: Implementation Activity.
• On the Units of Measure (CS203100) form, all necessary system-wide units of measure that you will use for
labor items have been added. For details, see Creating Units of Measure.
• On the Tax Categories (TX205500) form, the necessary tax categories have been created.

Configuring Posting Classes

If the Inventory and Order Management feature is enabled on the Enable/Disable Features (CS100000) form in your
system, a posting class must be specified in non-stock item you create, including each labor item. Before you create
labor items, make sure that on the Posting Classes (IN206000) form, the necessary posting classes have been
created. For details, see Creating Posting Classes.

Configuring Labor Item Identifiers

The INVENTORY segmented key on the Segmented Keys (CS202000) form defines the structure of the identifiers of
non-stock items. By default, this segmented key specifies that the item identifier is an alphanumeric string of up
to 10 characters. For the key, you can define how many segments it is to have, what values may be used, whether
these values should be validated, and whether auto-numbering should be used in one of the segments. You can
also divide item identifiers into segments with specific values. For more information on configuring segmented
keys, see Segmented Identifiers.

Labor Items: To Configure a Labor Item

This activity will walk you through the process of configuring a labor non-stock item that will then be used for
billing employee labor within projects.

Story
Suppose that you, as an implementation manager, are updating the system configuration for the SweetLife Fruits
& Jams company. To be able to bill the customers for the provided labor within the projects, you need to create
a labor item that will represent the repair service for juicers provided by a particular employee, Eric Killian, for
SweetLife customers who have purchased juicers.

Process Overview
You will create a non-stock item representing the repair labor on the Non-Stock Items (IN202000) form and specify
the item’s settings, including the expense account that has been mapped to an appropriate account group. You will
also specify the default price for the item. Then on the Employees (EP203000) form, you will assign this labor item
to the employee who will perform the repair work.

Configuration Overview
In the U100 dataset, the following tasks have been performed for the purposes of this activity:
Creating Labor Items | 57

• On the Enable/Disable Features (CS100000) form, the Project Accounting feature has been enabled to support
the project accounting functionality.
• On the Chart of Accounts (GL202500) form, the 54600 – Repair Expense account has been defined and
mapped to the MAINTSERV account group, which has been defined on the Account Groups (PM201000) form.
• On the Posting Classes (IN206000) form, the NONSTOCK posting class has been defined.
• On the Employees (EP203000) form, the EP00000006 – Eric Killian employee record has been created.

System Preparation
To prepare to perform the instructions of the activity, sign in to the system as system administrator by using the
gibbs username and the 123 password.

Step 1: Creating the Labor Item

To create the labor item that will be used to represent repair services, perform the following instructions:
1. On the Non-Stock Items (IN202000) form, click Add New Record on the form toolbar, and specify the
following settings in the Summary area:
• Inventory ID: JUICERREPAIR
• Description: Juicer repair (at the customer's place)
2. On the General tab, specify the following settings:
• Type: Labor
• Posting Class: NONSTOCK
Based on the settings of the NONSTOCK posting class, the system will use the GL accounts specified for
the inventory item.
• Tax Category: EXEMPT
• Base Unit: HOUR
• Sales Unit: HOUR
• Purchase Unit: HOUR
3. In the Default Price box on the Price/Cost tab, enter 80.
4. On the GL Accounts tab, specify the following accounts:
• Expense Accrual Account: 11010 (AR Accrual Account)
• Expense Account: 54600 (Repair Expenses)
• Sales Account: 40000 (Sales Revenue)
5. On the form toolbar, click Save.

Step 2: Assigning the Labor Item to an Employee

To assign the labor item you have created to the employee who will perform the labor, perform the following
instructions:
1. On the Employees (EP203000) form, open the EP00000006 – Eric Killian employee record.
2. In the Labor Item box on the General Info tab, select JUICERREPAIR.
Creating Labor Items | 58

3. Save your changes to the employee record.

You have created the labor item to be used for repair service and specified an expense account that is mapped to a
particular account group. You also have associated this labor item with the particular employee who will perform
this work.
Now you can proceed with specifying labor cost rates for the employee, as described in Labor Items: To Define Labor
Cost Rates,

Labor Items: Labor Cost Rates in Projects

In Acumatica ERP, you can define labor rates, which are used to determine the cost of employee time spent on a
particular project, and bill customers based on this cost. The following sections explain how the project-specific
labor cost rates are specified and retrieved in projects.

Creation of Labor Cost Rates

On the Labor Rates (PM209900) form, you can define labor cost rates that are specific to particular entities, such as
the employee, labor item, project, and project task.
When you define a labor cost rate, you specify its type, the rate, and an optional description and external reference
number of the rate. Based on the type you select, particular columns become available so that you can specify the
particular entity the rate applies to and other relevant details. In the Labor Rate Type column of the Labor Rates
form, you select one of the following options:
• Labor Item: If you select this type in the row, you must also select the labor item and the rate.
• Employee: If you select this type in the row, you must select the employee and the rate; optionally, you can
also select a particular labor item to which the rate applies.
• Project: If you select this type in the row, you must select the project and the rate. Optionally, you can select
any of the following to which the rate applies: the project task and the labor item.
• Union Wage: If you select this type in the row, you must select the union local, the labor item and the rate.
This option is available only if the Construction feature is enabled on the Enable/Disable Features (CS100000)
form.
• Prevailing Wage: If you select this type in the row, you must select the project, the labor item and the rate.
This option is available only if the Construction feature is enabled on the Enable/Disable Features form.
For each labor cost rate, regardless of its type, you specify the effective date. If there are multiple labor cost rates
with the same settings, the system uses the rate with the most recent effective date that precedes the current date.
You can also create a labor cost rate with the same settings as an existing labor cost rate but with an effective date
that is later than the latest effective date of the existing labor cost rate.

Units of Measure in Labor Cost Rates

When you specify the rate for a row with a labor item selected on the Labor Rates (PM209900) form, you specify the
rate for the base unit of measure (UOM) of the labor item. The base UOM of the labor item should be convertible
into minutes so that the system can convert the base UOM to a minute. That is, there should be conversion rules
from a minute to the base UOM and from the base UOM to a minute on the Units of Measure (CS203100) form.
When you create a labor cost rate for a labor item with a base UOM that is not an hour, make sure that you enter the
rate for the base UOM of the labor item on the Labor Rates form so that the system calculates the correct amount
when a time activity with this labor item is released.
For example, suppose that you have the TRAINING labor item, whose base UOM is UNIT. According to the conversion
rules specified on the Units of Measure (CS203100) form, one unit equals four hours. On the Labor Rates form,
when you add a labor cost rate with an employee and the TRAINING labor item, you should specify the rate in the
base UOM, which is UNIT. When the employee enters a time card on the Employee Time Card (EP305000) form and
Creating Labor Items | 59

selects the TRAINING labor item in a time activity on the Activity (CR306010) form, the time is reported in hours even
though the base UOM of the selected item is not an hour. When the time card with the corresponding time activities
is released, the system generates a project transaction with the TRAINING labor item in the base UOM of the item. If
the employee has reported eight hours, the project transaction will contain two TRAINING units.

Retrieval of Labor Cost Rates

When you create a time card on the Employee Time Card (EP305000) form, for each line, you select the employee,
project, project task, labor item, and date. For each time card line, the system retrieves the most appropriate
labor cost rate from the Labor Rates (PM209900) form. The system selects the most specific existing labor cost rate
among the defined labor cost rates that matches all the settings specified in the time card line. The system looks for
the following sets of settings and uses the first set it finds that match the time card settings:
• The Project rate type, project, project task, employee, labor item, and effective date
• The Project rate type, project, project task, employee, and effective date
• The Project rate type, project, project task, labor item, and effective date
• The Project rate type, project, project task, and effective date
• The Project rate type, project, employee, labor item, and effective date
• The Project rate type, project, employee, and effective date
• The Project rate type, project, labor item, and effective date
• The Project rate type, project, and effective date
• The Employee rate type, employee, labor item, and effective date
• The Employee rate type, employee, and effective date
• The Labor Item rate type, labor item, and effective date
If there are multiple labor cost rates with the same settings, the system uses the rate with the actual effective date
corresponding to the date of the time card line in the time zone in which the time card line was reported.

Labor Items: To Define Labor Cost Rates

In the following implementation activity, you will learn how to define labor cost rates.

Story
Suppose that in the SweetLife Fruits & Jams company, the price of the consulting services depends on the
qualifications of the consultant who provides the service. Acting as SweetLife's project manager, you need to define
the labor cost rates that will be eﬀective starting January 1, 2023, for three of your company's consultants:
• Pam Brawner, a project manager, whose work rate is $48 per hour
• Jon Waite, a senior consultant, whose work rate is $44 per hour
• Alberto Jimenez, a junior consultant, whose work rate is $40 per hour

• On the Non-Stock Items (IN202000) form, the CONSULTJR, CONSULTSR, and CONSULTPM labor items have
been created; on the Employees (EP203000) form, these items have been assigned to the EP00000004 -
Alberto Jimenez, EP00000003 - Jon Waite, and EP00000001 – Pam Brawner employees, respectively. The base
unit of all items is HOUR. For an example of configuring a labor item and assigning it to an employee, see
Labor Items: To Configure a Labor Item.For an example of configuring a labor item and assigning it to an
employee, see Labor Items: To Configure a Labor Item.

Process Overview
You will define labor cost rates that are based on the employee who performed the work on the Labor Rates
(PM209900) form.

System Preparation
To prepare to perform the instructions of the activity, do the following:
1. Sign in to the system as project accountant by using the brawner username and the 123 password.
2. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to 1/1/2023. If a diﬀerent date is displayed, click the Business Date menu
button, and select 1/1/2023 on the calendar.

System Preparation
To prepare to perform the instructions of the activity, in the info area, in the upper-right corner of the top pane of
the Acumatica ERP screen, make sure that the business date in your system is set to 1/1/2023. If a diﬀerent date is
displayed, click the Business Date menu button, and select 1/1/2023 on the calendar.

Step: Defining Labor Cost Rates

To define the needed labor cost rates, do the following:
1. On the Labor Rates (PM209900) form, to add a new labor cost rate for Alberto Jimenez, click Add Row on the
table toolbar, and specify the following settings in the row:
• Labor Rate Type: Employee
Creating Labor Items | 61

• Employee: EP00000004 (Alberto Jimenez)

• Labor Item: CONSULTJR (inserted automatically as the labor item associated with the employee)
• Cost Rate: 40
• Effective Date: 1/1/2023
2. To add a labor cost rate for Jon Waite, click Add Row on the table toolbar, and specify the following settings
in the row:
• Labor Rate Type: Employee
• Employee: EP00000003 – Jon Waite
• Labor Item: CONSULTSR (inserted automatically as the labor item associated with the employee)
• Cost Rate: 44
• Effective Date: 1/1/2023
3. To add a labor cost rate for Pam Brawner, again click Add Row on the table toolbar, and specify the
following settings in the row:
• Labor Rate Type: Employee
• Employee: EP00000001 - Pam Brawner
• Labor Item: CONSULTPM (inserted automatically as the labor item associated with the employee)
• Cost Rate: 48
• Effective Date: 1/1/2023
4. Save your changes to the labor cost rates. The labor cost rates you have defined should look like those
shown in the following screenshot.

Figure: The added labor cost rates

You have completed configuring labor cost rates.

Now you can complete the Employee Time Billing: Process Activity to review how the labor cost rates are used in
projects.

Labor Items: Labor Cost Rates in Construction

In Acumatica ERP, you can define labor rates, which are used to determine the cost of employee time spent on a
particular project, and bill the customers based on this cost. The following sections explain how the labor cost rates
are specified and retrieved in construction projects.
Creating Labor Items | 62

Creation of Labor Cost Rates

On the Labor Rates (PM209900) form, you can define labor cost rates that are specific to particular entities, such as
the employee, project, project task, labor item, date, union local, certified job, and workers' compensation code.
When you define a labor cost rate, you specify its type, the rate, and an optional description and external reference
number of the rate. Based on the type you select, particular columns become available so you can specify the
particular entity the rate applies to and other relevant details. In the Type column of the Labor Rates form, you
select one of the following options:
• Labor Item: If you select this type, in the row, you must also select the labor item and the rate.
• Employee: If you select this type, in the row, you must select the employee and the rate; optionally, you can
also select a particular labor item to which the rate applies.
• Project: If you select this type, in the row, you must select the project and the rate. Optionally, you can select
any of the following to which the rate applies: the project task, the employee, and the labor item.
• Union Wage: If you select this type, in the row, you must select the applicable union local and labor item.
You might define a rate of this type if an employee is a member of a local branch of a union; in this case, the
union requires the company to pay the dictated union rate, which is usually higher than the prevailing wage
rate.
• Prevailing Wage: If you select this type, in the row, you must select the project and labor item.
You might define a rate of this type if a government entity requires the construction companies to pay a
non-union employee no less than the dictated prevailing wage rate. The prevailing wage is a government
mechanism to equalize the wage rates that are paid by a construction company to non-union workers
compared to labor union workers for the same type of work performed for a certified job. (A certified job is a
job performed for government, such as a construction project of a municipal building.)
For each labor cost rate, regardless of its type, you specify the effective date. If there are multiple labor cost rates
with the same settings, the system uses the rate with the most recent effective date that precedes the current date.
You can also create a labor cost rate with the same settings as an existing labor cost rate but with an effective date
that is later than the latest effective date of the existing labor cost rate.

Units of Measure in Labor Cost Rates

Time Card Population

When you create a time card on the Employee Time Card (EP305000) form, for each line, you select the employee,
project, project task, labor item, date, union local, certified job, and worker compensation code.
Creating Labor Items | 63

In a time card, the system automatically populates the Union Local column with the union local copied from the
settings of the employee specified on the General Info tab of the Employees (EP203000) form if the employee’s
union local is specified is one of the union locals of the project specified on the Union Locals tab of the of the
Projects form, or if the project has no union local. Otherwise, the system leaves the column blank.

The system automatically selects the Certified Job check box in the time card line if for the corresponding project,
the Certified Job check box is selected in the Project Properties section on the Summary tab of the Projects
(PM301000) form. In a time card, you can override the automatically selected Certified Job and Union Local
settings, if needed.

Retrieval of Labor Cost Rates

For each time card line on the Employee Time Card (EP305000) form, the system retrieves the cost rate from the
labor cost rate table on the Labor Rates (PM209900) form as follows:
1. Among labor cost rates of the Project, Employee, and Labor Item rate types, the system selects the most
specific existing labor cost rate among the defined labor cost rates that matches all the settings specified
in the time card line and is eﬀective on the date of the document. The system looks for the following sets of
settings that match the time card settings and uses the first set it finds:
• The Project rate type, project, project task, employee, and labor item
• The Project rate type, project, project task, and employee
• The Project rate type, project, project task, and labor item
• The Project rate type, project, and project task
• The Project rate type, project, employee, and labor item
• The Project rate type, project, and employee
• The Project rate type, project, and labor item
• The Project rate type, and project
• The Employee rate type, employee, and labor item
• The Employee rate type, and employee
• The Labor Item rate type, and labor item
2. For the time card line, if the Certified Job check box is selected and a Union Local is specified, the system
selects the Union Wage and Prevailing Wage rate types that match the settings specified in the time card
line. Then the system compares the most specific labor cost rate that has been found in the previous
step with the selected labor cost rates of the Union Wage and Prevailing Wage rate types. Based on the
comparison, the system selects the higher labor cost rate.
3. If there are multiple labor cost rates with the same settings, the system uses the rate with the actual
eﬀective date corresponding to the date of the time card line in the time zone in which the time card line
was reported.

Labor Items: Related Forms

This topic describes forms you may review to gather information about labor items.

Reviewing Sales Prices

You can review the sales prices of a labor item by clicking Sales Prices on the More menu of the Non-Stock Items
(IN202000) form. The system navigates to the Sales Prices (AR202000) form, where you can review and add
the sales prices for the selected labor item. For details about managing sales prices, see Sales Prices: General
Information.

Reviewing Vendor Prices

You can review the vendor prices of a labor item by clicking Vendor Prices on the More menu of the Non-Stock
Items (IN202000) form. The system navigates to the Vendor Prices (AP202000) form, where you can review and add
the vendor prices for the selected labor item. For details about managing vendor prices, see Vendor Prices: General
Information.
Creating and Processing Projects | 65

Creating and Processing Projects

Projects represent an organized, well-defined way to manage corporate activity and carefully track and manage the
related costs in the company. This chapter explains how you create a project in Acumatica ERP, specify its settings,
and work with the project during the project lifecycle.

Project Creation and Processing: General Information

A project in Acumatica ERP is a one-time endeavor with its own budget, costs, and revenues; the funding and
deliverables of a project are usually finite. In the system, a project contains various specifications that aﬀect project
completion, such as the date range, customer, and resources (including employees and equipment).

Learning Objectives
In this chapter, you will learn how to do the following:
In this lesson, you will learn how to do the following:
• Plan a project structure
• Create a project and specify its settings
• Plan the structure of the project budget
• Set up project security
• Process a project during its lifecycle

Applicable Scenarios
You create a project to plan work to be performed for a customer, define budgets for the planned work, track the
progress of completion of the planned work, bill the customers for the provided services, and track the costs and
revenues of the provided services.

Project Settings
You create a new project and specify its settings on the Projects (PM301000) form. When you are manually adding a
new project to the system, you enter the following information:
• General information: This information includes the description, start date, end date, project manager,
project address information, the project currency, and the branch to which the project belongs. You can also
specify a billing rule to be assigned to project tasks by default.
• Billing schedule: You define whether you will use direct AR invoices when billing the project, or use the
pro forma invoices workflows. Then you determine when the project is billed: on the date of the customer
statement, at the end of each month, at the end of each quarter, or at the end of each year.
• Project tasks: You define the project tasks of the project. A project task in a project is a separate work unit
with its own lifecycle, budget, cost, revenue, and billing rule. Budgeted, revised, and actual amounts in the
project are tracked by account group balances, each of which is the total of all the corresponding amounts
in the project tasks. That is, the project does not have any balances beyond those in the project tasks of the
project.
• Budget: You define the level of details for cost budget and for revenue budget. Then you specify the budget,
which holds the estimated expenses and revenues for a project.
• Default GL accounts: You define the general ledger accounts to be used by default in project-related
documents.
Creating and Processing Projects | 66

Type of Projects
You can use projects for tracking activities involving customer interaction (external projects) and in-house
work (internal projects). The key objective of external projects is balancing costs and income to make sure the
organization remains profitable, while meeting project goals and maximizing customer satisfaction. The scope
of internal projects is typically limited to the physical and organizational boundaries of your organization; these
projects serve the needs of the organization and never produce any revenue.
Depending on which activities you are going to track, you can configure projects of the following types:
• A fixed-price project, which is an external project in which services and products are provided to customers
at a fixed price; the price of the project is defined at the beginning of the project and is not changed during
its completion (unless any change orders are processed for the project).
• A cost-plus project, which is an external project in which the prices are calculated as a percentage of the
costs. The final price of the cost-plus project depends on the overall cost of fulfilling the project, and the
costs may be billed with or without a premium.
• An internal project, which is used to track activities completed within your company. The scope of these
projects is limited to the physical and organizational boundaries of an organization; these projects serve the
needs of the organization and never produce any revenue. Internal projects have budgets, do not include
billing settings, and are not associated with any customer.

Project Creation and Processing: Project Security Configuration

Many organizations use projects to achieve their business objectives eﬀiciently. An organization may have multiple
projects in progress at a given time. By limiting users' access to and visibility of information about particular
projects and related transactions, managers can properly organize the work on each project. In Acumatica ERP, you
can use roles to provide access to forms based on employees' responsibilities and restriction groups and to limit
the visibility of particular projects to only the responsible team, as described in this topic.

In Acumatica ERP, you can configure groups with direct and inverse restriction. In this topic, for
simplicity, groups with direct restriction are used in examples. You can use inverse restriction groups
in the same way as you use direct restriction groups. For details on the types of restriction groups, see
Types of Restriction Groups.

Usage Scenarios
The most common scenarios of securing projects are the following:
• Managing access to particular forms based on users’ roles: Each employee involved with a project has
specific tasks. You can define user roles that will give employees access to project-related forms based on
their responsibilities. For details, see Access to Forms Based on Roles.
• Controlling the visibility of sensitive projects by user: If your organization has multiple project teams and
multiple employees have the same functional responsibilities in diﬀerent projects, you can make particular
projects available to employees of only a particular project team by using restriction groups. For more
information, see Visibility of Projects by User.
• Controlling the visibility of projects by area of the system: If a project should be associated with transactions
in a particular functional area of the system (such as accounts payable), you can make the project visible
only within this area. For details, see Visibility of Projects by Area.
• Managing the visibility of project transactions by account group: If you need to limit the visibility of
sensitive project transactions so that only particular users can see and work with these transactions,
Creating and Processing Projects | 67

you can configure access to the project transactions by account group. For details, see Visibility of Project
Transactions by Account Group.

Access to Forms Based on Roles

By using the user security forms, you can configure access rights to the project-related forms for each employee,
in accordance with the employee's typical responsibilities. For more information about user roles, see User Roles:
General Information.

For example, you can create the following roles for employees of your organization who work with projects:
• Project Manager: A role for an employee who coordinates projects and is responsible for achieving the
project goals. In the system, this person sets up pricing in projects, creates tasks, and configures projects
and project templates. This role should have access to project-related forms—that is, the forms in the
Projects workspace—including those listed in the Preferences category. Also, this role may require access
to the Approvals (EP503010) form so that users with this role can approve projects.
• Project Controller: A role for an employee who controls project transactions, performs allocations, and runs
project billing. This role should have full access to project-related forms—that is, the forms in the Projects
workspace—including those listed in the Processes category.
• Project Accountant: A role for an employee who plans and executes the project budget and enters project
transactions. This role should have access to project-related forms—that is, the forms in the Projects
workspace—including those listed in the Transactions and Profiles categories.
• Project Team Member: A role for an employee who works on a project and enters time sheets and time
cards. This role should have access to project-related forms—that is, the forms in the Projects workspace—
including those listed in the Transactions and Profiles categories. It should also have access to the forms
listed in the Time Tracking category of the Time and Expenses workspace.

Visibility of Projects by User

By using the row-level security forms of Acumatica ERP, you can configure the system to hide or display particular
projects for employees, in addition to implementing task-based roles. Employees who have access to the Projects
(PM301000) form can view or edit all the projects available in your organization. You may need to use restriction
groups to restrict the visibility of specific projects to only employees of the project team. For details on restriction
groups, see Restriction Groups in Acumatica ERP.
As a simple example, suppose that you need to restrict the visibility of projects to employees in your organization
given the following:
• There are two projects in your organization: Project Y and Project Z.
• User PM is a project manager who controls all projects in your organization.
• User AC is an accountant who plans budgets and enters project transactions for all projects in your
organization.
• Users E1 and E2 are engineers who work on Project Y.
• Users E3 and E4 are engineers who work on Project Z.
To configure the visibility of projects according to the listed statements, you would do the following on the Project
Access (PM102000) form:

1. Create two restriction groups of type A (with direct restriction): Group 1 for Project Y and Group 2 for Project
Z.
2. Include the following entities in Group 1: Project Y, and users PM, AC, E1, and E2.
3. In Group 2, include Project Z, and users PM, AC, E3, and E4.

With the restriction groups you have created, the users’ visibility of projects would be the following:
• Users PM and AC can see both Project Y and Project Z.
Creating and Processing Projects | 68

• Users E1 and E2 can see only Project Y.

• Users E3 and E4 can see only Project Z.

Visibility of Projects by Area

Aer you have created a project in Acumatica ERP, the project is available system-wide by default. You can control
the visibility of projects within functional areas of the system in the following ways:
• Display or hide the Project and Project Task boxes and columns on forms: If you want to track project-
related data in particular functional areas (for example, accounts receivable and purchase orders), you can
configure the system to display the boxes and columns where a user can specify the project-related data
only within these areas. To do this, in the Visibility Settings section of the Projects Preferences (PM101000)
form, you select the check boxes for the areas where these elements should be displayed and clear the
check boxes for the areas where the elements should not be displayed.
• Display or hide a project: If the project transactions of a particular project should be performed within a
particular area (for example, inventory), you can make the project visible in this area and hidden in other
areas, so that users can select only appropriate projects when they are preparing documents. You can select
areas in the Visibility Settings section of the General Info tab on the Projects (PM301000) form. Aer you
have selected an area, users can select the project in documents generated on the related forms, and the
release of these documents automatically updates the project data.
• Display or hide the tasks of a project: If the users perform particular tasks of a project in a certain area (for
example, the Warehouse operations task requires users to enter inventory transactions, and the Customer
payments task requires users to enter accounts receivable documents), you can select the areas where the
task will be displayed in the settings of the project task. You select these areas in the Visibility Settings
section of the General Info tab on the Project Tasks (PM302000) form.

Visibility of Project Transactions by Account Group

By using the Project Transaction Visibility by Account Group (PM103000) form, you can configure the system to hide
particular lines of project transactions that contain sensitive information by configuring user access by account
group.
If you configure a user to have no access to a particular account group, this user cannot enter and release project
transactions that include lines with this account group on the Project Transactions (PM304000) form. Also, on the
following forms, the user is not able to view transactions that include the restricted account group in the Debit
Account Group or Credit Account Group box:
• Project Transactions (PM304000)
• Project Transaction Details (PM401000)
• Project Transaction Register (PM633000)
• Project Cost Transaction History (PM706230)
• Project Transaction Inquiry (PMGI0035)

On any of these forms, if any transaction lines are hidden because a user is denied access to the
account group, the system displays a warning and calculates the totals shown on the forms based on
the visible transaction lines.

For example, suppose that you are a system administrator, and you have to configure the visibility of project
transactions to the appropriate users considering the following:
• There are two users for which you need to configure the visibility of project transactions in your
organization: User A and User P.
• User A, the accounting manager who controls work of the accounting department, is allowed to see all
financial information. This user enters project expenses related to employee labor.
Creating and Processing Projects | 69

• User P, the project manager who manages the project. is allowed to enter and view project transactions
for project expenses related to cost of materials and subcontract work. The user must not be able to see
sensitive information related to employee labor for the project
To configure the described security scenario, the system administrator does the following in the system:
1. On the Account Groups (PM201000) form, configures the MATERIAL (for material expenses), SUBCON
(for subcontract expenses), and LABOR (for employee labor expenses) account groups, and maps the
appropriate general ledger accounts to these groups.
2. On the Project Transaction Visibility by Account Group (PM103000) form, creates a new restriction group with
the B Inverse type and adds User P and the LABOR account group to this restriction group.

With this configuration, User A enters project transactions with employee labor related to project and selects
the LABOR account group. Access to this account group is restricted for User P, who is able to review the project
transaction lines with the MATERIAL and SUBCON account groups but cannot view the lines with LABOR account
group on data entry forms and in reports.

Forms for Project Security

In the following table, you can find the list of the forms that you can use to manage restriction groups with projects.
The table also includes the task that you can perform by using each form.
For information about how to add or remove objects from a restriction group, see Operations with Restriction
Groups.

Table: Forms for Project Security

Task Form

To initially configure the visibility of a project to users Project Access (PM102000)

To change the visibility of a project in multiple restric- Restriction Groups by Project (PM102010)
tion groups

To change the visibility of projects to a user in multiple Restriction Groups by User (SM201035)
restriction groups

To change the visibility of project transactions with Restriction Groups by Account Group (PM103000)
particular account groups to a user in multiple restric-
tion groups

Project Creation and Processing: Configuration Prerequisites

Before starting to create a project, you must be sure that the system has been configured properly and that all
required entities have been created, as described in the following sections.

Enabling the Needed Features

On the Enable/Disable Features (CS100000) form, the Projects feature must be enabled.

Configuring Project Identifiers

The PROJECT segmented key on the Segmented Keys (CS202000) form defines the identifier of the projects. By
default, this segmented key specifies that the project identifier is an alphanumeric string of up to 10 characters. For
the key, you can define how many segments it is to have, what values may be used, whether these values should be
Creating and Processing Projects | 70

validated, and whether auto-numbering should be used in one of the segments. You can also divide item identifiers
into segments with specific values. For more information on configuring segmented keys, see Segmented Identifiers.

Configuring the System

Before you enter any new project, you must ensure that the following are configured:
• On the Projects Preferences (PM101000) form, the basic project accounting settings have been specified:
numbering sequences, non-project code, visibility settings, and posting settings. The actual combination of
settings you need to specify depends on the processes in your organization and on the features enabled on
the Enable/Disable Features (CS100000) form. For an example of configuring basic project settings, see Basic
Project Configuration: Implementation Activity.
• On the Account Groups (PM201000) form, the account groups that will be used in the project have been
created. Account groups make it possible to transfer financial and non-financial information between
project management forms and other functional areas by associating any transactions posted in other
areas with the related project. For an example of configuring an account group, see Account Groups: General
Information.
• Optional: On the Rate Tables (PM204200) form, each rate table that you will assign to a project task has been
created, and the rate table has been configured on the Rate Tables (PM206000) form. The rate tables define
pricing models in which price may diﬀer depending on diﬀerent sets of factors. For details, see Billing Rates:
General Information.
• Optional: On the Billing Rules (PM207000) form, each billing rule that you will assign to a project task has
been created. These rules define which transactions should be used for billing and which accounts should
be used to record the transactions that are generated in the billing process. For details, see Billing Rules:
General Information.
• Optional: On the Allocation Rules (PM207500) form, each allocation rule that you will assign to a project
task has been created. If your project uses a complex cost accrual model, you must specify appropriate
allocation rules to correctly track project expenditures and future revenues. For an example of defining
allocation rules, see WIP Costs in Cost-Plus Projects: Implementation Activity and WIP Costs in Fixed-Price
Projects: Implementation Activity.

Project Creation and Processing: To Create a Fixed-Price Project

This activity will walk you through the process of initial creation of a simple fixed-price project.

Story
Suppose that the Lake Cafe customer has ordered a juicer from the SweetLife Fruits & Jams company, along
with two hours of site review and four hours of installation services. The work will start on 1/1/2023 and must be
completed by 1/30/2023. SweetLife's project accountant has decided to create a project to track costs and revenues
for the performed work. The project will be completed in two phases: Phase 1 will be the site review, and phase
2 will involve the sale and installation of the juicer. To track the progress of each phase separately, the project
accountant has decided to define the phases as separate project tasks. Also, the project accountant will specify the
revenue budget information for each project task and inventory item.
The project will be billed once, when both of the project tasks are completed. Also, the project accountant has
decided to skip the creation of a pro forma invoices, because all amounts have already been budgeted and agreed
upon with the customer, so the direct AR invoice will be created during the billing process.
Creating and Processing Projects | 71

Acting as the project accountant, you will create the new project and specify all needed settings.

Process Overview
On the Projects (PM301000) form, you will create a new project and specify its general settings on the Summary
tab. Then on the Tasks tab, you will add the project tasks that will be performed during the completion of a project.
On the Revenue Budget tab, you will define the planned revenue budget for the project.

System Preparation
To prepare to perform the instructions of the activity, do the following:
1. Sign in to the system as Pam Brawner by using the brawner username and the 123 password.
2. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to 1/1/2023. If a diﬀerent date is displayed, click the Business Date menu
button, and select 1/1/2023 on the calendar.

System Preparation
To sign in to the system and prepare to perform the instructions of the activity, do the following:
1. Launch the provided Acumatica ERP instance and sign in as the project accountant by using the brawner
username and the password provided in the class.
2. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to 1/1/2023. If a diﬀerent date is displayed, click the Business Date menu
button, and select 1/1/2023 on the calendar.

Step 1: Creating a Project and Specifying Its General Settings

To create a new project and specify basic settings for it, do the following:
1. On the Projects (PM301000) form, create a new record.
Creating and Processing Projects | 72

2. In the Summary area, specify the following settings:

• Project ID: INSTLAKE01
• Customer: LAKECAFE (Lake Cafe)
• Description: Installation project for Lake Cafe
3. On the Summary tab, specify the following settings:
• Revenue Budget Level: Task and Item
You select this option to include more detail in the revenue budget structure. With this setting, you will
be able to select an inventory item in a revenue budget line.
• Cost Budget Level: Task and Item
You select this option to include more detail in the cost budget structure. With this setting, you will be
able to select an inventory item in a cost budget line.
• Start Date: 1/1/2023
• End Date: 1/30/2023
• Project Manager: Pam Brawner
• Change Order Workflow: Cleared
You clear this check box because for this simple fixed-price project, no changes will be required.
• Billing Currency: USD (selected automatically)
• Billing Period: On Demand
You select the On Demand billing period to indicate that the billing can be performed at any time.
• Billing Rule: PROGRESS
This predefined rule will be specified by default in all project tasks added to the project.

For details on configuring billing rules for billing by progress, see Billing Rules: Progress
Billing and Billing Rules: To Configure a Progress Billing Rule.

• Create Pro Forma Invoice on Billing: Cleared

You are clearing this check box because you want to create accounts receivable invoices when you bill
the project without preliminary creation of pro forma invoices.
4. Save your changes to the project (which currently has the In Planning status shown in the Status box of the
Summary area).

Step 2: Adding Project Tasks

To add project tasks to the project, do the following:
1. On the Tasks tab, add to the project the two tasks listed in the following table by clicking Add Row on the
table toolbar for each and specifying the listed identifier, task type, and description in the row.

Task ID Type Description

PHASE1 Cost and Revenue Task Site review

PHASE2 Cost and Revenue Task Installation

Notice that the PROGRESS billing rule has been automatically specified for both added tasks.
2. On the table toolbar of the Tasks tab, click Activate Tasks to change the status of the added tasks from In
Planning to Active.
3. Save your changes to the project.
Creating and Processing Projects | 73

Notice that the project still has the In Planning status even though you have activated both its project tasks.

Step 3: Specifying the Project Revenue Budget

To specify the project revenue budget, do the following:
1. On the Revenue Budget tab, add each line of the project revenue budget that is listed in the following table
by clicking Add Row and specifying the listed settings in the row.

Project Task Inventory ID Account Group Original Budgeted Unit Rate

Quantity
PHASE1 SITEREVIEW REVENUE 2.00 50.00

PHASE2 JUICER10 REVENUE 1.00 1,500.00

PHASE2 INSTALL REVENUE 4.00 100.00

2. Make sure the original and revised values in the revenue budget lines has been calculated, as shown in the
following screenshot.

Figure: Revenue budget of a fixed-price project

For each budget line, the system automatically calculated the Original Budgeted Amount as the Original
Budgeted Quantity multiplied by the Unit Rate. The system also filled in the Revised Budgeted Quantity
and Revised Budgeted Amount columns with the values of Original Budgeted Quantity and Original
Budgeted Amount columns, respectively.
3. Save your changes to the project.
You have not configured the cost budget for the project because you do not need to track if the project
expenses are within the budgeted values. When you enter project transactions that represent the project
expenses, the system will automatically populate the cost budget with the actual values.

You have finished configuring the project. Now you can complete the Project Creation and Processing: To Process a
Fixed-Price Project activity to practice completing the project lifecycle.

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

This activity will walk you through the process of configuring a simple cost-plus project from its initial creation.
Creating and Processing Projects | 74

Story
Suppose that the Lake Cafe customer has contacted the SweetLife Fruits & Jams company and ordered training of
its employees on operating the juicer it purchased from SweetLife. The training sessions will start on 1/1/2023 and
must be completed by 1/30/2023. The project accountant has analyzed the requirements and decided to create a
small cost-plus project (with only a single task for the training of employees); the expected project profitability is
20%. Because the number of training sessions may be changed during the project completion by the customer's
request, the project will be billed once when all training sessions have been provided. The project accountant has
decided to skip the creation of pro forma invoices, because the price of the provided services has already been
agreed upon with the customer.
Acting as the project accountant, you will create the new project and specify the needed settings.

Process Overview
On the Projects (PM301000) form, you will create a new project and specify its general settings on the Summary
tab. Then on the Tasks tab, you will add the project task that will be performed during the completion of the
project. On the Cost Budget tab, you will define the budget for the project.

System Preparation
To prepare to perform the instructions of the activity, in the info area, in the upper-right corner of the top pane of
the Acumatica ERP screen, make sure that the business date in your system is set to 1/1/2023. If a diﬀerent date is
displayed, click the Business Date menu button, and select 1/1/2023 on the calendar.

Step 1: Creating a Project and Specifying Its General Settings

To create a new project and specify basic settings for it, do the following:
1. On the Projects (PM301000) form, add a new record.
2. In the Summary area, specify the following settings:
• Project ID: INSTLAKE02
• Customer: LAKECAFE (Lake Cafe)
• Description: Training project for Lake Cafe
3. On the Summary tab, specify the following settings:
• Revenue Budget Level: Task and Item
You select this option to include more detail in the revenue budget structure. With this setting, you will
be able to select an inventory item in a revenue budget line.
• Cost Budget Level: Task and Item
You select this option to include more detail in the cost budget structure. With this setting, you will be
able to select an inventory item in a cost budget line.
• Start Date: 1/1/2023
• End Date: 1/30/2023
• Project Manager: Pam Brawner
• Change Order Workflow: Cleared
You clear this check box because for this simple cost-plus project, no changes will be required.
• Billing Currency: USD (selected automatically)
• Billing Period: On Demand
You select the On Demand billing period to indicate that the billing can be performed at any time.
• Billing Rule: TM
This predefined rule will be specified by default in all project tasks added to the project.

For details on configuring a billing rule for billing by time and material, see Billing Rules:
Time and Material Billing and Billing Rules: To Configure a Time and Material Rule.

• Create Pro Forma Invoice on Billing: Cleared

Step 2: Adding Project Tasks

To add project tasks to the project, do the following:
1. On the Tasks tab, click Add Row on the table toolbar, and add the project task with the following settings:
• Task ID: TRAINING
Creating and Processing Projects | 76

• Type: Cost and Revenue Task

• Description: Training on juicer usage
• Status: Active
Notice that the TM billing rule has been automatically specified for the task.
2. Save your changes to the project.

Step 3: Specifying the Project Cost Budget

To configure the project cost budget, do the following:
1. On the Cost Budget tab, click Add Row and specify the following settings in the added row:
• Project Task: TRAINING
• Inventory ID: TRAINING
• Account Group: LABOR (selected automatically)
• Original Budgeted Quantity: 16
• UOM: HOUR
• Unit Rate: 40
The system automatically calculates the Original Budgeted Amount for the cost budget line ($640) as the
Original Budgeted Quantity multiplied by the Unit Rate.
2. Save your changes to the project.
You have not configured the revenue budget for the project because you have not agreed with the customer
on the number of training sessions and this number may be changed during the project completion at the
customer's request. When you bill the project based on the incurred expenses, the system automatically
populates the revenue budget with the actual values.

You have finished configuring the project. Now you can complete the Project Creation and Processing: To Process a
Cost-Plus Project activity to practice completing the project lifecycle.

Project Creation and Processing: Project Lifecycle

In Acumatica ERP, a project is a one-time or recurring endeavor with a specific scope, time frame, and budget.
The following diagram shows the stages a project goes through and the statuses it is assigned from the project’s
initiation to its completion.
Creating and Processing Projects | 77

The stages are described in greater detail in the sections below.

Project Estimation
During the project estimation stage, you specify project settings on the Projects (PM301000) form, define activities,
estimate the time required for the completion of each project task, and populate the project with employees,
resources, and equipment. Each project is assigned the In Planning status once it has been created and saved in the
system.
Projects and project tasks with the In Planning status cannot be selected in any documents, except for the following
types of documents that are available for planning:
• Employee activities. For instance, you can add an employee activity for planning budgets for project tasks.
However, the transactions generated for any of these activities cannot be released until the corresponding
project and project task are assigned the Active status.
• Project commitments (purchase orders and subcontracts). Planned project commitments could be
processed aer the corresponding project and project task are assigned the Active status.

Project Acceptance
The acceptance stage includes reaching an agreement with all the stakeholders, including customers and
employees, as well as estimating the budget for the project and the expenditures it will entail.
If the approval of projects is required in your system, the project is submitted for approval and is assigned the
Pending Approval status once it is taken oﬀ hold. The project has this status until it is approved or rejected on
the Approvals (EP503010) form by an assigned employee. If approved, the project is assigned the Active status. If
rejected, the project is assigned the In Planning status and requires additional changes before it can be submitted
for approval again. For more information on approvals, see Approval of Projects and Project-Related Activities.
Creating and Processing Projects | 78

Project Execution
During the execution stage, the project is in progress and project transactions can be posted to it. In this stage, the
project retains the Active status. Active projects and their project tasks are available for selection on the forms of
the functional areas in which the projects are visible. When you create a project-related transaction or document,
you need to specify the particular project and project task to indicate that this transaction or document must be
tracked within the project; also, you can specify whether the transaction or document is billable. Transactions in
which the non-project code is specified are not tracked in any project.
If any budget changes occur during the course of the project, the system preserves the initial budget amounts, and
tracks the revised figures for the project budget.

Project Completion
Project tasks are completed individually; the completion of a project task does not aﬀect the completion of the
project to which the task belongs. Once the project is finished, the project accountant completes it by manually
assigning it the Completed status, and analyzes the project profitability. Project transactions can no longer be
posted to a project with the Completed status.

To simplify the tracking of the project completion percentage, you can create a separate dedicated
task and use it exclusively to manually specify the project completion percentage, which you
evaluate by using all the information available about the progress of project tasks and project-related
transactions.

Project Creation and Processing: To Process a Fixed-Price Project

This activity will walk you through the lifecycle of a fixed-price project.

Story
Suppose that the Lake Cafe customer has ordered a juicer from the SweetLife Fruits & Jams company, along with
the site review and installation services. SweetLife's project accountant has created a fixed-price project to account
for this work. In the period from 1/1/2023 through 1/30/2023, the company employees have performed work related
to the project tasks.
Acting as the project accountant, you need to support the project during the entire project lifecycle.

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

System Preparation
To sign in to the system and prepare to perform the instructions of the activity, do the following:
Creating and Processing Projects | 79

1. Download the INSTLAKE01_Project_Transactions file to your computer.

2. Create the INSTLAKE01 project, as described in Project Creation and Processing: To Create a Fixed-Price
Project.
3. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset preloaded; you should
sign in as Pam Brawner by using the brawner username and the 123 password.
4. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to 1/30/2023. If a diﬀerent date is displayed, click the Business Date menu
button, and select 1/30/2023 on the calendar. For simplicity, in this activity, you will create and process all
documents in the system on this business date.

System Preparation
To prepare to perform the instructions of the activity, do the following:
1. Download the INSTLAKE01_Project_Transactions file to your computer.
2. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to 1/30/2023. If a diﬀerent date is displayed, click the Business Date menu
button, and select 1/30/2023 on the calendar. For simplicity, in this activity, you will create and process all
documents in the system on this business date.

System Preparation
To sign in to the system and prepare to perform the instructions of the activity, do the following:
1. Download the INSTLAKE01_Project_Transactions file to your computer.
2. Sign in to the system as the project accountant by using the brawner username and the provided password.
3. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to 1/30/2023. If a diﬀerent date is displayed, click the Business Date menu
button, and select 1/30/2023 on the calendar. For simplicity, in this activity, you will create and process all
documents in the system on this business date.

Step 1: Activating the Project

To indicate that the INSTLAKE01 project has been started, do the following:
1. On the Projects (PM301000) form, open the INSTLAKE01 project, which you have created in Project Creation
and Processing: To Create a Fixed-Price Project.
2. On the Projects (PM301000) form, open the INSTLAKE01 project, which you have created in Project Creation
and Processing: To Create a Fixed-Price Project.
3. On the Projects (PM301000) form, open the INSTLAKE01 project, which you have created in the previous
activity.
4. On the form toolbar, click Activate Project. The system assigns the project the Active status.

Step 2: Uploading Project Transactions

To upload and process the transactions of this project, do the following:
1. On the Project Transactions (PM304000) form, add a new record.
2. In the Summary area, specify the following settings:
• Module: PM
Creating and Processing Projects | 80

• Description: The services for the INSTLAKE01 project

3. On the table toolbar of the Details tab, click Load Records from File.
4. In the File Upload dialog box, which opens, click Choose File, select the file path to the
INSTLAKE01_Project_Transactions file, and click Upload.
5. In the Common Settings dialog box, which opens, leave the default settings, and click OK.
6. In the Columns dialog box, leave the current column mapping, and click OK.
7. Make sure that the Total Amount in the Summary area is 1,600.00.
8. On the form toolbar, click Save to save the project transaction, and then click Release to release it.
9. On the Projects (PM301000) form, open the INSTLAKE01 project, and make sure that the Actual Expenses
box in the Summary area now shows 1,600.00.
On the Cost Budget tab, notice that the system has updated the cost budget of the project—that is, three
cost budget lines have been added. Also, the Actual Quantity and Actual Amount columns have been
populated with the amounts from the lines of the released project transaction.

Step 3: Billing the Project

To create an accounts receivable invoice for the project, do the following:
1. While you are still viewing the INSTLAKE01 project on the Projects (PM301000) form, on the Revenue Budget
tab, specify 100.00 as the Completed (%) in each of three revenue budget lines to indicate that the project
tasks have been fully completed.
The system calculates the Pending Invoice Amount of the revenue budget lines as $100, $400, and $1,500.
The Pending Invoice Amount Total on the table toolbar is $2,000.
2. Save your changes to the project. Because the project is billed on demand and has a nonzero pending
invoice amount, you can now bill the project.
3. On the form toolbar, click Run Project Billing. The system creates an AR invoice, which should look like
the one shown in the following screenshot, and opens it on the Invoices and Memos (AR301000) form.
The system creates the invoice lines based on the revenue budget lines of the corresponding project with
amounts that are equal to the pending invoice amounts. The invoice total, which is $2,000, is equal to the
pending invoice total.

Figure: The AR invoice created during the billing

Creating and Processing Projects | 81

4. On the form toolbar of the Invoices and Memos form, click Remove Hold to assign the Balanced status to the
invoice, and then click Release to release the accounts receivable invoice.
5. Return to the Projects form with the INSTLAKE01 project opened, and press Esc to refresh the details. In
the Summary area, make sure that the Actual Income box now shows 2,000.00, which is the amount the
customer has been billed.

Step 4: Closing the Project

To complete the project and analyze its profitability, do the following:
1. While you are still viewing the INSTLAKE01 project on the Projects (PM301000) form, on the Tasks tab, specify
the following settings for both lines in the table:
• Status: Completed
• Completed (%): 100 (the system specifies this percentage automatically when you change the task’s
status to Completed)
• End Date: 1/30/2023 (the system specifies this date automatically when you change the task’s status to
Completed)
2. On the form toolbar, click Complete Project. The system changes the status of the project (in the Status box
of the Summary area) from Active to Completed.
3. On the form toolbar of the Project Profitability (PM624000) report form, click Run Report, and review the line
with the INSTLAKE01 project. The calculated margin is $400.

You have finished working with the project.

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

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

Story
Suppose that the Lake Cafe customer has ordered training of employees from the SweetLife Fruits & Jams
company. SweetLife's project accountant has created a cost-plus project to account for the provided services.
Twenty hours of training sessions have been conducted in the period from 1/1/2023 through 1/30/2023.
Acting as the project accountant, you need to support the project during the entire project life cycle.

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

System Preparation
To sign in to the system and prepare to perform the instructions of the activity, do the following:
Creating and Processing Projects | 82

1. Download the INSTLAKE02_Project_Transactions file to your computer.

2. Create the INSTLAKE02 project, as described in Project Creation and Processing: To Create a Cost-Plus
Project.
3. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset preloaded; you should
sign in as Pam Brawner by using the brawner username and the 123 password.
4. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to 1/30/2023. If a diﬀerent date is displayed, click the Business Date menu
button, and select 1/30/2023 on the calendar. For simplicity, in this activity, you will create and process all
documents in the system on this business date.

System Preparation
To sign in to the system and prepare to perform the instructions of the activity, do the following:
1. Download the INSTLAKE02_Project_Transactions file to your computer.
2. Sign in to the system as the project accountant by using the brawner username and the provided password.
3. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to 1/30/2023. If a diﬀerent date is displayed, click the Business Date menu
button, and select 1/30/2023 on the calendar. For simplicity, in this activity, you will create and process all
documents in the system on this business date.

System Preparation
To prepare to perform the instructions of the activity, do the following:
1. Download the INSTLAKE02_Project_Transactions file to your computer.
2. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to 1/30/2023. If a diﬀerent date is displayed, click the Business Date menu
button, and select 1/30/2023 on the calendar. For simplicity, in this activity, you will create and process all
documents in the system on this business date.

Step 1: Activating the Project

To indicate that the INSTLAKE02 project has been started, do the following:
1. On the Projects (PM301000) form, open the INSTLAKE02 project, which you have created in Project Creation
and Processing: To Create a Cost-Plus Project.
2. On the Projects (PM301000) form, open the INSTLAKE02 project, which you have created in Project Creation
and Processing: To Create a Cost-Plus Project.
3. On the Projects (PM301000) form, open the INSTLAKE02 project, which you have created in the previous
activity.
4. On the form toolbar, click Activate Project. The system assigns the project the Active status.

Step 2: Uploading Project Transactions

To upload and process the transactions of this project, do the following:
1. On the Project Transactions (PM304000) form, add a new record.
2. In the Summary area, make sure that PM is selected as the Module.
3. In the Description box, type The conducted training for the INSTLAKE02 project.
Creating and Processing Projects | 83

4. On the table toolbar of the Details tab, click Load Records from File.
5. In the File Upload dialog box, which opens, click Choose File, select the file path to the
INSTLAKE02_Project_Transactions file, and click Upload.
6. In the Common Settings dialog box, which opens, leave the default settings, and click OK.
7. In the Columns dialog box, which opens, leave the current column mapping, and click OK. The system
uploads the transaction line.
8. Make sure that the Total Quantity and Total Amount in the Summary area are 20 and 800.00, respectively.
9. On the form toolbar, click Save to save the project transaction, and then click Release to release it.
10.On the Projects (PM301000) form, open the INSTLAKE02 project, and make sure that the Actual Expenses
box in the Summary area now shows 800.00.
On the Cost Budget tab, review the cost budget line that has been updated on release of the project
transaction. The quantity and amount that were initially planned (16 and 640.00) are now shown as the
Original Budgeted Quantity and Original Budgeted Amount, while the Actual Quantity and Actual
Amount columns have been populated with the amounts from the released project transactions (20 and
800, respectively).

Step 3: Billing a Project

To create an accounts receivable invoice for the project, do the following:
1. While you are still reviewing the INSTLAKE02 project on the Projects (PM301000) form, on the form toolbar,
click Run Project Billing. The system creates an AR invoice, which should look like the one shown in the
following screenshot, and opens it on the Invoices and Memos (AR301000) form.
Because the TM billing rule specified for the project task defines the line amount as the project transaction
line amount multiplied by 1.25, the customer is billed in the amount of $1,000.

Figure: The AR invoice created during the billing

2. On the form toolbar, click Remove Hold to assign the invoice the Balanced status, and then click Release to
release the accounts receivable invoice.
3. Return to the Projects form with the INSTLAKE02 project opened, and press Esc to refresh the form. Notice
that the Actual Income box in the Summary area now shows 1,000.00, which is the amount the customer
has been billed. The calculated margin for the project is 20%, as has been planned. On the Revenue Budget
tab, the revenue line with the TRAINING task and the Actual Amount of $1,000 has been added.
Creating and Processing Projects | 84

Step 4: Completing the Project

To complete the project, do the following:
1. While you are still reviewing the INSTLAKE02 project on the Projects (PM301000) form, on the Tasks tab,
specify the following settings in the only table row:
• Status: Completed
• Completed (%): 100 (the system specifies this percentage automatically when you change the task’s
status to Completed)
• End Date: 1/30/2023 (the system specifies the business date automatically when you change the task’s
status to Completed)
2. Save your changes to the project.
3. On the form toolbar, click Complete Project. The system assigns the project the Completed status.

You have finished working with the project.

Project Creation and Processing: Related Report and Inquiry Forms

In the following sections, you can find details about the reports you may want to review to gather information
about projects.

Finding Projects Related to a Customer

You can prepare a report with all the projects related to a particular customer on the Projects (PM631000) report
form. In the prepared report, the projects are listed, along with their descriptions, statuses, and start dates.

Printing the Project Balance

To prepare a printable document detailing the project balance, you use the Project Balance (PM621000) report.
While you are viewing a project on the Projects (PM301000) form, you can print the document by clicking Print
Project Balance on the More menu. The system opens the printable document with the project balance on the
Project Balance (PM621000) report; then you can review the project balance, which is grouped by project tasks, and
print the document by clicking Print on the report toolbar.
Managing Multicurrency Projects | 85

Managing Multicurrency Projects

Multicurrency Projects: General Information

In Acumatica ERP, you can track projects in the project currency, which can diﬀer from the base currency of the
company that manages the project. You can review project costs and revenues both in the project currency and in
the base currency. You can also calculate project profitability in both currencies, and present costs to the customer
in the customer’s currency, which you can specify as the billing currency. In addition, if the company uses multiple
base currencies, you can easily manage multicurrency documents that originate from diﬀerent company branches.

Learning Objectives
In this chapter, you will learn how to do the following:
• Configure a project to use multiple currencies
• Track documents that originate from branches with diﬀerent base currencies in the scope of a single project
• Define the exchange rates to be used in projects
• Process project-related documents in multiple currencies
• Review and collect project information in diﬀerent currencies

Applicable Scenarios
You use projects with multiple currencies in the following cases:
• A project is managed in one currency, and related project costs are recorded in other currencies
• A project is managed in one currency, and the customer needs to be billed in another currency
• A project involves employees that report their expenses in diﬀerent currencies
• A project involves related companies with diﬀerent base currencies. One of these companies re-bills the
project expenses to another company.

Multiple Currencies in Projects

If the Multicurrency Projects and Multicurrency Accounting features are enabled on the Enable/Disable Features
(CS100000) form, you can specify diﬀerent currencies to be used for a project's accounting and its billing as follows:
• In the Project Currency box on the Summary tab (Project Properties section) of the Projects (PM301000)
form, you specify the project currency. For a new project, the system fills in this box with the customer's
currency, which is specified in the Currency ID box on the Financial tab of the Customers (AR303000) form.
If the customer has no currency defined, the base currency is inserted as the Project Currency. On the
Revenue Budget and Cost Budget tabs of the Projects form, you can enter the project amounts in the
project currency only. You can change the project currency if the project has no transactions, commitments,
or change orders.
• In the Billing Currency box on the Summary tab of the Projects form, you specify the currency in which the
invoices to the customer will be prepared during project billing procedure.
In addition, if the Multiple Base Currencies feature is enabled on the Enable/Disable Features form, you can specify
the base currency of the project in the Base Currency box on the Summary tab of the Projects form. If a branch
Managing Multicurrency Projects | 86

is selected in the Branch box on the Summary tab (indicating that the project is related to a particular company
branch), the system verifies that the base currency of the project matches the base currency of the selected branch.
You can change the base currency of the project only if no project transactions have been posted to the project yet.

Currency Rates in Projects

If the project currency diﬀers from the base currency, you can track the project amounts in both the base currency
and the project currency. By default, on the Revenue Budget, Cost Budget, and Balances tabs of the Projects
(PM301000) form, the system shows the project amounts in the project currency. The system uses the value in the
Currency Rate for Budget box (in the Summary area) to calculate project amounts in the base currency.
You can click the exchange rate value in the Currency Rate for Budget box in the Summary area of the Projects
form. Then in the Rate Selection dialog box, which is opened, you can override the exchange rate for the project if
the Enable Rate Override check box is selected on the General tab (Financial Settings section) of the Customers
form.
If you click the View Base button in the Currency Rate for Budget box in the Summary area, the system shows the
budgeted amounts and balances in the base currency converted based on the rate shown in the Currency Rate for
Budget box. To show the amounts in the project currency, you click the View Cury button in the Currency Rate for
Budget box in the Summary area.

Project Billing
During project billing, the system creates pro forma or accounts receivable invoices in the billing currency of the
project, which is specified in the Billing Currency box on the Summary tab (Billing and Allocation Settings
section) of the Projects (PM301000) form.
In the created pro forma invoice on the Pro Forma Invoices (PM307000) form or in the accounts receivable invoice
on the Invoices and Memos (AR301000) form, the system uses the default exchange rate type of the customer and
customer location that are selected in the document to determine the exchange rate for calculating the billing
amounts in the base currency. All the invoice amounts can be reviewed in both the billing currency and the base
currency.
You can override the exchange rate for an invoice if for the customer, the Enable Rate Override check box is
selected on the General Info tab (Financial Settings section) of the Customers (AR303000) form.

Multicurrency Projects: Project-Related Documents in Multiple Currencies

If the Multicurrency Projects feature is enabled on the Enable/Disable Features (CS100000) form, you can use
multiple currencies in projects. The following sections describe how diﬀerent types of documents for projects are
created and processed if the currency of these documents diﬀers from the base currency of the project.

Project Transactions with Multicurrency Accounting

On the Project Transactions (PM304000) form, you can create project transactions whose amounts are in any
currency. When you create a project transaction manually, you select the project in the transaction line on the
Details tab. You enter the amount of the project transaction in the transaction currency, which you select in the
Currency column. The system uses this amount in the transaction currency to calculate the transaction amounts in
the project currency and in the base currency. The system also updates the actual amounts of the project budget in
the project currency and in the base currency with the corresponding amounts of the project transaction.
When the system creates a group of project transactions on release of a general ledger transaction, the system uses
the base currency of the project selected in the general ledger transaction line as the base currency of the project
transaction line it creates. The system calculates the amount of the project transaction line in the base and project
currencies by using the default exchange rate type specified in the selected project in the Currency Rate Type box
on the Summary tab of the Projects (PM301000) form. If this box is empty for the project, in the project transaction,
Managing Multicurrency Projects | 87

the system uses the rate type from the PM Rate Type box on the Currency Management Preferences (CM101000)
form. The same rules are used for the project transactions created during the running of an allocation process, and
for the project transactions created on release of employee time cards.
When the system creates a general ledger transaction on release of a project transaction, in the created GL
transaction on the Journal Transactions (GL301000) form, the system uses the base currency of the branch from the
project transaction line as the base currency in the created GL batch. The system copies the project transaction line
amount in the transaction currency (that is, in the currency selected by the user in the project transaction line) and
recalculates this amount in the base currency of the GL batch by using the default exchange rate type specified in
the GL Rate Type box on the Currency Management Preferences form.

Project Quotes with Multicurrency Accounting

For a new project quote created on the Project Quotes (PM304500) form, the system fills in the Currency box in
the Summary area with the currency of the customer selected in the Business Account box. If no currency is
specified for the customer, the system inserts the base currency as the project quote currency. If a project quote is
created based on an opportunity that has been created on the Opportunities (CR304000) form, the system inserts
the opportunity currency as the project quote currency.
You can change the project quote currency if for the customer, the Enable Currency Override check box is selected
on the Financial tab of the Customers (AR303000) form. If you change the project quote currency and the project
quote is the primary quote of an opportunity, the system changes the opportunity currency accordingly.
For project quotes, the system uses the default exchange rate type of the customer and customer location that are
selected in the document to determine the exchange rate for calculating the billing amounts in the base currency.
You can override the exchange rate for a project quote if for the customer, the Enable Rate Override check box is
selected on the Financial tab of the Customers form.
For the estimation lines of a project quote on the Estimation tab of the Project Quotes form, you specify the
amounts in the project currency. The system converts the retrieved unit prices and unit costs of the selected
inventory items to the project quote currency by using the exchange rate of the project quote.
When a project is created based on the project quote, the system specifies the currency of the branch selected in
the quote as the project currency. If the branch is not specified, the system specifies the currency of the current
branch as the project currency.

Multicurrency Projects: Implementation Checklist

The following sections provide details you can use to ensure that the system is configured properly for managing
projects in diﬀerent currencies, and to understand (and change, if needed) the settings that aﬀect the processing
workflow.

Implementation Checklist
We recommend that before you configure multicurrency projects, you make sure the needed features have been
enabled and settings have been specified, as summarized in the following checklist.

Form Criteria to Check

Enable/Disable Features (CS100000) Make sure that the Multicurrency Accounting and Multicurrency
Projects features have been enabled. Optionally, you may also want
to enable the Multiple Base Currencies feature.

Currency Management Preferences Make sure that the minimum required settings have been specified,
(CM101000) as described in Multicurrency Functionality: General Information.
Managing Multicurrency Projects | 88

Form Criteria to Check

Currencies (CM202000) Make sure that the foreign currencies in which you want to manage
projects have been configured and activated for use in accounting.

Currency Rates (CM301000) Make sure that a currency rate for each currency to be used for
projects has been defined, as described in Configuration of Rate Types
and Rates: General Information.

Projects (PM301000) Specify the following project settings:

• In the Project Currency box on the Summary tab, the project cur-
rency to be used for project budget and accounting operations
• In the Currency Rate Type on the Summary tab, the rate type to
be used in the project
• In the Currency Rate for Budget box, the exchange rate from the
project currency to base currency
• In the Billing Currency box on the Summary tab, the currency in
which the invoices will be prepared
• If the project is related to a particular company branch, the branch
in the Branch box on the Summary tab

Multicurrency Projects: Related Reports and Forms

In the following sections, you can find details about the reports and forms you may want to review to gather project
information in diﬀerent currencies.

Reviewing Project Budget Amounts in Diﬀerent Currencies

By default, on the Revenue Budget, Cost Budget, and Balances tabs of the Projects (PM301000) form, the system
shows the amounts in the project currency. You can enter the amounts in the project currency only.
If you click the View Base button in the Currency Rate for Budget box of the Summary area, the system shows the
budgeted amounts and balances in the base currency converted based on the rate shown in the Currency Rate for
Budget box. To show the amounts in the project currency, you click the View Cury button in the Currency Rate for
Budget box in the Summary area.

Viewing the List of Exchange Rates for the Project

You can click Print Currency Rates on the More menu of the Projects (PM301000) form to prepare the Currency
Rate History by ID (CM650500) report. In the report, the system lists all exchange rates, sorted by the currency from
which conversion is performed. The report is prepared for the date range from the project's start date to the current
business date.
Tracking Project Inventory | 89

Tracking Project Inventory

This chapter describes how to configure inventory tracking for each project to make it possible to reserve items
purchased for a project and track them separately from free stock; you can also configure the project so that the
system will track project-specific costs for these reserved items.

Project Inventory Tracking: General Information

In Acumatica ERP, you can configure the project inventory (that is, the inventory items to be used for a particular
project) so that all items purchased and sold for the project will be separated from other inventory and reserved
for the project in the warehouse. This helps you to accurately capture inventory expenses and revenues related to
the project inventory in a project budget. This also helps you to avoid any delays associated with items not being
available when they are needed for the project.

Learning Objectives
In this chapter, you will learn how to do the following:
In this lesson, you will learn how to do the following:
• Configure a project inventory
• Process documents with stock items related to projects
• Review project and GL transactions generated during the processing of sales and purchases of items

Applicable Scenarios
You configure the project inventory of particular projects if you are using stock items in these projects and want to
track detailed information about the inventory to be used for these projects, as well as to be able to perform the
following operations:
• Manage the flow of stock items related to projects
• Reserve items for particular projects in one warehouse or multiple warehouses
• Track project-specific quantities for stock items, to prevent these items from being used for non-project
purposes
• Use valuated costing for project-specific stock items to issue and receive project items at accurate costs that
are not aﬀected by the costs of non-project items

Configuration of Inventory Tracking in Projects

If you have enabled the Inventory and Order Management and Inventory features on the Enable/Disable Features
(CS100000) form and are using the related functionality, you can use the enhanced integration of projects with
inventory by enabling the Project-Specific Inventory feature. Aer enabling this feature, you must initialize the
inventory balances by clicking Initialize Stock on the form toolbar of the Recalculate Project Balances (PM504000)
form. This prepares the system to work with project-specific inventory.
Once you have prepared the system for the use of project-specific inventory, you configure the applicable projects
to use the needed inventory tracking mode. For each project, you select one of the following modes in the
Inventory Tracking box on the Summary tab of the Projects (PM301000) form:
• Track by Project Quantity and Cost: To track the quantity and project-specific cost of the stock items reserved
for the project.
Tracking Project Inventory | 90

• Track by Project Quantity: To track the project-specific quantity of the purchased items that are reserved for
the project. In this mode, the system tracks the item cost by general cost calculation rules (that is, the cost is
not project-specific).
• Track by Location: To track the quantity and cost of the purchased materials at the warehouse location level.
For more information about using this mode, see Project Inventory Tracking by Warehouse Location: General
Information.
In an existing project, you can change the inventory tracking mode only if no items have been received for the
project yet.
If you need to disable the Project-Specific Inventory feature in a production system, you can do this aer the
following preparatory actions:
1. Clean up the inventory. To do this, you need to manually create and release the inventory transfer
transactions that move the items reserved for projects to free stock (that is, to the non-project code) or
to projects linked to warehouse locations (that is, the projects that have the Track by Location inventory
tracking mode).
2. Assign all existing projects the Track by Location inventory tracking mode and link them to particular
warehouse locations.

Once the feature is disabled, the system will continue tracking inventory for projects using the only Track by
Location mode.

Inventory Tracking in Projects

For a project in which the Track by Project Quantity or Track by Project Quantity and Cost inventory tracking mode is
selected in the Inventory Tracking box of the Projects (PM301000) form, you create and process documents with
stock items as follows:
• To purchase stock items for the project, you create a purchase order on the Purchase Orders (PO301000)
form, selecting the project and project task for each item. The expenses are captured to the project cost
budget as a project commitment.
• To receive items in a warehouse, you process a purchase receipt on the Purchase Receipts (PO302000) form.
To separate the project items from free stock, the system automatically creates a virtual project-specific
location within the warehouse location where the materials are received. The purchased materials are
reserved for the project and cannot be issued for another project.
• To issue the materials for the customer, you process an inventory issue for the project on the Issues
(IN302000) form. The quantity available for issuing is defined by the warehouse location, the project, and
the project task.

Tracking Item Costs

In a project with the Track by Location or Track by Project Quantity mode selected in the Inventory Tracking box
of the Projects (PM301000) form, the cost of the issued materials is not project-specific and is defined by general
cost calculation rules. The cost of an item depends on the item valuation method and is aﬀected by other factors:
the warehouse location from which the item is issued, the account and subaccount, the selected subitem, and the
lot or serial number of the item. For more information on how the system calculates item costs, see Item Costs and
Valuation Methods.

In a project with the Track by Project Quantity and Cost mode selected, the system tracks project-specific cost
layers. That is, for each combination of project and project task, the system calculates the cost of each item
depending on the item valuation method and other applicable factors: the warehouse location from which the item
is issued, the account and subaccount, the selected subitem, and the lot or serial number of the item.
Tracking Project Inventory | 91

Project Inventory Tracking: Item Availability Tracking

In Acumatica ERP, you can configure the way that availability data is calculated in accordance with your company's
policies. The following sections describe how the system indicates that inventory has enough items for processing
documents if the Project-Specific Inventory feature is enabled on the Enable/Disable Features (CS100000) form.

Reviewing Availability Status of Stock Items

For stock items, the system calculates availability status based on the availability calculation rules, which you
define on the Availability Calculation Rules (IN201500) form. To specify how the system calculates availability for
particular items, you assign the availability calculation rules you have created to particular item classes on the Item
Classes (IN201000) form. By default, each item of this item class is assigned this rule. You can override the default
availability calculation rule for each particular stock item on the Stock Items (IN202500).
When the documents that record inventory transactions have been released, Acumatica ERP automatically
updates the on-hand quantities of items at warehouses. On-hand quantities usually diﬀer from the quantities
that are actually available because documents may be processed aer the actual operations with items have
been performed. For more information about the configuration of availability rules, see Configuration of Availability
Calculation Rules: General Information.

Reviewing Availability Data on Document Entry Forms

When a user adds a line with an inventory item to a sales order, shipment, transfer, or issue, in the table footer of
the respective form—Sales Orders (SO301000), Shipments (SO302000), Transfers (IN304000), or Issues (IN302000)
—the system shows the quantities in the following availability buckets: On Hand, Available, and Available for
Shipping. For each availability bucket, the system shows the name of the availability bucket followed by the
quantities in that bucket and the applicable unit of measure.
Each bucket includes two quantities: The project-specific quantity and the overall item quantity. For example, the
system might show the following for an availability bucket of a particular item: On Hand 22.00/27.00 PIECE (meaning
that 27 pieces of the item are on hand, and 22 pieces of the item are on hand for the selected project). For each
document line on one of these data entry forms, the system calculates and shows the following quantities aer the
name of the availability bucket:
• The first quantity is the project-specific quantity, which is calculated based on the Inventory Tracking
mode selected on the Projects (PM301000) form for the project specified in the line:
• If the Track by Location mode is selected for the project or if no project is selected in the line, this
quantity is calculated as the sum of the following:
• The quantities of the item related to the project linked to the selected warehouse or warehouse
location.
• The quantities of the item that correspond to no project (that is, that have the non-project code
specified).
• If the Track by Project Quantity or Track by Project Quantity and Cost mode is selected for the project, this
is the quantity of the item related to the selected project and project task in the warehouse or warehouse
location specified in the line.
• The second quantity is the total quantity of the item of the selected line in the warehouse or warehouse
location specified in the line.

Building a Generic Inquiry for Tracking Item Availability

If you are tracking project inventory by using the Track by Project Quantity or Track by Project Quantity and Cost
mode, you may want to gather detailed data on which items are reserved for the project on warehouse locations.
Tracking Project Inventory | 92

For this purpose, you create a generic inquiry and include the data from the system tables that are described
below:
• InventoryItem, which stores information about the inventory items
• PMProject and PMTask, which store information about the project and project tasks
• INSite and INSiteStatus, which store information about the warehouses and total quantity of stock
items in these warehouses.

These tables do not store the information about project and project tasks to which these
inventory items corresponds.

The following item quantities are stored in this table:

• The project-specific quantity of the items (which are reserved for the projects that have the Track by
Project Quantity and Track by Project Quantity and Cost inventory tracking mode).
• The quantity of items stored in locations that are mapped to the projects that have the Track by Location
inventory tracking mode.
• Free stock quantity, that is the quantity of the items that belong to the non-project code (X)
• INLocation and INLocationStatus, which store information about warehouse locations and total
quantity of stock items stored in these warehouse locations.

These tables do not store the information about project and project tasks to which these
inventory items corresponds.

• PMLocationStatus and PMSiteStatus, which store the information about projects and project tasks
to which each inventory item belongs along with the same data as is stored in the INLocationStatus
and INSiteStatus tables.
• INLotSerialStatus and PMLotSerialStatus, which store information about the items tracked by
lot- or serial- numbers.
• INCostCenter and INCostStatus, which store information about the cost of items that are reserved
for projects that have the Track by Project Quantity and Cost inventory tracking mode.
As an example, you can review the Project Stock (GI640106) generic inquiry which is available in the U100 dataset.

Project Inventory Tracking: Implementation Checklist

The following sections provide details you can use to ensure that the system is configured properly for tracking
inventory for projects, and to understand (and change, if needed) the settings that aﬀect the processing workflow.

Implementation Checklist
We recommend that before you initially start working with project inventory, you make sure the needed features
have been enabled, settings have been specified, and entities have been created, as summarized in the following
checklist.

Form Criteria to Check

Enable/Disable Features (CS100000) Make sure that the following features are enabled:
• Inventory and Order Management
• Inventory
• Project Accounting
• Project-Specific Inventory
Tracking Project Inventory | 93

Form Criteria to Check

Projects Preferences (PM101000) Make sure that all necessary settings related to project
accounting have been specified, as described in the
Basic Project Configuration: General Information.

Recalculate Project Balances (PM504000) Initialize the inventory balances by clicking Initialize
Stock on the form toolbar.

Account Groups (PM201000) form Make sure that all needed account groups have been
configured. For more information about account
groups, see Account Groups: General Information.

To track assets purchased for the project

on the Cost Budget tab of the Projects
(PM301000) form, link the Inventory ac-
count to an account group of the Expense
type.

Stock Items (IN202500) form Make sure that all stock items have been defined and
the inventory account of the stock item has been
mapped to the appropriate account group. For more
information about stock items, see Stock Item Creation:
General Information.

Projects (PM301000) Make sure that the necessary project and project tasks
have been created. In the project settings, select the
inventory tracking mode in the Inventory Tracking
box on the Summary tab as follows:
• Select Track by Project Quantity and Cost if you need
to separate project inventory from free stock, re-
serve the items directly for the project, and track
project-specific item cost.
• Select Track by Project Quantity if you need to sep-
arate project inventory from free stock, reserve the
items directly for the project, and track item cost by
general cost calculation rules.
For more information on creating a project, see Project
Creation and Processing: General Information.

Other Settings That Aﬀect the Workflow

You can aﬀect the workflow of sales and purchases of items for projects by specifying additional settings as follows:
• To cause the system to automatically select a project task when a particular project is selected during the
creation of a purchase order, select the Default check box on the Tasks tab of the Projects (PM301000) form
for one of the tasks of the project.
• To cause the system to include non-stock lines of the Service type in purchase receipts created from the
purchase orders of the Normal type, select the Process Service Lines from Normal Purchase Orders
via Purchase Receipt check box on the General tab (Other section) of the Purchase Orders Preferences
(PO101000) form.
Tracking Project Inventory | 94

Project Inventory Tracking: To Track Project Inventory by Quantity

The following activity will walk you through the process of managing project inventory with tracking of quantities
of the items being purchased or sold for a project.

Story
Suppose that the Thai Food Restaurant customer has ordered juicer installation from the SweetLife Fruits & Jams
company for the newly opened restaurant: two juicers will be installed this month, and three more next month.
As has been agreed upon with the customer, the customer will pay $2,900 for the installation of each juicer, which
includes the cost of the juicer and the cost of installation services with a 20% markup.
On January 30, 2023, the SweetLife project accountant created a project to handle the tracking and billing of the
juicer and the provided services. Then the project accountant ordered five juicers to be installed, costing $2,000
each, from the Squeezo Inc. vendor. The juicers have been delivered to SweetLife’s warehouse to be stored until the
work is started. The project accountant needs to be sure that the juicers will be reserved for the project and will not
be sold or used for any other project. Further suppose that on February 15, 2023, the first stage of work has been
completed: two juicers have been delivered and installed at the customer’s place.
Acting as the project accountant, you will purchase the project-specific items. Then you will issue the items from
inventory for the project and record expenses to the project.

Process Overview
On the Purchase Orders (PO301000) form, you will create a purchase order with the lines related to the project.
You will receive the purchased items to a company's warehouse by processing a purchase receipt on the Purchase
Receipts (PO302000) form. Then you will process an inventory issue transaction on the Issues (IN302000) form to
Tracking Project Inventory | 95

record that two juicers have been used for the first phase of the project. Finally, you will review the Project Stock
(GI640106) inquiry form to see the stock available for the project.

System Preparation
Before you start creating a project and processing a purchase, do the following:
1. Launch the Acumatica ERP website, and sign in as a project manager. You should sign in by using the
brawner username and the 123 password.
2. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to 1/30/2023. If a diﬀerent date is displayed, click the Business Date
menu button, and select 1/30/2023 on the calendar. For simplicity, in this activity, you will create and
process all documents in the system on this business date.

System Preparation
Before you start creating a project and processing a purchase, do the following:
1. Sign in to the system as the project accountant by using the brawner username and the provided password.
2. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to 1/30/2023. If a diﬀerent date is displayed, click the Business Date
menu button, and select 1/30/2023 on the calendar. For simplicity, in this activity, you will create and
process all documents in the system on this business date.

Step 1: Purchasing Project Inventory

To process a purchase order for the project, do the following:
1. On the Purchase Orders (PO301000) form, create a new record.
2. In the Summary area, specify the following settings:
• Type: Normal
• Vendor: SQUEEZO
• Description: Purchase of juicers for the project
• Date: 1/30/2023
3. On the Details tab, add a purchase order line, and specify the following settings in the added line:
• Inventory ID: JUICER15
• Warehouse: EQUIPHOUSE (specified automatically)
• Order Qty.: 2
• Unit Cost: 2,000 (specified automatically)
• Project: TOMYUM14
• Project Task: PHASE1
• Cost Code: 00-000
4. Add one more purchase order line, and specify the following settings in the added line:
Tracking Project Inventory | 96

• Inventory ID: JUICER15

• Warehouse: EQUIPHOUSE (specified automatically)
• Order Qty.: 3
• Unit Cost: 2,000 (specified automatically)
• Project: TOMYUM14
• Project Task: PHASE2
• Cost Code: 00-000
5. On the form toolbar, click Remove Hold. Then click Enter PO Receipt to create a purchase receipt for the
purchase order.
6. On the form toolbar of the Purchase Receipts (PO302000) form, which opens with the created purchase
receipt, click Release.
7. Open the Project Stock (GI640106) inquiry form and review the project inventory for the TOMYUM14 project.
For the PHASE1 project task, two juicers are in stock, as shown in the following screenshot. For the PHASE2
project task, three juicers are in stock.

Figure: Project stock aer purchasing the items for the project

Step 2: Issuing a Stock Item for the Project

To directly issue stock items for the project (to record that two juicers have been delivered to the customer) and
capture the issued cost to the project, do the following:
1. Open the Issues (IN302000) form.
2. On the form toolbar, click Add New Record, and in the Summary area, type Two juicers sent to
project site in the Description box.
3. In the Date box, select 2/15/2023.
4. On the table toolbar of the Details tab, click Add Row, and in the row, specify the following settings:
• Tran. Type: Issue
• Inventory ID: JUICER15
• Warehouse: EQUIPHOUSE (specified automatically)
• Quantity: 2
• Unit Price: 2,500 (specified automatically)
• Reason Code: INISSUEPROJ
• Project: TOMYUM14
• Project Task: PHASE1
• Cost Code: 00-000
5. Save the inventory issue transaction, and release it.
6. Open the Project Transaction Details (PM401000) form.
7. In the Summary area, specify TOMYUM14 as the Project, and make sure the other boxes are cleared.
Review the only line in the table, which is the project transaction that has been generated on release of the
Tracking Project Inventory | 97

inventory issue. The amount of the transaction in the Amount column is $4,000. This is the total cost of the
items, which is recorded as project expenses. The generated project transaction has debited the MATERIAL
account group, to which the expense account of the stock item is mapped.
8. On the Projects (PM301000) form, open the TOMYUM14 project.
9. On the Cost Budget tab, make sure that the line with the PHASE1 project task and the JUICER15 inventory
item was created based on the inventory issue you have released. The actual amount of the line is 4,000,
which is the amount of the related project transaction, and the actual quantity is 2.
10.Open the Project Stock (GI640106) inquiry form and review the project inventory, as shown in the following
screenshot.

Figure: Project stock aer the issuing of a partial quantity of the items

Notice that when you processed the inventory issue transaction, the system issued from inventory the
juicers that were purchased for the PHASE1 project task.

Project Inventory Tracking: To Track Project Inventory by Quantity and Cost

The following activity will walk you through the process of tracking the costs and quantities of the items being used
for a project.

Story
Suppose that the ToadGreen Building Group company is building a hotel for the Equity Group Investors customer.
A ToadGreen project manager has created a project to track the progress of work, expenses, and revenues. The
project work began in the mid-February. To plan the purchases of items and be sure that there will be enough
materials to proceed, the project manager needs to reserve stock items for this particular project. Also, because
of regulatory requirements, the materials used for work must be issued at the exact cost at which they have been
purchased.
On January 30, 2023, the project manager purchased 360 pallets of bricks and 480 concrete blocks and requested
that the items be delivered to the company's warehouse. Later, a project architect revised the blueprints and
found out that the initial estimation of materials was insuﬀicient. As a result, the project manager decided to buy
120 pallets of bricks and 80 concrete blocks in addition to the previous purchase. To speed up the process, the
construction project manager decided to purchase the materials from another vendor, who agreed to deliver the
materials in two days but at a higher price. Then some of the purchased materials were shipped to the project site.
Acting as a construction project manager, you will process a purchase of items for the project. Then you will issue
the quantity of the purchased items that were shipped to the project site, and review the cost of the project items.
Tracking Project Inventory | 98

Process Overview
On the Purchase Orders (PO301000) form, you will create two purchase orders with lines related to the project.
You will receive the purchased items to a company's warehouse by processing purchase receipts on the Purchase
Receipts (PO302000) form. Then you will process an inventory issue transaction on the Issues (IN302000) form to
record that a partial quantity of the materials has been used for the project. Finally, you will review the Project
Stock (GI640106) inquiry form to see the stock available for the project.

System Preparation
Before you start creating a project and processing a purchase, do the following:
1. Launch the Acumatica ERP website, and sign in as a construction project manager. You should sign in by
using the ewatson username and the 123 password.
2. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to 1/30/2023. If a diﬀerent date is displayed, click the Business Date
menu button, and select 1/30/2023 on the calendar. For simplicity, in this activity, you will create and
process all documents in the system on this business date.

Step 1: Purchasing Project Inventory

To create and process purchase orders for the project, do the following:
1. On the Purchase Orders (PO301000) form, create a new record.

To open the form for creating a new record, type the form ID in the Search box, and on the
Search form, point at the form title and click New right of the title.

2. In the Summary area, specify the following settings:

• Type: Normal
• Vendor: CONCRESUP
• Description: Purchase of project materials (masonry)
• Date: 1/30/2023
3. On the Details tab, add a purchase order line, and specify the following settings in the added line:
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• Inventory ID: REDBRICK

• Warehouse: TGCONSTR (specified automatically)
• Order Qty.: 360
• Unit Cost: 75
• Project: HOTELR
• Project Task: 04
• Cost Code: 04-210
4. Add one more purchase order line, and specify the following settings in the added line:
• Inventory ID: CONCRBK8
• Warehouse: TGCONSTR (specified automatically)
• Order Qty.: 480
• Unit Cost: 180
• Project: HOTELR
• Project Task: 04
• Cost Code: 04-220
5. On the form toolbar, click Remove Hold. Then click Enter PO Receipt. The Purchase Receipts (PO302000)
form opens with the purchase receipt.
6. On the form toolbar of the Purchase Receipts (PO302000) form, click Release.
7. Set the business date to 2/15/2023.
8. On the Purchase Orders (PO301000) form, create one more purchase order, and specify the following
settings in the Summary area:
• Vendor: STONEC
• Description: Purchase of project materials (masonry)
• Date: 2/15/2023
9. On the Details tab, add a purchase order line, and specify the following settings in the added line:
• Inventory ID: REDBRICK
• Warehouse: TGCONSTR (specified automatically)
• Order Qty.: 120
• Unit Cost: 85
• Project: HOTELR
• Project Task: 04
• Cost Code: 04-210
10.Add one more purchase order line, and specify the following settings in the added line:
• Inventory ID: CONCRBK8
• Warehouse: TGCONSTR (specified automatically)
• Order Qty.: 80
• Unit Cost: 195
• Project: HOTELR
• Project Task: 04
• Cost Code: 04-220
11.On the form toolbar, click Remove Hold. Then click Enter PO Receipt. The Purchase Receipts form opens
with the purchase receipt.
12.On the form toolbar of the Purchase Receipts (PO302000) form, click Release.
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13.Open the Project Stock (GI640106) inquiry form and review the project inventory, as shown in the following
screenshot.

Figure: Project stock inventory aer purchase of items

Step 2: Issuing Stock Items for the Project

To directly issue stock items for the project (to record that some of the materials have been delivered to the project
site) and capture the issued cost to the project, do the following:
1. Open the Issues (IN302000) form.
2. On the form toolbar, click Add New Record, and in the Summary area, type Materials issued at
project site in the Description box.
3. On the table toolbar of the Details tab, click Add Items. The Inventory Lookup dialog box opens.
4. In the line with the REDBRICK item in the table, specify 160 in the Qty. Selected column.
5. In the line with the CONCRBK8 item, specify 200 in the Qty. Selected column.
6. Click Add & Close. The system closes the dialog box and adds rows to the table on the Details tab.
7. In the row with the REDBRICK item, specify the following settings:
• Unit Price: 75
• Reason Code: INISSUEPROJ
• Project: HOTELR
• Project Task: 04
• Cost Code: 04-210
In the table footer, notice that the system shows the quantity of items currently available for the project.
8. In the row with the CONCRBK8 item, specify the following settings:
• Unit Price: 180
• Reason Code: INISSUEPROJ
• Project: HOTELR
• Project Task: 04
• Cost Code: 04-220
9. Save the inventory issue transaction.
10.On the form toolbar, click Release to release the inventory issue transaction.
11.Open the Project Transaction Details (PM401000) form.
12.In the Summary area, specify HOTELR as the Project. Review the lines in the table, which are the project
transactions that have been generated on release of the inventory issue. The amount of the line with the
REDBRICK item is $12,400. The amount of the line with the CONCRBK8 item is $36,428.57. The generated
project transactions have debited the MATERIAL account group.
13.On the Projects (PM301000) form, open the HOTELR project.
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14.On the Cost Budget tab, make sure that new lines with the 04-210 and 04-220cost codes have been added
to the cost budget. The actual values in these lines have been specified based on the amounts of the project
transaction lines.
15.Open the Project Stock (GI640106) inquiry form and review the project inventory that is still available for the
project (see the following screenshot).

Figure: Project stock inventory aer purchase of items

You have issued a partial quantity of the stock for a project.

Project Inventory Tracking: Generated Transactions

The following sections describe the GL transactions and project transactions that are generated when you process
sales and purchases of items for a project.

GL Transactions Generated on Release of an Inventory Receipt

On release of a project-related purchase receipt with a stock item, the corresponding inventory receipt is created.
When the inventory receipt is released, the system creates a batch of general ledger transaction.
The following table lists the general ledger transactions that are generated if the inventory account of the stock
item is mapped to an account group.

Account Source of Ac- Project Project Task Debit Credit

count

Inventory account Posting class of Project in the Project task in Received 0.00
the item inventory re- the inventory amount
ceipt line receipt line

PO accrual account Posting class of X (non-project Empty 0.00 Received

the item code) amount

The following table lists the general ledger transactions that are generated if the inventory account of the stock
item is not mapped to an account group.

Account Source of Account Project Debit Credit

Inventory account Posting class of X (non-project Received amount 0.00

the item code) (quantity * item
price)
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Account Source of Account Project Debit Credit

PO accrual account Posting class of X (non-project 0.00 Received amount

the item code) (quantity * item
price)

On the Financial tab of the Receipts (IN301000) form, you can click the link in the Batch Nbr. box to view the details
of the general ledger transaction on the Journal Transactions (GL301000) form.

Project Transaction Generated on Release of the Inventory Receipt

On release of the general ledger transaction described in the previous section (which was created on release of the
inventory receipt with a project-related stock item), the system generates a project transaction that updates the
project's actual amounts.
The following table lists the project transaction that is generated if the inventory account of the stock item is
mapped to an account group.

Project Budget Key Account Group Debit Account Amount

Project, project task, invento- Account group mapped Inventory account of Received amount
ry item, and cost code in the in- to the Inventory ac- the item (quantity * item price)
ventory receipt line count

You can review the created project transaction on the Project Transaction Details (PM401000) form. In the Selection
area of this form, you select the project in the Project box.

Transactions Generated on Issue of a Project Stock Item

On release of an inventory issue with a stock item issued for a project, the system generates a batch of general
ledger transactions.
The following table lists the general ledger transactions that are generated if the inventory account of the stock
item is mapped to an account group.

Account Source of Ac- Project Project task Debit Credit

count

Inventory account Posting class of Project in the Project task in 0.00 Issued amount
the item inventory re- the inventory (quantity *
ceipt line receipt line item cost)

Inventory AR accrual Reason code in X (non-project Empty Issued amount 0.00

account the inventory code) (quantity *
issue line item cost)

The following table lists the transactions that are generated if the inventory account of the stock item is not
mapped to an account group.
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Account Source of Account Debit Credit

Inventory account Posting class of X (non-project 0.00 Issued amount

the item code) (quantity * item
cost)

Inventory AR accrual ac- Reason code in the X (non-project Issued amount 0.00
count inventory issue code) (quantity * item
line cost)

You can view the reference number of the GL batch in the Batch Nbr. box on the Financial tab of the Issues
(IN302000) form. You can click the link in this box to view the details of the batch on the Journal Transactions
(GL301000) form.

Project Transaction Generated on Release of the Inventory Issue

On release of the general ledger transaction described in the previous section (which was created on release of
the inventory issue with a project-related stock item), the system generates a project transaction that updates the
project's actual amounts.
The following table lists the project transaction that is generated if the inventory account of the stock item is
mapped to an account group.

Project Budget Key Account Group Debit Account Amount

Project, project task, inventory Account group mapped Inventory account of –(Amount)
item, and cost code in inventory to the inventory ac- the item
issue line count

You can review the created project transaction on the Project Transaction Details (PM401000) form. In the Selection
area of this form, you select the project in the Project box.
If the inventory account is not mapped to an account group, no project transaction is generated.
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Tracking Project Inventory by Warehouse Location

This chapter describes how to configure and use separate warehouse locations for tracking the inventory items
(that is, the materials and services) that are sold or purchased for a project.

Project Inventory Tracking by Warehouse Location: General Information

In Acumatica ERP, you can define a project so that specific project tasks are assigned to warehouse locations. With
this configuration, in the project cost budget, you can track materials and services purchased for the project. Based
on the expenses recorded to the cost budget, you can later bill the customer. The ability to track items used for
projects by warehouse location helps you to track the amount of money and resources spent on the project and to
accurately estimate the project profitability.

Learning Objectives
You will learn how to do the following:
• Configure a project to track project inventory by warehouse location
• Process documents with project-related stock items
• Review project and GL transactions that have been generated during the processing of item sales and
purchases

Applicable Scenarios
You configure a project to use inventory tracking by specific warehouse location to keep project-specific items
separate from other inventory and to have project quantities and costs segregated in inventory balances.

Tracking Inventory by Project-Specific Location

To track project items by warehouse location, you select Track by Location in the Inventory Tracking box on the
Summary tab of the Projects (PM301000) form for a particular project. You then assign a separate location to each
project task for which you need to receive inventory items.
With this configuration, the quantity and cost of the items purchased for the project are tracked at the warehouse
location level. You create and process the following documents with project stock items:
• For a purchase of project items, you create a purchase order on the Purchase Orders (PO301000) form.
These expenses can be captured to the project as project commitments. When the purchased materials are
received to the warehouse location, a user creates a purchase receipt on the Purchase Receipts (PO302000)
form.

With the Track by Location inventory tracking mode specified for the project, you cannot track
assets purchased for the project.

• For a sale of project items, you create a sales order on the Sales Orders (SO301000) form. The shipment is
processed for the sales order from the same location on the Shipments (SO302000) form with the quantity
available for shipping that is specific to the warehouse location.
If a warehouse location is linked to a particular project and project task, the system cannot issue the items
from this location using the X non-project code. To issue the items stored in the project-specific warehouse
location with the non-project code, you need to transfer the items to a warehouse location that is not linked
to any project task.
Tracking Project Inventory by Warehouse Location | 105

In projects with inventory tracked by location, the cost of the issued materials is not project-specific and is defined
by general cost calculation rules. The cost of the item depends on the item valuation method, and is aﬀected by
other factors: the warehouse location from which the item is issued, the account and subaccount, the selected
subitem, and the lot or serial number of the item. For more information on how the system calculates item costs,
see Item Costs and Valuation Methods.

Limitations
The following limitations apply to the Track by Location inventory tracking mode:
• The purchased materials are not reserved for the project and can be sold and shipped for other projects and
customers.
• The system does not track the project-specific cost of materials.

Project Inventory Tracking by Warehouse Location: Purchases of Materials and

Services

In Acumatica ERP, you can purchase materials and services for a particular project so that these purchases will
be recorded as commitments to the cost budget of the project. This helps you to track the amount of money and
resources spent on the project against the budgeted values and the project profitability.
The following sections explain how you process purchases for a project in which separate warehouse locations are
configured for each project task.

Learning Objectives
You will learn how to do the following:
• Create a purchase order with materials and services for a project
• Prepare a purchase receipt for the purchase order
• Enter the accounts payable bill for the purchase order
• Review the project and GL transactions that are generated during the processing of a purchase

Applicable Scenarios
You process a purchase order for a project if you need to record the receipt of items to a warehouse for the project.
As a result of a purchase being processed, the actual values of the project budget are updated with the cost of the
purchased items.

Purchase of Materials and Services for a Project

To process a purchase of materials and services for a project with these items being received to a warehouse, you
use a purchase order of the Normal type. On the Details tab of the Purchase Orders (PO301000) form, to associate
a purchase order line with a project, you specify the project and project task. It is possible to process purchases for
multiple projects with a single purchase order.

If you purchase some material from a vendor directly to a customer and do not need to receive the
material to your warehouse, use a purchase order of the Project Drop Ship type for processing this
purchase. For more information, see Purchases to the Project Site: General Information and Purchases
to the Project Site with a Receipt: General Information.
Tracking Project Inventory by Warehouse Location | 106

The processing of a purchase order line depends on its type. When you select an inventory item in a purchase order
line, the system assigns the line one of the following types, depending on the selected item:
• Goods for IN type: A stock item. For more information on processing purchases of stock items, see Purchases
of Stock Items: General Information.
• Non-Stock type: A non-stock item that is configured so that the system requires a purchase receipt for it.
For more information on purchasing non-stock items with receipts, see Purchases of Non-Stock Items and
Services with Receipts: General Information.
• Service type: A non-stock item that is configured so that the system does not require a purchase receipt
for it. For more information on purchasing services, see Purchases of Services Without Receipts: General
Information.
When the items of a purchase order have been received to a warehouse, you create a purchase receipt by opening
the purchase order and clicking Enter PO Receipt on the form toolbar of the Purchase Orders form. The system
automatically adds the purchase order lines of the Goods for IN and Non-Stock types to the created purchase
receipt and opens it on the Purchase Receipts (PO302000) form. When the purchase receipt is released and the
corresponding inventory receipt is released on the Receipts (IN301000) form, the system updates the actual values
in the corresponding budget lines of the project with the same project budget key (that is, with the same project,
project task, account group, and inventory item) on the Cost Budget tab of the Projects (PM301000) form.
Aer the items have been received, you create an accounts payable bill for the purchase order selected on the
Purchase Orders form by clicking Enter AP Bill on the form toolbar. Then you release the prepared AP bill on the
Bills and Adjustments (AP301000) form.

When the bill is released, for the purchase order lines of the Service type, the system updates the actual values in
the cost budget lines of the project with the same project budget key on the Cost Budget tab of the Projects form.

Workflow of Purchasing Materials and Services for Projects

The following diagram illustrates the workflow of purchasing materials and services for projects using purchase
orders.
Tracking Project Inventory by Warehouse Location | 107
Tracking Project Inventory by Warehouse Location | 108

Project Inventory Tracking by Warehouse Location: Implementation Checklist

The following sections provide details you can use to ensure that the system is configured properly for tracking
project inventory by location, and to understand (and change, if needed) the settings that aﬀect the processing
workflow.

Implementation Checklist
Before you start working with a project and tracking project inventory by location, you should make sure that
the project accounting functionality is configured and the project has the needed settings, as summarized in the
following checklist.

Form Criteria to Check

Enable/Disable Features (CS100000) form Make sure that the Project Accounting feature is en-
abled.

Account Groups (PM201000) form Make sure that all needed account groups have been
configured. For more information about account
groups, see Account Groups: General Information.

Projects Preferences (PM101000) form Make sure that all necessary settings related to project
accounting have been specified, as described in the Ba-
sic Project Configuration: General Information.

Projects (PM301000) Make sure that the necessary project and project tasks
have been created. In the project settings, Track by Lo-
cation needs to be selected in the Inventory Track-
ing box on the Summary tab. For more information on
creating a project, see Project Creation and Processing:
General Information.

Warehouses (IN204000) form Make sure that a separate location is created and asso-
ciated with each project task for which you need to re-
ceive inventory items in a warehouse. (For a location
associated with a project task, the Cost Separately
check box is selected automatically.)

We also recommend that you specify a

higher Pick Priority value for project
locations than for other locations, to
avoid issuing project materials for oth-
er projects or to customers outside of
projects.

Inventory and Order Management Checklist

We recommend that before you start working with a project and tracking project inventory by location, you make
sure the needed features have been enabled, settings have been specified, and entities have been created, as
summarized in the following checklist.
Tracking Project Inventory by Warehouse Location | 109

Form Tasks to Perform

Enable/Disable Features (CS100000) form Make sure that the following features are enabled:
• Inventory and Order Management
• Inventory
• Multiple Warehouses
• Multiple Warehouse Locations

Multiple forms Make sure that the basic inventory and order manage-
ment preferences have been configured, as described
in Configuration of Order Management: General Informa-
tion.

Stock Items (IN202500) form Make sure that all stock items have been defined. Al-
so, make sure that the inventory account of the items
is mapped to the appropriate account group. For more
information about stock items, see Stock Item Creation:
General Information.

Non-Stock Items (IN202000) form Make sure that all non-stock items have been defined,
as described in Creating Non-Stock Items: General In-
formation. Also, make sure that the expense account of
the items is mapped to the appropriate account group.

Vendors (AP303000) form Make sure that all needed vendors have been defined
in the system, as described in Vendors: General Infor-
mation.

Other Settings That Aﬀect the Workflow

Validation of Configuration
To make sure that all configuration has been performed correctly, we recommend that you perform instructions
similar to those described in Project Inventory Tracking by Warehouse Location: To Purchase Materials and Services
for a Project.
Tracking Project Inventory by Warehouse Location | 110

Project Inventory Tracking by Warehouse Location: To Purchase Materials and

Services for a Project

This activity will walk you through the process of purchasing materials and services for a project from a
subcontractor with purchase orders.

Story
Suppose that the HM's Bakery and Cafe customer has ordered two juicers, along with four hours of the installation
service from the SweetLife Fruits & Jams company. The SweetLife company contracted the Squeezo Inc. vendor to
provide the juicers and perform the installation. SweetLife's project manager has created the project.
Acting as SweetLife's purchasing manager, you will process the purchase of materials and services for the project.
When the vendor delivers the juicers to company's warehouse, you will process a purchase receipt for the juicers.
When the vendor provides the installation service, you will process an accounts payable bill from the vendor for the
delivered juicers and provided service.

Configuration Overview
In the U100 dataset, the following tasks have been performed for the purposes of this activity:
• On the Enable/Disable Features (CS100000) form, the following features have been enabled:
• Project Accounting, which provides support for the project accounting functionality
• Inventory and Order Management, which provides the purchase order functionality
• On the Projects (PM301000) form, the HMBAKERY2 project has been created and the INSTALL project task has
been created for the project. This task is the default project task.
• On the Warehouses (IN204000) form, the EQUIPHOUSE warehouse has been created, and the HMBAKERY2
location has been created for the INSTALL task of the HMBAKERY2 project.
• On the Posting Classes (IN206000) form, the PMSTOCK posting class has been created. On the GL Accounts
tab, 12110 (Project Inventory) has been selected in the Inventory/Accrual Account box.
• On the Stock Items (IN202500) form, the JUICER10C stock item has been defined. On the General tab (Item
Defaults section), the PMSTOCK posting class has been selected in the Posting Class box.
• On the Non-Stock Items (IN202000) form, the INSTALL non-stock item of the Service type has been defined.
On the General tab (Item Defaults section), the Require Receipt check box has been cleared. On the GL
Accounts tab, 54200 (Project Subcontract Expense) has been selected in the Expense Account box.
• On the Account Groups (PM201000) form, the SUBCON and MATERIAL account groups have been created. The
54200 (Project Subcontract Expense) account has been mapped to the SUBCON account group and the 12110
(Project Inventory) account has been mapped to the MATERIAL account group.
• On the Vendors (AP303000) form, the SQUEEZO vendor has been created.

Process Overview
On the Purchase Orders (PO301000) form, you will create a purchase order for the project, specifying the project
and project task. Then you will create a purchase receipt and release it on the Purchase Receipts (PO302000) form.
Tracking Project Inventory by Warehouse Location | 111

You will bill the purchase order on the Purchase Orders form and then release the bill on the Bills and Adjustments
(AP301000) form. Finally, you will review the project balances on the Projects (PM301000) form.

Step 1: Creating a Purchase Order for the Project

To create a purchase order for the project, do the following:
1. On the Purchase Orders (PO301000) form, create a new record.
2. In the Summary area, specify the following settings:
• Vendor: SQUEEZO
• Date: 1/30/2023
• Description: Purchase for HM's Bakery & Cafe
3. On the Details tab, add two purchase order lines, and specify the settings shown in the following table in
the added lines.

Inventory ID Order Qty. Unit Cost Project Cost Code

JUICER10C 2 1500 HMBAKERY2 00-000

INSTALL 4 80 HMBAKERY2 00-000

The system automatically selects the INSTALL project task for each line when you select the HMBAKERY2
project because this task is the default project task of the project. Also, in the line with the JUICER10C stock
item, the EQUIPHOUSE warehouse is inserted automatically.
Tracking Project Inventory by Warehouse Location | 112

4. In the Summary area, make sure that the Order Total value, which is the sum of the Ext. Cost of two lines
(3,000.00 and 320.00), is 3,320.00.
5. Save the purchase order.
6. On the form toolbar, click Remove Hold. The system assigns the purchase order the Open status.

Step 2: Receiving the Purchased Materials to a Warehouse

To create a purchase receipt for the purchased materials, do the following:
1. While remaining on the Purchase Orders (PO301000) form with the purchase order selected, on the form
toolbar, click Enter PO Receipt.
The system creates a purchase receipt with the Balanced status for the JUICER10C item and opens it on the
Purchase Receipts (PO302000) form. Service item (INSTALL) does not require a receipt and is not added to
the created document.
2. On the form toolbar, click Release to release the purchase receipt.
The system creates and releases an inventory receipt transaction based on the purchase receipt. On release
of this transaction, the items are received to inventory, and the actual values in the project budget are
updated. The purchase receipt is assigned the Released status.
3. On the Projects (PM301000) form, open the HMBAKERY2 project.
On the Cost Budget tab, review the actual values of the cost budget. Notice that the Actual Quantity and
Actual Amount of the line with the JUICER10C item are 2 and 3,000.00, respectively. Also notice that the
actual values of the line with the INSTALL item are still zero.
4. To review the project transaction and general ledger transaction that have been created on release of the
inventory receipt, do the following:
a. In the table, click the cost budget line with the JUICER10C item.
b. On the table toolbar, click View Transactions.
c. On the Project Transaction Details (PM401000) form, which the system opens in a pop-up window, review
the project transaction that has updated the actual values in the budget line. The debit account group in
the transaction (MATERIAL) is the group that is mapped to the 12110 inventory account of the JUICER10C
stock item specified in the line.
d. In the only line, click the link in the GL Batch Nbr. column, and on the Journal Transactions (GL301000)
form, which opens in a pop-up window, review the created general ledger transactions. Notice that the
system debited the 12110 (Project Inventory) account for 3,000.00. This GL transaction line has the project
and project task specified and thus updates the actual amounts of the project in the corresponding cost
budget line. The oﬀset transaction line is posted with the non-project code (X) and does not aﬀect project
budget.
e. Close the pop-up windows.

Step 3: Creating a Bill for the Purchase Order

To bill the purchase order, do the following:
1. On the Purchase Orders (PO301000) form, open the purchase order that you have created earlier in this
activity.
2. On the More menu (under Processing), click Enter AP Bill to create a bill for the purchase order.
The system creates an accounts payable bill and opens the bill on the Bills and Adjustments (AP301000) form.
Make sure that both purchase order lines have been added to the bill.
3. On the form toolbar, click Remove Hold to assign the AP bill the Balanced status, and then click Release to
release the bill.
Tracking Project Inventory by Warehouse Location | 113

4. On the Projects (PM301000) form, open the HMBAKERY2 project.

On the Cost Budget tab, review the actual values of the cost budget. Notice that the Actual Quantity and
Actual Amount of the line with the INSTALL item have been updated and are now 4 and 320.00, respectively
(see the following screenshot). Also notice that the actual expenses of the project (in the Actual Expenses
box of the Summary area) are 3,320.00.

Figure: Actual values of the budget updated by the purchase

You have completed the processing of the purchase of materials and services for the project and captured the cost
of items to the project budget.

Project Inventory Tracking by Warehouse Location: Generated Transactions

When you process a purchase order for a project, you create purchase receipts and accounts payable bills. On
release of the inventory receipt associated with the purchase receipt or the AP bill, the system generates the GL and
project transactions described in the following sections.

GL Transactions Generated on Inventory Receipt Release

When an inventory receipt created on release of a purchase receipt prepared for a purchase order is released, the
system creates a batch of the general ledger transactions shown in the table below.
The system uses the following accounts as the source of the debited account in the GL batch it creates:
• The inventory account, which is specified for the posting class of a stock item in the Inventory/Accrual
Account box on the GL Accounts tab of the Posting Classes (IN206000) form.
• The expense account, which is specified for the posting class of a non-stock item that requires receipt in the
COGS/Expense Account box on the GL Accounts tab of the Posting Classes form.

Account Source of Account Debit Credit

PO accrual account Item 0.00 Amount

Inventory/expense account Posting class of the Amount 0.00

item

On the Financial tab of the Receipts (IN301000) form, you can click the link in the Batch Nbr. box to view the details
of the batch on the Journal Transactions (GL301000) form.
Tracking Project Inventory by Warehouse Location | 114

Project Transaction Generated on Inventory Receipt Release

When a batch of general ledger transactions created on release of the inventory receipt is released, the system
generates the project transaction shown in the following table.

Debit Account Credit Account Source of Account Amount

Inventory/expense ac- Empty GL transaction Amount

count

You can review the created project transaction on the Project Transaction Details (PM401000) form. In the Selection
area of this form, you select the project in the Project box.

GL Transactions Generated on AP Bill Release

When an accounts payable bill prepared for a service line of a purchase order is released, the system creates a
batch of the general ledger transactions shown in the following table.

Account Source of Account Debit Credit

Accounts payable account Vendor 0.00 Amount

Expense account Item Amount 0.00

On the Financial tab (Link to GL section) of the Bills and Adjustments (AP301000) form, you can click the link in the
Batch Nbr. box to view the details of the batch on the Journal Transactions (GL301000) form.

Project Transaction Generated on AP Bill Release

When a batch of general ledger transactions is created on release of an accounts payable bill, the system also
generates the project transaction shown in the following table.

Debit Account Credit Account Source of Account Amount

Expense account Empty GL transaction Amount

You can review the created project transaction on the Project Transaction Details (PM401000) form. In the Selection
area of this form, you select the project in the Project box. In the table, you can find the project transaction created
on release of the accounts payable bill by the reference number of the AP bill in the Orig. Doc. Nbr. column.
Billing Projects | 115

Billing Projects
In Acumatica ERP, if you need to bill customers for the services provided as a part of a project, you can generate
invoices based on the information collected in the project’s accounting data. This chapter describes how you can
bill the projects for progress or for time and material.

Project Billing: General Information

In Acumatica ERP, you run the procedure of project billing to automatically generate customer invoices based on
the accounting data related to the projects.

Learning Objectives
In this chapter, you will learn how to do the following:
In this lesson, you will learn how to do the following:
• Make sure that the project is pending billing
• Make sure that the project is ready to be billed
• Run project billing for a single project or multiple projects
• Process the documents that have been generated during the project billing
• Review how the project’s actual amounts are updated with the billed amounts

Applicable Scenarios
You run project billing at a time that depends on the project billing period defined for the project to prepare an
invoice for the customer. You can bill the customer based on the current progress of the project, or for the time and
material spent on the project.

Billing Process Preparation

The billing procedure in Acumatica ERP is straightforward and depends on the type of the step of the billing rule
that is specified for each project task on the Tasks tab of the Projects (PM301000) form as follows:
• For the Time and Material steps of the billing rules, the system selects all the project transactions and
generates an invoice for the customer based on these transactions and the billing rule.
• For the Progress Billing steps of the billing rules of project tasks, the system generates an invoice with the
billable project revenue.
For the billing process for a project to be run successfully, the project must meet the following criteria:
• The project is an external project (that is, a project associated with a customer).
• The project status should be Active, Completed, or Suspended.
• The status of the project tasks should be Active or Completed, and a billing rule should be specified for these
tasks.
• The project should have a provision for billing, such as a billable line of the revenue budget associated with
the task for progress billing, or an unbilled project transaction associated with the task within this billing
period for time and material billing.
• The steps of the billing rule should be applicable to the billing provisions. For example, the billing rule of a
task that is supposed to be billed by a revenue budget line should have a Progress Billing step.
• The rate table must be specified for a project task if the related billing rule contains the @Rate parameter.
Billing Projects | 116

• Sales prices must be configured for non-stock items if the related billing rule contains the @Price parameter.

Projects Pending Billing

The billing procedure can be run only for a project that is pending billing—that is, only if at least one of the
following exist for the project:
• A revenue budget line billed by amount with a nonzero Pending Invoice Amount on the Revenue Budget
tab of the Projects form; the amount may be positive or negative.
• A revenue budget line billed by quantity with a nonzero Pending Invoice Quantity on the Revenue Budget
tab of the Projects form.
• A revenue budget line with a Pending Invoice Quantity of 0 on the Revenue Budget tab of the Projects
form if the corresponding billing rule has the Create Lines with Zero Amount and Quantity check box
selected in the progress billing step on the Billing Rules (PM207000).
• An amount postponed to the next billing from a pro forma invoice on the Pro Forma Invoices (PM307000)
form for which the corresponding accounts receivable invoice is released.
• A project task for which a recurring billing item is defined on the Recurring Billing tab of the Project Tasks
(PM302000) form.
• An unbilled project transaction that is ready to be billed on the invoice date—that is, the date of the
transaction is not later than the invoice date. Transactions with a date the same as the invoice date are
billed if Include Trans. created on billing date is selected in the Billing Cut-oﬀ Date box on the Projects
Preferences (PM101000) form; if Exclude Trans. created on billing date is selected instead, the system skips
the transactions with a date on the billing date.
The invoice date for all the projects except those that are billed on demand is the Next Billing Date on
the Projects (PM301000) form (in the Billing and Allocation Settings section of the Summary tab); for the
projects that are billed on demand (that is, for which the Billing Period, which is specified in the same
section of the form, is On Demand), the invoice date is the business date.

Billing Procedure
You run the project billing procedure for a project that is pending billing by opening the project on the Projects
(PM301000) form and clicking Run Project Billing on the form toolbar.
The type of the document that the system will generate during the project billing procedure depends on the state
of the Create Pro Forma Invoice on Billing check box on the Summary tab:
• If the check box is selected, the system creates a pro forma invoice and opens it on the Pro Forma Invoices
(PM307000) form.
• If the check box is cleared, the system creates an accounts receivable invoice and opens it on the Invoices
and Memos (AR301000) form.
The date of the created document is the Next Billing Date specified for the project on the Summary tab (Billing
and Allocation Settings section). If On Demand is specified as the billing period of the project (in the same section
of this tab), the date of the prepared invoice is the current business date.

Project Billing: Implementation Checklist

To ensure that the system is configured properly for project billing, make sure that the features and settings listed
in the table are configured as described in the following table.
Billing Projects | 117

Form Task to Perform

Billing Rules (PM207000) form Make sure that a billing rule is configured as described
in the topics of the Creating Billing Rules chapter.

Projects (PM301000) Make sure that the appropriate billing rules are as-
signed to needed project tasks, and the project is
pending billing.

Other Settings That Aﬀect the Workflow

You can aﬀect the workflow of billing projects by specifying additional settings as follows:
• To cause pro forma invoices to be created during the project billing, select the Create Pro Forma Invoice on
Billing check box on the Summary tab of the Projects (PM301000) form.
• To cause accounts receivable invoices to be created during the project billing, clear the Create Pro Forma
Invoice on Billing check box on the Summary tab of the Projects form.
• To make the system automatically associate additional project transactions that are generated (such as
discounts or freight charges) with specific project tasks, map specific general ledger accounts to these
project tasks within the project in the Default Task for GL Account section on the Defaults tab of the
Projects form. For more information, see Insertion of Default Project Tasks in Document and Transaction Lines.

Project Billing: Progress Billing

For a billing rule defined on the Billing Rules (PM207000) form, you specify the sequence of steps in the le pane
and the settings of each step in the right pane, including the billing type, which can be Time and Material or
Progress Billing. You specify Progress Billing rules for project tasks, which are then billed by their progress.

The Progress Billing Process

You can also specify the Completed (%) value on the Revenue Budget tab for the needed revenue budget lines to
indicate that the project tasks are being performed. The system will calculate the pending invoice values by using
the following formulas:
Pending Invoice Amount = Revised Budgeted Amount * ( Completed (%) / 100 ) -
Draft Invoice Amount - Actual Amount
Pending Invoice Quantity = Revised Budgeted Quantity * ( Completed (%) / 100 )
- Draft Invoice Quantity - Actual Quantity

Project-related invoices, debit memos, and credit memos that have been created manually on the
Invoices and Memos (AR301000) form are not included in pending invoice values.

When you run the project billing by clicking the Run Project Billing button on the form toolbar of the Projects form,
the system prepares a pro forma invoice or an accounts receivable invoice depending on the project workflow,
which is defined by the state of the Create Pro Forma Invoice on Billing check box on the Summary tab of the
Projects form. The system creates an invoice with the unit prices, amounts, and quantities copied from the Unit
Rate, Pending Invoice Amount and Pending Invoice Quantity columns of the Revenue Budget tab of the Projects
form for the corresponding revenue budget lines.
Once an invoice is prepared, the Dra Invoice Amount and Dra Invoice Quantity of the revenue budget lines are
updated with the amount and quantity for which the invoice has been prepared. The Pending Invoice Amount and
Pending Invoice Quantity values become 0.
During the billing process, the system groups the billable amounts into invoices based on the following:
• The invoice group of the steps of the billing rules to which the project tasks refer
• The customer
• The customer location
• The Bill Separately setting of each project task defined on the Project Tasks (PM302000) form
If the project billing is performed by using the pro forma invoice workflow, the invoice lines that are produced by
the progress billing steps are shown in the prepared pro forma invoice on the Progress Billing tab of the Pro Forma
Invoices (PM307000) form. If you manually adjust the Amount to Invoice of a pro forma invoice line, the system
automatically recalculates the Total Completed (%). This is the percentage of the revised budgeted amount of the
revenue budget line of the project that has been invoiced by all the pro forma invoices of the project, including the
current one. However, the system does not update the Completed (%) of the corresponding revenue budget line
on the Revenue Budget tab of the Projects form accordingly. Also, the system does not update the Completed (%)
of the revenue budget line if the related pro forma invoice with the corresponding progress billing line is deleted.

Project Billing: To Bill a Project by Progress

This activity will walk you through the process of billing a project by its progress.

Story
Suppose that the HM's Bakery and Cafe customer has ordered 20 hours of new-employee training on operating
juicers from the SweetLife Fruits & Jams company. SweetLife's project accountant has created a project to handle
the tracking and billing of the provided services; the project should be billed on demand as the services are
provided. Before each invoice is sent to the customer for payment, the customer has requested that a pro forma
invoice be submitted for acceptance.
Billing Projects | 119

Then suppose that on 1/30/2023, SweetLife's consultant has provided five hours of the training. As the project
accountant, you need to update the progress of the project and bill the customer for the provided training.

Process Overview
You will update the progress of the project on the Projects (PM301000) form to indicate that services have been
provided partially. Then you will run project billing and review the prepared pro forma invoice on the Pro Forma
Invoices (PM307000) form. Aer that, you will release the pro forma invoice, which causes the corresponding
accounts receivable invoice to be created. Aer you review and release the AR invoice on the Invoices and Memos
(AR301000) form, you will review the project and make sure that the project balances have been updated.

Step 1: To Run Project Billing

To update the progress of project completion and bill the project in an amount corresponding to the progress, do
the following:
1. On the Projects (PM301000) form, open the HMBAKERY3 project.
2. On the Revenue Budget tab, specify 25 as the Completed (%) in the only revenue budget line to indicate
that 25 percent of the project task has been completed (5 hours of 20). The system calculates the Pending
Invoice Amount as $250. Because the project has a nonzero Pending Invoice Amount in the revenue
budget line, you can now bill the project.
3. Save your changes to the project.
4. On the form toolbar, click Run Project Billing.
The system creates a pro forma invoice and opens it on the Pro Forma Invoices (PM307000) form.

Step 2: To Process a Pro Forma Invoice and the Corresponding AR Invoice

To process the pro forma invoice, while you are still viewing the prepared pro forma invoice on the Pro Forma
Invoices (PM307000) form, do the following:

1. On the Progress Billing tab, review the only line. The system has added this line based on the
corresponding revenue budget line of the project on the Projects form. The Amount to Invoice in the only
progress billing line and the Progress Billing Total on the Summary area of the invoice are $250.
2. On the form toolbar, click Remove Hold to assign the pro forma invoice the Open status, and then click
Release to release the pro forma invoice. The system closes the pro forma invoice (and assigns it the Closed
status), and creates a corresponding accounts receivable invoice based on the pro forma invoice.
3. On the Financial tab, to the right of the AR Ref. Nbr. box, click the Edit button to open the accounts
receivable invoice that has been created on the Invoices and Memos (AR301000) form.
4. On the form toolbar, click Remove Hold to assign the invoice the Balanced status, and then click Release to
release the accounts receivable invoice.

Step 3: To Review the Updated Project Details

To review how the project billing has aﬀected the project budget, do the following:
1. On the Projects form, open the HMBAKERY3 project.
2. On the Revenue Budget tab, review the only revenue budget line. Notice that the Pending Invoice Amount
is now zero, and the Actual Amount is $250, as shown in the following screenshot. Also notice that Actual
Income in the Summary area has been updated and is now $250.
Billing Projects | 121

Figure: The revenue budget of the project

You have billed the project by its progress.

Project Billing: Time and Material Billing

For a billing rule defined on the Billing Rules (PM207000) form, you specify the sequence of steps in the le pane
and the settings of each step in the right pane, including the billing type, which can be Time and Material or
Progress Billing. You specify Time and Material rules for project tasks, which are then billed for time and material.

The Time and Material Billing Process

• The Bill Separately setting of each project task defined on the Project Tasks (PM302000) form
If the project billing is performed by using the pro forma invoice workflow, the invoice lines that are produced
by the Time and Material billing steps are displayed on the Time and Material tab of the Pro Forma Invoices
(PM307000) form.

Project Billing: To Bill a Project for Time and Material

This activity will walk you through the process of billing a project for time and material.

Story
Suppose that the HM's Bakery and Cafe customer has ordered a juicer from the SweetLife Fruits & Jams company,
along with the services of installation and employee training on operating the juicer. SweetLife's project
accountant has created the project to handle the tracking and billing of the juicer and the provided services. Then
the project accountant has entered a project transaction to record the delivery and installation of the juicer, and
eight hours of training have been provided by SweetLife consultants. Acting as the project accountant, you need
to bill the customer for the project so that the billing includes the materials used and the work time spent on the
project.

Configuration Overview
In the U100 dataset, the following tasks have been performed for the purposes of this activity:
• For the purposes of this activity, on the Enable/Disable Features (CS100000) form, the Project Accounting
feature has been enabled to support the project accounting functionality.
• On the Billing Rules (PM207000) form, the TM billing rule has been configured. The billing rule includes three
steps, each billing a particular account group (MATERIAL, LABOR, and SUBCON); for each group, the amount
to be invoiced is calculated by multiplying the project transaction amount by 1.25.
• On the Customers (AR303000) form, the HMBAKERY customer has been defined.
• On the Projects (PM301000) form, the HMBAKERY4 project has been created for the HMBAKERY customer, and
the PHASE1 and PHASE2 tasks have been added to the project. On the Tasks tab, the TM billing rule has been
specified for both project tasks. Also, on the Summary tab, the Create Pro Forma Invoice on Billing check
box is selected, indicating that a pro forma invoice is created when the project is billed.
• On the Project Transactions (PM304000) form, the PM00000007 batch of project transactions related to the
project has been created and released to record the services provided for the project.

Process Overview
You will make sure that the project is pending billing and run the project billing on the Projects (PM301000) form,
which causes the system to create a pro forma invoice. On the Pro Forma Invoices (PM307000) form, you will review
the lines that have been added to this pro forma invoice and release it. Then you will review the corresponding
accounts receivable invoice and release it on the Invoices and Memos (AR301000) form, and review how this aﬀects
the project’s actual values.

System Preparation
To sign in to the system and prepare to perform the instructions of the activity, do the following:
Billing Projects | 123

1. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset preloaded; you should
sign in as project accountant by using the brawner username and the 123 password.
2. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to 1/30/2023. If a diﬀerent date is displayed, click the Business Date menu
button, and select 1/30/2023 on the calendar. For simplicity, in this activity, you will create and process all
documents in the system on this business date.

Step 1: Reviewing Project Transactions Pending Billing

To review the project transactions that have not been billed yet, do the following:
1. Open the Project Transaction Details (PM401000) form.
2. In the Selection area, select HMBAKERY4 as the Project. In the table, the system lists the related project
transactions:
• The JUICER15 line in the amount of $2,000
• The TRAINING line in the amount of $320
• Two lines with the INSTALL item related to the PHASE1 project task, in the amount of $80 and $240
Notice that in all lines, the Billed check box is cleared, indicating that these project transactions are pending
billing.

Step 2: Billing the Project and Processing the Related Documents

To bill the project, do the following:
1. On the Projects (PM301000) form, open the HMBAKERY4 project. In the Summary area, notice that the actual
expenses of the project are $2,640 (which is the total of the processed project transactions), while the actual
income of the project is $0 because the project has not been billed yet.
2. On the form toolbar, click Run Project Billing. The system creates a pro forma invoice and opens it on the
Pro Forma Invoices (PM307000) form.
3. On the Time and Material tab of the form, review the lines that the system has created based on the project
transactions. The pro forma invoice includes three lines:
• The JUICER15 line with the billed amount of $2,500
• The TRAINING line with the billed amount of $400
• The INSTALL line (which aggregates two project transactions) in the amount of $400
Billing Projects | 124

4. On the form toolbar, click Remove Hold to assign the pro forma invoice the Open status, and then click
Release to release the pro forma invoice. The system closes the pro forma invoice (and assigns it the Closed
status) and creates a corresponding accounts receivable invoice based on the pro forma invoice.
5. On the Financial tab, right of the AR Ref. Nbr. box, click the Edit button to open the accounts receivable
invoice that has been created on the Invoices and Memos (AR301000) form.
6. On the form toolbar, click Remove Hold to assign the invoice the Balanced status, and then click Release to
release the accounts receivable invoice.

Step 3: Reviewing the Project Transactions and the Updated Project Balance
To review the project transactions and project balance, do the following:
1. On the Project Transaction Details (PM401000) form, in the Selection area, select HMBAKERY4 as the Project.
In the table, review the project transactions that have been created based on the released accounts
receivable invoice (these are the lines that have AR specified in the Module column and negative amounts).
In the GL Batch Nbr. column, the reference number of the corresponding GL batch is shown. Also notice that
the project transactions based on which you have performed time and material billing now have the Billed
check box selected, indicating that these transactions have been billed.
2. On the Projects (PM301000) form, open the HMBAKERY4 project. In the Summary area, notice that the actual
income is now $3,300. On the Revenue Budget tab, notice that the system has automatically created two
revenue budget lines (one for each project task), and filled in the Actual Amount for the rows.
3. On the Balances tab (see the following screenshot), review the project income and expenses aggregated by
account groups.

Figure: The project balances aer project billing

You have billed the project for time and material.

Project Billing: To Bill a Project with Combined Rule

This activity will walk you through the process of billing a project by using a combined billing rule that depends on
the progress stage being billed.
Billing Projects | 125

Story
Suppose that the Thai Food Restaurant customer has ordered a juicer from the SweetLife Fruits & Jams company,
along with installation of the juicer and training of the company's employees on operating the juicer. The SweetLife
project accountant has created a project to handle the tracking and billing of the juicer and the provided services.
Both companies have agreed that the customer will be billed in two stages. At the end of the first stage, the
customer will pay for 40 percent of the services, which have a fixed price, and for the juicer (which is installed
during the first stage). At the end of the second stage (aer the project is completed), the customer will pay for the
remainder of the project.
Then suppose that on 1/30/2023, the juicer has been delivered and installed. Acting as the project accountant, you
need to update the progress of the project, process the issue of the juicer, and bill the customer for the first stage of
the project.

Process Overview
You will issue the stock item for the project on the Issues (IN302000) form to record the sale of a juicer. You will
update the progress of the project on the Projects (PM301000) form and run the project billing. You will review the
created pro forma invoice and release it on the Pro Forma Invoices (PM307000) form to create the corresponding
accounts receivable invoice. On the Invoices and Memos (AR301000) form, you will review the prepared accounts
receivable invoice, and release the invoice. Finally, you will review the project to make sure that the release of the
AR invoice has caused the system to correctly update the actual amounts of the project.

System Preparation
To sign in to the system and prepare to perform the instructions of the activity, do the following:
1. Launch the Acumatica ERP website, and sign in to a company. Sign in to the system as the project
accountant by using the brawner username and the password provided in the class.
2. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to 1/30/2023. If a diﬀerent date is displayed, click the Business Date menu
button, and select 1/30/2023 on the calendar. For simplicity, in this activity, you will create and process all
documents in the system on this business date.

Step 1: Issuing a Stock Item for the Project

To directly issue a stock item for the project (to record that the juicer that has been delivered to the customer) and
capture the issued cost on the project, do the following:
1. On the Issues (IN302000) form, add a new record.
2. In the Summary area, type A juicer for Thai Food Restaurant in the Description box.
3. On the table toolbar of the Details tab, click Add Row, and specify the following settings in the row:
• Tran. Type: Issue
• Inventory ID: JUICER15
• Warehouse: EQUIPHOUSE
• Location: TOMYUM2
• Quantity: 1
• Unit Price: 2,500
• Reason Code: INISSUEPROJ
• Project: TOMYUM2 (selected automatically)
• Project Task: PHASE1 (selected automatically)
• Cost Code: 00-000
Notice that Unit Cost in the line is $2,000.
4. Save the inventory issue, and release it.
5. On the Projects (PM301000) form, open the TOMYUM2 project.
6. On the Cost Budget tab, make sure that the line with the PHASE1 project task and the JUICER15 inventory
item was created based on the inventory issue you have released. The Actual Quantity is 1 because you
have issued one juicer from the project-specific location. The Actual Amount of the line is $2,000, which is
the amount of the related project transaction (that is, the cost of the juicer).
7. On the table toolbar, click View Transactions. On the Project Transaction Details (PM401000) form, which
opens in a pop-up window, review the only line in the table. The Amount of the transaction is $2,000, and
the Billed check box is cleared. This transaction will be billed by the time and material step of the billing
rule assigned to the PHASE1 project task.
Billing Projects | 127

Step 2: Billing the Project

To update the progress of project completion and bill the project, do the following:
1. While you are still viewing the TOMYUM2 project on the Projects (PM301000) form, on the Revenue Budget
tab, specify 40 as the Completed (%) of each revenue budget line. Notice that the system calculates the
Pending Invoice Amount for each line ($112 for the PHASE1 project task, and $160 for the PHASE2 project
task). This pending amount will be billed by the progress billing step of the billing rule assigned to the
PHASE1 and PHASE2 project tasks.
2. Save your changes to the project, and on the form toolbar, click Run Project Billing. The system creates a
pro forma invoice and opens it on the Pro Forma Invoices (PM307000) form. Review the invoice details and
notice the following:
• On the Progress Billing tab, the Amount to Invoice in each line is equal to the Pending Invoice Amount
of the corresponding revenue budget line of the TOMYUM2 project on the Revenue Budget tab of the
Projects form.
• On the Time and Material tab, the system has generated a line with the JUICER15 item. The Amount to
Invoice in the line is the price of the juicer ($2,500).
3. On the form toolbar, click Remove Hold to assign the pro forma invoice the Open status, and then click
Release to release the pro forma invoice. The system creates the accounts receivable invoice based on the
pro forma invoice and assigns the Closed status to the pro forma invoice.
4. On the Financial tab, right of the AR Ref. Nbr. box, click the Edit button to open the accounts receivable
invoice that was created on the Invoices and Memos (AR301000) form. The AR invoice has three lines:
two lines with empty Inventory ID values that have been generated with the progress billing step of the
billing rule (in the amounts of $112 and $160), and a line generated by the time and material step with the
JUICER15 item and the amount of $2,500.
5. On the form toolbar of the Invoices and Memos form, click Remove Hold to assign the invoice the Balanced
status, and then click Release to release the accounts receivable invoice.
6. On the Projects form, open the TOMYUM2 project, and on the Balances tab, review the amounts in the
budget lines that have been updated as the result of the billing (see the following screenshot). Actual
Amount for the REVENUE group is $2,772, which is the sum of the price of the juicer ($2,500) and 40 percent
of the price of the services ($112 + $160); Actual Amount for the MATERIAL group is $2,000, which is the cost
of the juicer.
Billing Projects | 128

Figure: The project balances

You have finished billing the project with a combined billing rule.

Project Billing: Recurring Billing

Your company may provide services to customers regularly for a flat price—for instance, easing construction
machines to customers for an agreed-upon number of hours per month at a fixed price. If you decide to manage
this activity as a project, you do not have to manually create a new invoice every month—instead, each time you
run project billing, recurring transactions can be added to the invoice (or to the invoice listed first in the rule if
multiple invoices must be generated for the applicable billing rule).
You can set up recurring billing at the project task level by adding lines on the Recurring Billing tab of the Project
Tasks (PM302000) form. Each recurring billing line defines the rules the system uses to create the corresponding
invoice line during the project billing. For each line, you specify the following settings:
• A non-stock item that represents a service or labor of recurring billing to track employee and equipment
work time.
• The flat price that is charged once each billing period.
• Optional: The number of units included in the item fee. For instance, you may have an agreement with
the customer to provide 40 hours of service at a flat price, while any extra hours are charged on a per-hour
basis. These 40 hours would be included in the recurring billing line and the extra hours would be billed
separately.
• The option that determines the frequency of recurring billing usage. You can select one of the following
options: the recurring billing is performed only once during the project lifecycle for the next project billing
or it is used each time the project billing is performed.
The recurring billing is invoked on project billing and does not depend on any of the billing rule settings. However,
a billing rule with at least one step, for example, a progress billing step, is required for the project task to make the
system produce an invoice even with a single recurring billing line.

You can also set up recurring billing for project template tasks on the Recurring Billing tab of the
Project Template Tasks (PM208010) form.
Billing Projects | 129

Project Billing: Related Reports and Forms

This topic describes reports and forms you can review to gather information related to project billing. The topic
also explains how you can print documents related to project billing.

Finding the Related Pro Forma Invoice

While you are working with a particular accounts receivable invoice on the Invoices and Memos (AR301000) form,
you can review the pro forma invoice that was used for creating this accounts receivable invoice. To do this, you
click Pro Forma on the More menu (under Related Documents) of the Invoices and Memos form.

Reviewing the Actual Amounts of the Project

You can review the list of project transactions corresponding to a project budget line with a nonzero Actual
Amount on the Revenue Budget or Cost Budget tab of the Projects (PM301000) form. To review the corresponding
project transactions of a line on either tab, you click the line; on the table toolbar, you click View Transactions, and
the system opens the Project Transaction Details (PM401000) form in a pop-up window with the project transactions
displayed.

Reviewing Project Balances

You can review the project balance broken down by account group on the Balances tab of the Projects (PM301000)
form. To review the corresponding project transactions of an account group, you click the line; then on the table
toolbar, you click View Transactions. The system opens the Project Transaction Details (PM401000) form in a pop-
up window.

Reviewing Project Transactions

You can review the list of all the transactions that correspond to a project on the Project Transaction Details
(PM401000) form. In the Selection area of this form, you select the project to review all its project transactions. The
transactions for which the Billed check box is cleared have not been billed yet. You can narrow the range of listed
transactions by specifying any of the following in the Selection area: project task, account group, and inventory
item.

Printing a Pro Forma Invoice

While you are viewing a pro forma invoice on the Pro Forma Invoices (PM307000) form, you can print it by clicking
Print on the More menu. The system opens the Pro Forma Invoice (PM642000) report with the printable version of
the document; then you can review the document details and print it by clicking Print on the report toolbar.

Printing the Project Balance

You can prepare a printable document detailing the project balance by clicking Print Project Balance on the More
menu (under Reports) of the Projects (PM301000) form while you are viewing the project. The system opens the
printable document with the project balance on the Project Balance (PM621000) report. Then you can review the
project balance and print the document by clicking Print on the report toolbar.
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Project Billing: Mass Processing of Documents

This topic explains how to perform mass-processing operations related to project billing, and how the system
generates, changes, or works with documents as a result of the mass processing.

Mass-Billing Projects
Multiple projects can be billed at the same time on the Run Project Billing (PM503000) form. On this form, you can
run billing for multiple projects that are pending billing, based on the Invoice Date selected in the Summary area
of the form. (By default, this box contains the business date.)
The form does not show the projects for which the Next Billing Date, which is specified on the Summary tab of the
Projects (PM301000) form, is later than the Invoice Date, which is specified in the Selection area of the Run Project
Billing form.

The system creates pro forma invoices or accounts receivable invoices (depending on the workflow configured for
the project) with the date that is specified in the Invoice Date box in the Selection area of the form.

Mass-Releasing AR Invoices
Multiple accounts receivable invoices can be released at the same time on the Release AR Documents (AR501000)
form. On this form, you select the unlabeled check boxes in the rows of the documents to be processed and click
Release on the form toolbar to release the selected invoices; alternatively, you can click Release All to release all
the invoices shown in the table.

Mass-Releasing Pro Forma Invoices

Pro forma invoices can be mass-released. To release multiple pro forma invoices at a time, you open the Process
Pro Forma Invoices (PM506000) form, select the unlabeled check boxes in the rows of the pro forma invoices to be
processed, select Release in the Action box in the Selection area, and click Process on the form toolbar. To instead
release all the listed pro forma invoices, you click Process All on the form toolbar.

Mass-Recalculating Pro Forma Invoices

In some cases, you may need to validate the project balances to make dra invoice amounts of the project budget
match the values of the change orders.
To recalculate budget values aﬀected by change orders, you select the Recalculate Dra Invoice Amount check
box in the Selection area. You also select the unlabeled check boxes in the rows of the projects to be processed
and click Process on the form toolbar to process the selected projects; alternatively, you can click Process All to
process all the projects shown in the table. For more information, see Project Budget: Recalculation of the Project
Budget.

Project Billing: Reversing AR Documents

When you reverse a released accounts receivable invoice that was created based on a project transaction, the
system creates the corresponding credit memo. When you release this reversing credit memo, the system creates a
non-billable reversing project transaction that reverses the impact of the original project transaction. The original
project transaction remains billed.
The system also creates a copy of the original project transaction with the original quantity and amount even
if these quantity and amount was adjusted in the credit memo. The date and the financial period of this copied
project transaction are the same as the date and the financial period of the original transaction if the financial
Billing Projects | 131

period is not locked. If the financial period of the original transaction is locked, the financial period of the created
transaction is copied from the credit memo. The copied project transaction is unbilled. Thus, as the result of such a
reversal, there are the following project transactions in the system:
• The original project transaction, which is billed
• The non-billable reversing project transaction, which reverses the impact of the original project transaction
• The copy of the original project transaction with the original amount and quantity, which is unbilled and
ready for billing again

Project Billing: To Correct the Actual Income of a Project

In this activity, you will correct the actual amounts of a project that has been overcharged during the billing. To do
this, you will create a credit memo for the project.

Story
Suppose that the Thai Food Restaurant customer recently ordered eight hours of training on how to use a juicer it
had previously bought from the SweetLife Fruits & Jams company. SweetLife's project accountant created a project
for this training, a consultant of SweetLife provided the training, and the project accountant billed the customer.
Further suppose that the project accountant has realized that the consultant provided six hours of training instead
of eight, so the company overcharged the customer by $100. Acting as the project accountant, you need to correct
the actual amount of the project and create a credit memo for the project.

Process Overview
In this activity, on the Projects (PM301000) form, you will update the pending invoice amount of the project with
a negative amount and run project billing to prepare a pro forma invoice. On the Pro Forma Invoices (PM307000)
form, you will review the pro forma invoice and release it. You will then review the credit memo that was created
based on the pro forma invoice and release the credit memo on the Invoices and Memos (AR301000) form.

System Preparation
To sign in to the system and prepare to perform the instructions of the activity, do the following:
Billing Projects | 132

1. Launch the Acumatica ERP website and sign in as Pam Brawner using the brawner username and 123
password.
2. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to 1/30/2023. If a diﬀerent date is displayed, click the Business Date menu
button, and select 1/30/2023 on the calendar. For simplicity, in this activity, you will create and process all
documents in the system on this business date.

Step: Creating a Credit Memo for the Project

To create a credit memo for the extra $100 that was billed for the project, do the following:
1. On the Projects (PM301000) form, open the TOMYUM11 project. In the Summary area, notice that the actual
income of the project is $400.
2. On the Revenue Budget tab, enter –100 as the Pending Invoice Amount of the only revenue budget line
that you are going to correct.
3. Save your changes to the project.
4. On the form toolbar, click Run Project Billing.
The system creates a pro forma invoice and opens it on the Pro Forma Invoices (PM307000) form. In the
Summary area, notice that the Invoice Total is negative and equals the amount you have specified for the
revenue budget line of the project (–100.00).

If the Invoice Total of a pro forma invoice on the Pro Forma Invoices form becomes negative
(for example, if you have added a negative adjustment line in an amount greater than the total
amount of billable lines), the system creates an accounts receivable credit memo when the pro
forma invoice is released.

5. On the form toolbar, click Remove Hold to assign the pro forma invoice the Open status, and then click
Release to release the pro forma invoice.
The system creates the credit memo based on the pro forma invoice and assigns the Closed status to the pro
forma invoice.
6. On the Financial tab, right of the AR Ref. Nbr. box, click the Edit button to open the credit memo that has
been created for the pro forma invoice.
Billing Projects | 133

7. On the form toolbar of the Invoices and Memos (AR301000) form, which the system has opened in a pop-
up window, click Remove Hold to assign the credit memo the Balanced status, and then click Release to
release the credit memo.
8. On the Projects form, open the TOMYUM11 project. In the Summary area, notice that the actual income of
the project, which has been updated as a result of the billing, is $300.
On the Invoices tab, notice that the credit memo with the corresponding pro forma invoice has appeared in
the table, as shown in the following screenshot.

Figure: The credit memo created for the project

You have adjusted the overcharged actual income in the project. In the next step of the process in a production
environment (which is beyond the scope of this activity), an accounts receivable clerk would apply the created
credit memo to the original invoice that has been corrected.
Billing Employee Time | 134

Billing Employee Time

This chapter describes how to track billable hours and employees’ work time on projects, and how to bill projects
based on this time.

Employee Time Billing: General Information

In Acumatica ERP, you can use the time reporting functionality to give employees the ability to report the time that
they spend for the project. During project billing, you can bill customers for this time.

Learning Objectives
In this chapter, you will learn how to do the following:
In this lesson, you will learn how to do the following:
• Enter a billable time activity related to a project, and log the time spent for the project
• Enter a billable time card related to a project, and log the time spent for the project
• Bill a project for employees’ time spent working on it

Applicable Scenarios
You may want to learn more about employee time billing if you are an employee who needs to log work time spent
on particular project.
This information is also useful if you are a project accountant, and you need to bill the customer for employee time
that was spent for a particular project and logged by using time cards.

Entry of Time Tracking Documents

In Acumatica ERP, employees can report their work time by creating time cards that include separate detail records
associated with diﬀerent projects or project tasks.
A time card, which an employee enters on the Employee Time Card (EP305000) form, is a weekly report on the time
an employee has spent on each activity. In each line of a time card, the following information is specified:
• The earning type, which defines whether the reported work should be billed
• The project and project task related to the reported hours
• The labor item assigned to the employee who performed the work
• The time spent on each day of the week for which the time card is prepared
When the time card is released, the related project transaction is created, so that the logged employee time is
tracked in the related project and can then be billed. Also, on release of the time card, for each day of the week with
reported time, a separate time activity is created and released.
You can review the list of time activities related to a project on the Activities tab of the Projects (PM301000) form.
In addition, if time tracking with time activities is configured, on this tab, you can add an individual project-related
activity to the selected project by clicking Create Activity on the table toolbar and selecting the type of activity to
be created. Then you enter the details of the time activity on the Activity (CR306010) form, which opens. To indicate
that the time activity is related to a project, you select the Track Time and Costs check box and specify the project-
related information in the Summary are of the form.
Finally, you complete the activity to submit it. The reported data from the time activity becomes available in the
employee time card; the time activity can be released within this time card or individually.
Billing Employee Time | 135

Workflow of the Submission of a Time Card

For a project-related time card, the processing involves the actions and generated documents shown in the
following diagram.

Billing Employee Time in Projects

Once time tracking is configured for projects and the system is configured to generate transactions from
time activities, the working time reported by employees is tracked in the related projects and can be billed
automatically during the project billing procedure.
Billing Employee Time | 136

Time cards reported by payroll employees are processed by separate set of rules. For more
information, see Employee Payroll Settings: General Information and Time Tracking: General
Information.

Each line of a time card is a time activity. On release of a time card with project-related lines, the system processes
these lines as follows:
• Generates project transactions for each time activity within a time card that is associated with a project.
This extra step between the release of the time-tracking document and the updating of balances of general
ledger accounts makes it possible to define labor costs and bill customers based on these costs and the
quantity of working hours reported by employees for the project. The system further processes the project
transactions originating from a time card based on the allocation or billing rules assigned to the project
tasks of the project to which this transactions relates.
• Generates general ledger transactions (and does not generate project transactions) for each time activity
within a time card that is associated with a non-project code.

Employee Time Billing: Implementation Checklist

To ensure that the system is configured properly for billing employee time spent for projects, make sure that the
features and settings listed in the table are configured as described in the following table.

Form Validation of Settings

Multiple forms Make sure that all necessary settings of time tracking
have been specified, as demonstrated in the exam-
ples of Time Tracking Configuration: To Configure Time
Tracking in Projects and Time Tracking Configuration: To
Track Time with Time Activities.

Non-Stock Items (IN202000), Employees (EP203000) Create the needed labor items to represent project
work and assign them to employees, as illustrated in
the Labor Items: To Configure a Labor Item.

Labor Rates (PM209900) Define labor cost rates for employees, as demonstrat-
ed in Labor Items: To Define Labor Cost Rates.

Projects (PM301000) Make sure that the project has been created, as de-
scribed in Project Creation and Processing: General In-
formation, and that labor items are assigned to the ap-
propriate project tasks on the Tasks tab.

Other Settings That Aﬀect the Workflow

You can affect the workflow of time reporting by specifying additional settings as follows:
• To cause the system to require an employee to enter time cards, select the Time Card is Required check
box on the Employees (EP203000) form. If reporting of time with time activities is configured, selecting this
check box means that time activities can be released only within a time card.
• To cause the system to post project transactions generated on release of time activities to the off-balance
account group, select Post PM to Off-Balance Account Group in the Posting Option for Non-Payroll
Employee box, and specify the account group of the Off-Balance Type in the Off-Balance Account Group
on the Time and Expenses Preferences (EP101000) form.
Billing Employee Time | 137

• To cause project transactions to be automatically generated and released on release of time cards, select
the Automatically Release PM Documents on the Time and Expenses Preferences (EP101000) form.
• To associate an earning type with a particular project or project task, on the Earning Types (EP102000) form,
for an earning type, specify the project or project task in the Default Project Code box and Default Task
box, respectively.
• To copy notes and attached documents from time cards to generated project transactions, select the
Copy Files to PM Documents and Copy Notes to PM Documents check boxes on the Time and Expenses
Preferences form.

Employee Time Billing: To Enter a Project-Related Time Activity

In this activity, you will enter a time activity for work related to a project.

Story
Suppose that the HM's Bakery and Cafe customer has contacted the SweetLife Fruits & Jamss company to order
training on operating juicers for the company's new employees. The project accountant has created a project to
account for the provided services.
Further suppose that Todd Bloom has spent four hours training the customer's employees on Monday. Acting as
Todd Bloom, you need to enter a time activity to log the time spent working on the project.

Configuration Overview
In the U100 dataset, the following tasks have been performed for the purposes of this activity:
• The following features have been enabled on the Enable/Disable Features (CS100000) form:
• Project Accounting, which provides support for the project accounting functionality
• Time Management, which provides support for tracking the time that employees spend on activities
• On the Projects (PM301000) form, the HMBAKERY7 project has been created and the TRAINING project task
has been added to the project.
• On the Activity Types (CR102000) form, the Track Time check box is selected for the Work Item activity type.
• On the Non-Stock Items (IN202000) form, the CONSULTSR labor item has been created; on the Employees
(EP203000) form, this item is assigned to the EP00000002 – Todd Bloom employee.

Process Overview
On the Activity (CR306010) form, you will enter and complete a time activity for the project on which the employee
has worked. Then on the Projects (PM301000) form, you will make sure that the time activity has appeared in the
project details.

System Preparation
Launch the Acumatica ERP website, and sign in to a company with the U100 dataset preloaded. You should sign in
as an employee by using the bloom username and the 123 password.
Sign in to the system as an employee by using the bloom username and the 123 password.
Billing Employee Time | 138

Step: Entering a Time Activity for the Project

To log the four hours that Todd Bloom has spent training the customer's employees as part of the project, enter a
time activity as follows:
1. On the Projects (PM301000) form, open the HMBAKERY7 project.
2. On the table toolbar of the Activities tab, click Create Activity > Create Work Item to add an activity to the
project. The system opens the Activity (CR306010) form with the new activity created.
3. On this form, specify the following settings:
• Summary: A 4-hour training session
• Date: 1/30/2023
• Owner: Todd Bloom
• Project: HMBAKERY7 (selected automatically)
• Project Task: TRAINING (selected automatically)
• Cost Code: 00-000
• Labor Item: CONSULTSR
• Track Time and Costs: Selected
• Earning Type: RG (selected automatically)
• Time Spent: 04:00
• Billable: Selected
• Billable Time: 04:00
4. On the form toolbar, click Complete to complete the activity.
The system creates and saves the activity with the Work Item type, closes the Activity form, and returns to the
project on the Projects form.
5. On the Activities tab, make sure the time activity you created has appeared, as shown in the following
screenshot.

Figure: The time activity related to the project

You have entered the time activity for the work performed by the employee for a project.

Employee Time Billing: To Enter a Project-Related Time Card

In this activity, you will enter a time card for work related to a project.
Billing Employee Time | 139

Story
Suppose that the HM's Bakery and Cafe customer has contacted the SweetLife Fruits & Jams company and ordered
training on operating juicers for the company's new employees. The project accountant has created a project to
account for the provided services.
Further suppose that project accountant (who also provides employee training services) has spent eight hours
training the customer's employees on January 30. Acting as Pam Brawner, you need to enter a time card to log the
time spent working on the project.

Configuration Overview
In the U100 dataset, the following tasks have been performed for the purposes of this activity:
• For the purposes of this activity, the following features have been enabled on the Enable/Disable Features
(CS100000) form:
• Project Accounting, which provides support for the project accounting functionality
• Advanced Financials, which provides the functionality of time cards
• On the Projects (PM301000) form, the HMBAKERY7 project has been created, and the TRAINING project task
has been added to the project.
• On the Non-Stock Items (IN202000) form, the CONSULTPM labor item has been created; on the Employees
(EP203000) form, this item is assigned to the EP00000001 – Pam Brawner employee. For an example of
configuring a labor item and assigning it to an employee, refer to Labor Items: To Configure a Labor Item.
• On the Labor Rates (PM209900) form, a labor cost rate has been configured for the EP00000001 – Pam
Brawner employee.

Process Overview
On the Employee Time Card (EP305000) form, you will enter a time card for an employee related to the particular
project on which the employee has worked. Then you will submit the time card and release it. Finally, on the
Projects (PM301000) form, you will make sure that the time card has appeared in the project details.

System Preparation
1. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset preloaded. You should
sign in as project accountant by using the brawner username and the 123 password.
2. Sign in to the system as project accountant by using the brawner username and the 123 password.

Step: Entering a Time Card for the Project

To log the eight hours that Pam Brawner has spent training the customer's employees as part of the project, enter a
time card as follows:
1. On the form toolbar of the Employee Time Cards (EP406000) form, click Add New Timecard to create a new
time card. The system opens the Employee Time Card (EP305000) form with the new time card.
In the Summary area, 2023-05 (01/29 - 02/04) is specified in the Week box. This is the work week to which the
current business date belongs. Also, notice that the system has automatically selected the employee who is
currently signed in (Pam Brawner) as the Employee.
Billing Employee Time | 140

2. On the Summary tab, add a row, and specify the following settings:
• Earning Type: RG
• Project: HMBAKERY7
• Project Task: TRAINING
• Cost Code: 00-000
• Labor Item: CONSULTPM (inserted automatically)
• Mon: 08:00
• Billable: Selected (selected automatically based on the settings of the selected earning type)
• Description: An 8-hour training session
• Approval Status: Not Required (selected automatically)
When you enter hours in the columns representing the days of the week for any row, the system calculates
the Time Spent in the Summary area as the sum of all these columns.
3. Save the time card.
4. On the form toolbar, click Submit to submit the time card. The status of the time card is changed to
Approved.
5. On the form toolbar, click Release to release the time card. The time card is assigned the Released status.
6. On the Projects form, open the HMBAKERY7 project, and on the Activities tab, notice that the time activity
you have entered by using the time card is shown on the tab, as shown in the following screenshot.

Figure: Time card information tracked in the project

You have submitted and released the time card related to the project.

Employee Time Billing: Process Activity

This activity will walk you through the process of billing employee time spent on a particular project.

Story
Suppose that Lake Cafe has requested 40 hours of training on operating juicers that were previously purchased
from and installed by the SweetLife Fruits & Jams company. Jon Waite, SweetLife's senior consultant, has provided
16 hours of training (three hours on Monday, January 30, 2023; five hours on Tuesday, January 31; and eight hours
on Thursday, February 2).
Billing Employee Time | 141

Acting as SweetLife's project accountant, Pam Brawner, you need to create a project to account for the provided
services. Then acting as Jon Waite, you need to enter a time card to log the work related to the project. Finally,
again acting as Pam Brawner, you need to bill the project and review the invoice prepared for the customer.

Configuration Overview
In the U100 dataset, the following tasks have been performed for the purposes of this activity:
• The Project Accounting feature has been enabled on the Enable/Disable Features (CS100000) form.
• The 54100 (Project Labor Expense) account is mapped to the LABOR expense account group, which has been
defined on the Account Groups (PM201000) form.
• On the Billing Rules (PM207000) form, the TM billing rule has been created, and a step for billing project
transactions associated with the LABOR account group has been added to the rule.
• On the Customers (AR303000) form, the LAKECAFE (Lake Cafe) customer has been created.

Process Overview
You will create a project on the Projects (PM301000) form and add a project task to it. Then you will create and
release a time card on the Employee Time Cards (EP406000) form. You will review the project transaction generated
based on the time card on the Project Transactions (PM304000). Next, you will bill the project on the Projects form,
and release both the prepared pro forma invoice on the Pro Forma Invoices (PM307000) form and the AR invoice on
the Invoices and Memos (AR301000) form. Finally, on the Projects form, you will make sure that the project cost and
revenue budget have been updated with the billed employee time.

System Preparation
To sign in to the system and prepare to perform the instructions of the activity, do the following:
1. As a prerequisite activity, configure the labor cost rates as described in Labor Items: To Define Labor Cost
Rates.
2. Launch the Acumatica ERP website and sign in to a company with the U100 dataset preloaded. You should
sign in as Pam Brawner by using the brawner username and the 123 password.
3. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to 1/30/2023. If a diﬀerent date is displayed, click the Business Date menu
button, and select 1/30/2023 on the calendar. For simplicity, in this activity, you will create and process all
documents in the system on this business date.

Step 1: Creating a Project

To create a project, do the following:
1. On the Projects (PM301000) form, add a new record.
2. In the Summary area, specify the following settings:
• Project ID: TRAINLAKE
• Customer: LAKECAFE (Lake Cafe)
• Description: Training project for Lake Cafe
3. On the Summary tab, specify the following settings:
• Cost Budget Level: Task and Item
• Change Order Workflow: Cleared
• Billing Period: On Demand
4. On the Tasks tab, click Add Row, and specify the following settings in the row:
• Task ID: TRAINING
• Type: Cost and Revenue Task
• Description: Employee training on juicer usage
• Billing Rule: TM
• Status: Active
• Default: Selected
5. Save the project.
6. On the Cost Budget tab, click Add Row, and specify the following settings in the row:
• Project Task: TRAINING
• Inventory ID: CONSULTSR
• Original Budgeted Quantity: 40
7. Save the project.
8. On the form toolbar, click Activate Project. The system assigns the project the Active status.

You have created the project and the TRAINING task, and have added a cost budget line.

Step 2: Entering an Employee Time Card

In this step, you will enter Jon Waite's working hours for the project by creating an employee time card as follows:
1. Sign out of Acumatica ERP, and then sign in as Jon Waite by using the waite username and the 123
password.
2. Sign out of Acumatica ERP, and then sign in as Jon Waite by using the waite username and the 123
password.
3. Sign out of Acumatica ERP, and then sign in as Jon Waite by using the waite username and the password
provided in the class.
4. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, click the Business
Date menu button, and select 1/30/2023 on the calendar.
5. On the form toolbar of the Employee Time Cards (EP406000) form, click Add New Timecard to create a new
time card. The system opens the Employee Time Card (EP305000) form with the new time card created for
the employee who is currently signed in (Jon Waite).
6. In the Summary area, make sure that 2023-05 (01/29 - 02/04) is specified in the Week box. This is the work
week during which the work for the project has been performed.
Billing Employee Time | 143

7. On the Summary tab, add a row, and specify the following settings:
• Earning Type: RG (inserted automatically)
• Project: TRAINLAKE
• Project Task: TRAINING (inserted automatically)
• Cost Code: 00-000
• Labor Item: CONSULTSR (inserted automatically)
• Mon: 03:00
• Tue: 05:00
• Thu: 08:00
• Time Spent: 16:00 (calculated and inserted automatically)
When you enter hours in the columns representing the days of the week for any row, the system
calculates the Time Spent in the Summary area as the sum of all these columns.
• Billable: Selected (selected automatically based on the settings of the selected earning type)
• Description: Training provided by senior consultant
• Approval Status: Not Required (inserted automatically)
8. Save the time card.
9. On the form toolbar, click Submit to submit the time card. The status of the time card is changed to
Approved.
10.On the form toolbar, click Release to release the time card; its status is changed to Released.
11.On the form toolbar, click View Transactions. On the Project Transactions (PM304000) form, the system
opens the project transaction that has been generated based on the released time card. Notice that the
system has created a separate project transaction line for each time activity within the time card. The total
billable quantity of the transaction is 16, which is the quantity of reported hours, and the total amount is
calculated based on the billable quantity and employee labor cost as follows:
16.00 * 44.00 = 704.00
12.Sign out of the system.

Step 3: Billing the Project

To review the cost budget of the project and bill the project on behalf of the project accountant, do the following:
1. Sign in to the system as Pam Brawner Waite by using the brawner username and the 123 password.
2. Sign in to the system as Pam Brawner by using the brawner username and the 123 password.
3. Sign in to the system as Pam Brawner by using the brawner username and the password provided in the
class.
4. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, click the Business
Date menu button, and select 2/5/2023 on the calendar.
5. On the Projects (PM301000) form, open the TRAINLAKE project.
On the Cost Budget tab, notice that the system has updated the actual quantity and amount with the data
of the project transaction that was generated on release of the time card, as shown in the screenshot below.
Billing Employee Time | 144

Figure: The cost budget updated based on the released time card

6. On the form toolbar, click Run Project Billing. The system creates a pro forma invoice and opens it on the
Pro Forma Invoices (PM307000) form.
On the Time and Material tab of this form, notice that based on the settings of the step of the TM billing rule
that processes the project transactions associated with the LABOR account group, the invoiced amount for
each line has been calculated as the amount of the related project transaction line (that is, the cost of the
provided employee labor) multiplied by 1.25. The total invoiced amount is $880 ($704.00 * 1.25).
7. On the form toolbar, click Remove Hold to assign the pro forma invoice the Open status, and then click
Release to release the pro forma invoice.
8. On the Financial tab, right of the AR Ref. Nbr. box, click the Edit button to open the accounts receivable
invoice that has been created.
9. On the form toolbar of the Invoices and Memos (AR301000) form, which opens in a pop-up window, click
Remove Hold to assign the invoice the Balanced status, and then click Release to release the accounts
receivable invoice.
10.On the Projects form, open the TRAINLAKE project, and in the line with the REVENUE item on the Revenue
Budget tab, make sure that the Actual Amount is now $880.

You have billed the project for the employee labor.

Employee Time Billing: Mass Processing of Documents

This topic explains how to perform mass-processing operations related to employee time tracking, and how the
system generates, changes, or works with documents as a result of the mass processing.

Mass-Releasing Time Activities

To mass-release time activities, you use the Release Time Activities (EP507020) form. On this form, you select
the unlabeled check boxes in the rows of the documents to be released and click Release on the form toolbar to
process the selected documents; alternatively, you can click Release All to process all the documents shown in the
table.

Mass-Releasing Time Cards

To mass-release time cards, you use the Release Time Cards (EP505010) forms. On this form, you select the
unlabeled check boxes in the rows of the documents to be released and click Release on the form toolbar to
process the selected documents; alternatively, you can click Release All to process all the documents shown in the
table.
Billing Employee Time | 145

Employee Time Billing: Related Report and Inquiry Forms

In the following sections, you can find details about the reports and inquiry forms you may want to review to gather
information about employee time spent on a project.

Reviewing Time-Tracking Documents for a Project

You can review the list of all time cards and time activities (if applicable) that relate to a particular project on the
Activities tab of the Projects (PM301000) form.

Reviewing Time Cards for an Employee

You can review the list of time cards submitted by a particular employee on the Employee Time Cards (EP406000)
inquiry form. You select the employee in the Employee box of the Selection area, and the system groups this
employee's time cards by their status.

Reviewing Time Activities for an Employee

You can review the list of time activities on the Employee Time Activities (EP307000) form. In the Summary area of
this form, you select an employee and the time range (in weeks) for which you want to review the time activities
submitted by the employee. You can also select a particular project (and, optionally, a project task) to review only
the time activities that have been performed by the employee for the project.
You can review all existing time activities in the system on the Activities (EP404300) form.

Finding Project Transaction Generated for Time Card

You can review the project transaction that was generated on release of a particular time card by opening a time
card on the Employee Time Card (EP305000) form and clicking View Transactions on the form toolbar. The system
opens the project transaction on the Project Transactions (PM304000) form.

Employee Time Billing: Generated Transactions

To be able to bill customers for employee time spent on particular projects, you configure time tracking in projects.
When project-related time cards are released, the system generates the transactions described in the following
sections.

Project Transaction Generated for a Time Card

When you release a project-related time card, the system generates the following project transaction for each time
activity in the time card line.
Billing Employee Time | 146

Project and Project Account Group Inventory ID Billable Quan- Unit Rate Amount
Task tity

Project and project Account group Labor item in Reported bill- Labor cost rate Billable quanti-
task in the time card mapped to Ex- the time card able hours in defined on the ty * unit rate
line pense account line the time card Labor Rates
line (PM209900)
form

GL Transaction Generated from a Project Transaction

When a project transaction related to time card is released, the system creates a batch of the following accounting
transactions.

Account Project Project Task Debit Credit

Expense account The value in the The value in the Billable quantity * unit rate 0.00
defined by the time card line time card line
Expense Ac-
count Source
setting on the
Projects Prefer-
ences (PM101000)
form

Expense Accrual Non-project code Empty 0.00 Billable quantity *

account defined unit rate
by the Expense
Accrual Account
Source setting on
the Projects Pref-
erences form

You can view the reference number of the GL batch in the GL Batch Nbr. box in the project transaction line on
the Project Transactions (PM304000) form. You can click the link in this box to view the details of the batch on the
Journal Transactions (GL301000) form.

GL Transaction Generated from an AR Invoice

When an AR invoice generated by the project billing procedure is released, the system creates a batch of the
following accounting transactions.

Account Project Project Task Debit Credit

Accounts Receiv- Non-project code Empty Invoiced amount 0.00

able account of
the customer
Billing Employee Time | 147

Account Project Project Task Debit Credit

Sales account of The value in the The value in the 0.00 Invoiced amount
the labor item time card line time card line

Project Transactions Generated from GL Transaction

When the batch of GL transactions generated on release of an AR invoice generated by the project billing procedure
is released, the system generates the following project transaction for each invoice line.

Project and Project Task Account Group Inventory ID Amount Debit Account

The values in the time Account group Labor item as- Amount calculated Sales account of
card line mapped to the signed to the em- by billing rule the labor item
Sales account ployee

Paying AP Bills by Project

This chapter describes how to pay multiple bills for a project with a single payment.

Vendor Payments for a Project: General Information

To pay for services provided by a vendor for a particular project in Acumatica ERP, you need to create an AP check,
which is a document that represents the payment in the system, and apply it to the corresponding AP bill or bills.

Learning Objectives
In this chapter, you will learn how to do the following:
In this lesson, you will learn how to do the following:
• Select the bills or bill lines to be paid
• Prepare and release a payment for multiple bills for the same project

Applicable Scenarios
You may need to prepare and process a vendor payment for a project in Acumatica ERP when the vendor’s bill is
due or multiple bills of this vendor related to the project are due on the same date. Also, when you prepare the
payment, you may need to do one the following:
• Pay multiple bills for a project with a single payment document
• Pay particular lines of multiple bills with a single payment document
• Pay multiple bills at the same time and prepare separate payment documents for some of these bills and a
consolidated payment document for the rest of the bills

Payment for Bills Related to a Project

To speed the process of preparing and processing payments for a project, you initiate the payment process on the
Prepare Payments (AP503000) form. In the Selection area of the Prepare Payments form, you select the project for
which you want to list bills for possible payment generation. You can also filter the listed bills by payment date,
cash account, payment method, vendor, and discount availability. Then in the table on the Documents to Pay tab,
you select the bills to be paid (the system inserts the full balance in the Amount Paid column, but you can instead
specify a partial one to be paid), and click Process on the form toolbar to generate the checks for the selected bills.

If you need to process a payment for one bill, you can manually create a payment on the Checks
and Payments (AP302000) form and process this payment to completion. For more information on
creating a payment for a particular bill, see AP Bill Payments: General Information.

The system generates an AP check (or multiple checks grouped by the vendor) for the selected bills. If the payment
method specified in any of the processed AP checks requires a check to be printed, the system opens the Process
Payments / Print Checks (AP505000) form with these checks listed; on this form, you select the checks to be printed
and click Process on the form toolbar. Then on the Release Payments (AP505200) form, you mass-release the AP
checks. The system releases the AP checks, applies the payment amount to the corresponding bill or bills, and
decreases the open balance of these bills. Once the check is applied in full, it is assigned the Closed status.
Paying AP Bills by Project | 149

Workflow of the Process of Paying Bills for a Project

The following diagram illustrates the workflow of processing payments for vendors’ bills related to a project.

Payment for Separate Bill Lines for a Project

If your company needs to manage expenses and payments at a granular level, you can configure payment by
document lines. If the Payment Application by Line feature is enabled on the Enable/Disable Features (CS100000)
form, you select the Pay by Line check box in the Summary area of the Bills and Adjustments (AP301000) form to
indicate that individual lines of the bill can be paid. For more information, see Applying Payments to Particular Lines
of AP Documents.

You can use the Prepare Payments (AP503000) form to process bill lines just as you use it to process bills. You start
by specifying selection criteria, which can include the vendor and the project, for the bills and bill lines to be listed.
You can prepare and process payments that include both bills and individual bill lines. On the Documents to Pay
Paying AP Bills by Project | 150

tab of this form, bills or bill lines are listed for each included document, depending on the state of the Pay by Line
check box of the Bills and Adjustments form:
• For each bill or retainage document for which the check box is cleared, the system displays one aggregated
line. If you have selected a project in the Selection area of the current form and at least one line in the bill or
retainage document contains the project, the document appears in the table as an aggregated line with the
total amount for all lines of the bill.
• For each bill for which the check box is selected, the system displays individual bill lines.
On the Documents to Pay tab of the Prepare Payments form, you select the bills and individual lines for which you
need to process payments and specify the amount to be paid for each bill or line. Then you click Process on the
form toolbar to generate the AP check or checks.
Aer that, you release each AP check and check application on the Release Payments (AP505200) form; the system
updates the open balances of the lines to which each payment was applied. When the check is applied in full, it is
assigned the Closed status.

Workflow of the Process of Paying Bill Lines for a Project

The following diagram illustrates the workflow of processing payment for individual bill lines related to a vendor’s
work on a project.
Paying AP Bills by Project | 151

Preparation of Separate Payments

When you mass-create payments for multiple bills or bill lines of a project on the Prepare Payments (AP503000)
form, the system groups the prepared accounts payable checks by vendor. That is, a separate AP check is created
for all bills and bill lines of the same vendor. If the Pay Separately check box is selected for a vendor on the
Payment tab of the Vendors (AP303000) form, however, each vendor document is paid with a separate check.
If you want to prepare a separate AP check for a specific bill, select the Pay Separately check box in the line
of the Documents to Pay tab on the Prepare Payments form. When you process multiple bills at a time, the
system prepares a separate AP check for each document that has the Pay Separately check box selected, and a
consolidated check for the rest of the documents of the same vendor selected for processing.
When you prepare a payment for multiple bill lines at a time, if the Pay Separately check box is selected for at least
one bill line, the system prepares a separate AP check for this bill and includes in this AP check all the bill lines that
have been selected for processing. For the remaining bill lines and bills selected for processing that have this check
box cleared and have the same vendor, the system creates a consolidated check.
Paying AP Bills by Project | 152

Vendor Payments for a Project: Implementation Checklist

The following sections provide details you can use to ensure that the system is configured properly for paying AP
bills for a project, and to understand (and change, if needed) the settings that aﬀect the processing workflow.

Implementation Checklist
We recommend that before you start preparing payments for AP bills, you make sure the needed settings have been
specified and entities have been created, as summarized in the following checklist.

Form Criteria to Check

Accounts Payable Preferences (AP101000) Make sure that the accounts payable settings have been con-
figured as described in Accounts Payable: To Specify Accounts
Payable Preferences.

Vendors (AR303000) Verify the existence of the vendor accounts for the vendors
whose bills you will pay. For details, see Vendors: Implementa-
tion Activity.

Cash Accounts (CA202000) Make sure that the cash account to be used in the check has
been configured as described in Cash Management: To Create
Cash Accounts.

Payment Methods (CA204000) Make sure that the payment method you will use has been
configured as described in Cash Management: To Create Cash
Accounts.

Projects (PM301000) Make sure that the necessary project (that is, the project for
which the vendor performed the billed work) has been creat-
ed and necessary project tasks of this project are active.

Payment by Line Checklist

If you intend to pay individual lines of the vendor's bill or bills, make sure the needed features have been enabled
and settings have been specified, as summarized in the following checklist.

Form Criteria to Check

Enable/Disable Features (CS100000) form Make sure that the Payment Application by Line feature
is enabled.

Payment tab of the Vendors (AR303000) form Be sure the Pay by Line check box is selected.

Other Settings That Aﬀect the Workflow

You can aﬀect the workflow of processing payments for AP bills by specifying additional settings as follows:
• To cause the system to generate separate payment documents for each bill of a particular vendor, select the
Pay Separately check box on the Payment tab of the Vendors (AR303000) form.
Paying AP Bills by Project | 153

• To cause the system to automatically post AP checks once they are released, select the Automatically Post
on Release check box on the General tab of the Accounts Payable Preferences (AP101000) form.
• To cause AP checks to be created with the On Hold status, select the Hold Documents on Entry check box
on the General tab of the Accounts Payable Preferences (AP101000) form.
• To cause the system to automatically post general ledger batches generated during the processing of
payments, select the Automatically Post on Release check box on the General Ledger Preferences
(GL102000) form. For information on processing general ledger batches, see GL Transactions: General
Information.
• To make the system consolidate into one batch all generated transactions posted to the same period for all
documents being released, select the Generate Consolidated Batches check box on the General Ledger
Preferences form.

Validation of Configuration
To make sure that all configuration has been performed correctly, we recommend that in your system, you perform
instructions similar to those described in Vendor Payments for a Project: To Process a Payment for Multiple Bills and
Vendor Payments for a Project: To Process a Payment of Bill Lines.

Vendor Payments for a Project: To Process a Payment for Multiple Bills

This activity will walk you through generating a payment for multiple bills for a project and applying this payment
to bills.

Story
Suppose that the HM's Bakery and Cafe requested 20 hours of employee training on operating juicers. SweetLife's
project accountant has created a project to track the revenues and expenses for these services. Further suppose
that the SweetLife project manager then decided to contract the Squeezo Inc. vendor to conduct the training.
On January 15, 2023, the SweetLife project accountant entered the first received bill from the Squeezo Inc. for
12 hours of the employee training. Then on January 25, 2023, one more bill from Squeezo Inc. was received (and
entered by the project accountant) for 8 hours of the provided training services. The vendor has requested that
both bills be paid by one payment by the end of the month. Acting as SweetLife's project accountant, you need to
pay the bills related to the project with one payment.

Configuration Overview
For the purposes of this lesson, the following features have been enabled on the Enable/Disable Features
(CS100000) form:
• Standard Financials, which provides the standard financial functionality
• Projects, which provides the project accounting functionality
On the Customers (AR303000) form, the HMBAKERY customer has been created.
On the Projects (PM301000) form, the HMTRAINING project has been created for the HMBAKERY customer, and the
TRAINING project task has been added to the project.
Paying AP Bills by Project | 154

On the Non-Stock Items (IN202000) form, the TRAINING non-stock item has been configured, which represents one
hour of the training service.
On the Vendors (AP303000) form, the SQUEEZO (Squeezo Inc.) vendor has been configured, and the CHECK payment
method is specified as its default one.
On the Bills and Adjustments (AP301000) form, two bills for the training services provided by SQUEEZO have been
entered and released.

Process Overview
You will find the bills related to the project and requiring payment on the Prepare Payments (AP503000) form. Then
you will prepare a single payment for these bills. Finally, you will print the check on the Process Payments / Print
Checks (AP505000) form and will release the payment on the Release Payments (AP505200) form.

System Preparation
To prepare the system, do the following:
1. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset preloaded. To sign in as
a project manager, use the following credentials:
• Username: brawner
• Password: 123
2. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to 1/30/2023. If a diﬀerent date is displayed, click the Business Date menu
button, and select 1/30/2023 on the calendar. For simplicity, in this activity, you will create and process all
documents in the system on this business date.

Step 1: Selecting the Bills to be Paid

To select the bills to be paid, do the following:
1. Open the Prepare Payments (AP503000) form.
2. In the Selection area of the form, specify the following settings to filter the data shown in the table:
• Branch: SWEETEQUIP (inserted by default)
• Payment Method: CHECK
• Cash Account: 10200EQ - Equipment Checking
• Payment Date: 1/30/2023
• Project: HMTRAINING
3. In the table, review the two AP bills of the SQUEEZO vendor for the amounts of $480 and $320.
4. Click the unlabeled check box in the row of each of the bills, and make sure the Selection Total in the
Summary area is $800. Also, make sure that the Available Balance is enough to pay this amount.

Step 2: Preparing the Payments

To prepare the payments, do the following:
1. While you are still on the Prepare Payments (AP503000) form with the needed rows selected, click Process
on the form toolbar.
2. On the Process Payments / Print Checks (AP505000) form, which is opened with the only AP check listed in
the table and the unlabeled check box selected, click Process. A separate browser tab is opened showing
the printable version of the check.
Paying AP Bills by Project | 155

3. Review the printable check, which includes two bills, and close the browser tab.

For the purposes of this process activity, you do not need to actually print the checks. In
a production setting, you would click Print on the form toolbar to print the checks before
closing the browser tab.

4. On the Release Payments (AP505200) form, which the system has opened aer the check has been printed,
notice that the system has added a row with the payment and selected the unlabeled check box in the row.
On the form toolbar, click Process to release the check.
5. In the Processing dialog box, which is opened, click the Processed tab, and click the link in the Reference
Nbr. column for the SQUEEZO check to open the check on the Checks and Payments (AP302000) form.
6. On the Application History tab of the Checks and Payments form, make sure both bills to which the
payment has been applied are listed in the table, as shown in the following screenshot. The payment
amount has been applied in full, so the check is now assigned the Closed status.

Figure: Single payment applied to two bills

You have prepared the payment and applied it to bills related to the particular project.

Vendor Payments for a Project: To Process a Payment of Bill Lines

This activity will walk you through generating a payment for particular bill lines related to a project and applying
this payment to bills.

Story
Suppose that the ToadGreen company is building a hotel for the Equity Group Investors customer; the ToadGreen
project manager has created a project to handle the tracking and billing of the materials and services related to
the hotel. On January 15, 2023, the ToadGreen company purchased 500 packages of concrete mix and 100 units
of plastic pipes from the Standard Hardware Company vendor for the hotel being built. On January 17, 2023, the
company also hired this vendor as a subcontractor to perform on-site work, which is broken into three phases.
On January 30, 2023, the concrete mix was delivered, and the first phase of the on-site work was performed. The
ToadGreen project accountant entered into the system two bills received from the Standard Hardware Company:
Paying AP Bills by Project | 156

one (with a date of 1/15/2023) for all of the purchased materials, and another (with a date of 1/17/2023) for all
three phases of the on-site work. Acting as the ToadGreen project manager, you need to prepare a payment for the
materials and services that have been provided—that is, you will pay only particular lines of the bills.

Configuration Overview
In the U100 dataset, the following tasks have been performed for the purposes of this activity:
• On the Enable/Disable Features (CS100000) form, the following features have been enabled:
• Payment Application by Line
• Construction
• On the Projects (PM301000) form, the HOTEL project has been created for the Equity Group Investors
customer, and multiple project tasks have been created for the project.
• On the Non-Stock Items (IN202000) form, the LABOR, CONCRMX and PROJMATERIAL non-stock items have
been configured.
• On the Vendors (AP303000) form, the HARDCO vendor has been created. For this vendor, the CHECK payment
method is specified as the default one; also, the Pay by Line check box is selected on the Payment tab.
• On the Bills and Adjustments (AP301000) form, two bills for the materials and labor provided by HARDCO (one
for the materials and one for the labor) have been entered and released. Both bills have the Pay By Line
check box selected in the Summary area of the form.

Process Overview
You will find the bills related to the needed project and requiring payment on the Prepare Payments (AP503000)
form. Then you will prepare a single payment for particular lines of these bills. Finally, you will print the check
on the Process Payments / Print Checks (AP505000) form and will release the payment on the Release Payments
(AP505200) form.

System Preparation
To prepare the system, do the following:
1. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset preloaded. You should
sign in as a project accountant by using the bsanchez username and the 123 password.
2. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to 1/30/2023. If a diﬀerent date is displayed, click the Business Date menu
button, and select 1/30/2023 on the calendar. For simplicity, in this activity, you will create and process all
documents in the system on this business date.

System Preparation
To prepare to perform the instructions of this activity, in the info area, in the upper-right corner of the top pane of
the Acumatica ERP screen, make sure that the business date in your system is set to 1/30/2023. If a diﬀerent date is
displayed, click the Business Date menu button, and select 1/30/2023 on the calendar. For simplicity, in this activity,
you will create and process all documents in the system on this business date.

System Preparation
To prepare to perform the instructions of the activity, do the following:
1. Sign in to the system as a project accountant by using the bsanchez username and the 123 password.
2. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to 1/30/2023. If a diﬀerent date is displayed, click the Business Date menu
Paying AP Bills by Project | 157

button, and select 1/30/2023 on the calendar. For simplicity, in this activity, you will create and process all
documents in the system on this business date.

System Preparation
To prepare to perform the instructions of this activity, do the following:
1. Sign in to the system as the project accountant by using the bsanchez username and the password provided
in the class.
2. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, click the Business
Date menu button, and select 1/30/2023 on the calendar.

Step 1: Selecting the Bills to be Paid

Make sure that you have signed in by using the bsanchez user account before you start completing the
following instructions. If you are signed in to another user account, this can aﬀect the workflow of the
activity and the results of the processing.

To select the bills to be paid, do the following:

1. Open the Prepare Payments (AP503000) form.
2. In the Summary area of the form, specify the following selection criteria to filter the data shown in the table:
• Branch: TBGROUP (inserted by default)
• Payment Method: CHECK
• Cash Account: 10200TG - ToadGreen Checking Account
• Payment Date: 1/30/2023
• Vendor: HARDCO
• Pay Date Within 7 Days
In the table, the system lists the lines of the two bills of the HARDCO vendor: two lines for materials and
three lines for services.
3. Select the unlabeled check box in the row with the CONCRMX item of the first bill, and in the row with
the LABOR item and a Line Nbr. of 1 of the second bill (which is the first part of the works that have been
performed and needs to be paid for). Make sure the Selection Total in the Summary area is $50,000. Also,
make sure that the Available Balance is enough to pay this amount.

Step 2: Preparing the Payments

To prepare the payments, do the following:
1. While you are still on the Prepare Payments (AP503000) form with the needed rows selected, click Process
on the form toolbar.
2. On the Process Payments / Print Checks (AP505000) form, which opens, click Process to process the only
selected line, which corresponds to the prepared check. The system opens a separate browser tab with a
printable version of the check.

For the purposes of this activity, you do not need to actually print the document. In a
production setting, you would click Print on the form toolbar to print the check before closing
the browser tab.
Paying AP Bills by Project | 158

3. Close the tab with the printable check. The system returns you to the tab with the Release Payments
(AP505200) form, which it has opened. On the form, notice that the system has added a row with the
payment and selected the unlabeled check box in the row.
4. On the form toolbar, click Process to release the AP check.
5. In the Processing dialog box, which is opened, click the Processed tab, and in the table, click the link in the
Reference Nbr. column in the only line to open the check on the Checks and Payments (AP302000) form.
6. On the Application History tab of the Checks and Payments form, make sure both bill lines to which the
payment has been applied are listed in the table, as shown in the following screenshot. The payment
amount has been applied in full, so the check is now assigned the Closed status.

Figure: Single payment applied to lines of two bills

You have prepared a payment for particular bill lines and applied this payment to these lines.

Vendor Payments for a Project: Generated Transactions

When an AP check is released, a batch of general ledger transactions is created; the generated transactions reduce
the balances of the cash account used for the check and the vendor's accounts payable account.

Account Source of Ac- Project Debit Credit

count

Cash account Vendor X (non-project 0.00 Payment amount

code)

Accounts Payable Vendor X (non-project Payment amount 0.00

code)

You can view the reference number of the GL batch on the Financial tab of the Checks and Payments (AP302000)
form.
Paying AP Bills by Project | 159

Vendor Payments by Project: Related Report and Inquiry Forms

The following sections describe reports, inquiries, and forms you can review to gather information about payments
for projects.

Reviewing Checks that Are Pending Printing

You can use the Checks Pending Printing (AP404000) form to review which checks have not been printed yet as of a
specified pay date. You can initiate check printing on this form by clicking Print Checks on the form toolbar. The
system navigates to the Process Payments / Print Checks (AP505000) form, where you can print checks.

Reviewing Vendor Documents

You use the Vendor Details (AP402000) form to review the accounts payable documents (bills, debit and credit
adjustments, and checks) for a particular vendor.
By default, the form displays the list of open vendor documents (that is, those with the Open status), but you can
add to the list closed documents and unreleased documents by selecting the Show All Documents and Include
Unreleased Documents check boxes, respectively.

Running the Check Register Inquiry

You use the Check Register (AP404500) form to review the details of the checks that have been generated in the
system. By using this inquiry form, you can find out whether a particular check number has been used and, if it has,
for which AP check.
If you have reprinted a check with a new number or voided a check, the system does not allow this number to be
reused. The inquiry displays the check numbers of all checks, including those have been reprinted or voided.
Managing Billing Rates | 160

Managing Billing Rates

By using the flexible rate calculation engine in Acumatica ERP, you can implement complex pricing and accrual
models that require the consideration of a large number of parameters. With this rate calculation engine, you can
diﬀerentiate billing rates depending on any of the following: the project, the project task, the account group, the
inventory item, and the employee. You can also define diﬀerent billing rates for specific dates or date ranges.

Billing Rates: General Information

You must establish an adequate pricing model in the project you are managing to ensure that business outcomes
are met, the project budget is used eﬀectively, and project revenues and costs are properly balanced. In Acumatica
ERP, you can implement virtually any pricing model by using rate tables, and use billing rates for configuring
complex billing rules.

Learning Objectives
In this chapter, you will learn how to do the following:
In this lesson, you will learn how to do the following:
• Create a rate table and rate type
• Define a rate sequence
• Define a rate table with particular rates
• Use billing rates for billing projects with diﬀerent billing rates

Applicable Scenarios
You configure and use billing rates if you need to bill the project to take into account various combinations of
factors, such as the following:
• The particular project tasks, account groups, and inventory items involved
• The employees participating
• The dates when the work has been performed

Rate Configuration
To support an enhanced pricing policy for projects, you configure billing rates and use them in billing or allocation
rules. To refer to a particular billing rate in the formulas of billing or allocation rules, you use the @Rate parameter.
You can specify this parameter as a multiplier, addend, or constant in the Invoice Description Formula, Line
Quantity Formula, Line Amount Formula, or Line Description Formula on the Billing Rules (PM207000) form. You
can also specify the parameter in the Quantity Formula,Billable Qty. Formula, Amount Formula, or Description
Formula on the Allocation Rules (PM207500) form.
The process of defining a rate includes the configuration of rate tables, rate types, rate codes, and rate sequences.
A rate table is a set of billing rates that the system uses in the formulas of the billing rules during the billing of a
project or the allocation rules during transaction allocation. A billing rate is an exact value used for calculating the
amount and quantity of the invoice lines that are created by the billing rule steps of the Time and Material type.
Each rate table includes the definition of rates of all the rate types defined in the system. You can create a single
rate table to be used for all projects, or define multiple rate tables to easily maintain different rates for the projects
based on the customer for which the project is provided (for example, you can create different rate tables if you use
different pricing models for local customers and remote customers).
Managing Billing Rates | 161

In a rate table, for each rate type, you can define any number of rate sequences that include multiple factors that
may affect the rates. These factors can include projects, project tasks, employees, account groups, or inventory
items. You narrow the applicability of the rate based on the combination of factors you select. For example, you
can configure a separate billing rate for particular tasks of specific projects if particular employees work on these
project tasks. A billing rate could also be defined for a particular date range; a rate table may include multiple rates
with different effective dates.
Also, in each rate table, you can add rate codes, which represent an additional dimension in a rate table that you
use to simplify the configuration of the rate table. By using rate codes, you can reduce the number of sequences
that need to be configured for each pair of rate table and rate type. For example, instead of creating multiple
sequences, each including the applicable rates for a particular employee, you can create only one rate sequence
with the Employee check box selected on the Rate Lookup Rules (PM205000) form and create separate rate codes
for each employee.

Workflow of Rate Table Configuration

You configure a rate table with rates by performing the following general steps:
1. You create an empty entity that will contain the new rate table on the Rate Tables (PM204200) form. Later,
during project creation, a user will assign a particular rate table to each of the project tasks.
2. You create an empty entity that will contain a new rate type on the Rate Types (PM204100) form. Before
creating the rate type, you need to plan how many and which rate types you will need in billing and
allocation rules. (Typically, different rates are used for billing of labor costs, revenues, and expenses.) When
you configure billing or allocation rules, you will assign different rate types to different steps of these rules.
3. On the Rate Lookup Rules (PM205000) form, you create rate sequences for each combination of rate
table and rate type. Each sequence defines a group of options based on which the system will select the
billing rate. You can select any combination of the Project, Project task, Account group, Inventory item, and
Employee options. The sequence number specified in the Sequence column in the table defines the order in
which the system will search for the rate in that row (starting from the sequence with the lowest number in
the table).
4. On the Rate Tables (PM206000) form, for each combination of rate table, rate type, and rate code, you select
a rate sequence in the Sequence box. You select an existing rate code, or you create a new rate code by
entering new identifier in the Rate Code box; using rate codes helps to reduce the number of entries that
need to be configured.
For the selected rate sequence, in the table on the Rate tab, you enter rates with the date range during
which the rates are effective. Also, on the tabs for the different types of factors that appear if they were
defined in the rate sequence, you specify the factors that will define the applicability of the rates that you
enter for the current rate sequence. Also, you specify the exact values of the billing rates with their date
ranges in the Rate column on the Rate tab; the system will use these values as the @Rate parameter in the
formulas of the billing and allocation rules.

Billing Rates: Configuration Prerequisites

Before starting to define the billing rates to be used in billing and allocation rules, you must be sure that the
system has been configured properly and that all required entities have been created, as described in the following
sections.

Enabling the Needed Features

On the Enable/Disable Features (CS100000) form, the Projects feature must be enabled.
Managing Billing Rates | 162

Configuring the System

You need to make sure the following tasks have been performed in Acumatica ERP before you begin to specify
billing rate values in a rate table:
• On the Projects Preferences (PM101000) form, the basic project accounting settings have been specified:
numbering sequences, non-project code, visibility settings, and posting settings. The actual combination of
settings you need to specify depends on the processes in your organization and the features enabled on the
Enable/Disable Features (CS100000) form. For details, see Basic Project Configuration: Implementation Activity.
• On the Rate Tables (PM204200) form, an empty rate table entity has been configured.
• On the Rate Types (PM204100) form, all required rate types has been defined.
• On the Rate Lookup Rules (PM205000) form, all required rate sequences that specify the group of settings
based on which the billing rate will be selected have been defined.

Billing Rates: To Create a Billing Rule with Rates

In the following implementation activity, you will learn how to create a billing rule that uses rate tables for the
calculation of the invoice amounts for diﬀerent account groups.

Story
Suppose that you are Pam Brawner, the project accountant of the SweetLife Fruits & Jams company. You need to
create a billing rule to be used for billing customers for the different services provided for the project with different
billing rates based on the following requirements:
• The billing amount of expenses for materials should be calculated based on the quantity of the materials
and the price of the corresponding inventory item.
• The billing amount of expenses for employee labor should be calculated based on the amount and the
billing rate of the labor (which also depends on the project task for which the labor has been performed).
• The billing amount of services provided by subcontractors should be calculated based on the amount of the
project transaction with the fixed 1.25 margin coefficient.

Process Overview
You will create a billing rule on the Billing Rules (PM207000) form for billing a project by rates.
Managing Billing Rates | 163

System Preparation
Before you start configuring a billing rule, you need to launch the Acumatica ERP website and sign in to a company
with the U100 dataset preloaded. You should sign in as a project accountant by using the brawner username and
the 123 password.

Step 1: Configuring a Billing Rule Step with Billing Based on the Item Price
To configure a billing rule and add the first step to it, do the following:
1. On the Billing Rules (PM207000) form, create a new record.
2. In the Summary area, specify RATERULE as the Billing Rule ID and Billing for time and
material with rates as the Description.
3. In the le pane, add a row for the billing rule step, and specify the following settings in the row:
• Active: Selected
• Step ID: 10
• Description: Billing for materials (cost with markup)
4. In the right pane, specify the following settings for the step selected in the le pane:
• Billing Type: Time and Material
• Account Group: MATERIAL
This step of the billing rule will be used for processing project transactions related to the account group,
which includes expenses for materials.
• Rate Type: Empty
This step of billing rule does not use billing rates, so the rate type is not needed.
• Invoice Description Formula: ='Invoice for '+[PMProject.ContractCD]
The system uses this formula to define the description of any invoice that is created based on the billing
rule. The PMProject.ContractCD data field stores the project identifier.
• Line Quantity Formula: =[PMTran.BillableQty]
• Line Amount Formula: =[PMTran.BillableQty]*@Price
The invoiced amount is calculated as the quantity of the project transaction multiplied by the price of
the related inventory item.
• Line Description Formula: =[PMTran.Description]
• Use Sales Account From: Inventory Item
• Create Lines with Zero Amount and Quantity: Cleared

Step 2: Configuring a Billing Rule Step with Billing Based on the Billing Rate
Add the second step to the billing rule as follows:
1. While you are still reviewing the RATERULE billing rule on the Billing Rules (PM207000) form, in the le pane,
add a row for the second billing rule step, and specify the following settings in the row:
• Active: Selected
• Step ID: 20
• Description: Labor from non-stock price
2. In the right pane, specify the following settings for the step selected in the le pane:
• Billing Type: Time and Material
• Account Group: LABOR
Managing Billing Rates | 164

This step of the billing rule will be used for processing project transactions related to the account group,
which includes employee labor expenses.
• Rate Type: LABOR
This step of billing rule will receive the value of the @Rate parameter based on the selected rate type.
• Invoice Description Formula: ='Invoice for '+[PMProject.ContractCD]
The system uses this formula to define the description of any invoice that is created based on the billing
rule. The PMProject.ContractCD data field stores the project identifier.
• Line Quantity Formula: =[PMTran.BillableQty]
• Line Amount Formula: =[PMTran.Amount]*@Rate
The invoiced amount is calculated as the amount of the project transaction multiplied by the rate for the
labor specified in the appropriate rate table assigned to the project task being billed.
• Line Description Formula: =[PMTran.Description]
• Use Sales Account From: Inventory Item
• Create Lines with Zero Amount and Quantity: Cleared

Step 3: Configuring a Billing Rule Step with Fixed-Price Billing

Add the third step to the billing rule, which is for billing expenses on services provided by subcontractors at a fixed
rate as follows:
1. While you are still reviewing the RATERULE billing rule on the Billing Rules (PM207000) form, in the le pane,
add a row for the third billing rule step, and specify the following settings in the row:
• Active: Selected
• Step ID: 30
• Description: Re-bill subcontractors
2. In the right pane, specify the following settings for the step selected in the le pane:
• Billing Type: Time and Material
• Account Group: SUBCON
This step of the billing rule will be used for processing project transactions related to the account group,
which includes services provided by subcontractors.
• Rate Type: Empty
This step of billing rule does not use billing rates, so the rate type is not specified.
• Invoice Description Formula: ='Invoice for '+[PMProject.ContractCD]
The system uses this formula to define the description of any invoice created based on the billing rule.
The PMProject.ContractCD data field stores the project identifier.
• Line Quantity Formula: =[PMTran.BillableQty]
• Line Amount Formula: =[PMTran.Amount]*1.25
The invoiced amount is calculated as the amount of the project transaction multiplied by the fixed 1.25
coefficient.
• Line Description Formula: =[PMTran.Description]
• Use Sales Account From: Inventory Item
• Create Lines with Zero Amount and Quantity: Cleared
You have configured a billing rule that can be used for billing a project by using different billing rates that apply to
different provided work and services. To bill a project by using this rule, you need to assign the rule to the project
tasks of the project. To review how a project is being billed by using a billing rule that is based on billing rates,
perform the Billing Rates: To Bill a Project with Different Billing Rates activity.
Managing Billing Rates | 165

Billing Rates: To Configure Employee-Specific Rates

In this activity, you will learn how you can define item-specific billing rates by using rate tables, and how to bill a
project by using these billing rates.

Story
Suppose that the West BBQ Restaurant customer has ordered from the SweetLife Fruits & Jams company a training
session for its employees on how to use juicers that were previously purchased. Alberto Jimenez, a SweetLife junior
consultant, has provided six hours of training, and Todd Bloom, a SweetLife senior consultant, has provided two
hours of training. The standard rate of the training service, which applies to junior consultants, is $40 per hour,
while the rate for the training provided by the senior consultants is $50 per hour.
Acting as the SweetLife project accountant, Pam Brawner, you need to configure the rate table that will provide
billing rates based on the employee who performed the work and configure the appropriate billing rule that will
establish the complex pricing model.

Process Overview
In this activity, you will create a rate type on the Rate Types (PM204100) form. Then on the Rate Lookup Rules
(PM205000) form, you will define a rate sequence and the combination of settings that will be used for searching for
the appropriate billing rate. Then you will configure the rate table on the Rate Tables (PM206000) form, and specify
employee-specific rate values. Finally, on the Billing Rules (PM207000) form, you will configure a billing rule that
uses the rate table with the applicable billing rates.

System Preparation
Before you start configuring billing rates, you need to launch the Acumatica ERP website and sign in to a company
with the U100 dataset preloaded. You should sign in as the project accountant by using the brawner username and
the 123 password.

2. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, click the Business
Date menu button, and select 1/1/2023 on the calendar.

Step 1: Creating Rate Tables and Rate Sequences

To create a rate table and specify rate sequences with employee-specific billing rates, do the following:
1. To add a new rate table, do the following on the Rate Tables (PM204200) form:
a. Click Add Row on the form toolbar, and specify the following settings in the added row:
• Rate Type: LABOR
• Description: Rate Table of Employee Labor
b. Save the rate table.
2. To create a rate lookup rule, on the Rate Lookup Rules (PM205000) form, do the following:
a. In the Summary area, specify the following settings:
• Rate Table: LABOR
• Rate Type: LABOR
b. Click Add Row on the table toolbar, and specify the following settings in the row:
• Sequence: 1
• Description: Labor rate sequence
• Inventory: Selected
c. Save the rate lookup rule.

Step 2: Specifying Billing Rates

To specify billing rates for diﬀerent sets of settings, do the following:
1. On the Rate Tables (PM206000) form, to configure a rate table for the senior consultant, do the following:
a. In the Summary area, specify the following settings:
• Rate Table: LABOR
• Rate Type: LABOR
When you select the rate type, the system automatically selects 1 as the Sequence.
• Rate Code: CONSULTSR
• Description: A labor cost rate for a senior consultant
b. On the Inventory tab, click Add Row on the table toolbar, and in the row, select CONSULTSR as the
Inventory ID.
c. On the Rate tab, click Add Row on the table toolbar, and specify the following settings in the row:
• Start Date: 1/1/2023
• Rate: 60.00
d. Save the rate table.
2. To configure a rate table for the junior consultant, do the following:
a. On the form toolbar, click Add New Record, and in the Summary area, specify the following settings:
• Rate Code: CONSULTJR
• Description: A labor cost rate for a junior consultant
b. On the Inventory tab, on the table toolbar, click Add Row, and in the row, select CONSULTJR as the
Inventory ID.
Managing Billing Rates | 167

c. On the Rate tab, click Add Row on the table toolbar, and specify the following settings in the row:
• Start Date: 1/1/2023
• Rate: 50.00
d. Save the rate table.

Step 3: Creating a Billing Rule

To create a billing rule that uses employee-specific billing rates, do the following:
1. On the Billing Rules (PM207000) form, add a billing rule, and enter the following settings in the Summary
area:
• Billing Rule ID: TMLABOR
• Description: Time and material with @Rate
2. In the le pane, click Add Row on the table toolbar, and enter the following settings in the row:
• Step ID: 10
• Description: Consulting
3. In the right pane, specify the following settings for the step selected in the le pane (which is the step you
just added):
• Billing Type: Time and Material
• Account Group: LABOR
• Rate Type: LABOR
• If @Rate is Not Defined: Raise Error
If no rate has been found, the corresponding project transaction will not be presented in the invoice.
With the Raise Error option selected, the error is raised during billing. This prevents project costs from
being omitted.
• Invoice Description Formula: ='Invoice for '+[PMProject.ContractCD]
• Line Quantity Formula: =[PMTran.BillableQty]
The invoice line quantity will be equal to the project transaction line quantity.
• Line Amount Formula: =[PMTran.BillableQty]*@Rate
The amount of the invoice line is calculated as the billable quantity of the project transaction line
multiplied by the corresponding rate value.
• Line Description Formula: =[PMTran.Description]
• Use Sales Account From: Inventory Item
• Create Lines with Zero Amount and Quantity: Cleared
4. Save the billing rule.

You have configured billing rates that are based on various settings and a billing rule that will use these rates for
billing.
To bill a project with these rates, complete the Billing Rates: To Bill a Project with Employee-Specific Rates activity.

Billing Rates: To Configure Employee- and Item-Specific Rates

In this activity, you will learn how you can define complex billing rates with rate tables that define different rates for
different services, and for the same services provided by different employees.
Managing Billing Rates | 168

Story
Suppose that the West BBQ Restaurant customer has ordered the service of juicer installation from the SweetLife
Fruits & Jams company, along with the service of employee training on operating the juicer. The juicer has been
installed. Also, Alberto Jimenez, a junior consultant, has provided two hours of training, and Todd Bloom, a
senior consultant, has provided six hours of training. All of the project tasks must be billed at diﬀerent rates. The
installation work is provided at a price of $110 per hour; the accompanying installation work is provided at a price
of $90 per hour. The standard rate of training, which applies to junior consultants, is $50 per hour, but the rate for
the training provided by senior consultants, which is $60 per hour, must be set up.
Acting as the project accountant, Pam Brawner, you need to configure the rate table that will provide billing rates
based on a combination of various settings.

Process Overview
In this activity, you will create a rate type on the Rate Types (PM204100) form. Then on the Rate Lookup Rules
(PM205000) form, you will define a rate sequence and the combination of settings that will be used for searching for
the applicable billing rate. Then you will configure the rate table on the Rate Tables (PM206000) form and specify
rate values for the diﬀerent combinations of parameters. Finally, on the Billing Rules (PM207000) form, you will
configure a billing rule that uses the rate table with the applicable billing rates.

Step 1: Creating Rate Table and Rate Sequences

To create a rate table and specify rate sequences with item-specific and employee-specific billing rates, do the
following:
1. On the Rate Types (PM204100) form, click Add Row on the form toolbar, and specify the following settings in
the row:
• Rate Type: TASKLABOR
• Description: Billing rate for installation and training
2. Save the added rate type.
3. On the Rate Lookup Rules (PM205000) form, add a new rate sequence with the following settings:
• Rate Table: STANDARD
• Rate Type: TASKLABOR
4. Click Add Row on the table toolbar, and specify the following settings in the added row:
• Sequence: 1
• Description: Installation of juicers
• Project Task: Selected
• Inventory: Selected
5. Again click Add Row on the table toolbar, and specify the following settings in the row:
• Sequence: 2
• Description: Billing rates for other installation work
• Project Task: Selected
6. Again click Add Row on the table toolbar, and specify the following settings in the row:
• Sequence: 3
• Description: Training for employees
• Project Task: Selected
• Inventory: Selected
• Employee: Selected
7. Again click Add Row on the table toolbar, and specify the following settings in the row:
• Sequence: 4
• Description: Other work on training
• Project Task: Selected
The rate sequences should look as shown in the following screenshot.
Managing Billing Rates | 170

Figure: The rate lookup rule

8. Save the rate sequences you have created.

Step 2: Specifying Billing Rates

To specify billing rates for diﬀerent groups of settings, do the following:
1. On the Rate Tables (PM206000) form, to configure the labor rates for installation work, do the following:
a. In the Summary area, specify the following settings:
• Rate Table: STANDARD
• Rate Type: TASKLABOR
When you select the rate type, the system automatically inserts 1 as the Sequence.
• Rate Code: TASKLABOR
• Description: Labor rates for installation
b. On the Rate tab, click Add Row on the table toolbar, and specify the following settings in the row:
• Start Date: 1/1/2023
• Rate: 110.00
c. On the Tasks tab, on the table toolbar, click Add Row, and in the row, select INSTALL as the Project Task.
d. On the Inventory tab, on the table toolbar, click Add Row, and in the row, select INSTALL as the
Inventory ID.
e. Save the rate table.
2. To configure the rates for the other installation work, do the following:
a. On the form toolbar, click Add New Record, and in the Summary area, specify the following settings:
• Sequence: 2
• Rate Code: TASKLABOR
• Description: Labor rates for other installation work
b. On the Rate tab, click Add Row on the table toolbar, and specify the following settings in the added row:
• Start Date: 1/1/2023
• Rate: 90.00
c. On the Tasks tab, on the table toolbar, click Add Row, and in the row, select INSTALL as the Project Task.
Managing Billing Rates | 171

d. Save the rate table.

3. To configure the billing rates for training, do the following:
a. On the form toolbar, click Add New Record, and in the Summary area, specify the following settings in
the Summary area:
• Sequence: 3
• Rate Code: TASKLABOR
• Description: Labor rates for training
b. On the Rate tab, click Add Row on the table toolbar, and specify the following settings in the row:
• Start Date: 1/1/2023
• Rate: 60.00
c. On the Tasks tab, on the table toolbar, click Add Row, and in the row, select TRAINING as the Project
Task.
d. On the Inventory tab, on the table toolbar, click Add Row, and in the row, select TRAINING as the
Inventory ID.
e. On the Employee tab, on the table toolbar, click Add Row, and in the row, select EP00000002 (Todd
Bloom) as the Employee ID.
f. Save the rate table.
4. To configure rates for other training work, do the following:
a. On the form toolbar, click Add New Record, and in the Summary area, specify the following settings:
• Sequence: 4
• Rate Code: TASKLABOR
• Description: Labor rates for other training work
b. On the Rate tab, click Add Row on the table toolbar, and specify the following settings in the row:
• Start Date: 1/1/2023
• Rate: 50.00
c. On the Tasks tab, on the table toolbar, click Add Row, and in the row, select TRAINING as the Project
Task.
d. Save the rates.

Step 3: Creating a Billing Rule

To create a billing rule that uses the employee- and item-specific billing rates that you have configured, do the
following:
1. On the Billing Rules (PM207000) form, add a new billing rule, and enter the following settings in the
Summary area:
• Billing Rule ID: TASKLABOR
• Description: Time and material with @Rate
2. In the le pane, click Add Row on the table toolbar, and specify the following settings in the row:
• Step ID: 10
• Description: Installation and training
3. In the right pane, specify the following settings for the step selected in the le pane:
• Billing Type: Time and Material
• Account Group: LABOR
• Rate Type: TASKLABOR
Managing Billing Rates | 172

• If @Rate is Not Defined: Raise Error

If no rate has been found, the corresponding project transaction will not be presented in the invoice.
With the Raise Error option selected, the error is raised during billing. This prevents project costs from
being omitted.
• Invoice Description Formula: ='Invoice for '+[PMProject.ContractCD]
• Line Quantity Formula: =[PMTran.BillableQty]
The invoice line quantity will be equal to the project transaction line quantity.
• Line Amount Formula: =[PMTran.BillableQty]*@Rate
The amount of the invoice line is calculated as the billable quantity of the project transaction line
multiplied by the corresponding rate value.
• Line Description Formula: =[PMTran.Description]
• Use Sales Account From: Billing Rule
• Sales Account: 40000 - Sales Revenue
• Create Lines with Zero Amount and Quantity: Cleared
4. Save the billing rule.

You have configured billing rates that are based on various settings and a billing rule that will use these rates for
billing.
To bill a project that will use these rates, perform the Billing Rates: To Bill a Project with Employee-Specific Rates
activity.

Billing Rates: Rate Selection Rules

When a project transaction is billed or an allocation is run, the system finds the applicable rate (that is, the value
of the @Rate parameter specified in the billing rule formula) based on the rate type assigned to the currently
performed step of a billing rule and within the rate table that is assigned to the project task to which the billed
transaction corresponds.
Each combination of rate table, rate type, and rate code includes one rate sequence or multiple rate sequences,
each of which defines billing rates based on set of factors. The numeric identifiers of the sequences in the table
define the order in which the system will look through these sequences to find the applicable rate during the
project billing or allocation process.
Starting with the first sequence defined in the table on the Rate Lookup Rules (PM205000) form, the system
matches the corresponding settings specified in the project transaction to the factors defined by the rate sequence.
If all the settings match, the system stops the search and uses the rate it has found as the value of the @Rate
parameter in the formula. If any of the factors do not match, the system continues searching for the applicable
billing rate in the next rate sequence.
If no applicable rate is found in all sequences defined in the system for the combination of rate table, rate type, and
rate code, the system performs the action determined by the option selected in the If @Rate is Not Defined box
on the Billing Rules (PM207000) or Allocation Rules (PM207500) form for the step being performed. You can define
a step so that the system sets the @Rate value to 0, sets the value to 1, skips billing or allocating for the current
project transaction, or throws an error and stops the billing or allocation process.
The following diagram shows how the system selects the value of the @Rate parameter, assuming that the account
group specified in the project transaction is the same as the account group of the billing rule step and the Line
Amount Formula of the billing rule step uses the @Rate parameter for the calculation of the amount to invoice.
Managing Billing Rates | 173
Managing Billing Rates | 174

Billing Rates: To Bill a Project with Diﬀerent Billing Rates

In this activity, you will bill a project with diﬀerent billing rates to be used for the billing of diﬀerent services
provided in the project.

Story
Suppose that the Thai Food Restaurant customer has bought a juicer from the SweetLife Fruits & Jams company
and ordered employee training from the company on how to use the juicer. SweetLife's project accountant, Pam
Brawner, has created a project to account for the provided services. The training has taken place.
Acting as the project accountant, you need to bill the customer.

Configuration Overview
In the U100 dataset, the following tasks have been performed for the purposes of this activity:
• On the Enable/Disable Features (CS100000) form, the Project Accounting feature has been enabled to provide
the project accounting functionality.
• On the Rate Tables (PM206000) form, the STANDARD rate table, with rates for labor and materials, has been
configured.
• On the Billing Rules (PM207000) form, the TIMEMATERIAL billing rule has been created. The billing rule
consists of three steps for billing project transactions related to diﬀerent account groups. (For an example of
billing rule configuration, see Billing Rates: To Create a Billing Rule with Rates.)
• On the Customers (AR303000) form, the TOMYUM customer has been defined.
• On the Non-Stock Items (IN202000) form, the INSTALL, JUICER15, SITEREVIEW and TRAINING non-stock items
have been created.
• On the Projects (PM301000) form, the TOMYUM3 project for the TOMYUM customer has been created. On the
Tasks tab of this form, the PHASE1 and PHASE2 project tasks has been configured and the TIMEMATERIAL
billing rule and the STANDARD rate table are assigned to these project tasks. In the project, the Create
Pro Forma Invoice on Billing check box is selected to indicate that when project billing is run, pro forma
invoices are generated to be sent to the customer for acceptance before the accounts receivable invoices are
prepared.
• On the Project Transactions (PM304000) form, the PM00000002 batch of project transactions related to the
project has been created and released in preparation for billing.

Process Overview
You will bill the project on the Projects (PM301000) form and review the pro forma invoice amounts on the Pro
Forma Invoices (PM307000) form.

System Preparation
Before you begin performing the steps of this activity, you need to perform the following instructions to prepare the
system:
Managing Billing Rates | 175

1. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset preloaded. You should
sign in as Pam Brawner by using the brawner username and the 123 password.
2. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to 1/30/2023. If a diﬀerent date is displayed, click the Business Date menu
button, and select 1/30/2023 on the calendar. For simplicity, in this activity, you will create and process all
documents in the system on this business date.

Step 1: Billing the Project and Processing the Related Documents

To bill the project by using the time and material billing rule, do the following:
1. In the Selection area on the Project Transaction Details (PM401000) form, select TOMYUM3 as the Project. The
table lists the related project transactions:
• The line with the INSTALL item in the amount of $320
• The line with the JUICER15 item in the amount of $2000
• The line with the SITEREVIEW item in the amount of $80
• The line with the TRAINING item in the amount of $320
Notice that in all lines, the Billed check box is cleared, indicating that the project is pending billing.
2. On the Projects (PM301000) form, open the TOMYUM3 project. Notice that the Actual Expenses box in the
Summary area shows $2,720 (which is the total of the processed project transactions), while Actual Income
box contains $0 because the project has not been billed yet.
3. On the form toolbar, click Run Project Billing. The system creates a pro forma invoice and opens it on the
Pro Forma Invoices (PM307000) form. On the Time and Material tab of this form, review the four lines of the
pro forma invoice (which have been created based on unbilled transactions).
In each line, the system calculates Billed Quantity and Billed Amount by using the formula specified in the
corresponding step of the billing rule. The following lines have been added to the pro forma invoice:
• The INSTALL and TRAINING lines have been billed by the 20 – Labor from non-stock price step, which has
been configured for the LABOR account group; the billed amount for each line has been calculated based
on the @Rate parameter defined in the STANDARD rate table for the LABOR rate type (which is 1.25). The
calculated billing amount is $400 (320*1.25) for both lines.
• The JUICER15 line has been billed by the 10 – Material cost plus markup step, which has been configured
for the MATERIAL account group; the billed amount has been calculated based on the billable quantity (1)
and the @Price parameter (which is the sales price of the JUICER15 item, $2500). The calculated billing
amount is $2500.
• The SITEREVIEW line has been billed by the 30 – Re-invoice subcontractors step, which has been
configured for the SUBCON account group; the billed amount has been calculated by multiplying the
transaction amount by the fixed coeﬀicient (1.25). The calculated billing amount is $100 (1.25 * $80).
The unit price in each pro forma invoice line is calculated as the billed amount divided by the billed
quantity.
4. On the form toolbar, click Remove Hold to assign the pro forma invoice the Open status, and then click
Release to release the pro forma invoice. The system closes the pro forma invoice (which is now assigned
the Closed status) and creates a corresponding accounts receivable invoice based on the pro forma invoice.
5. On the Financial tab, right of the AR Ref. Nbr. box, click the Edit button to open the accounts receivable
invoice that was created on the Invoices and Memos (AR301000) form.
6. On the form toolbar of the Invoices and Memos form, click Remove Hold to assign the invoice the Balanced
status, and then click Release to release the accounts receivable invoice.

Step 2: Reviewing the Project Transactions and the Updated Project Balance
To review the project transactions and project balance, do the following:
Managing Billing Rates | 176

1. On the Project Transaction Details (PM401000) form, in the Summary area, select TOMYUM3 as the Project. In
the table, review the project transactions that have been created based on the released accounts receivable
invoice (these are the lines that have AR specified in the Module column and that have negative amounts).
In the GL Batch Nbr. column, the reference number of the corresponding GL batch is shown. Also notice that
the project transactions based on which you have performed billing now have the check box in the Billed
column selected, indicating that these transactions have been billed.
2. On the Projects (PM301000) form, open the TOMYUM3 project. Notice that in the Summary area, the Actual
Income box now shows $3,400, which is the total amount of the invoice that you have processed. On the
Revenue Budget tab, notice that the system has automatically created two revenue budget lines (one for
each project task) and filled in the Actual Amount for the rows (3,000 and 400).
3. On the Balances tab (see the following screenshot), review the project income and expenses aggregated by
account groups.

Figure: The project balances aer project billing

You have billed the project based on the diﬀerent billing rates specified for diﬀerent types of expenses.

Billing Rates: To Bill a Project with Employee-Specific Rates

In this activity, you will learn how you can define employee-specific billing rates by using rate tables and how to bill
a project by using these billing rates.

Story
Suppose that the West BBQ Restaurant customer has ordered from the SweetLife Fruits & Jams company a training
session for its employees on how to use juicers that were previously purchased from SweetLife. Alberto Jimenez,
a junior consultant of SweetLife, has provided six hours of training, and Todd Bloom, a senior consultant of
SweetLife, has provided two hours of training. Alberto's rate is $50 per hour, and Todd's is $60.
Acting as the SweetLife project accountant, Pam Brawner, you need to create a project to account for the provided
services, enter the project transaction to record the provided work, bill the customer, and verify that all services
have been billed at the appropriate rates.

Configuration Overview
In the U100 dataset, the following tasks have been performed for the purposes of this activity:
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• On the Enable/Disable Features (CS100000) form, the Project Accounting feature has been enabled to provide
the project accounting functionality.
• On the Customers (AR303000) form, the WESTBBQ customer has been created.
• On the Non-Stock Items (IN202000) form, the CONSULTJR and CONSULTSR non-stock items have been
created.
• On the Account Groups (PM201000) form, the LABOR account group has been created.

Process Overview
In this activity, on the Projects (PM301000) form, you will create a new project, specify a billing rule and rate table
for it, and define the project tasks. Then you will bill the project and review the billed amount and quantities in the
prepared pro forma invoice on the Pro Forma Invoices (PM307000) form.

System Preparation
Before you begin performing the steps of this activity, you need to perform the following instructions to prepare the
system:
1. As a prerequisite activity, configure the billing rates and billing rule as described in Billing Rates: To
Configure Employee-Specific Rates.
2. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset preloaded. You should
sign in as Pam Brawner by using the brawner username and the 123 password.
3. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to 1/30/2023. If a diﬀerent date is displayed, click the Business Date menu
button, and select 1/30/2023 on the calendar. For simplicity, in this activity, you will create and process all
documents in the system on this business date.

System Preparation
Before you begin performing the steps of this activity, in the info area, in the upper-right corner of the top pane of
the Acumatica ERP screen, make sure that the business date in your system is set to 1/30/2023. If a diﬀerent date is
displayed, click the Business Date menu button, and select 1/30/2023 on the calendar. For simplicity, in this activity,
you will create and process all documents in the system on this business date.

Step 1: Creating a Project

To create a project, do the following:
1. On the Projects (PM301000) form, add a new record.
2. In the Summary area, specify the following settings:
• Project ID: WESTBBQ7A
• Customer: WESTBBQ
• Description: Training for employees
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3. On the Summary tab (Project Properties section), specify Task and Item in the Cost Budget Level box.
4. On the Summary tab (Billing and Allocation Settings section), specify the following settings:
• Billing Period: On Demand
• Billing Rule: TMLABOR
• Rate Table: LABOR
You defined the LABOR rate table on the Rate Tables (PM206000) form when you performed the Billing
Rates: To Configure Employee-Specific Rates activity.
5. On the Tasks tab, add a row with the following settings to define the project task:
• Task ID: TRAINING
• Type: Cost and Revenue Task
• Description: Training for employees
• Status: Active
• Default: Selected
Notice that the billing rule and the rate table have been copied to the task settings from the project settings.
6. Save the project.
7. On the form toolbar, click Activate Project. The system assigns the project the Active status.

Step 2: Creating Project Transactions

To enter the project transactions for the provided services, perform the following steps:
1. On the Project Transactions (PM304000) form, add a new record.
2. In the Summary area, specify the following description: Training for WESTBBQ7A.
3. In the table, add a transaction line by clicking Add Row and specifying the following settings in the row:
• Project: WESTBBQ7A
• Project Task: TRAINING (specified automatically)
• Cost Code: 00-000
• Account Group: LABOR
• Inventory ID: CONSULTJR
• Quantity: 6
• Unit Rate: 40.00
This transaction represents six hours of training provided by Alberto Jimenez.
4. Add one more transaction to the batch by clicking Add Row and specifying the following settings in the row:
• Project: WESTBBQ7A
• Project Task: TRAINING
• Cost Code: 00-000
• Account Group: LABOR
• Inventory ID: CONSULTSR
• Quantity: 2
• Unit Rate: 45.00
This transaction represents two hours of training provided by Todd Bloom.
5. In the Summary area, make sure that the total billable quantity is 8 and the total amount is $330.
6. Save your changes, and on the form toolbar, click Release to release the project transactions.
Managing Billing Rates | 179

Step 3: Billing the Project and Reviewing the Rates

To bill the project and review the rates at which the provided services have been billed, do the following:
1. On the Projects (PM301000) form, open the WESTBBQ7A project, which you have created earlier in this
activity.
2. On the Cost Budget tab, make sure that the system has updated the cost budget with two new lines from
the project transaction that you have released.
3. On the form toolbar, click Run Project Billing.
The system creates a pro forma invoice and opens it on the Pro Forma Invoices (PM307000) form.
4. On the Time and Material tab, review the invoice lines that the system has created based on the
transactions prepared for billing (see the screenshot below). These transactions have been processed by
using the TMLABOR billing rule, and the rates have been taken from the rate table assigned to the project
task. The pro forma invoice includes the following lines:
• The line with the CONSULTJR inventory item has a billed amount of $300, which has been calculated as 6
hours multiplied by $50.
• The line with the CONSULTSR inventory item has a billed amount of $120, which has been calculated as 2
hours multiplied by $60.

Figure: Lines for employee labor billed by rates

You have created a pro forma invoice for the customer and verified that the appropriate rates have been selected
for the provided services.

Billing Rates: To Bill a Project with Employee- and Item-Specific Rates

In this activity, you will learn how you can bill a project whose billing rule uses employee- and item-specific billing
rates.

Story
Suppose that the West BBQ Restaurant customer has ordered from the SweetLife Fruits & Jams company the
services of juicer installation and employee training on operating the juicer. The juicer has been installed. Also,
Alberto Jimenez, a junior consultant of SweetLife, has provided two hours of training, and Todd Bloom, a senior
consultant of SweetLife, has provided six hours of training. The provided services should be billed at diﬀerent rates.
Acting as the SweetLife project accountant, Pam Brawner, you need to create a project to account for the provided
services, and configure the applicable billing rules that will establish a complex pricing model with billing for the
Managing Billing Rates | 180

provided work based on the employee and item. Then you need to enter the project transaction to record the
provided work, bill the customer, and verify that all services have been invoiced at the appropriate rates.

System Preparation
Before you begin performing the steps of this activity, you need to perform the following instructions to prepare the
system:
1. As a prerequisite activity, configure the billing rates and billing rule by following the instructions in Billing
Rates: To Configure Employee- and Item-Specific Rates .
2. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset preloaded. You should
sign in as Pam Brawner by using the brawner username and the 123 password.
3. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to 1/30/2023. If a diﬀerent date is displayed, click the Business Date menu
button, and select 1/30/2023 on the calendar. For simplicity, in this activity, you will create and process all
documents in the system on this business date.

Step 1: Creating a Project

To create a project, do the following:
1. On the Projects (PM301000) form, add a new project with the following settings:
• Project ID: WESTBBQ7B
• Customer: WESTBBQ
• Description: Installation of a juicer and training for employees
2. On the Summary tab (Project Properties section), specify Task and Item in the Cost Budget Level box.
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3. On the Summary tab (Billing and Allocation Settings section), specify the following settings:
• Billing Period: On Demand
• Billing Rule: TASKLABOR
• Rate Table: STANDARD
4. On the Tasks tab, add two project tasks with the following settings.

Task ID Type Description Status

INSTALL Cost and Revenue Juicer installation Active
Task

TRAINING Cost and Revenue Training for employees Active

Task

Notice that the TASKLABOR billing rule and the STANDARD rate table have been specified automatically for
both project tasks.
5. Save the project.
6. On the form toolbar, click Activate Project. The system assigns the Active status to the project.

Step 2: Processing Project Transactions

To enter the project transactions for the provided services, perform the following steps:
1. On the Project Transactions (PM304000) form, add a new record.
2. In the Summary area of the form, make sure PM as specified as the Module, and specify Installation
of a juicer and training for WESTBBQ7B as the Description.
3. In the table, add a transaction to the batch by clicking Add Row and specifying the following settings in the
row:
• Project: WESTBBQ7B
• Project Task: INSTALL
• Cost Code: 00-000
• Account Group: LABOR
• Inventory ID: INSTALL
• Quantity: 4
• Unit Rate: 80.00
This transaction represents four hours of juicer installation.
4. Add one more transaction to the batch by clicking Add Row and specifying the following settings:
• Project: WESTBBQ7B
• Project Task: INSTALL
• Cost Code: 00-000
• Account Group: LABOR
• Description: Other work on the installation
• Quantity: 2
• Unit Rate: 70.00
This transaction represents two hours of other work on the installation.
5. Add the third transaction to the batch by clicking Add Row and specifying the following settings:
• Project: WESTBBQ7B
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• Project Task: TRAINING

• Cost Code: 00-000
• Account Group: LABOR
• Employee: EP00000002 - Todd Bloom
• Inventory ID: TRAINING
• Quantity: 6
• Unit Rate: 45.00
This transaction represents six hours of training provided by Todd Bloom.
6. Add the last transaction to the batch by clicking Add Row and specifying the following settings:
• Project: WESTBBQ7B
• Project Task: TRAINING
• Cost Code: 00-000
• Account Group: LABOR
• Description: Other work on training
• Quantity: 2
• Unit Rate: 40.00
This transaction represents two hours of other work on training. The entered batch of project transactions
should look as shown in the following screenshot.

Figure: Batch of project transactions

7. In the Summary area, make sure that the total billable quantity is 14 and the total amount is $810.
8. Save your changes to the project transaction.
9. On the form toolbar, click Release to release the batch of project transactions.

Step 3: Billing the Project and Reviewing the Rates

To bill the project, do the following:
1. On the Projects (PM301000) form, open the WESTBBQ7B project.
2. On the form toolbar, click Run Project Billing.
The system creates a pro forma invoice and opens it on the Pro Forma Invoices (PM307000) form.
3. On the Time and Material tab, review the invoice lines that the system has created based on the
transactions prepared for billing. These transactions have been processed by using the billing rule, and the
rates have been taken from the rate table assigned to the project tasks. The pro forma invoice includes the
following lines:
• The line with the INSTALL project task and INSTALL inventory item has a billed amount of $440, which has
been calculated as 4 hours of installation multiplied by $110.
Managing Billing Rates | 183

• The line with the INSTALL project task and with no inventory item selected has a billed amount of $180,
which has been calculated as 2 hours of other work on the installation multiplied by $90.
• The line with the TRAINING project task, the TRAINING inventory item, and the EP00000002 employee has
a billed amount of $360, which has been calculated as 6 hours of training multiplied by $60.
• The line with the TRAINING project task and empty inventory item has a billed amount of $100, which has
been calculated as 2 hours of other work on training multiplied by $50.
You have created a pro forma invoice for the customer and verified that the appropriate rates have been selected
for the provided services.
Processing Project Transactions | 184

Processing Project Transactions

Project-related information from the documents processed in the system is collected by means of project
transactions. You can also use project transactions for tracking budget costs and revenue directly without updating
general ledger.

Project Transactions: General Information

Project accounting is integrated with other functional areas of Acumatica ERP. Project-related information from
other functional areas flows to projects by means of project transactions that are used for tracking budget costs
and revenue. You can also create project transactions directly without involving other documents.

Learning Objectives
In this chapter, you will learn how to do the following:
In this lesson, you will learn how to do the following:
• Capture project costs using project transactions
• Make the system create a project transaction based on a GL transaction
• Create a project transaction without posting to the general ledger

Applicable Scenarios
You manually create project transactions if you need to directly capture project costs without updating the general
ledger. The transactions created for a project update the actual values of the project budget with the incurred
expenses that you may need in one of the following cases:
• To control the amount of money spent on the project against the budgeted values
• To bill the customer for the incurred expenses
• To control the project profitability
You manually create general ledger transactions for a project if you need to directly capture project costs without
creating original documents (such as bills, purchase orders, or time activities).

Creation of Project Transactions

You can create a project transaction directly on the Project Transactions (PM304000) form. When you specify the
Debit Account and Credit Account for the project transaction and release the transaction, the system creates the
following general ledger transactions on the Journal Transactions (GL301000) form, based on whether the amount
of the project transaction is positive or negative:
• For a positive amount, the GL transaction debits the debit account of the project transaction and credits the
credit account.
• For a negative amount, the GL transaction debits the credit account of the project transaction and credits
the debit account.
If you specify no debit and credit accounts for a project transaction on the Project Transactions form or specify
only the debit account, on the release of the transaction, the system does not generate the corresponding GL
transaction.
Processing Project Transactions | 185

Project Budget Update

The system uses the combination of the project, project task, account group, and inventory item to match the
transaction with a project budget line. If a budget line with the same combination exists, the system updates the
Actual Quantity and Actual Amount of the corresponding budget line.
For a new combination that does not exist in the project budget, the system creates a new budget line. For the
revenue budget, the system creates a revenue budget line with the same inventory item as the inventory item of
the transaction if the Detailed option is selected in the Revenue Budget Update box on the General tab (General
Settings section) of the Projects Preferences (PM101000) form. With the Summary option selected, the system
creates a revenue budget line with the empty item code (N/A) instead of the inventory item of the transaction.
Similarly, the system creates cost budget lines based on the option selected in the Cost Budget Update box on the
General tab (General Settings section) of the Projects Preferences form.
The system updates the actual values of the project budget line using the following rules:
• If the debit account of the project transaction is an asset or expense account and the amount is positive, the
system updates the corresponding cost budget line with positive actual values. If the amount is negative,
the system updates the cost budget line with negative actual values.
• If the debit account of the project transaction is an income or liability account and the amount is positive,
the system updates the corresponding revenue budget line with negative actual values. If the amount is
negative, the system updates the revenue budget line with positive actual values.
If an income or liability account is selected as the credit account of the project transaction and the amount
is positive, the system updates the corresponding revenue budget line with positive actual values.

Creation of GL Transactions Related to Projects

On the Journal Transactions (GL301000) form, you can directly create a general ledger transaction related to a
specific project and project task. To associate the transaction line with a project, you specify this project in the
Project/Contract column and the applicable project task in the Project Task column.
If a general ledger transaction has a project and project task specified, in the Account column on the Journal
Transactions form, you can select only an account that is mapped to an account group on the Account Groups
(PM201000) form.
When a batch of GL transactions is released, for each transaction line in the batch with a project and project task
specified, the system creates the corresponding project transaction with the following settings specified in a row of
the table on the Project Transactions (PM304000) form:
• Project: The project associated with the GL transaction
• Project Task: The project task associated with the GL transaction
• Inventory ID: The inventory item associated with the GL transaction
If no item is associated with the GL transaction, the system uses the empty item code, which is <N/A> by
default and specified on the Projects Preferences (PM101000) form.
• Debit Account: The account of the GL transaction
• Account Group: The account group to which the account of the GL transaction is mapped on the Account
Groups form
• Credit Account: Empty
• Amount: The debit amount of the GL transaction, if the account of the GL transaction is debited, or the
credit amount of the GL transaction with the negative sign, if the account of the GL transaction is credited
• GL Batch Nbr.: The batch number of the GL transaction
Processing Project Transactions | 186

When a transaction is generated in another functional area of Acumatica ERP—such as accounts

receivable, accounts payable, order management, or time and expenses—and posted to the general
ledger, the system generates the corresponding project transaction in the same way as on the release
of GL transactions.

Project Transactions: Implementation Checklist

The following sections provide details you can use to ensure that the system is configured properly for processing
project transactions, and to understand (and change, if needed) the settings that aﬀect the processing workflow.

Implementation Checklist
We recommend that before you initially process project transactions, you make sure the needed features have
been enabled, settings have been specified, and entities have been created, as summarized in the following
checklist.

Form Tasks to Perform

Projects Preferences (PM101000) form Make sure that all necessary settings related to project
accounting have been specified. For more information
about configuration steps that you have to perform
before you can start accounting for projects, see Basic
Project Configuration: General Information.

Account Groups (PM201000) form Make sure that all needed account groups have been
configured and all needed general ledger accounts are
mapped to these groups. For more information about
account groups, see Account Groups: General Informa-
tion.

Projects (PM301000) form Make sure that the project has been created. For more
details, see Project Creation and Processing: General In-
formation.

Non-Stock Items (IN202000) form Make sure that all needed labor items, non-stock
items, and services have been defined. For more infor-
mation about labor items, non-stock items, and ser-
vices, see Labor Items: General Information, Creating
Non-Stock Items: General Information, and Creating Ser-
vice Items: General Information, respectively.

Other Settings That Aﬀect the Workflow

You can aﬀect the workflow of processing project transactions by specifying additional settings as follows:
• To change the format of project transaction identifiers, adjust the PMTRAN numbering sequence on the
Numbering Sequences (CS201010) form, or create a new numbering sequence and select this sequence
in the Transaction Numbering Sequence box on the General tab (Numbering Sequence section) of
the Projects Preferences (PM101000) form. For more information on numbering sequences, see Use of
Numbering Sequences.
Processing Project Transactions | 187

Project transaction identifiers must be assigned only automatically. That is, the Manual
Numbering check box must be cleared in the Summary area of the Numbering Sequences form
for the numbering sequence used for project transactions.

By default, the PMTRAN numbering sequence specifies that the project transaction identifier is an
automatically generated alphanumeric string that starts with the PM prefix and is followed by eight digits,
such as PM00000001.
• To cause the system to post every document you enter as an individual batch to the general ledger, clear
the Generate Consolidated Batches check box in the Posting Settings section of the General Ledger
Preferences (GL102000) form.

Validation of Configuration
To make sure that all configuration has been performed correctly, we recommend that in your system, you process
a project transaction by performing instructions similar to those described in Project Transactions: Process Activity.

Project Transactions: Process Activity

This activity will walk you through the process of creating project transactions from general ledger transactions and
from scratch.

Story
Suppose that the Thai Food Restaurant customer has ordered training from the SweetLife Fruits & Jams company
on how to use a juicer the company previously bought. Based on the agreement with the customer, SweetLife’s
project accountant has created a project and has created the following tasks corresponding to the phases of
training:
• PHASE1: Training is going to be provided within this task and is subject to billing. Any additional expenses
incurred during the completion of this task will not be billed.
• PHASE2: If additional training is required aer the initial training in the first task, it will be provided within
this task and will not be billed.
In the first phase, a consultant has provided eight hours of training and spent $50 on a taxi. Then the customer
requested additional training, and the consultant has provided four extra hours of training in the second phase.
Acting as the project accountant, you need to enter the general ledger transactions to directly capture the costs
involved with delivering the first phase of training. The Thai Food Restaurant company covers travel expenses,
so they should not aﬀect the project budget. Then you need to enter the project transaction to capture the costs
involved with delivering the second phase of training, but the costs should not aﬀect the general ledger.

• On the Account Groups (PM201000) form, the LABOR account group has been created. The 54100 (Project
Labor Expense) account has been mapped to the account group.
• On the Non-Stock Items (IN202000) form, the TRAINING non-stock item has been configured. The 54100
(Project Labor Expense) account has been specified as the expense account of the item.

Process Overview
On the Journal Transactions (GL301000) form, you will create a batch of general ledger transactions with the project
and project task specified to record the work related to the first phase of the training. You will release the batch,
which will generate the corresponding project transaction. Then you will review this transaction on the Project
Transaction Details (PM401000) form. Finally, on the Project Transactions (PM304000) form, you will create and
release a batch of project transactions that represents the second phase of the training and does not aﬀect the
general ledger.

Step 1: Creating General Ledger Transactions

To create a batch of general ledger transactions to represent the first phase of the training (the PHASE1 task), do the
following:
1. On the Journal Transactions (GL301000) form, add a new record.
2. In the Summary area, make sure GL is selected as the Module.
3. In the Description box, type A training session for the TOMYUM1 project.
4. On the table toolbar, click Add Row to add the first row, which represents your training expenses within the
first phase of the project, and specify the following settings in the row:
Processing Project Transactions | 189

• Account: 54100 (Project Labor Expense)

• Project/Contract: TOMYUM1
• Project Task: PHASE1
• Cost Code: 00-000 (inserted automatically)
• Debit Amount: 320
• Transaction Description: 8 hours of training for the customer's employee
5. Add the second row, which represents the non-project (travel) expenses, and specify the following settings
in the row:
• Account: 81000 (Other Expenses)
• Project: X (inserted automatically)
This transaction will not aﬀect the project budget of the TOMYUM1 project.
• Cost Code: 00-000 (inserted automatically)
• Debit Amount: 50
• Credit Amount: 0
• Transaction Description: Travel expenses
6. Add the third row, which balances the batch of transactions, and specify the following settings in the row:
• Account: 23015 (Accrued Expenses)
• Project: X (inserted automatically)
• Cost Code: 00-000 (inserted automatically)
• Credit Amount: 370 (inserted automatically)
• Transaction Description: Project and travel expenses
7. On the form toolbar, click Remove Hold to assign the general ledger transaction the Balanced status, and
then click Release to release the transaction.
When you release the general ledger transaction, for the line with the specified project and project task,
the system creates the corresponding project transaction. In the created project transaction, the system
specifies the account group to which the account in the transaction line is mapped.
8. On the Project Transaction Details (PM401000) form, in the Selection area, select TOMYUM1 as the Project.
Make sure that the Account Group and Project Task boxes are cleared. In the table, review the project
transaction that has been created based on the GL transaction that you have processed earlier. Notice the
following:
• The system has created only one project transaction because only one line of the general ledger
transaction has the specified project and project task. The reference number of the corresponding batch
of general ledger transactions is shown in the GL Batch Nbr. column.
• The Debit Account is 54100 (Project Labor Expense).
• The Debit Account Group of the project transaction is LABOR.
The system selected the LABOR account group as the debit account group of the transaction because the
54100 (Project Labor Expense) account is mapped to this account group.
9. On the Projects (PM301000) form, open the TOMYUM1 project, and on the Cost Budget tab, review the cost
budget line, which was created based on the batch of general ledger transactions you have just released.
Notice that the Account Group of the budget line is LABOR.
10.Click the cost budget line, and on the table toolbar, click View Transactions to review the project
transaction that corresponds to the selected line. On the Project Transaction Details form, which the system
opens in a pop-up window, notice that the project transaction is the transaction that has been generated on
release of the general ledger transaction that you have processed earlier.
11.Close the pop-up window.
Processing Project Transactions | 190

Step 2: Creating a Project Transaction Without Posting to the General Ledger

To create a project transaction that does not aﬀect the general ledger and represents the training expenses within
the second phase of the training (the PHASE2 task), do the following:
1. On the Project Transactions (PM304000) form, create a new record.
2. In the Summary area, make sure PM is selected as the Module.
3. Enter A 4-hour training session as the Description.
4. In the table on the Details tab, add a new row and specify the following settings:
• Project: TOMYUM1
• Project Task: PHASE2
• Cost Code: 00-000
• Account Group: LABOR
• Inventory ID: TRAINING
• Quantity: 4
• Billable: Cleared
• Amount: 160
You leave the Debit Account and Credit Account columns empty, so that the corresponding general ledger
transaction will not be created. The system also will not use this transaction for billing because you cleared
the Billable check box in the line.
5. On the form toolbar, click Save and then Release to save your changes to the project transaction and
release it.
Notice that the GL Batch Nbr. column is empty, as shown in the following screenshot, indicating that no
corresponding general ledger transaction has been created.

Figure: The project transaction that produces no GL transaction

6. On the Projects (PM301000) form, open the TOMYUM1 project, and on the Cost Budget tab, notice that
a new cost budget line with the PHASE2 project task has been added to the budget based on the project
transaction that you created and released. The actual values in the line have been updated based on the
project transaction that you have processed.

You have captured the costs for the project.

Project Transactions: Generated Transactions

The release of project transactions can generate the corresponding general ledger transactions; the release of
general ledger transactions can also generate the corresponding project transactions. The generated general ledger
transactions and project transactions are described in the following sections.
Processing Project Transactions | 191

General Ledger Transactions Generated on Project Transaction Release

When a project transaction with the Debit Account and Credit Account specified on the Project Transactions
(PM304000) form is released, if the Amount of the transaction is positive, the system generates a batch of the
general ledger transactions shown in the following table.

Account Source of Account Debit Credit

Debit account The project transaction Amount 0.00

Credit account The project transaction 0.00 Amount

If the Amount of the project transaction is negative on the Project Transactions form, on the release of this
transaction, the system generates a batch of the general ledger transactions shown in the following table.

Account Source of Account Debit Credit

Credit account The project transaction Amount 0.00

Debit account The project transaction 0.00 Amount

You can view the details of the batch associated with the release of a project transaction by clicking the link in the
GL Batch Nbr. column on the Project Transactions form. The system displays the batch on the Journal Transactions
(GL301000) form.

Project Transactions Generated on Release of the General Ledger Batch

When a batch of general ledger transactions is released, the system generates the project transactions shown in the
following table. The sign of the amount of the created project transaction depends on whether the account of the
general ledger transaction is debited or credited.

Debit Account Credit Account Source of Account Amount

Account Empty GL batch Debit amount

Account Empty GL batch Negative credit amount

You can review the created transactions on the Project Transaction Details (PM401000) form. In the Selection area of
this form, you select the project in the Project box. In the table, you can find the project transactions created on the
release of the batch of GL transactions by the reference number of the batch in the GL Batch Nbr. column.

Project Transactions: Related Reports and Forms

In the following sections, you can find details about the reports and forms you may want to review to gather
information related to project transactions.

Reviewing Project Transactions and Corresponding GL Batches

You can review the list of all the corresponding transactions of a project on the Project Transaction Details
(PM401000) form. In the Selection area of this form, you select the project, as well as the project task, account
group, and inventory item to narrow the listed project transactions.
You can also find the batch of general ledger transactions that correspond to any listed project transaction on this
form. In the table, for a particular transaction, you can find the reference number of the corresponding batch of GL
transactions in the GL Batch Nbr. column. You click the link in this column to view the details of the batch on the
Journal Transactions (GL301000) form.

Printing Project Transactions

You can prepare the printable list of project transactions related to a particular project using the Project Transaction
Register (PM633000) report.

Reviewing Project Actual Amounts

You can review the list of corresponding project transactions of a project budget line with a nonzero Actual
Amount on the Revenue Budget and Cost Budget tabs of the Projects (PM301000) form. To review these project
transactions, you click the project budget line; then on the table toolbar, you click View Transactions, and the
system opens the Project Transaction Details (PM401000) form.

Reviewing Project Balances

You can review the project budget broken down by account groups on the Balances tab of the Projects (PM301000)
form. To review the corresponding project transactions of an account group, you click the line with this account
group; then on the table toolbar, you click View Transactions, and the system opens the Project Transaction Details
(PM401000) form.

Project Transactions: Mass Processing of Documents

This topic explains how to perform mass-processing operations related to project transactions, and how the system
generates, changes, or works with documents as a result of the mass processing.

Mass-Releasing Project Transaction

To mass-release project transactions, you use the Release Transactions (PM501000) form. On this form, you select
the unlabeled check boxes in the rows of the transactions to be released and click Release on the form toolbar to
process the selected transactions; alternatively, you can click Release All to process all the transactions shown in
the table.
Processing Pro Forma Invoices | 193

Processing Pro Forma Invoices

If you need to agree invoices prepared within a project with the customer, you can process pro forma invoices.
A pro forma invoice can be printed and sent to a customer as many times as is necessary until an agreement is
reached. Then you can create an accounts receivable invoice from pro forma invoice. This chapter explains how you
can process pro forma invoices.

Pro Forma Invoice: General Information

Acumatica ERP provides pro forma (dra) invoice capabilities for project billing. A pro forma invoice, which you
can view on the Pro Forma Invoices (PM307000) form, is a dra document that you can edit and correct without
aﬀecting the accounts receivable subledger. A pro forma invoice can be printed and sent to a customer as many
times as is necessary until an agreement is reached. With this process, you minimize corrections that directly aﬀect
the accounts receivable subledger.

Learning Objectives
In this chapter, you will learn how to do the following:
In this lesson, you will learn how to do the following:
• Configure the pro forma invoice workflow for a project
• Create a pro forma invoice
• Print the pro forma invoice
• Send the pro forma invoice as an email
• Add to the pro forma invoice an extra adjustment line that does not originate from project transactions
• Postpone the billing of a pro forma invoice line
• Write oﬀ a pro forma invoice line partially or fully
• Create an accounts receivable invoice based on a pro forma invoice
• Configure the deferral of project revenue on release of an accounts receivable invoice

Applicable Scenarios
You create a pro forma invoice for a project if you need to reach agreement with the customer about the invoice.
During negotiations, you modify the pro forma invoice as many times as is necessary until an agreement is reached,
and then you prepare the accounts receivable invoice based on this pro forma invoice.

Enabling of the Pro Forma Invoice Workflow for a Project

A pro forma invoice can be created only through the process of billing a particular project, and it can be assigned a
reference number only automatically. You cannot manually enter new pro forma invoices on the Pro Forma Invoices
(PM307000) form.
The system creates pro forma invoices during billing for the projects for which the pro forma invoice workflow
is turned on—that is, the projects that have the Create Pro Forma Invoice on Billing check box selected on the
Summary tab of the form. By selecting or clearing this check box, you can turn on or turn oﬀ the pro forma invoice
workflow for a project at any stage of the project execution.
Processing Pro Forma Invoices | 194

Creation of Pro Forma Invoices

The system creates a pro forma invoice when you run project billing by clicking Run Project Billing on the form
toolbar of the Projects (PM301000) form. For a pro forma invoice created for a project, the system creates billable
lines on the following tabs of the Pro Forma Invoices form:
• Progress Billing: The system creates these lines by using the Progress Billing steps of billing rules. The lines
originate from the revenue budget lines of the project with a nonzero pending invoice amount or quantity.
• Time and Material: The system creates these lines by using the Time and Material steps of billing rules; the
lines originate from the project transactions.
The Time and Material steps of billing rules support the aggregation of project transactions by date,
employee, vendor, and inventory item. On the Time and Material tab of the Pro Forma Invoices form,
you can select a line and then click View Transaction Details on the table toolbar to drill down to the
list of project transactions based on which the Billed Quantity and Billed Amount of the line have been
calculated by using the formula of the billing rule.
As a result of the creation of the pro forma invoice, the system updates the revenue budget of the project on the
Revenue Budget tab of the Projects form as follows:
• In the lines billed by amount, the system clears the amounts in the Pending Invoice Amount column, which
the system has used to create progress billing lines of the pro forma invoice.
• In the lines billed by quantity, the system clears the quantities in the Pending Invoice Quantity column and
the amounts in the Pending Invoice Amount column, which the system has used to create progress billing
lines of the pro forma invoice.
• The amounts in the Dra Invoice Amount column are increased with the amount to invoice of the
corresponding progress billing lines and time and material lines of the pro forma invoice.
• The quantities in the Dra Invoice Quantity column are increased with the quantity to invoice of the
corresponding progress billing lines of the pro forma invoice that have been billed based on quantity.
A pro forma invoice with any status can be printed and emailed to the customer. To print the pro forma invoice, you
click Print on the More menu of the Pro Forma Invoices form. To email the pro forma invoice, you click Email on the
More menu of the form.

Release of Pro Forma Invoices

The pro forma invoices of a project can be released according to the following rules:
• The pro forma invoices can be released only one by one, starting from the earliest one, on the Invoices tab
of the Projects (PM301000) form. The only exception is when multiple pro forma invoices segregated by
invoice group have been generated during a single iteration of the billing process; in this case, these pro
forma invoices can be released in any order.
• A pro forma invoice can be released only aer the accounts receivable invoice of the preceding pro forma
invoice has been released.
The release of a pro forma invoice does not produce project transactions or general ledger transactions directly.
When you release the pro forma invoice on the Pro Forma Invoices (PM307000) form, the system creates a
corresponding accounts receivable invoice with all information copied from the pro forma invoice.
The document lines of an unreleased accounts receivable document that originates from a pro forma invoice are
displayed in read-only mode on the Details tab of the Invoices and Memos (AR301000) form. You can edit only
a salesperson in the Salesperson ID column. Aer you have reviewed the invoice details, you click Release on
the form toolbar to release the accounts receivable invoice. On release of the accounts receivable invoice, the
system generates a general ledger transaction and the corresponding project transaction. On release of the project
transaction, the system updates the revenue budget of the corresponding project on the Revenue Budget tab of
the Projects form as follows:
Processing Pro Forma Invoices | 195

• The Actual Quantity and Actual Amount of the corresponding revenue budget line are increased by the
line quantity and line amount of the released accounts receivable invoice.
• The Dra Invoice Amount and Dra Invoice Quantity of the corresponding revenue budget line is
decreased by the line amount and line quantity of the released accounts receivable invoice, respectively.

Workflow of Pro Forma Invoices

The following diagram illustrates the workflow of processing a pro forma invoice.

Pro Forma Invoice: Implementation Checklist

The following sections provide details you can use to ensure that the system is configured properly for processing
pro forma invoices, and to understand (and change, if needed) the settings that aﬀect the processing workflow.

Implementation Checklist
We recommend that before you initially process pro forma invoices, you make sure the needed settings have been
specified and entities have been created, as summarized in the following checklist.
Processing Pro Forma Invoices | 196

Form Criteria to Check

Billing Rules (PM207000) form Make sure that all needed billing rules have been con-
figured in the system. For more information about
billing rules, see Project Billing: General Information.

Projects (PM301000) form Make sure that the project has been created and pre-
pared for billing. For more details, see Project Creation
and Processing: General Information.

For each project for which you want to turn on the

pro forma invoice workflow, make sure that the Cre-
ate Pro Forma on Billing check box is selected on the
Summary tab (Billing and Allocation Settings sec-
tion).

Other Settings That Aﬀect the Workflow

You can aﬀect the workflow of processing pro forma invoices by specifying additional settings as follows:
• To change the format of pro forma invoice identifiers, adjust the PROFORMA numbering sequence on the
Numbering Sequences (CS201010) form, or create a new numbering sequence and select this sequence
in the Pro Forma Numbering Sequence box on the General tab (Numbering Sequence section) of
the Projects Preferences (PM101000) form. For more information on numbering sequences, see Use of
Numbering Sequences.

Pro forma invoice identifiers must be assigned only automatically. That is, the Manual
Numbering check box must be cleared in the Summary area of the Numbering Sequences form
for the numbering sequence used for pro forma invoices.

By default, the PROFORMA numbering sequence specifies that the pro forma invoice identifier is an
automatically generated numeric string of six digits, such as 000001.
• To give accounts receivable invoices, including those created based on pro forma invoices, the On Hold
status on creation, select the Hold Documents on Entry check box on the General Settings tab (Data Entry
Settings section) of the Accounts Receivable Preferences (AR101000) form.
• To make sending by email accounts receivable invoices optional, including those created based on pro
forma invoices that have been agreed upon with the customer, clear the Send Invoices by Email check
box on the Billing Settings tab (Print and Email Settings section) of the Customers (AR303000) form for
applicable customers.
• To make printing accounts receivable invoices optional, including those created based on pro forma
invoices that have been agreed upon with the customer, clear the Print Invoices check box on the Billing
Settings tab (Print and Email Settings section) of the Customers form for applicable customers.
• To cause the system to automatically post general ledger transactions generated on release of all accounts
receivable invoices, select the Automatically Post on Release check box on the General tab (Posting
Settings section) of the Accounts Receivable Preferences form.
• To cause the system to post every accounts receivable document as an individual batch to the general
ledger, clear the Generate Consolidated Batches check box in the Posting Settings section of the General
Ledger Preferences (GL102000) form.
Processing Pro Forma Invoices | 197

• To cause the system to post unbilled remainders that originate from pro forma invoice lines to particular
accounts, specify this accounts in the GL Settings for Unbilled Remainders section on the General tab of
the Projects Preferences form. If no accounts are specified in the section, the system will use the accounts of
the corresponding project transactions from which unbilled remainders originate.
With these settings specified, users in your company can process pro forma invoices quickly and accurately with a
minimum of manual actions.

Validation of Configuration
To make sure that all configuration has been performed correctly, we recommend that in your system, you process
a pro forma invoice by performing instructions similar to those described in Pro Forma Invoice: To Process a Pro
Forma Invoice for a Project.

Pro Forma Invoice: To Process a Pro Forma Invoice for a Project

In this activity, you will learn about the workflow of a pro forma invoice prepared for a project.

Story
Suppose that the HM's Bakery and Cafe customer has ordered juicers from the SweetLife Fruits & Jams company,
along with the following services: site review, installation, and employee training on operating the juicers.
SweetLife's project accountant has created a project that should be billed on demand as the juicers are installed
and all the services are provided. Before the invoice is sent to the customer for payment, the customer has
requested a pro forma invoice to be submitted for acceptance. The site review has taken place, the juicers
have been delivered and installed, and SweetLife's consultant has provided the training. Aer that, the project
accountant has entered project transactions and updated the progress of the project.
Acting as the project accountant, you will bill the customer, print the pro forma invoice, and email the invoice to
the customer for approval on 1/30/2023. Then you will release the pro forma invoice and the associated accounts
receivable invoice.

Configuration Overview
In the U100 dataset, the following tasks have been performed for the purposes of this activity:
• For the purposes of this activity, on the Enable/Disable Features (CS100000) form, the Project Accounting
feature has been enabled to support the project accounting functionality.
• On the Projects (PM301000) form, the HMBAKERY5 project has been created and the PHASE1, PHASE2,
PHASE3, PHASE4, and PHASE5 project tasks have been created for the project. The revenue budget level of
the project is Task and Item. On the Summary tab (Billing and Allocation Settings section), the Create Pro
Forma Invoice on Billing check box has been selected for the project. With this setting, the system creates a
pro forma invoice for the project when you run project billing.
• On the Project Transactions (PM304000) form, the PM00000008 batch of project transactions related to the
project has been created and released.
Processing Pro Forma Invoices | 198

Process Overview
On the Projects (PM301000) form, you will initiate the creation of a pro forma invoice for the project. Then you will
review the created pro forma invoice on the Pro Forma Invoices (PM307000) form. You will then print the pro forma
invoice, email the invoice, and release it on the same form. On the Invoices and Memos (AR301000) form, you will
release the accounts receivable invoice created based on the pro forma invoice.

System Preparation
To prepare to perform the instructions of the activity, do the following:
1. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to 1/30/2023. If a diﬀerent date is displayed, click the Business Date menu
button, and select 1/30/2023 on the calendar. For simplicity, in this activity, you will create and process all
documents in the system on this business date.
2. On the Projects Preferences (PM101000) form, on the General tab (General Settings section), make sure
Detailed is selected in the Revenue Budget Update box.

Step 1: Creating and Processing a Pro Forma Invoice

To prepare and process a pro forma invoice for the project, do the following:
1. On the Projects (PM301000) form, open the HMBAKERY5 project. On the Cost Budget tab, review the cost
budget of the project. Notice that the Actual Amount of each line equals the original budgeted amount,
which means the corresponding project transaction has been created and released.
Processing Pro Forma Invoices | 199

You can review the transactions that correspond to each cost budget line on the Project
Transaction Details (PM401000) form, which opens in a pop-up window, if you click the line and
then click View Transactions on the table toolbar. The transactions have the Billable check
box selected and the Billed check box cleared, which means the transactions are ready for
billing and have not been billed yet.

2. On the Revenue Budget tab, review the revenue budget lines of the project, and make sure the Pending
Invoice Amount of the revenue budget lines is nonzero. In the table selection area, notice that the Pending
Invoice Amount Total is equal to 2,700.00. You can bill the project for this amount.
3. On the form toolbar, click Run Project Billing.
The system creates a pro forma invoice and opens it on the Pro Forma Invoices (PM307000) form.
4. On the Progress Billing tab, make sure the pro forma invoice includes five progress lines. Review the
invoice lines that have been created based on the revenue budget lines of the project. The Progress Billing
Total in the Summary area is 2,700.00.
5. In the Summary area, right of the Project box, click the Edit button to review how the creation of the pro
forma invoice has aﬀected the revenue budget of the project. The system opens the Projects form in a pop-
up window with the HMBAKERY5 project selected.
On the Revenue Budget tab, notice that amounts from the Pending Invoice Amount column have been
moved to the Dra Invoice Amount column, and now the Pending Invoice Amount of all the revenue
budget lines is zero. In the table selection area, notice that the Pending Invoice Amount Total is also equal
to zero.
6. Close the pop-up window and return to the Pro Forma Invoices form with the pro forma invoice that you
have prepared earlier.
7. On the Time and Material tab, make sure the pro forma invoice includes three time and material lines
that have been created based on the transactions prepared for billing. The Time and Material Total in the
Summary area must be 7,750.00.

You can review the transactions that correspond to each line in the Transaction Details dialog
box, which opens if you click the line and then click View Transaction Details on the table
toolbar.

8. On the More menu, click Print to generate the printable version of the pro forma invoice. The system
navigates to the Pro Forma Invoice (PM642000) report and opens the printable version of the invoice.
9. Click Back in the browser window to go back to the pro forma invoice on the Pro Forma Invoices form, and
on the More menu, click Email to send the invoice as an email to the customer.
The system creates an email by using the notification template defined for the project on the Mailing &
Printing tab of the Projects form, attaches the printed report, and sends the email to the customer by using
the email address specified on the Addresses tab of the Pro Forma Invoices form, which is copied from the
project from the Bill-To section on the Summary tab of the Projects form.
10.On the form toolbar, click Remove Hold to assign the pro forma invoice the Open status.
11.On the form toolbar, click Release to release the pro forma invoice. The system creates the accounts
receivable invoice based on the pro forma invoice and assigns the Closed status to the pro forma invoice.

Step 2: Processing an AR Invoice

To process an accounts receivable invoice that was generated based on the pro forma invoice, do the following:
1. While you are viewing the pro forma invoice on the Pro Forma Invoices form, on the Financial tab, to the
right of the AR Ref. Nbr. box, click the Edit button to open the accounts receivable invoice that was created.
Processing Pro Forma Invoices | 200

2. On the Invoices and Memos (AR301000) form, which the system opens in a pop-up window, notice that all
progress billing and time and material lines of the pro forma invoice have been copied to the Details tab of
the accounts receivable invoice, as the following screenshot illustrates. These lines cannot be edited.

Figure: The AR invoice prepared based on the pro forma invoice

3. On the form toolbar, click Remove Hold to assign the accounts receivable invoice the Balanced status, and
then click Release to release the invoice.
4. On the Financial tab, click the link in the Batch Nbr. box. On the Journal Transactions (GL301000) form,
which opens in a pop-up window, review the created general ledger transactions.
Notice that eight transaction lines have the project and project task specified. For these GL transactions, the
system created the corresponding project transactions. For the transaction lines with the X project specified
(the non-project code), the system created no project transactions.
5. Close the pop-up window and return to the accounts receivable invoice that you have prepared on the
Invoices and Memos form.
6. On the More menu, under Inquiries, click Project Transactions to review the corresponding project
transactions.
7. On the Project Transaction Details (PM401000) form, which opens in a pop-up window, review the project
transactions related to the AR invoice. Notice that eight transactions have Invoice in the Orig. Doc. Type
column and the reference number of the accounts receivable invoice you have released in the Orig. Doc.
Nbr. column. These transactions also have the reference number of the general ledger batch you have just
reviewed in the GL Batch Nbr. column.
8. On the Projects form, open the HMBAKERY5 project, and review the Invoices tab. Notice that in the only line,
the reference numbers of the prepared pro forma invoice and the corresponding accounts receivable invoice
are shown in the Pro Forma Reference Nbr. and AR Reference Nbr. columns, respectively. The total billed
amount in the AR Doc. Orig. Amount column is $10,450.
9. On the Revenue Budget tab, make sure the Actual Amount of revenue budget lines was updated on release
of the AR invoice. Also, make sure the following new revenue budget lines have been created based on the
billed project transactions:
• The line with the PHASE2 project task and JUICER10 inventory item
• The line with the PHASE3 project task and JUICER15 inventory item
• The line with the PHASE4 project task and JUICER20C inventory item
Notice that the lines now have actual values and that the original budgeted values in these lines are zero.

You have finished processing the pro forma invoice and the AR invoice for the project.
Processing Pro Forma Invoices | 201

Pro Forma Invoice: Making Adjustments

You may need to modify a pro forma invoice if you send this invoice to the customer for approval and if the
customer requests some adjustments.
On the Pro Forma Invoices (PM307000) form, you can edit a pro forma invoice with the On Hold status. You can
review and modify the billable transactions and the amounts of the pro forma invoice before you prepare the
accounts receivable invoice that is based on this pro forma invoice. If you have already created the accounts
receivable document for the pro forma invoice but have not released it yet, you can delete the AR document to be
able to edit the pro forma invoice.
The sections below describe how you can adjust the pro forma invoice.

Adjusting of Progress Billing Information

On the Progress Billing tab of the Pro Forma Invoices (PM307000) form, you can make the following adjustments to
a pro forma invoice:
• Deleting a line of the pro forma invoice to bill it later in the full amount.
• Modifying the Amount to Invoice of any invoice line to a greater or smaller amount. The Amount to Invoice
is added to the accounts receivable invoice when the pro forma invoice is released.
• Rearranging lines within the table by dragging them to the appropriate positions.

Adjusting of Time and Material Information

On the Time and Material tab of the Pro Forma Invoices (PM307000) form, you can make the following adjustments
to a pro forma invoice:
• Deleting a line of the pro forma invoice to bill it later in the full amount.
• Modifying the Amount to Invoice of any invoice line to bill the pro forma invoice in a greater or smaller
amount. The Amount to Invoice is added to the accounts receivable invoice when the pro forma invoice is
released.
If a manually edited Amount to Invoice is less than the Billed Amount, you can direct the system about
what to do with the difference between the calculated Billed Amount and the adjusted Amount to Invoice
by selecting the needed option in the Status column of the invoice line. The difference can be postponed
until the next billing (Hold Remainder), which in this case is called the unbilled remainder, or written off by
this invoice (Write Off Remainder). The whole amount of the pro forma invoice line can also be written off
(Write Off); the amount will no longer show up in future invoices.

For an unbilled remainder to be billed, the corresponding AR invoice that contains the line
from which this reminder originates must be released.

• Removing project transactions related to the pro forma invoice line. If you select a line and clickView
Transaction Details on the table toolbar, the system shows the list of corresponding project transactions;
Billed Quantity and Billed Amount for these lines was calculated by using the formula of the billing rule.
These values are totaled to obtain the Billed Quantity and Billed Amount, respectively, of the line of the
pro forma invoice. You can remove particular transactions from this list, which reduces the billed quantity
and amount of the corresponding invoice line. (The removed project transaction will appear in the next pro
forma invoice prepared for the project.)
• Clicking Upload Unbilled Transactions on the table toolbar to add to the invoice an unbilled transaction
that has not been billed yet, which creates a new invoice line. You can also add to a pro forma invoice an
adjustment line that does not originate from the project transactions.
Processing Pro Forma Invoices | 202

• Rearranging lines within the table by dragging them to the appropriate positions.

Workflow of Adjusting Pro Forma Invoices

The following diagram illustrates the workflow of making adjustments to a pro forma invoice.

Pro Forma Invoice: To Make Adjustments

This activity will walk you through the process of correcting a pro forma invoice.

Story
Suppose that the Thai Food Restaurant customer has ordered a juicer, along with the services of installation
and employee training on operating the juicer from the SweetLife Fruits & Jams company. SweetLife's project
accountant has created a project. The juicer has been delivered and installed, and a consultant has provided the
training. The project accountant has billed the customer and sent the created pro forma invoice for approval.
SweetLife and the customer have agreed on the following adjustments to the pro forma invoice:
• The customer will pay $2,000 of the cost of the juicer with the first invoice (the accounts receivable invoice
corresponding to this pro forma invoice) and the rest of the juicer's cost with the second invoice next month.
• The cost of the site review should be written oﬀ of the invoice, because the project manager agreed to
provide the customer a free site review.
• A 50% discount will be applied to the cost of the training.
• The customer will pay $100 for an additional training session in Phase 1 of the project.
Acting as the project accountant, you will make the needed corrections to the pro forma invoice and bill the
customer. You will then bill the customer for the second time with the amount postponed in the first invoice.

Process Overview
In this activity, you will make corrections to the pro forma invoice and release the invoice on the Pro Forma Invoices
(PM307000) form. On the Invoices and Memos (AR301000) form, you will review the accounts receivable invoice that
was created based on the pro forma invoice; you will then release the accounts receivable invoice. You will then
create one more pro forma invoice for the customer with the amount postponed in the first pro forma invoice.

System Preparation
Before you begin performing the steps of this activity, perform the following instructions to prepare the system:
1. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset preloaded; you should
sign in as project accountant by using the brawner username and the 123 password.
2. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to 1/30/2023. If a diﬀerent date is displayed, click the Business Date menu
button, and select 1/30/2023 on the calendar. For simplicity, in this activity, you will create and process all
documents in the system on this business date.
Processing Pro Forma Invoices | 204

Step 1: Adjusting the Pro Forma Invoice

To adjust the pro forma invoice according to the agreements that have been reached with the customer, do the
following:
1. On the Projects (PM301000) form, open the TOMYUM4 project.
2. On the Invoices tab, click the link in the Pro Forma Reference Nbr. column of the only row to open the pro
forma invoice that you need to adjust.
3. On the Time and Material tab of the Pro Forma Invoices (PM307000) form, which the system has opened in a
pop-up window, adjust the invoice lines as follows (see the adjustments in the screenshot below):
a. In the line with the PHASE1 project task and the JUICER15 inventory item, do the following:
a. Change Amount to Invoice to 2000.
When you enter an Amount to Invoice that is less than the Billed Amount, the system clears the
status of the line in the Status column.
b. Select Hold Remainder as the Status in this line to bill the difference between the Billed Amount and
the Amount to Invoice later.
b. In the line with the PHASE1 project task and the SITEREVIEW inventory item, select Write Off as the Status
to write off the full amount of the line and exclude it from billing.
c. In the line with the PHASE2 project task and the TRAINING inventory item, do the following:
a. Change Amount to Invoice to 200.00.
b. Select Write Off Remainder as the Status to write off the difference between the Billed Amount and
the Amount to Invoice and exclude this difference from billing.
4. Add a new line with the following settings (also shown in the following screenshot):
• Project Task: PHASE1
• Inventory ID: TRAINING
• Cost Code: 00-000
• Description: An additional training session within phase 1
• Amount to Invoice: 100.00
Aer all the adjustments you have made, the invoice total in the Summary area should be $2,700.
Processing Pro Forma Invoices | 205

Figure: The adjustments to the pro forma invoice

5. Save your changes to the pro forma invoice.

6. On the form toolbar, click Remove Hold to assign the pro forma invoice the Open status, and then click
Release to release the pro forma invoice.
The system creates the accounts receivable invoice based on the pro forma invoice and assigns the Closed
status to the pro forma invoice.
7. On the Financial tab, right of the AR Ref. Nbr. box, click the Edit button to open the accounts receivable
invoice that has been created.
8. On the form toolbar of the Invoices and Memos (AR301000) form, which the system opens in a pop-up
window, click Remove Hold to assign the invoice the Balanced status, and then click Release to release the
accounts receivable invoice.

Step 2: Billing the Project for the Remainder

To bill the customer the postponed amount (which is $500 of the juicer cost), do the following:
1. On the Projects (PM301000) form, open the TOMYUM4 project, and on the Cost Budget tab, review the
updated cost budget of the project. Click the cost budget line with the PHASE1 project task and the JUICER15
inventory item, and on the table toolbar, click View Transactions.
2. On the Project Transaction Details (PM401000) form, which the system opens in a pop-up window, review the
list of project transactions that correspond to the selected line.
The transaction with an original document type of Unbilled Remainder has been created on release of
the AR invoice that corresponds to the pro forma invoice from which the unbilled remainder originates.
The identifier of the AR invoice is shown in the Orig. Doc. Nbr. column of the line. The transaction has the
Billable check box selected and the Billed check box cleared, which means the transaction can be billed.
3. Close the pop-up window to return to the Projects form with the TOMYUM4 project selected, and on the form
toolbar, click Run Project Billing to bill the project for remainder.
The system creates a pro forma invoice and opens it on the Pro Forma Invoices (PM307000) form.
4. On the Time and Material tab, review the pro forma invoice line that the system has created based on the
unbilled remainder transaction. Only one line with the PHASE1 project task and JUICER15 inventory item has
been added to the pro forma invoice.

The line with the PHASE1 project task and the SITEREVIEW inventory item has not been added
because you have written it oﬀ in the full amount. The line with the PHASE2 project task and
the TRAINING inventory item has been written oﬀ partially, and thus also has not been added
to the pro forma invoice.

You have corrected the pro forma invoice and billed the project for the unbilled remainder.
Processing Pro Forma Invoices | 206

Pro Forma Invoice: Deferred Revenue in Projects

Depending on the revenue recognition method that is established in a company, you may need to account for
revenue aer the corresponding part of work on a project has actually been completed. To do this, you need to set
up the project and its billing to temporarily allocate the revenue to the liability account and clear this account as
soon as the related portion of the revenue should be recognized.

Setting Up a Project for Deferred Processing of Revenue

To configure the deferred processing of a project's revenue, you should do the following on the Projects (PM301000)
form:
1. Define the project to use the pro forma invoice workflow—that is, select the Create Pro Forma Invoice on
Billing check box on the Summary tab.
2. In the revenue budget of the project on the Revenue Budget tab, define the project budget lines to use the
account group of the Income type.
3. In the Default Sales Account box on the Defaults tab, specify a sales account of the liability type. This sales
account must be linked to an account group of the Liability type.
4. Assign a progress billing rule to the project tasks on the Tasks tab of the Projects form. In the billing rule
step, specify Project in the Use Sales Account From box.

Billing a Project with Deferred Revenue

When a pro forma invoice is created for a project that you have configured for deferred processing of revenue, the
system updates the revenue budget lines on the Revenue Budget tab of the Projects (PM301000) form as follows:
• The Pending Invoice Amount and Pending Invoice Quantity are set to zero.
• The Dra Invoice Amount and Dra Invoice Quantity are increased by the amount to invoice and quantity
to invoice, respectively, of the corresponding pro forma invoice lines.
When you release the pro forma invoice on the Pro Forma Invoices (PM307000) form, the system creates a
corresponding accounts receivable invoice with all information copied from the pro forma invoice.
To release the accounts receivable invoice, you click Release on the form toolbar of the Invoices and Memos
(AR301000). On release of the accounts receivable invoice, the system generates a general ledger transaction and
the corresponding project transaction. The general ledger transaction credits the liability account in the invoiced
amount to record the unrecognized revenues.
On release of the project transaction, the system updates the revenue budget lines on the Revenue Budget tab of
the Projects form as follows:
• The Dra Invoice Amount and Dra Invoice Quantity of the corresponding revenue budget line are set to
zero, to indicate that the customer has been billed.
• The Actual Quantity and Actual Amount of the corresponding revenue budget line are still set to zero
because the revenue has been accumulated to the liability account.
The deferred revenue is recognized as earned revenue aer the corresponding part of the project work is
completed. To perform revenue recognition, you need to configure and run an allocation rule to allocate the earned
revenue from the liability account group to the income account group. Then the system will update the Actual
Quantity and Actual Amount of the corresponding revenue budget line with the recognized revenue amount and
quantity.
Processing Pro Forma Invoices | 207

Workflow of Billing a Project with Deferred Revenue

The following diagram illustrates the workflow of processing a pro forma invoice and an AR invoice with deferred
revenue recognition.

Pro Forma Invoice: Generated Transactions

The release of a pro forma invoice does not generate general ledger transactions or project transactions directly.
When you release the pro forma invoice, the system creates a corresponding accounts receivable invoice with
all the information copied from the pro forma invoice. On release of the accounts receivable invoice, the system
generates the general ledger transactions and project transactions described in the following sections.

GL Transactions Generated on Release of an AR Invoice

When an accounts receivable invoice that has been created based on a pro forma invoice is released, the system
generates a batch of the general ledger transactions shown in the table below.
The system uses the following accounts as the source accounts in the GL batch it creates:
• The asset account, which is specified in the AR Account box on the Financial tab (Link to GL section) of the
Invoices and Memos (AR301000) form.
• The income account, which is specified for each line in the Account column on the Details tab of the
Invoices and Memos form. The system populates the income account from the corresponding pro forma
invoice; the income account was determined by billing rules during the creation of the pro forma invoice.
Processing Pro Forma Invoices | 208

Account Source of Account Debit Credit

Accounts receivable account The asset account Amount 0.00

Sales account The income account 0.00 Amount

You can view the details of the batch associated with the release of an invoice by clicking the link in the Batch Nbr.
box on the Financial tab (Link to GL section) of the Invoices and Memos form. The system opens the batch on the
Journal Transactions (GL301000) form.

Project Transactions Generated on Release of the GL Batch

On release of the batch of general ledger transactions, the system generates a corresponding batch of the project
transactions shown in the following table.

Project and Project Task Debit Account Account Group Amount

Project and project task in Sales account in the GL Account group mapped to –(Amount)
the GL batch line batch line Sales account

You can review the created transactions on the Project Transaction Details (PM401000) form. In the Selection area
of this form, you select the project in the Project box. In the table, you can find the project transactions created on
release of the accounts receivable invoice by the reference number of the AR invoice in the Orig. Doc. Nbr. column.

Project Transactions Generated for an Unbilled Remainder

If an amount has been postponed in a pro forma invoice and the corresponding accounts receivable invoice (which
contains the line from which this postponed amount originates) is released, the system generates the project
transaction shown in the following table.

Billable Amount Orig. Doc. Type Orig. Doc. Nbr.

Selected Postponed amount Unbilled Remainder The AR invoice

The main attributes of the created transaction—such as the project, project task, inventory item, and account
group—are the same as those of the original project transaction from which this unbilled remainder originates.
The system uses the following accounts as the debit and credit accounts in the project transaction it creates:
• The accounts that are specified in the GL Settings for Unbilled Remainders section on the General tab of
the Projects Preferences (PM101000) form
• The accounts of the corresponding project transaction from which the unbilled remainder originates if
no accounts are specified in the GL Settings for Unbilled Remainders section on the General tab of the
Projects Preferences form

When the debit account and the credit account are defined in the GL Settings for Unbilled
Remainders section of the Projects Preferences form, and if the project transaction from which
the unbilled remainder originates has only the debit account specified, in the Unbilled Remainder
transaction created for the unbilled remainder, the system overrides only the original debit account
with the debit account from the project preferences and does not populate the credit account.
Processing Pro Forma Invoices | 209

When the accounts receivable invoice that contains the unbilled remainder is released, the system generates the
reversing project transaction for the unbilled remainder that is shown in the following table.

Billable Amount Orig. Doc. Type Orig. Doc. Nbr.

Cleared –(Postponed amount) Unbilled Remainder Re- The AR invoice

versal

The main attributes of the created transaction—such as the project, project task, inventory item, account group,
debit account, and credit account—are the same as those of the original project transaction of the unbilled
remainder.

If both the debit account and the credit account are specified for the project transactions generated
for the unbilled remainder, the system also generates a batch of general ledger transaction on release
of the project transactions. For details, see Project Transactions: Generated Transactions.

You can review the created transactions on the Project Transaction Details (PM401000) form. In the Selection area of
this form, you select the project in the Project box. In the table, you can find the project transactions by the original
document type in the Orig. Doc. Type column.

Pro Forma Invoice: Related Reports and Forms

In the following sections, you can find details about the reports and forms you may want to review to gather
information about pro forma invoices.

Reviewing Project Transactions

You can review the list of project transactions that correspond to a pro forma invoice line on the Time and Material
tab of the Pro Forma Invoices (PM307000) form. To review these project transactions, you click the line; then on the
table toolbar, you click View Transaction Details, and the system opens the Transaction Details dialog box.

Printing Pro Forma Invoices

You can print a pro forma invoice that you are viewing on the Pro Forma Invoices (PM307000) form by clicking Print
on the More menu. The system opens the printable form of the invoice, which is project-specific and specified for
the PROFORMA mailing of the project on the Mailing & Printing tab of the Projects (PM301000) form. By default, this
is the Pro Forma Invoice (PM642000) report. You can review the invoice and print it.
The contact information of the customer to whom the pro forma invoices should be sent is specified in the Bill-
To Contact and Bill-To Address sections of the Addresses tab of the Pro Forma Invoices form. This information
is copied to each pro forma invoice related to the project from the Bill-To and Bill-To Address sections of the
Summary tab of the Projects form and can be modified at the invoice or project level.

Reviewing the Project Transactions Related to an AR Invoice

You can review the project transactions that were created on release of an accounts receivable invoice. To do
this, while you are viewing the accounts receivable invoice on the Invoices and Memos (AR301000) form, you click
Project Transactions on the More menu (under Inquiries). The system opens the Project Transaction Details
Processing Pro Forma Invoices | 210

(PM401000) form in a pop-up window with reference number and type of the accounts receivable invoice specified
in the Selection area.

Pro Forma Invoice: Mass-Processing of Documents

This topic explains how to process multiple pro forma invoices, and how the system generates, changes, or works
with documents as a result of the mass processing.

Mass-Creating Pro Forma Invoices

You can initiate billing for multiple projects on the Run Project Billing (PM503000) form; this billing entails the
creation of multiple invoices. On this form, you select the unlabeled check boxes in the rows of the projects to
be processed in the table, and you click Process on the form toolbar. The system initiates billing for the selected
projects. Pro forma invoices will be created for only those projects that have the Create Pro Forma Invoice on
Billing check box selected on the Summary tab of the Projects (PM301000) form; AR invoices will be created for
projects for which this check box is cleared.
To initiate processing for all the projects listed in the table of the Run Project Billing form, you click Process All on
the form toolbar. The system initiates billing for all the projects listed in the table.

Mass-Releasing Pro Forma Invoices

Pro Forma Invoice: Billing Limit Validation

On the Revenue Budget tab of the Projects (PM301000) form, you can define billing limit amounts for revenue
budget lines of the project if the Use T&M Revenue Budget Limits check box is selected on the Summary tab of
the same form. The system applies these limit amounts to the pro forma invoices of the project. During entry of a
pro forma invoice on the Pro Forma Invoices (PM307000) form, if the invoice exceeds a limit, you receive a warning
or an error message, depending on the Validate T&M Revenue Budget Limits setting on the Projects Preferences
(PM101000) form.
On the Time and Material tab of the Pro Forma Invoices form, the system applies the billing limit amounts to the
pro forma invoice lines as a running total, starting from the first line in the table. For each line of the invoice, the
system subtracts the Amount to Invoice from the Max Available Amount and uses the reduced amount as the
available limit for the next line. Invoice lines for which the Over Limit Amount is nonzero exceed the limit.
On the Time and Material tab of the Pro Forma Invoices form, you can rearrange lines in the table by dragging them
to the appropriate positions, causing the system to apply the limit amounts to the needed lines of the invoice. You
can also add to a pro forma invoice adjustment lines that do not originate from project transactions. Such lines are
also included in the limit application and can decrease or increase the limit total.
Managing the Project Budget | 211

Managing the Project Budget

This chapter describes how to populate and track the project budget that is used to provide both a financial plan
and cost constraints for a project.

Project Budget: General Information

The project budget is used to provide both a financial plan and cost constraints for a project. That is, you define the
amount of money and resources to be spent on the project. Then you can control the actual project costs against
the costs in the original and revised budgets. As a project progresses, you can continuously track budget execution
and either adjust expenditures or revise the budget.

Learning Objectives
In this chapter, you will learn how to do the following:
• Configure the revenue budget and the cost budget for a project
• Update actual values of the project budget
• Review project balances
• Lock original budgeted values and make changes to the locked budget
• Control whether AP bills, purchase orders, and change orders created for a project exceed the project
budget
• Restructure the budget before and aer billing

Applicable Scenarios
You configure the project budget in one of the following cases:
• If you want to plan the revenue of a project and track its completion
• If you want to plan and control the amount of money and resources spent on a project
• If you want to configure a fixed-price project that is billed for progress

Budget Planning
You plan a project budget during the estimation stage of the project, before any project transaction occurs. To
estimate the project income, you populate the revenue budget of the project. To estimate the resources to be spent
on the project, you populate the cost budget. During the execution stage of the project, when you process project
transaction and bill the project, actual values of the project budget are updated so you can control the project
execution and compare the actual values against the budget ones.
On the Revenue Budget and Cost Budget tabs of the Projects (PM301000) form, you can add, revise, and delete
budget lines. Each budget line is defined by the combination of the following settings, including the project, that
are unique within the project:
• A project task, which identifies a step or activity within the project.
• An account group, which determines the category of the revenue or expenses that you expect to incur
during the project execution.
• A particular inventory item (that is, a resource) needed to complete the task. If you do not need to associate
the budget line with a particular item but the budget level is configured to include the item, you can select
the empty item code (N/A) as the inventory item.
Managing the Project Budget | 212

The level of details of revenue budget lines and cost budget lines—that is, whether you need to specify the
inventory item or not, depends on the option selected in the Revenue Budget Level and Cost Budget Level boxes
on the Summary tab (Project Properties section) of the Projects form, respectively.
Other information that you can specify in a budget line includes the original budgeted quantity of the selected
inventory item, the unit rate, and the original budgeted amount, which is calculated automatically as the original
budgeted quantity multiplied by unit rate if you have not specified a value manually.
The revised budgeted quantity and amount are initially equal to the original budgeted values. If during the
estimation, acceptance, or execution stages of the project you need to revise the budget and want to keep the
original budgeted amounts and quantities unchanged so that you can later analyze the accuracy of your original
estimates, you can adjust the revised budgeted quantities and amounts.

Budget Tracking
As a project is being processed, you create project-related documents such as AP bills, purchase orders, or AR
invoices. This causes the creation of project transactions. When these transactions are posted, the system updates
the Actual Quantity and Actual Amount on the Revenue Budget and Cost Budget tabs of the Projects (PM301000)
form.

The system also updates the project budget when a change order line is released, a commitment line
is saved, a pro forma invoice line is saved, an accounts receivable invoice line is saved, and a new
change request line is saved or linked to a change order.

The system uses the combination of the project, project task, account group, and inventory item to match the
transaction with a project budget line. If the budget line with the same combination exists, the system updates
actual values of the existed line. For a new combination that does not exist in the project budget, the system
creates a new budget line.
For the revenue budget, the system creates a revenue budget line with the same inventory item as the inventory
item of the transaction if the Detailed option is selected in the Revenue Budget Update box on the General tab
(General Settings section) of the Projects Preferences (PM101000) form. With the Summary option selected,
the system creates a revenue budget line with the empty item code (N/A) instead of the inventory item of the
transaction. Similarly, the system creates cost budget lines based on the option selected in the Cost Budget
Update box on the General tab (General Settings section) of the Projects Preferences form.
You track the Actual Amount of project budget lines and compare this amount with the Revised Budgeted
Amount when reviewing the budget. In the Performance (%) column, the system estimates the percentage of
the actual amount to the revised budgeted amount. For a revenue budget line, this percent shows the progress of
completion of your financial plan. The fully performed budget line has the performance of 100%. For a cost budget
line, the percent shows how much expenses you have incurred against the planned amount. You use this column to
track the performance by the following budget attributes:
• A project budget line on the Revenue Budget and Cost Budget tabs
• A project task on the Revenue Budget and Cost Budget tabs if the Group by Task check box is selected on
the table toolbar
• An account group on the Balances tab
Similarly, you can compare the actual quantity of project budget lines with the revised budgeted quantity to
control how the project execution fits the planned quantity. The actual quantity is updated only if the UOM is
specified in the budget line and if the system can convert the UOM of the corresponding project transaction to the
UOM of the budget line by using the list of unit conversions defined on the Units of Measure (CS203100) form.
Managing the Project Budget | 213

Project Budget: Implementation Checklist

The following sections provide details you can use to ensure that the system is configured properly for managing
project budgets, and to understand (and change, if needed) the settings that aﬀect the processing workflow.

Implementation Checklist
We recommend that before you initially manage project budgets, you make sure the needed features have been
enabled, settings have been specified, and entities have been created, as summarized in the following checklist.

Form Tasks to Perform Note

Enable/Disable Features (CS100000) Make sure that the Project Account-

form ing feature is enabled.

Projects Preferences (PM101000) Make sure that all necessary set- If you are going to use inventory
form tings related to project account- items in the revenue budget of your
ing have been specified. For more projects, select Detailed in the Rev-
information about configuration enue Budget Update box on the
steps that you have to perform be- General Settings tab (General Set-
fore you can start accounting for tings section). With this option se-
projects, see Basic Project Configu- lected, if a transaction has an in-
ration: General Information. ventory item specified and the rev-
enue budget has no line with the
Also make sure that Summary is se- same inventory item, the system
lected in the Revenue Budget Up- creates a new budget line with this
date box and Detailed is selected item.
in the Cost Budget Update box on
the General Settings tab (General With the Summary option selected
Settings section). (the default option), the system up-
dates the revenue budget line with
the empty item code (N/A) instead
of the inventory item of the trans-
action if such a line exists, other-
wise a new budget line with the
empty item code is created.
Similarly, the system updates the
cost budget based on the option
selected in the Cost Budget Up-
date box on the General tab (Gen-
eral Settings section).

Account Groups (PM201000) form Make sure that all needed account
groups have been configured. For
more information about account
groups, see Account Groups: Gener-
al Information
Managing the Project Budget | 214

Form Tasks to Perform Note

Non-Stock Items (IN202000) form Make sure that all needed labor
items, non-stock items, and ser-
vices have been defined. For more
information about labor items,
non-stock items, and services, see
Labor Items: General Information,
Creating Non-Stock Items: Gener-
al Information, and Creating Service
Items: General Information, respec-
tively.

Projects (PM301000) form Make sure that the project has been If you need to make the revenue
created, as described in Project budget more detailed by adding
Creation and Processing: General In- the inventory item to the budget
formation. structure, select Task and Item in
the Revenue Budget Level box on
Also, make sure that the Task is se- the Summary tab (Project Prop-
lected in the Revenue Budget Lev- erties section) and you will be able
el box and Task and Item is select- to select an inventory item in a rev-
ed in the Cost Budget Level box on enue budget line.
the Summary tab (Project Proper-
ties section). If you need to make the cost bud-
get less detailed by excluding the
inventory item from the budget
structure, select Task in the Cost
Budget Level box on the Summa-
ry tab (Project Properties section)
and you will not be able to select
an inventory item in a cost budget
line.

Other Settings That Aﬀect the Workflow

You can aﬀect the workflow of managing the project budget by specifying additional settings as follows:
• To allow a user to enter subcontract lines and purchase orders lines related to a project that have not been
initially specified in a cost budget of the project, select the Allow Adding New Items on the Fly check box
on the Projects form.
• To cause the system to control whether an entered document is within the cost budget of a project, select
Show a Warning in the Budget Control box on the General (General Settings section) tab of the Projects
Preferences.
• To rename the default empty item code (<N/A>), which is selected in a project budget line to indicate that
no specific item is associated with the line, specify the needed value in the Empty Item Code box on the
General tab (General Settings section) of the Projects Preferences (PM101000) form.
With these settings and entities specified, users in your company can manage the project budget quickly and
accurately with a minimum of manual actions.

Validation of Configuration
To make sure that all configuration has been performed correctly, we recommend that in your system, you manage
the project budget by performing instructions similar to those described in Project Budget: To Configure and Update
the Budget.
Managing the Project Budget | 215

Project Budget: To Configure and Update the Budget

In this activity, you will learn how to configure the project budget, update actual values of the project budget, and
review project performance.

Story
Suppose that the Thai Food Restaurant customer has ordered a juicer along with the site review and installation
services from the SweetLife Fruits & Jams company. SweetLife's project accountant has created a project to handle
the tracking and billing of the provided materials and services.
Acting as the project accountant, you will configure the revenue budget for the project to plan the expected
revenue and the cost budget to plan the materials and services to be spent on the project. Then, when the juicer is
delivered and the services are provided, you will enter project transactions to capture project costs and will check
is the expenses within the budget values. You will then bill the project and compare the project income with the
budgeted values.

Process Overview
In this activity, you will configure the project budget on the Projects (PM301000) form. You will then release project
transactions on the Project Transactions (PM304000) form that will update the actual values of the project budget.
You will then bill the project on the Projects (PM301000) form and release the created accounts receivable invoice
on the Invoices and Memos (AR301000) form.

System Preparation
Before you begin performing the steps of this activity, perform the following instructions to prepare the system:
1. Download the TOMYUM5_Project_Transactions file to your computer.
2. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset preloaded; you should
sign in as project accountant by using the brawner username and the 123 password.
Managing the Project Budget | 216

3. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to 1/30/2023. If a diﬀerent date is displayed, click the Business Date menu
button, and select 1/30/2023 on the calendar. For simplicity, in this activity, you will create and process all
documents in the system on this business date.
4. On the Projects Preferences (PM101000) form, specify the following settings on the General tab (General
Settings section):
• Revenue Budget Update: Summary
• Cost Budget Update: Detailed
5. Save your changes to the project accounting preferences.

Step 1: Configuring the Project Budget

To specify the revenue and cost budgets for the project, do the following:
1. Open the Projects (PM301000) form.
2. In the Project ID box, select TOMYUM5.
On the Summary tab (Project Properties section), notice that the Revenue Budget Level of the project is
Task and the Cost Budget Level of the project is Task and Item.
3. On the Revenue Budget tab, click Add Row on the table toolbar and specify the following settings for the
added row:
• Project Task: INSTALL (selected automatically as the default project task)
• Account Group: REVENUE
• Original Budgeted Amount: 3000
The added line represents the price of the juicer, the site review, and the installation service.
Notice that because of the selected revenue budget level, the revenue budget does not include inventory
items and you cannot add another line with the same project task and account group to the revenue
budget.
4. On the Cost Budget tab, click Add Row and specify the settings shown in the following table in the three
cost budget lines you add.

Project Task Inventory ID Original Budgeted Unit Rate

Quantity
INSTALL JUICER15 1 2000

INSTALL SITEREVIEW 2 40

INSTALL INSTALL 4 80

When you select an inventory item in a budget line, the system automatically selects an account group for
the line based on the expense account of the non-stock item or the COGS account of the stock item that is
mapped to the account group.
Notice that because of the selected cost budget level you must specify an inventory item in a cost budget
line. You cannot add another line with the same budget key (project task, inventory item, and account
group) to the cost budget of the project.
5. On the form toolbar, click Save to save the changes.
6. In the table selection area, select the Group by Task check box. In the table, the only line to which the
system grouped budget lines is shown. The Original Budgeted Amount of the line with the INSTALL project
task is 2,400.00.
Managing the Project Budget | 217

Step 2: Uploading Project Transactions

To upload and process the transactions to update actual values of the cost budget of the project, do the following:
1. On the Project Transactions (PM304000) form, add a new record.
2. In the Summary area, make sure PM is selected as the Module.
3. In the Description box, type The juicer with the installation for the TOMYUM5
project.
4. On the table toolbar of the Details tab, click Load Records from File.
5. In the File Upload dialog box, which opens, click Choose File and select the
TOMYUM5_Project_Transactions file, which you have downloaded. Click Upload.
6. In the Common Settings dialog box, which opens, leave the default settings, and click OK.
7. In the Columns dialog box, leave the current column mapping, and click OK.
The system uploads four lines with the project transactions. In these lines, notice that the quantity of the
provided services is less than you have budgeted—that is, an hour of the site review instead of two hours
and three hours of the installation instead of four hours. Also notice that an extra line for two hours of
training (which have not initially been budgeted) have been added.
8. In the Summary area, make sure that the Total Amount of the uploaded transactions is 2,360.00.
9. On the form toolbar, click Save to save the project transaction, and then click Release to release it.
10.On the Projects (PM301000) form, open the TOMYUM5 project, and in the Summary area, notice that the
Actual Expenses box shows 2,360.00, which is the total amount of the released transactions.
On the Cost Budget tab, review the cost budget of the project. Notice that the system has created a new
budget line with the TRAINING item because the Detailed level of the cost budget update is specified in the
project accounting preferences. The system has also updated the Actual Quantity and Actual Amount
of the budget lines based on the released transactions (see the following screenshot). You can compare
revised budgeted values with actual ones and track the performance by budget line in the Performance (%)
column.

Figure: The cost budget of the project updated by released transactions

11.While remaining on the Cost Budget tab, in the table selection area, select the Group by Task check box
and review totals by project task. The revised budgeted amount for the project task is 2,400.00, while the
actual amount is 2,360.00.

Step 3: Billing the Project

To bill the project and process the invoice, do the following:
Managing the Project Budget | 218

1. While you are still viewing the TOMYUM5 project on the Projects (PM301000) form, on the form toolbar, click
Run Project Billing.
The system creates an accounts receivable invoice and opens it on the Invoices and Memos (AR301000) form.
Notice that the Detail Total in the Summary area is 2,950.00.
2. On the form toolbar, click Remove Hold to assign the invoice the Balanced status, and then click Release to
release the accounts receivable invoice.
3. Return to the Projects form with the TOMYUM5 project opened, and press Esc to refresh the form. In the
Summary area, notice that the Actual Income box shows 2,950.00, which is the total amount of the released
invoice. The system also calculates the project margin as the diﬀerence of actual income and expenses
($590).
On the Revenue Budget tab, review the revenue budget of the project. Notice that the system has updated
the Actual Amount of the revenue budget line based on the released invoice.
4. On the Balances tab, review the project budget by account group, as shown in the following screenshot. You
can track the performance by account group as well as by income and expense totals in the Performance
(%) column.

Figure: Project budget balances divided by account group

You have finished working with the project budget.

Construction Project Budget: Budget Control on Document Entry

The following sections explain how you can control documents that are entered for the project.

Control of Document Consistency for the Project

To ensure that document lines are entered for the appropriate budget lines, the system controls the cost code
entry in these documents by doing the following in the Cost Code column of the document entry form for each
document line:
• When a user clicks the magnifier icon in this column, in the pop-up window that opens, the system displays
only the cost codes that exist in the project budget for the specified combination of the selected project task
and the selected account group.
Managing the Project Budget | 219

• If a user enters into the column a cost code that does not exist in the project budget for the specified
combination of the selected project task and the selected account group, a warning is displayed.

Control of Document Entry

The project budget can be exceeded as users enter documents. The system checks whether an entered document
is within the cost budget of the project, taking into consideration the portion of the budget that has already been
consumed if Show a Warning is selected in the Budget Control box on the General tab (General Settings section)
of the Projects Preferences (PM101000) form. This helps you to control the documents you are creating and can be
useful for a person who approves these documents.
When you enter or process one of the following documents related to a project, you will see a warning if the
amount of a document line exceeds the cost budget of the corresponding project budget line (even if the project
budget has no corresponding budget line):
• A purchase order of the Normal or Drop-Ship type on the Purchase Orders (PO301000) form.
For a document of the On Hold or Pending Approval status, you can see a warning in the Ext. Cost column on
the Details tab for the lines that exceed the project budget. The warning is also shown in the Summary area.
• An AP bill on the Bills and Adjustments (AP301000) form.
For a document of the On Hold, Pending Approval, or Balanced status, you can see a warning in the Ext. Cost
column on the Details tab for the lines that exceed the project budget. The warning is also shown in the
Summary area.
• A change order on the Change Orders (PM308000) form.
For a document of the On Hold or Pending Approval status, you can see a warning in the Amount column
on the Commitment tab for the lines that exceed the project budget. The warning is also shown in the
Summary area.
The warning message in a document line shows you how much the line amount exceeds the budget. The system
compares the document line with the corresponding cost budget line of the project and shows you the following
amounts in the warning:
• Available: The amount of the budget that you can consume with the document.
The available amount is calculated as the diﬀerence between the Budgeted amount and the Consumed
amount. The budgeted amount is the revised budgeted amount of the budget line. The consumed amount
is the amount that has been spent already—that is, the sum of the actual amount and the committed open
amount of the budget line.
• Remaining: The amount that exceeds the budget.
The remaining amount is calculated as the diﬀerence between the Available and Document amounts. The
document amount is the total amount (the Ext. Cost minus the Discount Amount) of all the lines of the
validated document that correspond to the same budget line, including the current one.
For example, suppose that you have budgeted the cost of $400 for the project (the budgeted amount). You have
already spent $150 (the consumed amount). When you create for the project an AP bill for the amount of $300 (the
document amount), the system will display the following warning:
Budgeted: 400.00, Consumed: 150.00, Available: 250.00, Document: 300.00, Remaining: –50.00
The warning does not prevent you from processing the document but just informs you that the document
processing will result in an excess of the budgeted values.
You can see the list of all document lines that have exceeded the budget of a selected project on the Project Budget
Overruns (PM404000) form.
Managing the Project Budget | 220

Project Budget: To Control the Budget During Document Entry

This activity will walk you through the process of checking whether a newly entered document fits the existing
project budget.

Story
Suppose that the West BBQ Restaurant customer has ordered a juicer from the SweetLife Fruits & Jams company,
along with the installation and training on operating the juicer. The SweetLife company contracted the Squeezo
Inc. vendor for all the services. SweetLife's project accountant has created the project. The vendor has delivered
and installed the juicer, and Squeezo's consultant has provided the training. Then suppose that the project
accountant noticed that the juicer has cost an extra $200 beyond the budgeted amount, and the installation and
the training have taken two hours more than the number of hours budgeted.
Acting as SweetLife's project accountant, you will enter a change order to adjust the cost of the juicer, an accounts
payable bill for the provided training, and a purchase order for the installation service, checking whether the costs
are within the project budget.

Configuration Overview
In the U100 dataset, the following tasks have been performed for the purposes of this activity:
• On the Enable/Disable Features (CS100000) form, the following features have been enabled:
• Project Accounting, which provides support for the project accounting functionality
• Inventory and Order Management, which provides the ability to maintain stock items and to create and
process purchasing documents that include stock items
• On the Change Order Classes (PM203000) form, the DEFAULT change order class has been created.
• On the Projects Preferences (PM101000) form, the DEFAULT change order class has been selected in the
Default Change Order Class box on the General tab (General Settings section).
• On the Projects (PM301000) form, the WESTBBQ2 project has been created, and the PHASE1 and PHASE2
project tasks have been created for the project. The change order workflow has been enabled for the
project. Also, the following cost budget lines have been added to the project:
• One juicer in the amount of $2,000
• Four hours of installation in the amount of $320
• Eight hours of training in the amount of $320
• On the Non-Stock Items (IN202000) form, the INSTALL and TRAINING non-stock item has been defined.
• On the Stock Items (IN202500) form, the JUICER15 stock item has been defined.
• On the Vendors (AP303000) form, the SQUEEZO vendor has been created.

Process Overview
In this activity, you will capture project costs by processing a change order on the Change Orders (PM308000)
form, an accounts payable bill on the Bills and Adjustments (AP301000) form, and a purchase order on the Purchase
Orders (PO301000) form. While you process documents for capturing costs, you will review budget overruns on the
Managing the Project Budget | 221

entry forms. You will then review all the project budget overruns at once on the Project Budget Overruns (PM404000)
form.

System Preparation
To sign in to the system and prepare to perform the instructions of the activity, do the following:
1. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset preloaded; you should
sign in as project accountant by using the brawner username and the 123 password.
2. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to 1/30/2023. If a diﬀerent date is displayed, click the Business Date menu
button, and select 1/30/2023 on the calendar. For simplicity, in this activity, you will create and process all
documents in the system on this business date.
3. On the Projects Preferences (PM101000) form, on the General tab (General Settings section), specify the
following settings:
• Budget Control: Show a Warning
With this setting, the system shows warnings if documents of the following types exceed the project
budget: commitments within change orders, purchase orders, accounts payable bills, and subcontracts.
• Internal Cost Commitment Tracking: Selected
With this check box selected, the system exposes commitments and committed values in the project
budget.
4. Save your changes to the project accounting preferences.

System Preparation
To prepare to perform the instructions of the activity, do the following:
1. On the Projects Preferences (PM101000) form, on the General tab (General Settings section), set Budget
Control to Show a Warning.
With this setting, the system shows warnings if documents of the following types exceed the project budget:
commitments within change orders, purchase orders, accounts payable bills, and subcontracts.
2. On the same form, make sure the Internal Cost Commitment Tracking check box is selected.
3. Save your changes to the project accounting preferences.

Step 1: Creating a Change Order for the Project

To review the project and create a change order for the project, do the following:
1. On the Projects (PM301000) form, open the WESTBBQ2 project. On the Cost Budget tab, review the cost
budget of the project, which has the following lines:
• The JUICER15 line in the budgeted amount of $2,000
• The TRAINING line in the budgeted amount of $320
• The INSTALL line in the budgeted amount of $320
The actual values of the budget are zero and the budget has no changes or related commitments.
2. On the More menu, under Change Management, click Create Change Order. The system creates a change
order and opens it on the Change Orders (PM308000) form.
3. In the Summary area, enter Adjustment to the WESTBBQ2 project as the Description.
4. On the Commitments tab, click Add Row to add a commitment line with the following settings:
• Project Task: PHASE1
Managing the Project Budget | 222

• Cost Code: 00-000

• Inventory ID: JUICER15
• Quantity: 1.00
• Unit Cost: 2,200.00
• Vendor: SQUEEZO
• Commitment Type: Normal Purchase Order
5. Save your changes to the change order.
Notice that a warning has appeared in the Amount column (see the following screenshot) indicating that
the budget for the juicer is $2,000, whereas the amount of the commitment line with the New Document
status of the change order, which will result in a purchase order line, is $2,200; thus, the change exceeds the
available budget by $200.

Figure: The amount that exceeds the project budget

Step 2: Creating a Bill for the Project

To create a bill for the project, do the following:
1. On the Bills and Adjustments (AP301000) form, add a new record.
2. In the Summary area, specify the following settings:
• Type: Bill
• Date: 1/30/2023 (inserted by default)
• Vendor: SQUEEZO
3. On the Details tab, click Add Row on the table toolbar, and specify the following settings in the added row:
• Inventory ID: TRAINING
• Quantity: 10
• Project: WESTBBQ2
• Project Task: PHASE2
• Cost Code: 00-000
4. Save your changes to the bill.
Notice that a warning has appeared in the Ext. Cost column. The budget for the training is $320, whereas
the amount of the bill line is $400, so the change exceeds the available budget by $80. А warning has also
appeared in the Summary area of the form.

Step 3: Creating a Purchase Order for the Project

To create a purchase order for the project, do the following:
Managing the Project Budget | 223

1. On the Purchase Orders (PO301000) form, add a new record.

2. In the Summary area, specify the following settings:
• Type: Normal
• Date: 1/30/2023 (inserted by default)
• Vendor: SQUEEZO
3. On the Details tab, click Add Row on the table toolbar, and specify the following settings in the added row:
• Inventory ID: INSTALL
• Order Qty.: 6.00
• Project: WESTBBQ2
• Project Task: PHASE1
• Cost Code: 00-000
4. Save your changes to the purchase order.
Notice that a warning has appeared in the Ext. Cost column. The budget for the installation is $320, whereas
the amount of the purchase order line is $480, so the change exceeds the available budget by $160. А
warning has also appeared in the Summary area of the form.

Step 4: Reviewing Budget Overruns

To review all the budget overruns for the project in a single place, do the following:
1. Open the Project Budget Overruns (PM404000) form.
2. In the Project box, select WESTBBQ2.
3. On the form toolbar, click Calculate to review all of the documents related to the project that exceed the
budget, as the following screenshot shows.

Figure: Budget overruns of the project

You have configured the tracking of budget overruns and found the documents that exceed the project budget.
In the next step of the process in a production environment, which is beyond the scope of this activity, a project
manager would approve or reject these changes to the budgeted amounts.

Project Budget: Locking of the Budget

Aer the project budget has been agreed upon, you can lock the original figures from further editing. Aer the
original values are locked, you can still update the revised budget figures. This gives you the ability to control how
accurately the budget was estimated.
When you decide to prevent any changes to original budgeted values of the project, you click the Lock Budget
command on the More menu of the Projects (PM301000) form. When the action is applied for the project, on the
Revenue Budget and Cost Budget tabs, the following columns become read-only:
Managing the Project Budget | 224

• Original Budgeted Quantity

• Unit Rate
• Original Budgeted Amount.
You can still edit the budgeted values in the Revised Budgeted Quantity and Revised Budgeted Amount columns.
Once you decide that making changes to original budgeted values are allowed for the project, you unlock the
project budget by clicking Unlock Budget command on the More menu of the Projects form.

Project Budget: To Lock Project Budget

In this activity, you will learn how to prevent the original budget values of the project from being edited.

Story
Suppose that the HM's Bakery and Cafe customer has ordered a juicer, along with the services of installation and
training for its employees on operating the juicer from the SweetLife Fruits & Jams company. SweetLife's project
accountant has created a project. Before the work on the project has begun, the customer has requested 12 hours
of training instead of initially ordered eight hours.
Acting as the project accountant, you will change the original budgeted values of the project before proceeding to
the execution stage and lock the budget to prevent the original budgeted values from further editing. The training
will take 16 hours instead of 12 and you will adjust revised budgeted values to bill the customer for all the provided
services.

Process Overview
In this activity, you will change the project budget on the Projects (PM301000) form and then lock the budget to
prevent the original budget values of the project from being edited. You will then adjust the revised budgeted
values.

2. On the Projects (PM301000) form, open the HMBAKERY11 project, and on the Summary tab, clear the
Change Order Workflow check box.
3. Save your changes to the project.

System Preparation
To prepare to perform the instructions of the activity, do the following:
1. On the Projects (PM301000) form, open the HMBAKERY11 project, and on the Summary tab, clear the
Change Order Workflow check box.
2. Save your changes to the project.

Step: Locking the Project Budget

To update the project budget and protect the original budgeted values from being edited, do the following.
1. On the Projects (PM301000) form, open the HMBAKERY11 project.
2. On the Revenue Budget tab, in the revenue budget line with the PHASE2 task and TRAINING inventory item,
enter 12.00 as the Original Budgeted Quantity.
3. Save your changes to the project.
4. On the More menu, under Budget Operations, click Lock Budget to prevent the original budgeted values
from being edited.
Notice that you cannot adjust original budget values in the Original Budgeted Quantity, Unit Rate, and
Original Budgeted Amount columns.
5. In the revenue budget line with the PHASE2 task and TRAINING inventory item, enter 16.00 as the Revised
Budgeted Quantity.
6. Save your changes to the project.

You have locked the project budget. Now user could change only the revised values in the project budget.

Project Budget: Related Reports and Inquiries

In the following sections, you can find details about the reports and inquiry forms you may want to review to gather
information about the project budget.

Reviewing Project Actual Values by Project Budget Line

You can review the list of corresponding project transactions of a project budget line with a nonzero Actual
Amount on the Revenue Budget and Cost Budget tabs of the Projects (PM301000) form. To review the
corresponding project transactions of a line, you click the line, on the table toolbar, click View Transactions, the
system opens the Project Transaction Details (PM401000) form.
Managing the Project Budget | 226

Reviewing Project Actual Values by Account Group

You can review the project budget broken down by account groups on the Balances tab of the Projects (PM301000)
form. To review the corresponding project transactions of an account group, you click the line, on the table toolbar,
click View Transactions, the system opens the Project Transaction Details (PM401000) form.

Reviewing Commitments by Project Budget Line

You can review the list of corresponding commitments of a project budget line with nonzero committed values on
the Cost Budget tab of the Projects (PM301000) form. To review the corresponding commitments of a line, you click
the line, on the table toolbar, click View Commitment Details, the system opens the Commitments (PM306000)
form.

Reviewing Commitments by Account Group

You can review the project budget broken down by account groups on the Balances tab of the Projects (PM301000)
form. To review the corresponding commitments of an account group, you click the line, on the table toolbar, click
View Commitment Details, the system opens the Commitments (PM306000) form.

Printing Project Balances

You can print the project budget broken down by project tasks and account groups by clicking Print Project
Balance on the More menu of the Projects (PM301000) form. The system navigates to the Project Balance
(PM621000) report, which is a ready-to-print version of the project balances.

Reviewing Project Transactions

You can review the list of all the corresponding transactions of a project on the Project Transaction Details
(PM401000) form. In the Selection area of this form, you select the project to review all the corresponding project
transactions. You can filter the selected transactions by account group, project task, inventory item, the range
of dates, employee, account, related accounts receivable document, and transaction identifier specified in the
Selection area.

Reviewing Project Balances by Account Group

You can review the project budget broken down by account groups on the Budget Summary by Account Group
(PMPV0010) form.

Reviewing Project Budget Overruns

You can review all the amounts that exceed the budget of a project on the Project Budget Overruns (PM404000)
form. In the Selection area of this form, you select the project and click Calculate on the form toolbar. You can filter
the selected overruns by document type, project task, account group, and inventory item specified in the Selection
area.

Project Budget: To Review Project Balances

In this activity, you will review project balances by using Acumatica ERP reports and forms.
Managing the Project Budget | 227

Story
Suppose that the HM's Bakery and Cafe customer has ordered juicers, along with the following services: site review,
installation, and employee training on operating the juicers from the SweetLife Fruits & Jams company. SweetLife's
project accountant has created a project to handle the tracking and billing of the provided materials and services.
The juicers have been delivered. The installation has been performed by Squeezo Inc. Then, SweetLife's consultant
has provided the training. The project accountant of SweetLife has created purchase orders, entered project
transactions, and partially billed the customer.
When the project accountant has got a sick leave, another SweetLife's project accountant continues working on the
project. The first accountant has no possibility to hand over the project to the new accountant. Acting as the new
project accountant, you need to review the project balances to become familiar with the project and gather all the
information about performed work.

Configuration Overview
In the U100 dataset, the following tasks have been performed for the purposes of this activity:
• On the Enable/Disable Features (CS100000) form, the Project Accounting feature has been enabled to support
the project accounting functionality.
• On the Projects (PM301000) form, the HMBAKERY6 project has been created and the PHASE1, PHASE2,
PHASE3, and PHASE4 project tasks have been created for the project.
• On the Purchase Orders (PO301000) form, the 000020 and 000021 purchase orders (which are related to the
project) have been created and billed.
• On the Project Transactions (PM304000) form, the PM00000009, PM00000010, and PM00000011 batches of
project transactions related to the project have been created and released.
Project transactions related to the PHASE1, PHASE2, and PHASE4 tasks of the project have been billed—that
is, a pro forma invoice and the corresponding accounts receivable invoice have been created and released
on the Pro Forma Invoices (PM307000) form and the Invoices and Memos (AR301000) form, respectively. Also,
on the Pro Forma Invoices form, a pro forma invoice for project transactions related to the PHASE3 task has
been created.

Process Overview
You will review project budgets and balances on the Projects (PM301000) form, from which you navigate to the
Project Balance (PM621000) report to view the project balances in a ready-to-print format. You will review project
transactions on the Project Transaction Details (PM401000) form and project commitments on the Commitments
(PM306000) form. You will then review project balances broken down by account group on the Budget Summary by
Account Group (PMPV0010) form.

button, and select 1/30/2023 on the calendar. For simplicity, in this activity, you will create and process all
documents in the system on this business date.
3. On the Projects Preferences (PM101000) form, on the General Settings tab (General section), select
the Internal Cost Commitment Tracking check box, and save your changes to the project accounting
preferences. This exposes the committed values of the budget, which you will need during the process of
the budget review.

System Preparation
To prepare to perform the instructions of the activity, on the Projects Preferences (PM101000) form (General section
of the General Settings tab), select the Internal Cost Commitment Tracking check box, and save your changes to
the project accounting preferences. This exposes the committed values of the budget, which you will need during
the process of the budget review.

Step: Reviewing the Project Balances

To review project reports, do the following:
1. On the Projects (PM301000) form, open the HMBAKERY6 project.
In the Summary area, notice that the actual income is $5,700 and the actual expenses are $8,000.
2. On the Revenue Budget tab, pay attention to the values in the Actual Amount and Dra Invoice Amount
columns, as shown in the following screenshot.
The lines with the PHASE1, PHASE2, and PHASE4 tasks have nonzero actual amounts ($1,850, $2,950, and
$900, respectively), which means the work performed within these tasks have been billed. You can compare
the actual amount and the revised budgeted amount of the lines to estimate the completion of the revenue
budget.
The line with the PHASE3 task has a nonzero dra invoice amount ($4,300), which means a pro forma invoice
has been already prepared for this line but the corresponding AR invoice has not been created or has not
been released yet.

Figure: Revenue budget lines with actual and revised values

To review the list of project transactions that correspond to a revenue budget line, you can
click the line, and on the table toolbar, click View Transactions. The system shows the
transactions on the Project Transaction Details (PM401000) form.

3. On the Invoices tab, review the invoices created for the project. Notice that the second pro forma invoice
has not been released yet and has no related accounts receivable invoice.
4. On the Cost Budget tab, pay attention to the values in the Revised Budgeted Amount, Revised Committed
Amount and Actual Amount columns, as shown in the following screenshot. Notice the following:
Managing the Project Budget | 229

• The line with the TRAINING inventory item is the only line with the actual amount less than the revised
budgeted amount, which means that the planned training has not been provided fully.
• The remaining lines have an actual amount that is equal to the revised budgeted amount and the
performance is 100%, which means that all the budgeted materials and services have been provided.
• The lines with the INSTALL inventory item have nonzero committed values, which means these lines have
related purchase orders. The Revised Committed Amount shows the amount of the purchase ($240 in
Phase 1, $320 in Phase 2 and $400 in Phase 3). The Committed Invoiced Amount amount shows the
amount on the purchase that has been already billed.

Figure: Cost budget lines with actual and revised values

5. Click the line with the PHASE4 project task and the TRAINING inventory item, and on the table toolbar,
click View Transactions to review the project transactions that correspond to the cost budget line on the
Project Transaction Details form, which the system opens in a pop-up window. Make sure that three project
transactions correspond to the cost budget line.
6. Close the pop-up window with the form, and return to the project on the Projects form.
7. Click the line with the PHASE2 project task and the INSTALL inventory item, and on the table toolbar, click
View Commitment Details to review the list of commitments that correspond to the cost budget line.
8. On the Commitments (PM306000) form, which the system opens in a pop-up window, make sure that two
commitments correspond to the cost budget line.
9. Close the pop-up window with the form, and return to the project on the Projects form.
10.In the selection area of the Cost Budget tab, select the PHASE1 project task in the Project Task box. In the
table, review the three cost budget lines related to the selected task.
11.In the selection area, select the Group by Task check box. The system clears the Project Task box in the
selection area, and in the table, groups the cost budget lines by task. You can review the total budgeted
values by task.
12.On the Commitments tab, review the purchase orders related to the project. Notice that both purchase
orders have been processed and assigned the Closed status.
13.On the Balances tab, review the project budget broken down by account groups. Notice that Actual
Amount in the line with the REVENUE group is $5,700, while the original budgeted amount is $10,300, which
means that not all the budgeted revenue has been billed.

You have finished revising information for the project.

Managing the Project Budget | 230

Project Budget: Mass Processing of Documents

This topic explains how to perform mass-processing operations related to project budgets, and how the system
generates, changes, or works with documents as a result of the mass processing.

Mass-Recalculating Project Budgets

In some cases (for instance, if project data has been modified through external tools or import scenarios), you may
need to validate the project budgets to bring them in line with the underlying transactions.
To recalculate project budgets, you use the Recalculate Project Balances (PM504000) form. On this form, you select
the unlabeled check boxes in the rows of the projects to be processed and click Process on the form toolbar to
process the selected projects; alternatively, you can click Process All to process all the projects shown in the table.
For more information, see Project Budget: Recalculation of the Project Budget.

Project Budget: Update of Budget Lines

When you select an inventory item in a project budget line, the system automatically populates the unit rate
of the line. The mechanism of retrieving the unit rate depends on the budget line type and is supported on the
following forms: Projects (PM301000), Project Templates (PM208000), Change Orders (PM308000), Change Requests
(PM308500), Project Quotes (PM304500), and Project Budget (PM309000).

Update of the Project Budget by Released Transactions

The following diagram illustrates how the system updates the project budget on the release of a project transaction
depending on the settings of the budget level and the budget update.
Managing the Project Budget | 231

Unit Rate in a Revenue Budget Line

When you select an inventory item in a revenue budget line—that is, a line with the account group of the income
type, the system automatically fills in the unit rate of the line with the item price. The system searches for an
applicable price of the inventory item that is eﬀective on the start date of the project or the document date among
the sales prices existing in the system. For more details on how the system searches the price, see Automatic Price
Selection: Rules of Price Selection.

Unit Rate in a Cost Budget Line

When you select an inventory item in a cost budget line—that is, a line with the account group of the expense type,
the system automatically fills in the unit rate of the line with the item cost.
If the type of the selected inventory item of the budget line is labor—that is, the Labor option is selected for the
item in the Type box in the Item Defaults section on the General tab of the Non-Stock Items (IN202000) form, on
the Labor Rates (PM209900) form, the system retrieves the labor cost rate of the Labor Item type that is associated
with the same inventory item and that has an eﬀective date that satisfies the start date of project or the document
date.
If no labor cost rate is found or the type of the selected inventory item of the budget line is not Labor, the system
retrieves the following costs depending on the type of the inventory item:
Managing the Project Budget | 232

• For a stock item: The Average Cost of the item from the Price/Cost tab of the Stock Items (IN202500) form
• For a non-stock item: The Current Cost of the item from the Price/Cost tab of the Non-Stock Items
(IN202000) form
The following diagram illustrates the logic the system uses to select the cost for an inventory item.

Quantity in Budget Lines

The quantities in budget lines (Actual, Committed, Budgeted CO, Committed CO, and Potential) are updated in a
project budget record if all of the following conditions are true:
• The project transaction has a UOM specified.
• In the project budget record that matches the transaction, a UOM is specified.
• The list defined on the Units of Measure (CS203100) form includes the conversion from the project
transactions UOM to the budget record's UOM.
Managing the Project Budget | 233

Project Budget: Auto-Generating the Revenue Budget

If you have configured the cost budget for a project, you can automatically populate the revenue budget on the
Revenue Budget tab of the Projects (PM301000) form based on the budgeted project costs.
To generate the revenue budget for a project, you click Auto-Budget Revenue on the More menu of the Projects
form. For the calculation of the revenue budget, the project must be properly configured as follows:
• The project status is In Planning or Active.
• The cost budget of the project is configured on the Cost Budget tab.
• The billing rule specified for project tasks has time and material steps.
• Optionally, an allocation rule is specified for project tasks.
To calculate the project revenue, the system emulates project billing for budgeted time and materials using the
billing rule specified for project tasks. During this billing, the system uses virtual project transactions with the
quantities and amounts that are equal to the revised budgeted quantities and amounts of the cost budget. If an
allocation rule is specified for project tasks, before emulating billing, the system emulates project allocation. Based
on the quantities and amounts calculated during the emulated project billing, the system populates the revenue
budget of the project.
If the revenue budget already has the same line or lines as the emulated budget, the system overrides the existing
values with the calculated ones.

Project Budget: Recalculation of the Project Budget

In rare cases, you may need to make the system refresh the project budget to be sure that project balances match
the corresponding transactions and that documents and all project information is up to date. To do this, you
recalculate project budget.

Cases in Which Budget Recalculation is Needed

You run recalculation for a particular project on the Projects (PM301000) or for multiple projects on the Recalculate
Project Balances (PM504000) form in the following cases:

• You have noticed that project balances do not match the total amounts of the corresponding project
transactions.
• You have noticed that unbilled transactions for a project are not shown on the Run Project Billing
(PM503000) form.
• You have noticed that the project values aﬀected by change orders do not match the corresponding
documents.
• You have selected the Internal Cost Commitment Tracking check box on the Projects Preferences
(PM101000) form. Now you need to recalculate existing commitments for the projects.
• You have noticed that on the Cost Budget tab of the Projects (PM301000) form, the cost budget of a
project does not show the lines that have been added to a project during the processing of the progress
worksheets. Progress worksheets are available in the system if the Construction feature is enabled on the
Enable/Disable Features (CS100000) form.
• You have imported cost or revenue budgets for a project manually or by using the Import by Scenario
(SM206036) form, and you need to restructure imported budgets according to the revenue budget level and
cost budget level of projects.
Managing the Project Budget | 234

Recalculating Project Actual Values

In some cases (for instance, if project data has been modified through external tools or import scenarios), you may
need to validate the project budgets to bring them in line with the underlying transactions.
To recalculate project budget values, you select the Recalculate Change Orders check box in the Selection area
of the Recalculate Project Balances (PM504000) form. You also select the unlabeled check boxes in the rows of the
projects to be processed and click Process on the form toolbar to process the selected projects. Alternatively, you
can click Process All to process all the projects shown in the table.
The system validates project balances and recalculates the Actual Quantity and Actual Amount on the Revenue
Budget and Cost Budget tabs of the Projects (PM302000) form.

Update of the Cost Budget Lines

The system updates cost budget lines of projects depending on the following settings:
• The Cost Budget Update setting on the Projects Preferences (PM101000) form
• The Cost Budget Level setting specified for each project on the Summary tab of the Projects (PM301000)
form
Suppose that a project has the Cost Budget Level set to Task and Item on the Projects form. Also suppose that the
cost budget of a project is based on cost transactions with multiple inventory items. Depending on which Cost
Budget Update option is selected on the Projects Preferences form, the system recalculates the project budget as
follows:
• Detailed: The system increases the level of detail of the project budget.
Suppose that before you recalculate this project, on the Cost Budget tab of the Projects form, the project
has a single line with the empty item code that represents all the cost transactions. When you recalculate
this project, the system removes this cost budget line and updates the cost budget with a separate line for
each inventory item of the cost transactions. If some unprocessed cost transactions or progress worksheet
lines are found for the project during the recalculation process, the system updates the cost budget line that
has the same inventory item as in the cost transaction. If the cost budget has no line that has this inventory
item, a new line with the inventory item is added.
• Summary: The system maintains the level of detail of the project budget and does not reduce it.
Suppose that before you recalculate this project, on the Cost Budget tab of the Projects form, the project
has a separate line for each inventory item of the cost transactions. When you recalculate this project, the
system does not remove the cost budget lines; it also does not update the cost budget with a single line with
the empty item code for all the cost transactions. If some unprocessed cost transactions are found for the
project during the recalculation process, the system updates the cost budget line with the empty item code
selected as the inventory item, regardless of the inventory item of the cost transaction. If the cost budget
has no line with the empty item code, a new line with the empty item code is added.

Update of the Revenue Budget Lines

The system updates revenue budget lines of projects depending on the following settings:
• The Revenue Budget Update setting on the Projects Preferences (PM101000) form
• The Revenue Budget Level setting specified for each project on the Summary tab of the Projects
(PM301000) form
Suppose that a project has the Revenue Budget Level set to Task and Item on the Projects form. Also suppose that
the revenue budget of a project is based on revenue transactions with multiple inventory items. Depending on
which Revenue Budget Update option is selected on the Projects Preferences form, the system recalculates the
project budget as follows:
• Detailed: The system increases the level of detail of the project budget.
Managing the Project Budget | 235

Suppose that before you recalculate this project, on the Revenue Budget tab of the Projects form, the
project has a single line with the empty item code that represents all the revenue transactions. When you
recalculate this project, the system removes this revenue budget line and updates the revenue budget
with a separate line for each inventory item of the revenue transactions. If some unprocessed revenue
transactions are found for the project during the recalculation process, the system updates the revenue
budget line that has the same inventory item as in the revenue transaction. If the revenue budget has no
line that has this inventory item, a new line with the inventory item is added.
• Summary: The system maintains the level of detail of the project budget and does not reduce it.
Suppose that before you recalculate this project, on the Revenue Budget tab of the Projects form, the
project has a separate line for each inventory item of the revenue transactions. When you recalculate this
project, the system does not remove the revenue budget lines; it also does not update the revenue budget
with a single line with the empty item code for all the revenue transactions. If some unprocessed revenue
transactions are found for the project during the recalculation process, the system updates the revenue
budget line with the empty item code selected as the inventory item, regardless of the inventory item of the
revenue transaction. If the revenue budget has no line with the empty item code, a new line with the empty
item code is added.

Recalculating Change Orders

To recalculate budget values aﬀected by change orders, you select the Recalculate Change Orders check box in
the Selection area of the Recalculate Project Balances (PM504000) form. You also select the unlabeled check boxes
in the rows of the projects to be processed and click Process on the form toolbar to process the selected projects.
Alternatively, you can click Process All to process all the projects shown in the table.
The system validates project balances and recalculates the following values on the Revenue Budget and Cost
Budget tabs of the Projects (PM302000) form:
• Budgeted CO Quantity
• Budgeted CO Amount
• Revised Budgeted Quantity
• Revised Budgeted Amount

The recalculation of change orders does not entail the recalculation of the committed values
that were changed with the change orders. To update the committed values, you need to rebuild
commitments.

Rebuilding Project Commitments

In some cases (for instance, if committed values of the project budget have been modified through external tools
or import scenarios), you may need to rebuild commitments to make committed values match the quantities and
amounts of the purchase orders and subcontracts.
To rebuild commitments, you select the Rebuild Commitments check box in the Selection area of the Recalculate
Project Balances (PM504000) form. You also select the unlabeled check boxes in the rows of the projects to be
processed and click Process on the form toolbar to process the selected projects. Alternatively, you can click
Process All to process all the projects shown in the table.
The system recreates commitments and recalculates project balances, which entails updating the following values
on the Cost Budget tab of the Projects (PM302000) form:
• Original Committed Quantity
• Original Committed Amount
• Committed CO Quantity
• Committed CO Amount
• Revised Committed Quantity
Managing the Project Budget | 236

• Revised Committed Amount

• Committed Received Quantity
• Committed Invoiced Quantity
• Committed Invoiced Amount
• Committed Open Quantity
• Committed Open Amount

Recalculating Pro Forma Invoices

In some cases, you may need to recalculate the pro forma invoice to make dra invoice amounts in the project
budget match the amounts of the pro forma invoices.
To recalculate pro forma invoices, you select the Recalculate Dra Invoice Amount check box in the Selection
area of the Recalculate Project Balances (PM504000) form. You also select the unlabeled check boxes in the rows of
the projects to be processed and click Process on the form toolbar to process the selected projects. Alternatively,
you can click Process All to process all the projects shown in the table.
The system validates project balances and recalculates the Dra Invoice Amount on the Revenue Budget tab of
the Projects (PM302000) form.

Project Budget: To Restructure the Budget

This activity will walk you through the process of reestablishing the budget structure of a project.

Story
Suppose that the Lake Cafe customer has ordered a juicer, along with the services of installation and training of
employees on operating the juicer from the SweetLife Fruits & Jams company. SweetLife's project accountant has
decided that the revenue budget level of the project should include inventory items, created the project to account
for the provided material and work, and entered project transactions.
Suppose that later the project accountant realizes that an extra level of detail of the revenue budget is not
necessary. Aer restructuring the revenue budget and removing inventory items from the budget detail, the project
accountant bills the customer. Aer the billing, it becomes clear that the previous level of detail of the revenue
budget fitted the reporting requirements better and it is necessary to restructure the budget again.
Acting as the project accountant, you will restructure the project budget before and aer the billing.

• On the Project Transactions (PM304000) form, the PM00000024 batch of project transactions related to the
project has been created and released.

Process Overview
You will adjust the project budget and save project budget revisions on the Projects (PM301000) form. On the same
form, you will initiate the project billing. You will complete the billing on the Invoices and Memos (AR301000) form.
You will then adjust the project budget one more time on the Projects form and recalculate the project balances on
the Recalculate Project Balances (PM504000) form.

System Preparation
To sign in to the system and prepare to perform the instructions of the activity, do the following:
1. Download the LAKECAFE_Budget_1.xlsx and LAKECAFE_Budget_2.xlsx files to your computer.
2. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset preloaded; you should
sign in as project accountant by using the brawner username and the 123 password.
3. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to 1/30/2023. If a diﬀerent date is displayed, click the Business Date menu
button, and select 1/30/2023 on the calendar. For simplicity, in this activity, you will create and process all
documents in the system on this business date.

System Preparation
To prepare to perform the instructions of the activity, download the LAKECAFE_Budget_1.xlsx and
LAKECAFE_Budget_2.xlsx files to your computer.

Step 1: Restructuring the Project Budget

To save the original version of the project budget and restructure the budget, do the following:
1. Open the Projects (PM301000) form.
2. In the Project ID box, select LAKECAFE.
3. To create a backup of the original revenue budget of the project, do the following:
a. On the table toolbar of the Revenue Budget tab, click Export to Excel.
The system exports the revenue budget to an Excel file.
b. On your computer, locate the created file, and rename it to LAKECAFE_Revenue_Budget_1.xlsx.
4. To attach to the project the file with the exported revenue budget, do the following:
a. On the form title bar, click Files.
b. In the Files dialog box, click Browse, and select the LAKECAFE_Revenue_Budget_1.xlsx file that
you have just downloaded.
c. Click Upload to upload the selected file.
The system uploads the selected file to the project and shows the file in the table of the dialog box.
d. In the line with the uploaded LAKECAFE_Revenue_Budget_1.xlsx file, click the Edit link.
e. On the Versions tab of the File Maintenance (SM202510) form, which opens in a new tab, enter
Revision 1 of the revenue budget in the Comment column for the uploaded file.
f. Save your changes to the file, and close the browser tab with the File Maintenance form to return to the
project on the Projects form.
g. Close the Files dialog box.
Managing the Project Budget | 238

5. On the Revenue Budget tab, delete each of the three budget lines by clicking the line and then clicking
Delete Row on the table toolbar.
6. On the Summary tab (Project Properties section), select Task as the Revenue Budget Level.
7. On the table toolbar of the Revenue Budget tab, click Load Records from File, and upload the revenue
budget from the LAKECAFE_Budget_1.xlsx file, which you have downloaded with the course. While you are
uploading the lines, leave the default column mapping.
The uploaded revenue budget should have two lines with the budgeted amounts of $2,900 and $400.
8. Save your changes to the project.

You have restructured the revenue budget of the project and attached previous budget revision to the project. In
the next step, you will bill the project.

Step 2: Billing the Project

To bill the project, do the following:
1. While remaining on the Projects (PM301000) form, on the form toolbar, click Run Project Billing.
The system creates an accounts receivable invoice and opens it in a pop-up window on the Invoices and
Memos (AR301000) form.
2. On the form toolbar, click Remove Hold to assign the invoice the Balanced status, and then click Release to
release the accounts receivable invoice.
3. Close the pop-up window to return to the Projects form with the LAKECAFE project selected.
4. Press Esc to refresh the form.

You have billed the project. In the next step, you will restructure the revenue budget of the project again.

Step 3: Restructuring the Project Budget Aer Billing

To perform one more budget revision aer billing, while you are still viewing the LAKECAFE project on the Projects
(PM301000) form, do the following:
1. To create a backup of the current revision of the revenue budget of the project, do the following:
a. On the table toolbar of the Revenue Budget tab, click Export to Excel.
The system exports the revenue budget to an Excel file.
b. On your computer, locate the created file and rename it to LAKECAFE_Revenue_Budget_2.xlsx.
2. To upload the current revision of the revenue budget of the project to the file with the original revenue
budget, do the following:
a. On the form title bar, click Files.
b. In the line with the uploaded LAKECAFE_Revenue_Budget_1.xlsx file, click the Edit link.
c. On the form toolbar of the File Maintenance (SM202510) form, which opens in a new tab, click Upload
New Version.
d. In the File Upload dialog box, click Choose File, and select the
LAKECAFE_Revenue_Budget_2.xlsx file you have downloaded.
e. Click Upload to upload the selected file.
The system uploads the selected file as a new file version and closes the dialog box.
f. On the Versions tab of the File Maintenance form, enter Revision 2 of the revenue budget in
the Comment column for the uploaded file with the Version ID of 2.
g. Save your changes to the file, and close the browser tab with the File Maintenance form to return to the
project on the Projects form.
Managing the Project Budget | 239

h. Close the Files dialog box, and press Esc to refresh the form.
3. On the Revenue Budget tab, make sure the revenue budget lines have nonzero amounts in the Actual
Amount column that the system updated during the project billing.
4. Delete each of the two budget lines by clicking the line and then clicking Delete Row on the table toolbar.
5. On the Summary tab (Project Properties section), select Task and Item as the Revenue Budget Level.
6. On the table toolbar of the Revenue Budget tab, click Load Records from File, and upload the revenue
budget from the LAKECAFE_Budget_2.xlsx file, which you have downloaded with the course. While you are
uploading the lines, leave the default column mapping.
The uploaded revenue budget should have three lines with the budgeted amounts of 400, 2,500, and 400.
Notice the revenue budget lines now have zero amounts in the Actual Amount column. Now you need to
validate the project balances to recalculate the revenue budget in accordance with the related invoices.
7. Save your changes to the project.
8. On the Recalculate Project Balances (PM504000) form, select the check box in the unlabeled column of the
table for the line with the LAKECAFE project.
9. In the Summary area of the form, select the Recalculate Dra Invoice Amount check box, and on the form
toolbar, click Process.
The system validates the balances of the LAKECAFE project and recalculates the amounts aﬀected by
invoices.
10.On the Projects form, open the LAKECAFE project, and on the Revenue Budget tab, review the revenue
budget. Notice that the system has updated the actual amounts of the budget lines, as shown in the
following screenshot.

Figure: Project budget aer restructuring and validation

You have finished restructuring of the project budget and have validated the budget's actual amounts.
Processing Project Quotes | 240

Processing Project Quotes

If you need to estimate a potential project and send a proposal to a customer before a project is created, you can
process a project quote. Aer the customer agrees to the terms of the quote, you can convert the winning quote to
a project. This chapter explain how you can prepare and process project quotes.

Project Quotes: General Information

In Acumatica ERP, you can create a project quote to estimate the revenue and costs of a potential project and
then send this quote to the customer. You can use the quote for planning purposes before you create a project in
the system and begin billing and accounting for revenues and costs. Each modification of a project quote can be
printed and sent to the customer for review, and you can modify the quote as many times as is necessary until an
agreement is reached. Aer the customer agrees to the terms of a quote, you can convert the accepted quote to a
project.

Learning Objectives
You will learn how to do the following:
• Create a project quote based on an opportunity
• Specify the settings of a quote by using a project template
• Estimate the potential revenue and costs of a potential project
• Create a project based on a project quote

Applicable Scenarios
You create a project quote if you want to send a proposal to the customer or potential customer before you create a
project, or if you need to agree with the customer about the terms of a potential project before creating the project.

Creation of Project Quotes

You can create project quotes in the system if the Project Quotes feature is enabled on the Enable/Disable Features
(CS100000) form. You create project quotes on the Project Quotes (PM304500) form. In a new project quote, you
specify the following settings:
• The description of the project quote.
• The project template, which the system uses to populate the project tasks, attributes, and project manager
of the project quote. You can change these default settings, if needed.

If you first specify the project tasks, attributes, and project manager of the project quote, and
then select the project template, the system will prompt you to indicate that you can either
replace your specified settings with the settings of the project template or leave your specified
settings.

• The business account associated with the project quote.

Based on the settings specified for the selected business account, the system inserts the financial details
on the Financial tab and the contact information on the Addresses tab. You can override these settings, if
needed.
• Optional: The project tasks on the Project Tasks tab, which are copied from the selected project template
by default (but you can modify the project tasks inserted based on the template).
Processing Project Quotes | 241

• The estimated labor and material costs and prices on the Estimation tab. If you convert the project quote to
a project, the system populates the revenue and cost budgets of the project based on the settings specified
on this tab.
When you have specified all the needed settings, you save the project quote with the Dra status. When you have
finished modifying the project quote, you submit the quote by clicking Submit on the form toolbar. A submitted
project quote is assigned the Prepared status and is ready for further processing.
You can email a submitted project quote to the customer by clicking Email on the More menu. Once the project
quote is sent, the system performs the following actions:
• Creates the corresponding email activity and lists it on the Activities tab of the form
• Attaches the printable version of the quote to the email activity and sends it to the recipient
• Changes the status of the quote to Sent
If you need to modify a project quote, you click Edit on the form toolbar. The quote is assigned the Dra status and
can be modified.

If you need to modify an existing project quote but also want to leave its original version intact (for
example, to have a complete history of the submitted quotes), you can create a copy of the project
quote by clicking the Copy command; you then modify the copy.

Estimation of the Revenue and Costs

The lines on the Estimation tab of the Project Quotes (PM304500) form represent the estimated revenue and
costs of a project quote. When you create a project based on the project quote, the system converts to lines of the
revenue and cost budgets based on details specified in each line:
• An estimation line with an account group specified in the Revenue Account Group column establishes
revenue; the Ext. Price of the line is the estimated revenue amount.
• An estimation line with an account group specified in the Cost Account Group column establishes costs; the
Ext. Cost of the line is the estimated cost amount.
• Estimation lines with both the Revenue Account Group and the Cost Account Group specified establish
revenue and costs at the same time.

Creation of a Project Based on a Project Quote

You can convert a project quote to a project if the project quote has the Prepared or Sent status. Before you
convert the project quote, the following settings must be specified for it in the Summary area of the Project Quotes
(PM304500) form:
• Project Template: The template to be used for inserting the default settings of the project to be created
• Business Account: The customer of the project
• New Project ID: The identifier of the project to be created
Aer you have specified the project template, business account, and project ID, you click Convert to Project on
the form toolbar of the Project Quotes form. In the Convert to Project dialog box, which opens, you specify the
settings to be used for the created project and click OK. The system opens the project created based on the project
quote on the Projects (PM301000) form, and assigns the project quote the Closed status. For this project, a link
to the project quote is displayed in the Quote Ref. Nbr. box on the Summary tab (Quote section) of the Projects
(PM301000) form.

If you delete the project, the system changes the status of the project quote from Closed to Prepared,
so you can assign the Dra status to the project quote, edit it, if needed, and again create a project
based on the project quote.
Processing Project Quotes | 242

Workflow of Project Quotes

The following diagram illustrates the workflow of a project quote being processed.

Project Quotes: Creation of Project Quotes from Opportunities

In Acumatica ERP, an opportunity represents a potential sale to a new or existing customer. You can create a project
quote based on an opportunity and then create a project based on this project quote. The following sections
describe the project quotes creation based on opportunities.
Processing Project Quotes | 243

Creation of a Project Quote Based on an Opportunity

To create a project quote based on an opportunity, you open the opportunity on the Opportunities (CR304000) form,
and click Create Quote on the form toolbar. In the Create Quote dialog box, which the system opens, you select
Project Quote in the Quote Type box to indicate the type of quote to be created based on the opportunity. Then you
specify the basic settings and initiate the creation of the quote by clicking Create and Review.
The system creates the project quote and opens the project quote on the Project Quotes (PM304500) form. In the
Summary area, the system inserts the identifier of the opportunity in the Opportunity ID box and copies the
business account, the description, and the owner from the opportunity to the quote.
Once you save the project quote associated with the opportunity, on the Opportunities form, the project quote is
listed on the Quotes tab along with any other project and sales quotes associated with the opportunity.
For more information on working with opportunities, see Managing Opportunities.

Primary Project Quotes

If you create a project quote for an opportunity, and the opportunity does not have any other quotes, the system
sets this project quote as the primary by selecting the Primary check box in the Summary area on the Project
Quotes (PM304500) form and in the row that has the settings of the project quote on the Quotes tab of the
Opportunities (CR304000) form. If you create a new project quote and set it as primary, the previous primary quote
of this opportunity becomes non-primary.
If multiple quotes are created for an opportunity, one of the quotes must be set as the primary, which you can do
either during the creation of a quote or by clicking Set as Primary on the Project Quotes form toolbar.

The Details tab on the Opportunities form is not displayed if a project quote has been created for an
opportunity and set as primary.

Creation of a Project from an Opportunity-Based Project Quote

You can create a project from an opportunity-based project quote if this quote has been set as primary. To
create a project based on a project quote, you click Convert to Project on the form toolbar of the Project Quotes
(PM304500) form. The created project is associated with the opportunity and can be used for the creation of sales
orders, invoices, and service orders.

Project Quote Addresses

When a project quote is created on the Project Quotes (PM304500) form, the system copies the location-related
settings from the Ship-To Address section on the Shipping tab of the Opportunities (CR304000) form for the
associated opportunity to the Project Address section on the Addresses tab of the project quote. If you need to
change the project address in the project quote, you can select the Override check box in the Project Address
section and update the information in the section.
If you specify a diﬀerent business account in the Business Account box of the Summary area, or a location in the
Location box of the Financial tab of the Project Quotes form, the system displays a dialog box in which you need to
confirm the replacement of the existing settings in the quote with the new settings.

Project Quotes: Creation of a Project from a Project Quote

The following sections describe the rules that the system uses during the creation of a project based on a project
quote, as well as some specific settings that the system inserts.
Processing Project Quotes | 244

Summary Information
To create a project based on a project quote, the user clicks the Convert to Project command on the Project Quotes
(PM304500) form, specifies the needed settings in the Convert to Project dialog box, and clicks OK. When the
system creates a project based on a project quote, the settings of the created project in the Summary area of the
Projects (PM301000) form are populated as follows:

• Project ID: If auto-numbering has been configured for projects, the project identifier is assigned
automatically. If auto-numbering has not been configured, the system fills this box with the New Project ID
value that was specified for the project quote on the Project Quotes form.
• Template: The template selected in the project quote.

The project tasks and budget may be structured diﬀerently for a project created based on a
project quote than for a project created based on a project template.

• Status: The system sets the status of the new project to Active if the Activate Project check box was
selected in the Convert to Project dialog box during the conversion process. If the check box was cleared,
the status of the project is In Planning.
• Customer and Description: The system copies the values from the project quote settings (in the Business
Account and Description boxes, respectively, of the Project Quotes form) to these boxes.
• Summary tab: The system copies the settings of the project template that have been specified in the project
quote to this tab.

Project Tasks
When the system creates a project based on the project quote on the Project Quotes (PM304500) form, it populates
the project tasks on the Tasks tab of the Projects (PM301000) form using the following rules:
• If the project quote has two or more tasks, these tasks are copied to the project. In this case, if the project
quote does not have a default task, the created project does not have a default task either.
• If the project quote has only one task, this task is copied to the project. It is also marked as the default task
of the project, even if the task has not been marked as the default task of the project quote.
• If the project quote has no tasks, the system creates a default project task for the project—that is, a task with
an identifier of 0 and a description of Default.
• The system sets the status of all project tasks to Active if the Activate Tasks check box was selected in the
Convert to Project dialog box during the conversion process. If the check box was cleared, the system sets
the status of the project tasks to In Planning.
• The location of the created tasks is the location of the project quote, as specified on the Financial tab of the
Project Quotes form.
If the project quote has only one task or does not have any tasks and if any of the estimation lines of the project
quote have no project task assigned, the system assigns the default task of the project to the cost budget and
revenue budget lines of the project that it creates based on these estimation lines.

Revenue Budget
When the system creates a project based on the project quote, to populate the revenue budget, the system groups
the estimation lines of the project quote depending on the revenue budget level (Task, Task and Item, or Task
and Cost Code) of the project template specified for the project quote; the revenue budget level of the project
template is specified on the Summary tab (Project Properties section) of the Project Templates (PM208000) form.
For each group of estimation lines, on the Revenue Budget tab of the Projects (PM301000) form, the system creates
a revenue budget line with the following settings:
• Project Task: The system uses the project task of the aggregated estimation lines.
Processing Project Quotes | 245

• Inventory ID: The system uses the inventory ID of the aggregated estimation lines. Estimation lines
without an inventory item specified are aggregated into a cost budget line with this column populated
with the empty item code, which is defined in the Empty Item Code box on the General tab of the Projects
Preferences (PM101000) form.
• Account Group: The system uses the revenue account group of the aggregated estimation lines.
• Description: Depending on the number of aggregated estimation lines in the group, the system assigns the
description to the revenue budget line as follows:
• If the group consists of one line, the description of this line is copied to the cost budget line.
• If the group consists of two or more lines, the description of the cost budget line is Aggregated: [Account
Group Description], where Account Group Description is the description of the account group by which the
group of estimation lines has been aggregated.
• Original Budgeted Quantity: The system inserts the total quantity of the aggregated lines if each of the
lines has the same UOM or a UOM that can be converted. Otherwise, the quantity is zero.
• UOM: The system uses the UOM of the aggregated estimation lines if each of the lines has the same UOM or
a UOM that can be converted. Otherwise, the UOM is empty.
• Unit Rate: The calculation of the unit rate of the revenue budget line depends on the number of aggregated
estimation lines in the group as follows:
• If the group consists of one line, the unit price of this line is copied to the revenue budget line.
• If the group consists of two or more lines and each of these lines has the same UOM or a UOM that can
be converted, the system calculates the unit rate as the total amounts of the lines divided by the total
quantity of the lines.
• If the group of aggregated estimation lines consists of two or more lines and the lines have diﬀerent
UOMs, the unit rate of the revenue budget line is zero.
• Original Budgeted Amount: The system inserts the total amount of the aggregated lines.
• Tax Category: The tax category of the revenue budget line depends on the tax category of the aggregated
estimation lines in the group as follows:
• If the group consists of one line, the tax category of this line is copied to the revenue budget line.
• If the group consists of two or more lines and all the lines have the same tax category, this tax category is
copied to the revenue budget line.
• If the group consists of two or more lines and the lines have either the same tax category or no tax
category specified, the specified tax category is copied to the revenue budget line.
• If the group consists of two or more lines and the lines have at least two diﬀerent tax categories, the tax
category of the revenue budget line is empty.

Cost Budget
When the system creates a project based on the project quote, to populate the cost budget, the system groups the
estimation lines of the project quote depending on the cost budget level of the project template specified for the
project quote; the cost budget level of the project template is specified on the Summary tab (Project Properties
section) of the Project Templates (PM208000) form. For each group of estimation lines, on the Cost Budget tab of
the Projects (PM301000) form, the system creates a cost budget line with the following settings:
• Project Task: The system inserts the project task of the aggregated estimation lines.
• Inventory ID: The system uses the inventory ID of the aggregated estimation lines. Estimation lines
without an inventory item specified are aggregated into a cost budget line with this column populated
with the empty item code, which is defined in the Empty Item Code box on the General tab of the Projects
Preferences (PM101000) form.
• Account Group: The system inserts the cost account group of the aggregated estimation lines.
• Description: Depending on the number of aggregated estimation lines in the group, the system assigns the
description to the cost budget line, as follows:
• If the group consists of one line, the description of this line is copied to the cost budget line.
Processing Project Quotes | 246

• If the group consists of two or more lines, the description of the cost budget line is Aggregated: [Account
Group Description], where Account Group Description is the description of the account group by which the
group of estimation lines has been aggregated.
• Original Budgeted Quantity: The system inserts the total quantity of the aggregated lines if each of the
lines has the same UOM or a UOM that can be converted. Otherwise, the quantity is zero.
• UOM: The system uses the UOM of the aggregated estimation lines if each of the lines has the same UOM or
a UOM that can be converted. Otherwise, the UOM is empty.
• Unit Rate: The calculation of the unit rate of the cost budget line depends on the number of aggregated
estimation lines in the group as follows:
• If the group consists of one line, the unit rate of this line is copied to the cost budget line.
• If the group consists of two or more lines, the system calculates the unit rate as the sum of the Ext. Cost
values of lines that have a nonzero quantity divided by the total quantity of these lines. The lines of the
group with a quantity or Ext. Cost of zero are ignored in the calculation.
• Original Budgeted Amount: The system calculates this amount as the total extended cost of the aggregated
lines.
• Unit Price: The calculation of the unit price of the cost budget line depends on the number of aggregated
estimation lines in the group as follows:
• If the group of aggregated estimation lines consists of one line, the unit price of this line is copied to the
cost budget line.
• If the group of aggregated estimation lines consists of two or more lines and each of these lines has the
same UOM or a UOM that can be converted, the system calculates the unit price as the total amount of
the lines divided by the total quantity of the lines.
• If the group of aggregated estimation lines consists of two or more lines and the lines have diﬀerent UOM
values, the unit price of the cost budget line is zero.

Project Addresses
When the system creates a project based on the project quote on the Project Quotes (PM304500) form, the system
copies the information from the project quote using the following rules:
• The address information in the Project Address section on the Addresses tab of the Project Quotes form is
copied to the Project Address section on the Projects form
• The contact information in the Bill-To Contact section on the Addresses tab of the Project Quotes form is
copied to the Bill-To section on the Projects form
• The address information in the Bill-To Address section on the Addresses tab of the Project Quotes form is
copied to the Bill-To Address section on the Projects form

Other Project Settings

The project settings on the following tabs of the Projects (PM301000) form are copied from the listed sources:
• Activities: The project quote if the Link Activities to Project check box was selected in the Convert to
Project dialog box during conversion
• Equipment, Defaults, and Mailing & Printing: The project template specified for the project quote
• Attributes: The project quote
Processing Project Quotes | 247

Project Quotes: Implementation Checklist

The following sections provide details you can use to ensure that the system is configured properly for the creation
of project quotes and projects based on project quotes, and to understand (and change, if needed) the settings that
aﬀect the processing workflow.

Implementation Checklist
We recommend that before you initially create project quotes, you make sure the needed features have been
enabled, settings have been specified, and entities have been created, as summarized in the following checklist.

Form Tasks to Perform

Enable/Disable Features (CS100000) form Make sure that the Project Accounting and Project
Quotes features are enabled.

Project Templates (PM208000) form Make sure that all needed project templates have been
configured. For more information about project tem-
plates, see Project Templates and Common Tasks: Gen-
eral Information.

Business Account Classes (CR208000) Business account classes with the necessary settings
and attributes have been created, as described in
Defining Business Account Classes.

Business Accounts (CR303000) Business accounts with the necessary settings and at-
tributes have been created, as described in Creating
Business Accounts.

CRM Settings Checklist

If you want to use the functionality of opportunities to create project quotes, make sure that the needed features
have been enabled and settings have been specified, as summarized in the following checklist.

Form Criteria to Check

Enable/Disable Features (CS100000) form Make sure that the Customer Management feature is
enabled.

Customer Management Preferences (CR101000) form Make sure that all necessary settings related to cus-
tomer management have been specified.
Processing Project Quotes | 248

Form Criteria to Check

Opportunity Classes (CR209000) Opportunity classes with the necessary settings, at-
tributes, and stages have been created, as described in
Defining Opportunity Classes.

Other Settings That Aﬀect the Workflow

You can aﬀect the workflow of processing project quotes by specifying additional settings as follows:
• To change the format of project quote identifiers, adjust the PMQUOTE numbering sequence on the
Numbering Sequences (CS201010) form or create a new numbering sequence and select this sequence in
the Quote Numbering Sequence box on the General tab (Numbering Sequence section) of the Projects
Preferences (PM101000) form. Project quote identifiers must be assigned only automatically. For more
information on numbering sequences, see Use of Numbering Sequences.
By default, the PMQUOTE numbering sequence specifies that the project quote identifier is an automatically
generated alphanumeric string that starts with the PQ prefix and followed by six digits, such as PQ000001.
• To cause the system to automatically select a project template on creation of project quotes, select the
project template in the Default Quote Template box on the General tab (General Settings section) of the
Projects Preferences form.
• To cause the system to automatically select the revenue account group for new estimation lines of a project
quote if there are multiple income account groups defined on the Account Groups (PM201000) form, specify
the Default Revenue Account Group for expense account groups in the Summary area of the Account
Groups form. For more information on account groups, see Account Groups: General Information.

Validation of Configuration
To make sure that all configuration has been performed correctly, we recommend that in your system, you process
a project quote by performing instructions similar to those described in Project Quotes: Process Activity.

Project Quotes: Process Activity

This activity will walk you through the process of creating a project quote and creating a project based on the
project quote. You will also learn how project quotes are integrated with opportunities.

Story
Suppose that the HM's Bakery and Cafe customer has ordered a juicer for one of its restaurants, along with the
installation and training services from the SweetLife Fruits & Jams company. The sales manager of SweetLife has
created an opportunity for the provision of the juicer and the services. Acting as SweetLife's estimator, you will
create a project quote for this opportunity, confirm the quote with the customer, and convert the quote to the
project.

Configuration Overview
In the U100 dataset, the following tasks have been performed for the purposes of this activity:
Processing Project Quotes | 249

• For the purposes of this activity, the following features have been enabled on the Enable/Disable Features
(CS100000) form:
• Project Accounting, which provides support for the project accounting functionality
• Project Quotes, which provides the ability to create project quotes
• Customer Management, which provides the customer relation management (CRM) functionality,
including management of opportunities
• On the Opportunities (CR304000) form, the 000001 opportunity has been created. A note and a file have been
attached to the opportunity.
• On the Project Templates (PM208000) form, the PROGRESS project template has been configured with the
PHASE1 and PHASE2 project template tasks.
• On the Account Groups (PM201000) form, the REVENUE, MATERIAL, SUBCON, and LABOR account groups have
been created.
• On the Stock Items (IN202500) form, the JUICER15 stock item has been configured.
• On the Non-Stock Items (IN202000) form, the INSTALL and TRAINING non-stock items have been configured.

Process Overview
In this activity, on the Opportunities (CR304000) form, you will initiate the creation of a project quote for the
opportunity created for the customer. On the Project Quotes (PM304500) form, you will then configure the project
quote, including the creation of estimation lines. You will also print the project quote and email it to the customer
for review. Then you will convert the quote to a project.

System Preparation
Before you begin performing the steps of this activity, perform the following instructions to prepare the system:
1. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset preloaded; you should
sign in as project accountant by using the brawner username and the 123 password.
2. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to 1/30/2023. If a diﬀerent date is displayed, click the Business Date menu
button, and select 1/30/2023 on the calendar. For simplicity, in this activity, you will create and process all
documents in the system on this business date.

Step 1: Creating a Project Quote

To create a project quote for an opportunity, do the following:
1. On the Opportunities (CR304000) form, open the 000001 opportunity, and in the Summary area, notice that
the amount in the Amount box is equal to 3,500.00.
2. On the form toolbar, click Create Quote.
3. In the Create Quote dialog box, which opens, do the following:
a. Select Project Quote as the Quote Type.
Notice that the Set New Quote as Primary check box is selected.
b. Click Create and Review.
The system creates a project quote based on the opportunity and opens the project quote on the Project
Quotes (PM304500) form. Notice the following:
• In the Summary area, the Primary check box is selected, which means that the project is the primary
quote of the opportunity, whose identifier is shown in the Opportunity ID box. The description of the
quote has been copied from the opportunity.
Processing Project Quotes | 250

• On the form title bar, the icon to the le of Notes is shaded in yellow, and (1) is shown aer Files,
indicating that the project quote has a note and an attached file, which have been copied from the
opportunity.
4. In the Summary area of the Project Quotes form, specify the following settings:
• Project Template: PROGRESS
• New Project ID: HMBAKERY1
When you select the project template, the system fills in the relevant elements of the project quote with the
settings specified for the template.
5. On the Project Tasks tab, make sure that two tasks have been copied from the selected project template.
Notice that the Default check box is selected for the PHASE1 task. The project task is specified as the default
task of the project quote because this task is the default task of the selected project template.

Step 2: Estimating the Revenue and Costs of the Project Quote

To estimate the revenue and costs of the project quote based on the customer's order, do the following:
1. While you are still viewing the project quote on the Project Quotes (PM304500) form, on the Estimation tab,
add a line with the following settings:
• Inventory ID: JUICER15
• Quantity: 1
• Project Task: PHASE1 (inserted automatically)
• Cost Code: 00-000
• Cost Account Group: MATERIAL (inserted automatically)
2. On the same tab, add a second line with the following settings:
• Inventory ID: INSTALL
• Quantity: 4
• Project Task: PHASE1 (inserted automatically)
• Cost Code: 00-000
• Cost Account Group: SUBCON (inserted automatically)
3. On the same tab, add a third line with the following settings:
• Inventory ID: TRAINING
• Quantity: 8
• Project Task: PHASE2
• Cost Code: 00-000
• Cost Account Group: LABOR (inserted automatically)
The added lines specify estimated costs by project task and inventory item.
4. In each of the added lines, change Ext. Price to 0 and clear the value in the Revenue Account Group
column.
You have cleared the Ext. Price and Revenue Account Group columns so that when this quote is converted
to a project, the system will not convert these lines, which have no price and no revenue account group, to
revenue budget lines of the project.
5. On the same tab, add a revenue line with the following settings:
• Description: The juicer with installation
• Ext. Price: 2900
• Project Task: PHASE1 (inserted automatically)
• Cost Code: 00-000
Processing Project Quotes | 251

• Revenue Account Group: REVENUE (inserted automatically)

6. On the same tab, add second revenue line with the following settings:
• Description: Training of employees
• Ext. Price: 400
• Project Task: PHASE2
• Cost Code: 00-000
• Revenue Account Group: REVENUE
Notice that for each of the added revenue lines, the Ext. Cost equals zero and the Cost Account Group
column is empty.
When this quote is converted to a project, the system will not convert these lines, which have no cost and no
cost account group, to cost budget lines of the project.
7. Save your changes to the project quote.
In the Summary area, notice that the amount in the Total Sales box is 3,300.00, which is the total of the
values in the Ext. Price column on the Estimation tab. The amount in the Total Cost box is 2,640.00, which
is the total of the values in the Ext. Cost column on the Estimation tab. The quote margin is $660 (20%).
8. On the Opportunities form, again open the 000001 opportunity, and notice the following:
• In the Summary area, the Amount of the opportunity has been changed to the total sales of the created
project quote (3,300.00).
• On the Quotes tab, where the project quote you created is listed in the table, the total sales of the quote
is shown in the Amount column (3,300.00). Also, the check box in the Primary column is selected, which
means that this is the primary project quote of the opportunity.

Step 3: Sending the Project Quote for Confirmation

To email and print the project quote, do the following:
1. On the Project Quotes (PM304500) form, open the project quote that you have just created.
2. On the form toolbar, click Submit. The system changes the status of the quote to Prepared; you can no
longer edit the quote details.
3. On the More menu, click Email to send the project quote to the customer.
The system generates the Project Quote (PM604500) report, which is a ready-to-print version of the quote.
It then attaches the quote to the email, and sends the email to the customer's email address, which is
specified on the Addresses tab of this form. The system also changes the status of the project quote to Sent.
On the Activities tab, notice that an activity related to the sent email is listed in the table. The Summary
column contains the link to the email. If you clicked the link, the system would open the email on the Email
Activity (CR306015) form.
4. On the form toolbar, click Print to print the project quote.
The system navigates to the Project Quote report, which is a ready-to-print version of the quote. The printed
form lists the estimated revenue of the project quote, which the customer needs to review and agree to.
5. Click Back in browser window to return to the project quote on the Project Quotes form.

Step 4: Creating a Project Based on the Project Quote

To create a project based on the project quote, do the following:
1. While you are still viewing the project quote on the Project Quotes (PM304500) form, on the form toolbar,
click Convert to Project to convert the quote to a project.
2. In the Convert to Project dialog box, which opens, select the following check boxes:
Processing Project Quotes | 252

• Copy Notes to Project

• Copy Files to Project
3. Leave the other check boxes cleared, and click OK.
The system closes the dialog box, changes the status of the project quote to Closed, creates a project based
on the project quote, and opens the created project on the Projects (PM301000) form.
On the form title bar, notice that the icon to the le of Notes is shaded in yellow, and (1) is shown aer Files,
indicating that the project has a note and an attached file, which have been copied from the project quote
(and were previously copied from the opportunity).
4. Make sure the following settings have been specified in the created HMBAKERY1 project:
• In the Summary area, the project template based on which the project quote has been created
(PROGRESS) is shown in the Template box.
• On the Summary tab, in the Quote section, the number of the corresponding project quote is shown in
the Quote Ref. Nbr. box.
• On the Tasks tab, two project tasks have been copied from the project quote. Notice that the check box
in the Default column is selected for the PHASE1 task, indicating that it is the default task of the created
project.
• On the Revenue Budget tab, two revenue budget lines have been created based on the estimation lines
of the project quote with the specified revenue account group.
• On the Cost Budget tab, review three cost budget lines that have been created based on the estimation
lines of the project quote with the specified cost account group.
• On the Balances tab (see the following screenshot), verify the totals: The Income Totals matches the
total sales of the project quote ($3,300) and the Expense Totals matches the total cost of the project
quote ($2,640).

Figure: The balances of the project created based on the project quote

5. On the Opportunities (CR304000) form, open the 000001 opportunity, and on the Activities tab, make sure
that the email created for the project quote is listed in the table.
Processing Project Quotes | 253

6. On the Quotes tab, in the Project ID column, make sure that the identifier of the created project
(HMBAKERY1) is shown.

You have created a project quote based on an opportunity, and converted this project quote to a project.

Project Quotes: Related Report and Inquiry Forms

In the following sections, you can find details about the reports and inquiry forms you may want to review to gather
information about project quotes.

Printing of a Project Quote

On the Project Quotes (PM304500) form, you can print the selected project quote by clicking Print on the form
toolbar. For the printing of project quotes, the system uses the Project Quote (PM604500) report. This report
includes estimation lines, the header-level note, and the detailed description of a project quote.
If a project quote has been created based on an opportunity, you can also print a project quote on the Opportunities
(CR304000) form. To do this, on the Quotes tab, you select the project quote, and on the table toolbar, you click
Print Quote.
Purchasing Services for Projects | 254

Purchasing Services for Projects

This chapter describes how to purchase services for projects by processing accounts payable bills.

Purchasing Services for Projects: General Information

In Acumatica ERP, you can purchase services for projects without using purchase orders, so that these purchases
aﬀect the cost budget of the projects. You can later bill the customer for the purchased services, based on the
expenses recorded to the cost budget.

Learning Objectives
You will learn how to do the following:
• Enter the accounts payable bill for the project
• Specify the services to be purchased, and release the bill
• Review the project and GL transactions that are generated during the processing of a purchase

Applicable Scenarios
You process a purchase of services for a project by using accounts payable bills without processing purchase orders
to update the actual values of the project budget with the cost of the purchased services. You may need this, for
example, if the Inventory and Order Management group of features is not included in your license or if you want to
simplify the process of purchasing services.

Purchasing of Services for Projects

You purchase services—non-stock items that are configured so that the system does not require receipt for them—
for projects using accounts payable bills. On the Details tab of the Bills and Adjustments (AP301000) form, you add a
line for each non-stock item representing a service. To associate each bill line with a non-stock item with a project,
you specify the project and project task.
When you release the accounts payable bill with lines related to a project, the system updates the budget lines of
the project with the same project task, account group, and inventory item on the Cost Budget tab of the Projects
(PM301000) form. The system updates the Actual Quantity and Actual Amount of these cost budget lines with the
billed quantity and amount.
For more information on processing accounts payable bills, see AP Bills: General Information.

Workflow of Purchasing Services for Projects

The following diagram illustrates the workflow of purchasing services for projects using accounts payable bills.
Purchasing Services for Projects | 255

Purchasing Services for Projects: Implementation Checklist

The following sections provide details you can use to ensure that the system is configured properly for processing
purchases for projects with accounts payable bills, and to understand (and change, if needed) the settings that
aﬀect the processing workflow.

Implementation Checklist
We recommend that before you initially process purchases for projects with AP bills, you make sure the needed
features have been enabled, settings have been specified, and entities have been created, as summarized in the
following checklist.

Form Tasks to Perform

Enable/Disable Features (CS100000) form Make sure that the Project Accounting feature is en-
abled.

Form Tasks to Perform

Projects (PM301000) form Make sure that the project has been created, as de-
scribed in Project Creation and Processing: General In-
formation.

Non-Stock Items (IN202000) form Make sure that all needed labor items, non-stock
items, and services have been defined. Make sure that
the Require Receipt check box is cleared in the Item
Defaults section on the General tab. For more infor-
mation about labor items, non-stock items, and ser-
vices, see Labor Items: General Information, Creating
Non-Stock Items: General Information, and Creating Ser-
vice Items: General Information, respectively.

Account Groups (PM201000) form Make sure that all needed account groups have been
configured. Also, make sure that the expense accounts
of the inventory items specified in the Expense Ac-
count box on the GL Accounts tab of the Non-Stock
Items form are mapped to the account groups. For
more information about account groups, see Account
Groups: General Information.

Vendors (AP303000) form Make sure that all needed vendors have been defined
in the system, as described in Vendors: General Infor-
mation.

Other Settings That Aﬀect the Workflow

You can aﬀect the workflow of processing purchases for projects by specifying additional settings as follows:
• To cause the system to automatically select a project task when a particular project is selected during the
creation of a bill, select the Default check box on the Tasks tab of the Projects (PM301000) form for one of
the tasks of the project.
• To cause the system to create accounts payable bills with the Balanced status, clear the Hold Documents
on Entry check box on the General tab (Data Entry Settings section) of the Accounts Payable Preferences
(AP101000) form.
• To cause the system to automatically post general ledger batches generated during processing account
payable documents, select the Automatically Post on Release check box in the Posting Settings section
on the General Ledger Preferences (GL102000) form.
With these settings specified, users in your company can process purchases for projects with AP bills quickly and
accurately with a minimum of manual actions.

Validation of Configuration
To make sure that all configuration has been performed correctly, we recommend that you perform instructions
similar to those described in Purchasing Services for Projects: Process Activity.

Purchasing Services for Projects: Process Activity

This activity will walk you through the process of purchasing services for a project from a subcontractor with
accounts payable bills.
Purchasing Services for Projects | 257

Story
Suppose that the HM's Bakery and Cafe customer has ordered the installation service for previously bought juicers
from the SweetLife Fruits & Jams company. The SweetLife company has contracted the Squeezo Inc. vendor to
provide six hours of the installation service. SweetLife's project manager has created the project. Because the
Inventory and Order Management group of features is not included in SweetLife's license, the functionality of
purchase orders is not available. Acting as SweetLife's AP clerk, you will process the purchase by using an accounts
payable bill.

Process Overview
You will create a bill on the Bills and Adjustments (AP301000) form, and specify the project and project task in the
bill lines. Then you will release the bill. Finally, you will review the project balances on the Projects (PM301000)
form.

Step: Creating a Bill for the Project

To create an accounts payable bill for the project, do the following:
1. On the Bills and Adjustments (AP301000) form, add a new record.
2. In the Summary area, specify the following settings:
Purchasing Services for Projects | 258

• Vendor: SQUEEZO
• Date: 1/30/2023
• Description: Services for HM's Bakery & Cafe
3. On the Details tab, click Add Row on the table toolbar, and add a row with the following settings:
• Inventory ID: INSTALL
• Quantity: 6
• Project: HMBAKERY14
• Project Task: INSTALL (selected by default)
• Cost Code: 00-000
The system selects 54200 (Project Subcontract Expense) as the Account of the bill line, because this is the
expense account of the selected item.
4. On the form toolbar, click Remove Hold to assign the bill the Balanced status, and then click Release to
release the bill.
5. Open the Project Transaction Details (PM401000) form.
6. In the Summary area of the form, select HMBAKERY14 as the Project, and make sure the Account Group and
Project Task boxes are cleared. Review the project transaction that has updated the actual values in the
budget line. The debit account group in the transaction (SUBCON) is the group that is mapped to the 54200
expense account of the INSTALL non-stock item specified in the line.
7. On the Projects form, open the HMBAKERY14 project, and review the cost budget on the Cost Budget tab.
Notice that the Actual Quantity and Actual Amount of the corresponding budget line have been updated
(to 6 and 480.00, respectively), as shown in the following screenshot.

Figure: Cost budget updated aer bill processing

You have completed the processing of the purchase of services for the project and captured the cost of services to
the project budget.

Purchasing Services for Projects: Generated Transactions

When you process an accounts payable bill for a project, on release of the AP bill, the system generates the GL and
project transactions described in the following sections.

GL Transactions Generated on AP Bill Release

When an accounts payable bill is released, the system creates a batch of the general ledger transactions shown in
the following table.
Purchasing Services for Projects | 259

Account Source of Account Debit Credit

Accounts payable account Vendor 0.00 Amount

Expense account Item Amount 0.00

Project Transaction Generated on AP Bill Release

When a batch of general ledger transactions is created on release of an accounts payable bill, the system also
generates the project transaction shown in the following table.

Debit Account Credit Account Source of Account Amount

Expense account Empty GL transaction Amount

You can review the created project transaction on the Project Transaction Details (PM401000) form. In the Selection
area of this form, you select the project in the Project box. In the table, you can find the project transaction created
on release of the accounts payable bill by the reference number of the AP bill in the Orig. Doc. Nbr. column.
Purchasing Materials to Project Site | 260

Purchasing Materials to Project Site

This chapter describes how to purchase materials and services for projects with drop-shipping them directly to the
project site.

Purchases to the Project Site: General Information

In some businesses, the project manager purchases items for a project from a vendor and requests that the ordered
items be delivered directly to the site where the project-related work is performed. For example, you may need
the construction materials to be delivered to the construction site. As another example, you might be purchasing
materials that are needed to provide some project-related services, and you may ask the vendor to deliver the
items directly to the customer location.
If you do not need to track the actual receipt of items, you can process a purchase in which items are drop-shipped
from the vendor to the project site without the processing of a purchase receipt. In this case, the accounts payable
bill serves as proof that the items were delivered. In Acumatica ERP, you can define a project so that for purchase
orders of the Project Drop-Ship type, the processing of purchase receipts will not be required. You can then use
purchase orders of this type to process the purchases of materials for the project, with drop-shipping of these items
directly to the project site.

Learning Objectives
In this chapter, you will learn how to do the following:
• Define a project for which drop-ship purchases do not require a receipt
• Create a drop-ship purchase order for the project
• Prepare an accounts payable bill for the purchase order to record the expenses to the project budget
• Review the generated project transactions and GL transactions

Applicable Scenarios
You process a purchase with drop shipment for a project without a receipt when you need the purchased materials
to be delivered directly to the project site instead of being received in your warehouse, and you do not need to
record detailed information about the receipt of the items to the project site.

Project Configuration
In the settings of a project for which you want to process drop-ship purchases of items without the generation of
a purchase receipt, Skip Receipt Generation must be specified in the Drop-Ship Receipt Processing box on the
Defaults tab (Purchases section) of the Projects (PM301000) form. This setting causes the system to insert On Bill
Release in the Record Drop-Ship Expenses box of this section, indicating that the system will capture this project's
expenses on release of the accounts payable bill.

A Drop-Ship Purchase for a Project Without Purchase Receipt Processing

To process a purchase of items for a project with the items shipped directly to the project site and no receipt
processing, you create a purchase order of the Project Drop-Ship type on the Purchase Orders (PO301000) form. In
the purchase order, you first select the vendor and the project for which the purchase will be performed.
In this purchase order, because you have selected the Project Drop-Ship type, the system inserts Project Site in the
Shipping Destination Type box on the Shipping tab. The system also copies the shipping contact and address
Purchasing Materials to Project Site | 261

from the selected project to the purchase order to indicate that all purchased items should be delivered to the
project site.
On the Details tab, you list the stock items (to which the system assigns the Goods for Project type) and non-stock
items (to which the system assigns the Non-Stock for Project type) to be purchased from the vendor. In each line,
you specify the project task (and cost code, if applicable) with which the purchase is associated. When you save the
purchase order with the Open status, the system creates a commitment for each purchase order line in the amount
of the extended cost of the line; it also updates the original committed, revised committed, and committed open
values of the corresponding budget line of the project on the Cost Budget tab of the Projects form.
To record the expenses to the project, you create an accounts payable bill for the purchase order by clicking Enter
AP Bill (under Processing) on the More menu of the Purchase Orders form. The system copies the applicable
settings and lines from the purchase order to the bill and opens it on the Bills and Adjustments (AP301000) form.
Then you release the prepared bill. Aer all the lines in the purchase order have been billed in full, the system
assigns the purchase order the Closed status.
When the bill is released, the system generates a general ledger transaction; on release of this GL transaction, the
corresponding project transaction is generated. The project transaction updates the cost budget lines of the project
with the same project budget key (that is, with the same project, project task, account group, inventory item, and
cost code, if applicable) on the Cost Budget tab of the Projectsform. The system updates the committed invoiced,
committed open, and actual values of these cost budget lines with the billed quantity and amount.
Aer the processing of the purchase is completed, you run project billing to prepare the invoice for the customer for
the expenses related to the purchase.

Workflow of the Purchase to the Project Site

For project-related purchases with the items drop-shipped to the project site, the typical process involves the
actions and generated documents shown in the following diagram.
Purchasing Materials to Project Site | 262
Purchasing Materials to Project Site | 263

Purchases to the Project Site: Implementation Checklist

The following sections provide details you can use to ensure that the system is configured properly for the
processing of purchases for projects with drop-shipping to the project site and without a purchase receipt, and to
understand (and change, if needed) the settings that aﬀect the processing workflow.

Implementation Checklist
Before you initially process a project-related purchase with drop shipping to a project site (and without receipt
processing), you should make sure the needed features have been enabled, settings have been specified, and
entities have been created, as summarized in the following checklist.

Form Criteria to Check

Enable/Disable Features (CS100000) form Make sure that the Inventory and Order Management,
Inventory and Project Accounting features are enabled.

Multiple forms Make sure that all necessary settings related to or-
der management have been specified, as described in
Configuration of Order Management: Implementation Ac-
tivity.

Vendors (AP303000) form Make sure that all needed vendors have been config-
ured, as described in Vendors: Implementation Activity.

Stock Items (IN202500) form Make sure that the needed stock items have been con-
figured, as described in Stock Item Creation: Implemen-
tation Activity.

Non-Stock Items (IN202000) form Make sure that the needed non-stock items have been
configured, as described in Creating Non-Stock Items:
Implementation Activity.

Project Settings
Before you initially process a purchase for a project with drop shipping (and without receipt processing), you
should make sure that the project accounting functionality is configured and the project has specific settings, as
summarized in the following checklist.

Form Criteria to Check

Projects Preferences (PM101000) form Make sure that all necessary settings related to project
accounting have been specified, as described in Basic
Project Configuration: General Information.

Also, select the Internal Cost Commitment Track-

ing check box to track purchase orders as project cost
commitments and to see committed values in the
project cost budget.
Purchasing Materials to Project Site | 264

Form Criteria to Check

Projects (PM301000) Make sure that the necessary projects and project
tasks have been created, and that the following set-
tings have been specified for the projects on the De-
faults tab:
• Drop-Ship Receipt Processing: Skip Receipt Gener-
ation
With this setting, items of any type added to a
purchase order of the Project Drop-Ship type are
processed without a purchase receipt.
• Record Drop-Ship Expense: On Bill Release (insert-
ed automatically when you select Skip Receipt Gen-
eration)
With this setting, purchase expenses will be record-
ed to the project on release of the AP bill.

Other Settings That Aﬀect the Workflow

You can aﬀect the processing workflow by specifying additional settings as follows:
• To create new projects so that the drop-ship purchases will be processed without receipts by default, select
Generate Receipt in the Drop-Ship Receipt Processing box and On Receipt Release in the Record Drop-Ship
Expense box on the Projects Preferences (PM101000) form and in the settings of the project templates on
the Project Templates (PM208000) form.
• To reduce input errors when users enter orders, set up the validation of order totals by selecting the
For Project Drop-Ship Orders check box in the Validate Total on Entry section of the Purchase Orders
Preferences (PO101000) form (General Settings tab).
• To cause the system to create accounts payable bills with the Balanced status, clear the Hold Documents
on Entry check box on the General tab (Data Entry Settings section) of the Accounts Payable Preferences
(AP101000) form.
• To cause the system to automatically post general ledger batches generated during the processing of
purchase and accounts payable documents, select the Automatically Post on Release check box in the
Posting Settings section on the General Ledger Preferences (GL102000) form.
With these settings specified, users in your company can process purchases for projects quickly and accurately with
a minimum of manual actions.

Purchases to the Project Site: Process Activity

This activity will walk you through the process of purchasing materials for the project site.

Story
Suppose that the HM's Bakery and Cafe customer has ordered two juicers, along with four hours of the installation
service from the SweetLife Fruits & Jams company. The project accountant has analyzed the requirements and
Purchasing Materials to Project Site | 265

decided to create a small cost-plus project with two tasks, each for the installation of a juicer, and specify the cost
budget of a project.
Further suppose that SweetLife's project manager has noticed that the warehouse currently has no juicers of
the requested type. The project manager has decided to purchase the juicers from the Squeezo Inc. vendor and
request the vendor to ship the items directly to the project site. The project manager decided not to track the
receipt of items to the project site as a separate document and to consider the provided installation services as the
confirmation of the items being received.
Acting as SweetLife's project manager, you will configure a project to handle the tracking and billing of the
provided services and stock items. Then you will create a drop-ship order for purchased items for the project and
create an accounts payable bill for the vendor. Finally, you will review the commitment to the project budget.

Process Overview
You will create a project based on the project template on the Projects (PM301000) form and configure settings for
the drop-ship purchases for the project. Then you will create a drop-ship order for the project and prepare a bill for
it. Finally, you will review the commitment to the project budget and the generated project transactions.

System Preparation
Before you start creating a project and process a purchase, do the following:
1. Launch the Acumatica ERP website, and sign in as a project manager. You should sign in by using the
brawner username and the 123 password.
2. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to 1/30/2023. If a diﬀerent date is displayed, click the Business Date
menu button, and select 1/30/2023 on the calendar. For simplicity, in this activity, you will create and
process all documents in the system on this business date.
3. On the General tab (General Settings section) of the Projects Preferences (PM101000) form, make sure the
Internal Cost Commitment Tracking check box is selected.

Step 1: Creating a Project

To create a project, do the following:
1. Open the Projects (PM301000) form.

To open the form for creating a new record, type the form ID in the Search box, and on the
Search form, point at the form title and click New right of the title.
Purchasing Materials to Project Site | 266

2. Click Add New Record on the form toolbar, and specify the following settings in the Summary area:
• Project ID: HMBAKERY16
• Customer: HMBAKERY
• Template: SERVCSP
• Description: Installation of new juicers (253 Terry Lane)
3. On the Summary tab, select the Allow Adding New Items on the Fly check box.
4. On the Addresses tab, in the Project Address section, specify the following settings:
• Address Line 1: 253 Terry Lane
• City: New York
• Country: US
• State: NY
• Postal Code: 10001
5. Save your changes to the project.
6. On the Tasks tab, make sure that the PHASE1 and PHASE2 tasks have been added to the project.
7. On the table toolbar, click Activate Tasks to change the status of the project tasks to Active.
8. On the Cost Budget tab, make sure that two lines with the JUICER05 item and two lines with the INSTALL
item have been added.
9. On the Defaults tab, make sure that the following settings have been specified:
• Use Expense Account From: Posting Class or Item
• Drop-Ship Receipt Processing: Skip Receipt Generation
With this setting, items of any type added to a purchase order of the Project Drop-Ship type are processed
without a purchase receipt.
10.On the form toolbar, click Activate Project. The system assigns the project the Active status.

Step 2: Creating a Project Drop-Ship Order

Create and process a drop-ship order for the project as follows:
1. Set the business date to 2/15/2023.
2. Open the Purchase Orders (PO301000) form.
3. In the Type box, select Project Drop-Ship.
4. In the Summary area, specify the following settings:
• Vendor: SQUEEZO
• Date: 2/15/2023
• Project: HMBAKERY16
• Description: Installation of juicers at the restaurant
5. On the Details tab, add a row with the following settings:
• Inventory ID: JUICER05
• UOM: PIECE (specified automatically)
• Order Qty.: 1
• Unit Cost: 500
• Project Task: PHASE1
• Cost Code: 00-000
6. Add another row with the following settings:
Purchasing Materials to Project Site | 267

• Inventory ID: JUICER05

• UOM: PIECE (specified automatically)
• Order Qty.: 1
• Unit Cost: 500
• Project Task: PHASE2
• Cost Code: 00-000
7. Save the drop-ship order for the project. On the Shipping tab, review the shipping settings specified for the
purchase order and notice that the Shipping Destination Type is set to Project Site.
8. On the More menu (under Printing and Emailing), click Print Purchase Order. In the prepared printable
document, review the Ship To section, and make sure that the shipping address has been copied from the
project settings.
9. Close the browser tab with the report and return to the drop-ship order for the project on the Purchase
Orders form.
10.On the form toolbar, click Remove Hold. The system assigns the purchase order the Open status. When the
Open status is assigned to the purchase order, the system creates the commitment for the project.
11.On the Projects form, open the HMBAKERY16 project, and on the Commitments tab, make sure the drop-
ship order for the project is shown.
12.On the Cost Budget tab, review the cost budget lines with the JUICER05 inventory item that the system has
updated based on the commitment.
Notice that the original committed and revised committed amounts and quantities in the lines have been
updated by the amounts from the drop-ship order lines for the project. The actual amount in both lines is
still zero because the expenses have not yet been recorded to the project.
13.On the Commitments tab, click the Order Nbr. link in the only line to open the project drop-ship order that
you have created earlier in this activity on the Purchase Orders form.
14.On the form toolbar, click Enter AP Bill to create a bill for the purchase order.
The system creates an accounts payable bill and opens the bill on the Bills and Adjustments (AP301000) form.
Make sure that both purchase order lines have been added to the bill.
15.On the form toolbar, click Remove Hold to assign the AP bill the Balanced status, and then click Release to
release the bill.
16.On the Projects (PM301000) form, open the HMBAKERY16 project.
On the Cost Budget tab, review the actual values of the cost budget. Notice that the Actual Quantity
and Actual Amount of the lines with the JUICER05 item have been updated and are now 1 and 500.00,
respectively (see the following screenshot). Also notice that the actual expenses of the project (in the Actual
Expenses box of the Summary area) are 1,000.00, which is the cost of the purchased juicers.

Figure: Actual values of the budget updated by the purchase

Purchasing Materials to Project Site | 268

You have finished processing a drop-ship purchase order to the project site.

Purchases to the Project Site: Generated Transactions

When you purchase items for a project that are drop-shipped to the project site and no purchase receipt is
processed, you create and process a purchase order of the Project Drop-Ship type. To update the vendor balance
and record the incurred expenses to the cost budget of the project, the system generates the GL transactions and
project transactions described in the following sections.

GL Transactions Generated on Release of the AP Bill

When an accounts payable bill is released, the system creates a batch of the general ledger transactions shown in
the following table.

Account Source of Ac- Project Budget Key Debit Amount Credit Amount
count

Accounts Payable ac- Vendor X (Non-project code) 0.00 Amount

count

Expense account Determined Project, project task, Amount 0.00

by the Use Ex- and cost code in the
pense Account purchase order line
From setting of
the project

Project Transaction Generated on Release of the AP Bill

On release of the general ledger transactions, the system generates the project transaction shown in the following
table.

Project Budget Key Account Group Debit Account Amount

Project, project task, invento- Account group mapped Expense account in the Amount
ry item, and cost code in the GL to the Expense account GL transaction
transaction

You can review the created project transaction on the Project Transaction Details (PM401000) form. In the Selection
area of this form, you select the project in the Project box. In the table, you can find the project transaction created
on release of the accounts payable bill by looking for the reference number of the AP bill in the Orig. Doc. Nbr.
column.
Purchasing Materials to Project Site with Receipt | 269

Purchasing Materials to Project Site with Receipt

This chapter describes how to purchase materials and services for projects with processing a purchase receipt to
record that the materials has been delivered to the project site.

Purchases to the Project Site with a Receipt: General Information

In some businesses, the project manager purchases items for a project from a vendor and requests that the ordered
items be delivered directly to the site where the project-related work is performed. For example, you may need the
construction materials to be delivered to the construction site. As another example, you may need the vendor to
deliver directly to the customer site some materials that are needed to provide some service work related to the
project. If you need to track which items have been received and verify the quantities received at the project site,
you need to process a purchase in which the items are drop-shipped and a purchase receipt is processed.
In Acumatica ERP, you can define a project so that for purchase orders of the Project Drop-Ship type, the processing
of purchase receipts is required. You can then use purchase orders of this type to process the purchases of
materials for the project with drop-shipping of these items directly to the project site.

Learning Objectives
In this chapter, you will learn how to do the following:
• Define a project for which drop-ship purchases must be processed by using a purchase receipt
• Create a drop-ship purchase order for the project
• Prepare and process a purchase receipt for the purchase order to record the expenses to the project budget
• Prepare an accounts payable bill for the purchase order
• Review the generated inventory transactions, project transactions, and GL transactions

Applicable Scenarios
You process a purchase with drop shipment for a project with a receipt when you need the purchased materials to
be delivered directly to the project site and detailed information about the received items to be recorded.

Project Configuration
In the settings of a project for which you want to process drop-ship purchases of items with purchase receipts
used to record the receipt of these items, Generate Receipt must be specified in the Drop-Ship Receipt Processing
box on the Defaults tab (Purchases section) of the Projects (PM301000) form. In the same section of this tab,
Record Drop-Ship Expense must be set to On Receipt Release, which will cause the system to capture this project's
expenses on release of the purchase receipt. The remainder of this topic describes the resulting process of
purchasing drop-shipped items when these settings are specified.

A Drop-Ship Purchase for a Project with Receipt Processing

To process a purchase of items for a project with the items drop-shipped directly to the project site and with receipt
processing, you create a purchase order of the Project Drop-Ship type on the Purchase Orders (PO301000) form. In
the purchase order, you first select the vendor and the project for which the purchase will be performed.
In this purchase order, because you have selected the Project Drop-Ship type, the system inserts Project Site in the
Shipping Destination Type box on the Shipping tab. The system also copies the shipping contact and address
Purchasing Materials to Project Site with Receipt | 270

from the selected project to the purchase order to indicate that all purchased items should be delivered to the
project site.
On the Details tab, you list the stock items (to which the system assigns the Goods for Project type) and non-stock
items (to which the system assigns the Non-Stock for Project type) to be purchased from the vendor. In each line,
you specify the project task (and cost code, if applicable) with which the purchase is associated. When you save the
purchase order with the Open status, the system creates a commitment for each purchase order line in the amount
of the extended cost of the line; it then updates the original committed, revised committed, and committed open
values of the corresponding budget line of the project on the Cost Budget tab of the Projects form.
Aer you have confirmed that the materials have been received at the project site, you prepare the purchase
receipt related to the drop-ship purchase order of the project by clicking Enter PO Receipt on the form toolbar of
the Purchase Orders form. The system automatically copies the applicable settings and the purchase order lines to
the created purchase receipt and opens it on the Purchase Receipts (PO302000) form.
When you release this purchase receipt, the system creates an inventory receipt transaction; on release of this
inventory transaction, the corresponding GL and project transactions are generated. The project transaction
updates the cost budget lines of the project with the same project budget key (that is, with the same project,
project task, account group, inventory item, and cost code, if applicable) on the Cost Budget tab of the Projects
form. The system updates the committed received quantity, committed open values, and actual values of these
cost budget lines with the received quantity and amount. Aer all the lines in the purchase order have been
received in full, the system assigns the purchase order the Completed status.
To finish the processing of the purchase and update the vendor balance in the system, you create an accounts
payable bill for the purchase receipt by clicking Enter AP Bill on the form toolbar on the Purchase Orders form.
The system copies the applicable settings and lines from the purchase order to the bill and opens it on the Bills and
Adjustments (AP301000) form. Then you release the prepared bill; on release of the bill, the system generates the GL
transaction. In the cost budget, the system updates the committed billed values with the quantity and amount that
have been billed. Aer all the lines in the purchase order have been billed in full, the system assigns the purchase
order the Closed status.
Aer the processing of the purchase is completed, you run project billing to prepare the invoice for the customer for
the expenses related to the purchase.

Workflow of the Purchase to the Project Site with a Receipt

For project-related purchases with the items drop-shipped to the project site and with the processing of a purchase
receipt, the typical process involves the actions and generated documents shown in the following diagram.
Purchasing Materials to Project Site with Receipt | 271
Purchasing Materials to Project Site with Receipt | 272

Purchases to the Project Site with a Receipt: Implementation Checklist

The following sections provide details you can use to ensure that the system is configured properly for the
processing of purchases for projects with drop-shipping to the project site and with receipt processing, and to
understand (and change, if needed) the settings that aﬀect the processing workflow.

Implementation Checklist
Before you initially process a project-related purchase to a project site with receipt processing, you should make
sure the needed features have been enabled, settings have been specified, and entities have been created, as
summarized in the following checklist.

Form Criteria to Check

Enable/Disable Features (CS100000) form Make sure that the Inventory and Order Management,
Inventory, and Project Accounting features are enabled.

Multiple forms Make sure that all necessary settings related to or-
der management have been specified, as described in
Configuration of Order Management: Implementation Ac-
tivity.

Vendors (AP303000) form Make sure that all needed vendors have been config-
ured, as described in Vendors: Implementation Activity.

Stock Items (IN202500) form Make sure that the needed stock items have been con-
figured, as described in Stock Item Creation: Implemen-
tation Activity.

Non-Stock Items (IN202000) form Make sure that the needed non-stock items have been
configured, as described in Creating Non-Stock Items:
Implementation Activity.

Project Settings
Before you initially process a purchase for a project with drop shipping and receipt processing, you should make
sure that the project accounting functionality is configured and the project has specific settings, as summarized in
the following checklist.

Form Criteria to Check

Projects Preferences (PM101000) form Make sure that all necessary settings related to project
accounting have been specified, as described in Basic
Project Configuration: General Information.

Also, select the Internal Cost Commitment Track-

ing check box to track purchase orders as project cost
commitments and to see committed values in the
project cost budget.
Purchasing Materials to Project Site with Receipt | 273

Form Criteria to Check

Projects (PM301000) Make sure that the necessary projects and project
tasks have been created, and that the following set-
tings have been specified for the projects on the De-
faults tab:
• Drop-Ship Receipt Processing: Generate Receipt
With this setting, the processing of a purchase or-
der of the Project Drop-Ship type involves the pro-
cessing of a purchase receipt.
• Record Drop-Ship Expense: On Receipt Release
With this setting, purchase expenses will be record-
ed to the project on release of the purchase receipt.

Other Settings That Aﬀect the Workflow

You can aﬀect the processing workflow by specifying additional settings as follows:
• To record expenses to project budget on release of the accounts payable bill, select On Bill Release in the
Record Drop-Ship Expense box of the Projects (PM301000) form for the project.
• To create new projects so that the drop-ship purchases will be processed with receipts by default, select
Generate Receipt in the Drop-Ship Receipt Processing box and On Receipt Release in the Record Drop-Ship
Expense box on the Projects Preferences (PM101000) form and in the settings of the project templates on
the Project Templates (PM208000) form.
• To reduce input errors when users enter orders, set up the validation of order totals by selecting the
For Project Drop-Ship Orders check box in the Validate Total on Entry section of the Purchase Orders
Preferences (PO101000) form (General Settings tab).
• To cause the system to create accounts payable bills with the Balanced status, clear the Hold Documents
on Entry check box on the General tab (Data Entry Settings section) of the Accounts Payable Preferences
(AP101000) form.
• To cause the system to automatically post general ledger batches generated during the processing of
purchase and accounts payable documents, select the Automatically Post on Release check box in the
Posting Settings section on the General Ledger Preferences (GL102000) form.
With these settings specified, users in your company can process purchases on projects quickly and accurately with
a minimum of manual actions.

Purchases to the Project Site with a Receipt: Process Activity

This activity will walk you through the process of purchasing materials for the project site with a receipt being
recorded.

Story
Suppose that the ToadGreen Building Group company is building an Italian restaurant for the Italian Company,
its customer. The construction project manager has analyzed the requirements and decided to create a project to
track expenses and revenues for the performed work.
Further suppose that work on the project has started on February 15, 2023. The ToadGreen company purchases 400
pallets of 8-inch concrete blocks from the Concrete Supply Co. vendor. The construction project manager asks the
vendor to deliver the purchased materials directly to the project site this week. On February 18, 2023, 250 pallets
have been delivered to the project site. The vendor will deliver the rest of the purchased blocks at the beginning of
March 2023.
Acting as ToadGreen's construction project manager, you will configure a project to handle the tracking and billing
of the provided materials. Then you will process a purchase of materials with drop-shipping them directly to the
project site.

Process Overview
You will create a project based on the project template on the Projects (PM301000) form and configure settings for
the drop-ship purchases for the project. Then you will create a drop-ship order for the project and process it. You
will process a purchase receipt to record the partial receipt of the ordered items at the project site. Finally, you will
review the commitment to the project budget.

System Preparation
Before you start creating a project and process a purchase, do the following:
1. Launch the Acumatica ERP website, and sign in as a construction project manager. You should sign in by
using the ewatson username and the 123 password.
2. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to 1/30/2023. If a diﬀerent date is displayed, click the Business Date
menu button, and select 1/30/2023 on the calendar. For simplicity, in this activity, you will create and
process all documents in the system on this business date.
3. On the General tab (General Settings section) of the Projects Preferences (PM101000) form, select the
Internal Cost Commitment Tracking check box to expose commitments and committed values in the
project budget, and save your changes to the project accounting preferences.
Purchasing Materials to Project Site with Receipt | 275

Step 1: Creating a Project Based on the Project Template

To create a project based on a template, do the following:
1. On the Projects (PM301000) form, add a new record.

To open the form for creating a new record, type the form ID in the Search box, and on the
Search form, point at the form title and click New right of the title.

2. In the Summary area, specify the following settings:

• Project ID: ITALIAN3
• Customer: ITACOM
• Template: CONTM
When you select the project template, the system fills in the relevant elements of the project with the
settings specified for the template, including tasks and revenue budget lines.
3. In the Description box of the Summary area, enter Italian restaurant (Taylor Street).
4. In the Project Properties section on the Summary tab, specify the following settings:
• Cost Budget Level: Task, Item, and Cost Code
• Allow Adding New Items on the Fly: Selected
5. On the Addresses tab, in the Project Address section, specify the following settings:
• Address Line 1: 3505 Taylor Street
• City: New York
• Country: US
• State: NY
• Postal Code: 10011
6. Save your changes to the project.
7. On the Tasks tab, make sure that 16 tasks have been added, and on the table toolbar, click Activate Tasks
to change the status of the project tasks to Active.
8. On the Defaults tab, specify the following settings:
• Use Expense Account From: Posting Class or Item
• Drop-Ship Receipt Processing: Generate Receipt
With this setting, items of any type added to a purchase order of the Project Drop-Ship type are processed
with a purchase receipt.
• Record Drop-Ship Expenses: On Receipt Release
With this setting, the expenses are recorded to the project on release of the purchase receipt created for
the drop-ship purchase order.
9. On the form toolbar, click Activate Project. The system assigns the project the Active status.

Step 2: Creating a Project Drop-Ship Order

• Vendor: CONCRESUP
• Project: ITALIAN3
• Date: 2/15/2023
• Description: Purchase of concrete blocks with delivery to project site
5. On the Details tab, add a row with the following settings:
• Inventory ID: CONCRBK8
• UOM: PIECE (specified automatically)
• Order Qty.: 400
• Unit Cost: 180
• Project Task: 04
• Cost Code: 04-220
The system will warn you that the line with the specified project budget key does not exist in the project
budget.
6. Save the drop-ship order for the project. On the Shipping tab, review the shipping settings for the purchase
order and notice that the Shipping Destination Type is set to Project Site.
7. On the More menu (under Printing and Emailing), click Print Purchase Order. In the prepared printable
document, review the Ship To section, and make sure that the shipping address has been copied from the
project settings.
8. Close the browser tab with the report and return to the drop-ship order for the project on the Purchase
Orders form.
9. On the form toolbar, click Remove Hold. The system assigns the purchase order the Open status. When the
Open status is assigned to the purchase order, the system creates the commitments for the project.
10.On the Projects form, open the ITALIAN3 project.
11.On the Cost Budget tab, review the cost budget line with the 04 project task, the CONCRBK8 inventory item,
and the 04-220 cost code. The system has created this cost budget line based on the commitment.
Notice that the original committed and revised committed values of the cost budget line have been updated
by the purchase order total (72,000.00). The actual quantity and actual amount in the line are zero because
the expenses have not yet been recorded to the project.

Step 3: Receiving the Items

To record the receipt of the items at the project site, perform the following instructions:
1. On the Commitments tab, click the Order Nbr. link of the only row to open the project drop-ship order that
you have created earlier on the Purchase Orders (PO301000) form.
2. On the form toolbar, click Enter PO Receipt. The system creates a purchase receipt and opens it on the
Purchase Receipts (PO302000) form.
3. In the Date box, specify 2/18/2023.
4. In the only line on the Details tab, specify 250 as Receipt Qty..
5. Save the purchase receipt.
6. On the form toolbar, click Release.
7. On the Projects form, open the ITALIAN3 project, and review the Cost Budget tab, as shown in the following
screenshot. In the line with the 04 project task and the 04-220 cost code, the Actual Amount has been
updated and is now 45,000. The Actual Quantity is 250.
Purchasing Materials to Project Site with Receipt | 277

Figure: Expenses recorded to project budget

You have finished processing a drop-ship purchase order for a project and recorded the receipt of items to the
project site.

Purchases to the Project Site with a Receipt: Generated Transactions

When you purchase items for a project that are drop-shipped to the project site and purchase receipts are
processed, you create and process a purchase order of the Project Drop-Ship type. To update the vendor balance
and record the incurred expenses to the cost budget of the project, the system generates the GL transactions
and project transactions described in the following sections. These sections describe the transactions that are
generated for a project in which project expenses are captured on release of the purchase receipt.

GL Transactions Generated on Release of the Inventory Receipt

An inventory receipt is created on release of a purchase receipt prepared for a purchase order. When this inventory
receipt is released, the system creates a batch of the general ledger transactions shown in the following table.

Account Source of Account Project Budget Debit Credit

Key

PO Accrual account Posting class of X (Non-project 0.00 Amount

the item code)

Expense account Determined by the Project, project Amount 0.00

Use Expense Ac- task, and cost code
count From set- in the purchase or-
ting of the project der line

On the Financial tab of the Receipts (IN301000) form, you can click the link in the Batch Nbr. box to view the details
of the batch on the Journal Transactions (GL301000) form.

Project Transaction Generated on Inventory Receipt

When the batch of general ledger transactions created on release of the inventory receipt is released, the system
generates the project transaction shown in the following table.
Purchasing Materials to Project Site with Receipt | 278

Project Budget Key Account Group Debit Account Amount

Project, project task, invento- Account group mapped Expense account in the Amount
ry item, and cost code in the GL to the Expense account GL transaction
transaction

You can review the created project transaction on the Project Transaction Details (PM401000) form. In the Selection
area of this form, you select the project in the Project box.

GL Transactions Generated on Release of the AP Bill

When an accounts payable bill prepared for a purchase order is released, the system creates a batch of the general
ledger transactions shown in the following table.
The system uses the following accounts as the source accounts in the GL batch it creates.

Account Source of Account Project Budget Debit Credit

Key

Accounts Payable ac- Vendor or vendor X (Non-project 0.00 Amount

count location code)

PO Accrual account Posting class of X (Non-project Amount 0.00

the item code)

Tracking Changes to Project Budget

If you need to track changes to the project revenue and cost budget, and control the profitability of every change
initiated by a customer, you use the functionality of change orders.

Single-Tier Change Management: General Information

Acumatica ERP provides change order functionality, which you can use to track changes to project's budgeted
and committed values and to control the profitability of every change initiated by a customer. A change order is
a document for profitability analysis and an audit of changes to the project revenue budget, commitments, and
budgeted costs. Change orders do not alter the original figures of a project directly. They are tracked in separate
project budget columns.

Learning Objectives
In this chapter, you will learn how to do the following:
• Configure a change order class
• Create a change order for a project
• Update the project budget with the change order
• Review the changes made with change orders in the project budget
• Prevent direct purchases for the project
• Cancel the change order

Applicable Scenarios
You turn on the change order workflow for a project if you want to control changes made to the budgeted and
committed values of the project budget and to track these changes at the budget level. To make changes to the
project budget, you create change orders that do not alter the original budgeted and committed values.
You prevent the direct creation of purchase orders for the project if you want to create new purchase orders only by
means of change orders to track these purchases as changes to the project budget.

Change Order Classes

A change order class defines which project data—the revenue budget, the cost budget, or commitments—can be
adjusted with a change order of this class. You must specify a change order class for each change order you create,
so you first need to configure change order classes on the Change Order Classes (PM203000) form.
To allow users to make changes to the project budget by using a change order of a particular class, on the Details
tab of the Change Order Classes form, you select any combination of the following check boxes for the change
order class:
• Revenue Budget: To allow changes to the revenue budget
• Cost Budget: To allow changes to the cost budget
• Commitments: To allow changes to committed values. For more information, see Change Orders for
CommitmentsNegative CommitmentsChange Orders for Commitments: General Information.
Change order classes also make it possible to group change orders by their impact on projects. For example, you
can segregate changes by class in reports to analyze which types of changes have the greatest impact on project
profitability.
Tracking Changes to Project Budget | 280

Change Order Workflow

To make it possible for users to track changes for a project by using change orders, you select the Change Order
Workflow check box on the Summary tab of the Projects (PM301000) form for the project. You need to select this
check box for each project for which you want to turn on the change order workflow.
Once you have selected this check box for a project, you can create a change order for the project on the Projects
form by clicking Create Change Order on the More menu or clicking Create Change Order on the table toolbar
of the Change Orders tab. The system creates a change order of the default class with the On Hold status and the
project selected and opens it on the Change Orders (PM308000) form. If no default change order class is specified
on the Projects Preferences (PM101000) form, you must select the change order class manually. You can override
the default change order class, if needed.
In a change order with the On Hold status, on the Revenue Budget and Cost Budget tabs of the Change Orders
form, you can increase and decrease values in existing project budget lines as well as create new budget lines.
When you edit a change order line, you can see the following values: the original budgeted amount in the Original
Budgeted Amount column; the released and dra change order amounts in the Previously Approved CO Amount
and Other Dra CO Amount columns, respectively; and the revised budgeted amount in the Revised Budgeted
Amount column.
While a change order is saved with the On Hold status, the Quantity and Amount values of a revenue budget
line or cost budget line of the change order increase the Potential CO Quantity and Potential CO Amount of the
corresponding revenue budget line or cost budget line of the project on the Projects form.
A change order can be printed or emailed to the customer. To print the change order, on the More menu of the
Change Orders form, you click Print. To email the change order, on the More Menu of the same form, you click
Email.
When a change order is released, the Potential CO Quantity and Potential CO Amount of the corresponding
budget lines are decreased and the Budgeted CO Quantity and Budgeted CO Amount are increased on the
Projects form. The change order is assigned the Closed status.

You can cancel a change order by clicking Cancel on the form toolbar of the Change Orders form to
indicate that the changes will not be processed further. The system will assign the change order the
Canceled status and decreases the potential CO values of the corresponding revenue budget lines and
cost budget lines of the project on the Projects form.

Workflow of Managing Changes to the Project Budget

The following diagram illustrates the workflow of managing changes to the project budget.
Tracking Changes to Project Budget | 281

Update of the Project Budget when a Change Order Is Released

When a change order is released, the budgeted values of the corresponding project on the Projects (PM301000)
form are updated as follows:
• If the project has a revenue budget line with the same project task, account group, and inventory item as a
revenue budget line of the change order, the system updates the following columns of the revenue budget
line of the project on the Revenue Budget tab, with the column values computed as noted:
• Budgeted CO Quantity = The total quantity of released change orders
• Budgeted CO Amount = The total amount of released change orders
• Revised Budgeted Quantity = Original Budgeted Quantity + Budgeted CO Quantity
• Revised Budgeted Amount = Original Budgeted Amount + Budgeted CO Amount
Tracking Changes to Project Budget | 282

• Pending Invoice Amount = Revised Budgeted Amount * Completed (%) / 100 – Actual Amount – Dra
Invoice Amount

As the result of the update of the Pending Invoice Amount, the amount can be a rational
value, including a negative one.

• If the project has a cost budget line with the same project task, account group, and inventory item as a cost
budget line of the change order, the system updates the following columns of the cost budget line of the
project on the Cost Budget tab, with the column values calculated as follows:
• Budgeted CO Quantity = The total quantity of released change orders
• Budgeted CO Amount = The total amount of released change orders
• Revised Budgeted Quantity = Original Budgeted Quantity + Budgeted CO Quantity
• Revised Budgeted Amount = Original Budgeted Amount + Budgeted CO Amount
• If the project does not have a revenue or cost budget line with the same project task, account group, and
inventory item as a revenue or cost budget line of the change order, the system creates a new revenue or
cost budget line for the project based on the revenue or cost budget line of the change order. In this newly
created budget line, the unit rate is copied from the corresponding change order line.

Single-Tier Change Management: Implementation Checklist

The following sections provide details you can use to ensure that the system is configured properly for the
processing of change orders, and to understand (and change, if needed) the settings that aﬀect the processing
workflow.

Implementation Checklist
We recommend that before you initially create change orders, you make sure the needed features have been
enabled, settings have been specified, and entities have been created, as summarized in the following checklist.

Form Tasks to Perform Notes

Enable/Disable Features (CS100000) Make sure that the Project Account-

form ing and Change Orders features are
enabled.

Projects Preferences (PM101000) Make sure that all necessary set-

form tings related to project account-
ing have been specified. For more
information about configuration
steps that you have to perform be-
fore you can start accounting for
projects, see Basic Project Configu-
ration: General Information.

Change Order Classes (PM203000) Make sure that all needed change
form order classes have been config-
ured, as described in Change Or-
ders for CommitmentsNegative Com-
mitmentsChange Orders for Commit-
ments: To Create a Change Order
Class.
Tracking Changes to Project Budget | 283

Form Tasks to Perform Notes

Projects (PM301000) form Make sure that the project has been If the Internal Cost Commitment
created, as described in Project Tracking check box is selected on
Creation and Processing: General In- the General tab (General Settings
formation. section) of the Projects Preferences
(PM101000) form, and a project has
Also, make sure that the Change related purchase orders, you can
Order Workflow check box is select the Change Order Work-
selected on the Summary tab flow check box for the project if the
(Project Properties section). project has no open related pur-
chase order lines. That is, the sta-
tus of the related purchase order
lines of the project is only Complet-
ed, Closed, or Canceled.

Project Commitments Checklist

If you want to use the functionality of change orders to manage changes in commitments, make sure that all
the needed features have been enabled and settings have been specified, as described in Committed Costs:
Implementation Checklist.

Other Settings That Aﬀect the Workflow

You can aﬀect the workflow of managing changes in projects by specifying additional settings as follows:
• To change the format of change order identifiers, adjust the CHANGEORD numbering sequence on the
Numbering Sequences (CS201010) form or create a new auto-numerated numbering sequence and select
this sequence in the Change Order Numbering Sequence box on the General tab (Numbering Sequence
section) of the Projects Preferences (PM101000) form. For more information on numbering sequences, see
Use of Numbering Sequences.
• To allow users to create change orders by using the Create Change Order command on the More menu
of the Projects (PM301000) form, clear the Manual Numbering check box in the Summary area of the
Numbering Sequences form for the numbering sequence used for change orders.
• To cause the system to automatically select a change order class on creation of change orders, select the
change order class in the Default Change Order Class box on the General tab (General Settings section) of
the Projects Preferences form.
• To cause the system to automatically select a revenue account group for new change order lines if there
are multiple account groups of the Income type defined on the Account Groups (PM201000) form, specify
the Default Revenue Account Group for account groups of the Expense type in the Summary area of the
Account Groups form. For more information on account groups, see Account Groups: General Information
With these settings specified, users in your company can process change orders quickly and accurately with a
minimum of manual actions.

Validation of Configuration
To make sure that all configuration has been performed correctly, we recommend that you process a change order
by performing instructions similar to those described in Single-Tier Change Management: To Track Changes to the
Project Budget and Change Orders for Commitments: Process Activity.
Tracking Changes to Project Budget | 284

Single-Tier Change Management: To Track Changes to the Project Budget

In this activity, you will learn how you can turn on the change order workflow for a project and manage changes to
the project’s budgeted values by creating change orders.

Story
Suppose that the Thai Food Restaurant customer has ordered two juicers, along with eight hours of the installation
service from the SweetLife Fruits & Jams company. SweetLife's project accountant has created a project and
configured the revenue and cost budgets based on the agreement reached with the customer. During project
execution, the customer requests one more juicer, along with the installation, as a part of the same project. The
project accountant estimated that installation of additional juicer will require five hours of the installation service.
Acting as the project accountant, you will turn on the change order workflow for the project and create a change
order to update the project budget according to the customer's request and to reflect these changes at the project
budget level.

Process Overview
In this activity, you will turn on the change order workflow for the project on the Projects (PM301000) form. On the
same form, you will create a new change order. You will then modify and process the created change order on the
Change Orders (PM308000) form.

button, and select 1/30/2023 on the calendar. For simplicity, in this activity, you will create and process all
documents in the system on this business date.

Step 1: Turning on the Change Order Workflow for the Project

To turn on the change order workflow for the project, which makes it possible to create change orders for the
project, do the following:
1. On the Projects (PM301000) form, open the TOMYUM6 project.
2. On the Summary tab, select the Change Order Workflow check box to turn on the change order workflow
for the project.
3. Save your changes to the project.
Since you turned on the change order workflow for the project, the Revised Budgeted Quantity and
Revised Budgeted Amount columns on the Revenue Budget and Cost Budget tabs have become read-
only.

Step 2: Creating a Change Order for the Project

To make changes to the project budget by creating a change order, do the following:
1. While you are remaining on the Projects (PM301000) form with the TOMYUM6 project selected, on the More
menu, click Create Change Order. The system creates a change order and opens it on the Change Orders
(PM308000) form.
2. In the Summary area of this form, in the Description box, enter One more juicer with
installation requested by the customer.
Notice that the system has automatically selected the DEFAULT change order class for the change order
because this class is the default change order class specified on the Projects Preferences (PM101000) form.
3. On the Revenue Budget tab, click Add Row on the table toolbar and specify the following settings in the
row:
• Project Task: INSTALL
• Amount: 2900
When you select the project task, the system automatically fills in the settings of the line based on the
revenue budget line of the project with the same task, because the revenue budget level of the project is
Task.
When you enter the Amount of the line, which represents the additional revenue, the system calculates the
Revised Budgeted Amount as the sum of the Original Budgeted Amount and the Amount.
4. On the table toolbar of the Cost Budget tab, click Select Budget Lines.
5. In the Select Budget Lines dialog box, select the unlabeled check box for both cost budget lines and click
Add Lines & Close.
The system closes the dialog box and adds the selected lines to the change order.
6. In the added budget line with the LABOR account group (which is the line for the INSTALL item), enter 5 in
the Quantity column.
Tracking Changes to Project Budget | 286

7. In the line with the MATERIAL account group (which is the line for the JUICER15 item), enter 1 in the
Quantity column.
When you update the quantity of the line, the system automatically calculates the Amount value based
on the Unit Rate value of the line, which is inherited from the project budget line. In the line, the system
also calculates the Revised Budgeted Quantity value as the sum of the Original Budgeted Quantity
and Quantity values, and it calculates the Revised Budgeted Amount value as the sum of the Original
Budgeted Amount and Amount values.
When you specify changes to the project budget, the revenue budget change total in the Summary area
becomes $2,900 and the cost budget change total becomes $2,400. Until you release the change order, these
changes will not aﬀect the project budget.
8. Save your changes to the change order.
9. On the More menu, click Print to print the change order.
The system navigates to the Change Order (PM643000) report, which is a ready-to-print version of the
change order. The printed form lists the revenue budget lines of the change order, which the customer
might need to review and agree to.
10.Click Back in the browser window to return to the change order on the Change Order form, and on the form
toolbar, click Remove Hold to assign the change order the Open status. Then click Release to release the
change order.
11.On the Projects form, open the TOMYUM6 project.
12.On the Change Orders tab, make sure the change order you have created is shown. The change order has
the Closed status.
13.On the Cost Budget tab, review the cost budget lines that have been updated by the change order you have
processed (see the screenshot below).
The system has calculated the Revised Budgeted Quantity as the sum of the Original Budgeted Quantity
and the Budgeted CO Quantity, and it has calculated the Revised Budgeted Amount as the sum of the
Original Budgeted Amount and the Budgeted CO Amount (see the following screenshot). The Budgeted
CO Quantity and Budgeted CO Amount are the quantity and amount of the change order.

Figure: The cost budget updated with the change order

You have processed a change order for the project.

Single-Tier Change Management: Locking Commitments

If internal cost commitment tracking is configured in the system and the change order workflow is configured
for a particular project, aer the purchases on the project have been agreed on with vendors and entered into
the system, you can lock the commitments for the project. Aer that, users can create new commitments for the
project only as project changes by using change orders. Users cannot directly create new purchase orders for the
project on the Purchase Orders (PO301000) form or add new lines to the existing purchase orders. However, users
Tracking Changes to Project Budget | 287

can edit or delete the existing commitments that have been created before the lock by editing or deleting the
corresponding purchase order lines directly.
When you decide to prevent users from directly creating new commitments for the project, you select the
project on the Projects (PM301000) form and click Lock Commitments on the More menu. When the command
is performed for the project, purchase orders for this project cannot be created directly on the Purchase Orders
(PO301000) form, and new commitments can be created for the project only through change orders.
Once you decide to permit users to create new purchase orders and make changes to existing purchase orders for
the project on the Purchase Orders form, you unlock the ability to process project commitments directly for the
project by clicking Unlock Commitments on the More menu of the Projects form.
For more information on commitments, see Committed Costs: General Information.

Single-Tier Change Management: To Prevent Direct Changes to Commitments

If you want to manage changes to a project's committed values, you can prevent the creation of purchase orders for
the project on the Purchase Orders (PO301000) form and create new commitments by using change orders.

Story
Suppose that the HM's Bakery and Cafe customer has ordered a juicer from the SweetLife Fruits & Jams company,
along with the services of installation and training for its employees on operating the juicer. SweetLife has
contracted the Squeezo Inc. vendor to perform the installation. The project accountant of SweetLife has created a
project with tasks corresponding to the installation and training phases.
Acting as the project accountant, you need to purchase the installation service from the vendor. When you
purchase the budgeted service, you will lock the commitments for the project to prevent the direct processing of
purchase orders for the project.

Process Overview
In this activity, you will create a purchase order for the project on the Purchase Orders (PO301000) form. You will
then lock the project commitments on the Projects (PM301000) form to prevent the creation of purchase orders for
the project on the Purchase Orders form.

System Preparation
To sign in to the system and prepare to perform the instructions of the activity, do the following:
1. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset preloaded; you should
sign in as project accountant by using the brawner username and the 123 password.
2. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to 1/30/2023. If a diﬀerent date is displayed, click the Business Date menu
button, and select 1/30/2023 on the calendar. For simplicity, in this activity, you will create and process all
documents in the system on this business date.
3. Open the Projects Preferences (PM101000) form, and on the General Settings tab (General Settings
section), select the Internal Cost Commitment Tracking check box to expose commitments and
committed values in the project budget, and save your changes to the project accounting preferences.

Step 1: Creating a Purchase Order for the Project

To create a purchase order for the project, do the following:
1. On the Purchase Orders (PO301000) form, create a purchase order, and specify the following settings in the
Summary area:
• Vendor: SQUEEZO
• Description: Purchase for HM's Bakery & Cafe
2. On the Details tab, click Add Row on the table toolbar, and specify the following settings in the row:
• Inventory ID: INSTALL
• Order Qty.: 4.00
• Project: HMBAKERY11
• Project Task: PHASE1 (inserted automatically)
• Cost Code: 00-000
3. On the form toolbar, click Remove Hold. The system assigns the purchase order the Open status.
When the Open status is assigned to the purchase order, the system updates the committed values of the
project.
4. On the Projects (PM301000) form, open the HMBAKERY11 project, and review the cost budget on the Cost
Budget tab. Notice that the original committed quantity and amount of the budget line with the PHASE1
project task and the INSTALL inventory item are 4 and 320.00, respectively.

Step 2: Locking Commitments for the Project

To prevent the direct creation of purchase orders for the project, do the following:
1. While you are still reviewing the HMBAKERY11 project on the Projects (PM301000) form, on the More menu,
click Lock Commitments.
2. On the Purchase Orders (PO301000) form, create a purchase order, and specify the following settings:
• Vendor: SQUEEZO
Tracking Changes to Project Budget | 289

• Description: Purchase for HM's Bakery & Cafe

3. On the Details tab, click Add Row, and specify the following settings in the row:
• Inventory ID: INSTALL
• Order Qty.: 2.00
• Project: HMBAKERY11
When you select the project, the system shows an error message in the Project column that says you cannot
create purchase order commitments for this project because the commitments are locked for the project
(see the following screenshot).

Figure: The restriction of direct commitment creation for the project

4. Close the form without saving the purchase order, which was created solely for testing purposes.

Until you unlock the commitments for the project, you can process new purchases for the
project only with change orders. To unlock the commitments for the project, you would open
it on the Projects (PM301000) form, and click Unlock Commitments on the More menu.

5. On the General tab (General Settings section) of the Projects Preferences (PM101000) form, clear the
Internal Cost Commitment Tracking check box, and save your changes to the project accounting
preferences.

Single-Tier Change Management: Revenue Change Number

Each project has its own numbering sequence for the change orders that can aﬀect the revenue of the project.
By default, the Revenue Change Nbr. of a change order on the Change Orders (PM308000) form is an integer that
the system assigns sequentially: 0001 for the first change order for the project, 0002 for the second, 0003 for the
third, and so on. The last assigned number for the project is shown in the Last Revenue Change Nbr. box on the
Summary tab (Project Properties section) of the Projects form (PM301000).
You can manually change the Revenue Change Nbr. of a particular change order. (Duplicate numbers within
a project are not allowed, however.) If you change this number for a change order, you should make a similar
change to the Last Revenue Change Nbr. of the corresponding project so that the system continues to assign these
numbers correctly.
You should adhere to the following recommendations if you manually assign revenue change numbers:
• Use a four-digit number as a revenue change number, such as 0001.
Tracking Changes to Project Budget | 290

• If you need to use mixed characters for a revenue change number—that is, letters, symbols, and numerals—
add a four-digit number to the character string, resulting in a revenue change number such as CO#0001.
• If a project has revenue change orders and the numeric part of the last assigned revenue change number
for the project consists of a one- or two-digit number, add enough zeros before the numeric part of the
last change number so that the numeric part of the number is at least four digits. For example, if the Last
Revenue Change Nbr. in the Project Properties area of the Summary tab of the Projects form is CO#9,
change it to CO#0009.
For change orders that cannot aﬀect the project revenue and the Reversing change orders (those that reverse the
impact of the original change orders), the Revenue Change Nbr. box is read-only and contains N/A.
For the Reversed change orders (those that have been reversed), you can reuse the Revenue Change Nbr.—that is,
assign the Revenue Change Nbr. of a Reversed change order to a new change order. This will not lead to an error
of duplicated numbers because the Reversed change order does not aﬀect the project revenue anymore. If you
reuse the Revenue Change Nbr. of a Reversed change order, you should make the appropriate change to the Last
Revenue Change Nbr. of the corresponding project on the Projects form so that the system continues to assign
these numbers correctly.

Single-Tier Change Management: Related Report and Forms

In the following sections, you can find details about the reports and forms you may want to review to gather
information about change orders.

Reviewing Change Orders by Project

You can review the list of change orders related to a particular project on the Change Orders tab of the Projects
(PM301000) form.

Printing of a Change Order

You can print a change order with any status by clicking Print on the More menu of the Change Orders (PM308000)
form. The system opens the printable form of the change order, which is project-specific and specified for the
CHANGE ORDER mailing of the project on the Mailing & Printing tab of the Projects (PM301000) form. By default,
the generated report is the Change Order (PM643000) report, which supports the printing of revenue budget lines,
header-level and line-level notes, and the detailed description of the change order. You can review the change
order and print it.

Single-Tier Change Management: Mass Processing of Documents

This topic explains how to perform mass-processing operations related to change orders, and how the system
generates, changes, or works with documents as a result of the mass processing.

Mass-Recalculating Change Orders

In some cases (for instance, if the project budget has been adjusted with change orders that have been modified
through external tools or import scenarios), you may need to validate the project balances to make change order
quantities and amounts of the project budget match the values of the change orders.
Tracking Changes to Project Budget | 291

To recalculate budget values aﬀected by change orders, you use the Recalculate Project Balances (PM504000)
form. On this form, you select the Recalculate Change Orders check box in the Selection area. You also select the
unlabeled check boxes in the rows of the projects to be processed and click Process on the form toolbar to process
the selected projects; alternatively, you can click Process All to process all the projects shown in the table. For
more information, see Project Budget: Recalculation of the Project Budget.
Processing Change Requests | 292

Processing Change Requests

If you need to track changes to the project revenue budget, commitments, and budgeted costs and control the
profitability of every change initiated by a customer, you can use the functionality of change orders. Additionally,
you can set up two-tier change management for change orders. In the first tier, you create change requests, and the
second tier involves you grouping multiple change requests into a single change order. The topics of this chapter
explain how you can process change requests.

Change Requests: General Information

Acumatica ERP provides the two-tier change management capability for projects, which is used to create change
requests in addition to change orders. Change requests are detailed breakdowns of potential changes to the project
budget and commitments, such as additions, deletions, or edits to the existing cost or revenue budget. In the first
tier, you create change requests, and the second tier involves you grouping multiple change requests into a single
change order to be approved.
With the two-tier change management, you can also set up price markups that can be applied to an individual line
of a change request and to the total amount of the document to charge the customer for the changes.

Learning Objectives
In this chapter, you will learn how to do the following:
In this lesson, you will learn how to do the following:
• Configure a change order class that supports the two-tier change management
• Configure default markups
• Create a change request to update the project budget
• Create a change order based on the change request
• Process a change request with a cost change order
• Process a change request with a revenue change order
• Cancel a change request
• Close a change request

Applicable Scenarios
You turn on the change order workflow for a project to be able to track changes to the budgeted and committed
values of the project. You create change requests if the workflow of your project supposes a lot of small changes
to the budget but you do not want to create a lot of change orders, for example, because of the approval required
for each change order. With change requests, you can collect a lot of small changes into a single or several change
orders.
You can also need to create change requests for a project if you want to charge the customer for the changes made
to the project budget.

Configuration of Change Order Classes

A change order class defines which project data—the revenue budget, the cost budget, or commitments—can be
adjusted with a change order of this class. The two-tier change management is controlled at the level of a change
order class. If the Two-Tier Change Management check box is selected for a particular class on the Change Order
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Classes (PM203000) form, change orders of the selected class support two-tier change management and can
include change requests.
If a change order class has the Revenue Budget check box cleared and the Cost Budget and Commitments check
box selected on the Details tab of the Change Order Classes form, change orders of this class are classified as cost
change orders for change requests.
If a change order class has the Revenue Budget, Cost Budget, and Commitments check box selected on the
Details tab of the Change Order Classes form, change orders of this class are treated as revenue change orders.

Creation of Change Requests

To make it possible for users to track changes for a particular project by using change requests along with change
orders, you select the Change Order Workflow check box on the Summary tab of the Projects (PM301000) form for
the project. Then you can create a change request for the project on the Projects form by clicking Create Change
Request on the form toolbar. The system creates a change request with the On Hold status and the project selected
and opens it on the Change Requests (PM308500) form.

In addition to creating a change request from the Projects form for the selected project, you can create
a new change request directly on the Change Requests form and select the needed project.

In a change request with the On Hold status, on the Estimation tab of the Change Requests form, you add rows
with potential changes that will aﬀect the revenue budget and the cost budget of the selected project when the
related change orders are released. For each estimation line, you specify the following settings:
• The Project Task, Account Group, and Inventory ID that represent the cost budget line to be updated or
created if this combination of settings does not exist in the project budget
• The Revenue Task and Revenue Account Group that represent the revenue budget line to be updated or
created if this combination of settings does not exist in the project budget
• The Quantity, Unit Cost, Unit Price, and UOM that estimate the change to the budget
• Optionally, the Create Commitment and Vendor if you want to create a commitment line based on this
estimation line
The amount in the Ext. Cost column estimates the change of the cost and calculated as follows:
Ext. Cost = Quantity * Unit Cost
The amount in the Line Amount column estimates the change of the revenue and calculated as follows:
Line Amount = Ext. Price + Ext. Price * Line Markup (%) / 100
Ext. Price = Quantity * Unit Price
Unit Price = Unit Price + Unit Price * Price Markup (%) / 100
Once you have saved a change request with the Open status, the Quantity and Ext. Cost values of each estimation
line increase the Potential CO Quantity and Potential CO Amount of the corresponding cost budget line of the
project on the Projects form. The Quantity and Line Amount values of each estimation line increase the Potential
CO Quantity and Potential CO Amount of the corresponding revenue budget line of the project.

Adding of a Change Request to a Change Order

On the Change Requests (PM308500) form, you can create a change order for the selected change request by
clicking the Create Change Order button on the form toolbar. On the Change Orders (PM308000) form, you can
also add one or several change requests to the selected change order by clicking Select Change Requests on the
table toolbar of the Change Requests tab.
Based on each estimation line of the change request added to a change order and on the selected change order
class, the system creates the following lines for the change order on the Change Orders form:
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• A cost budget line on the Cost Budget tab with Quantity and Amount values equal to the quantity and
extended cost of the estimation line
• A revenue budget line on the Revenue Budget tab with Quantity and Amount values equal to the quantity
and line amount of the estimation line
• A commitment line on the Commitments tab with Quantity and Amount values equal to the quantity and
extended cost of the estimation line if the estimation line has Create Commitment check box selected on
the Change Requests form
• A markup revenue budget line on the Revenue Budget tab with the Amount value equal to the markup
amount of this markup line. The system creates a separate line for the markup amount if the change request
has a markup line with the project task and account group on the Markups tab of the Change Requests
form but has no estimation line with the same revenue task and revenue account group on the Estimation
tab. Otherwise, the markup amount is added to the existing revenue budget line created based on the
estimation line.
Most commonly, a change request relates to a change order that contains both cost estimation lines and revenue
estimation lines. Once you have added the change request to the change order, the change request is assigned
the Closed status. However, in some cases you may need to process and release the cost change order as early as
necessary to create commitments and change the project cost budget accordingly, while the revenue change order
may require customer approval and needs to be processed separately.
If the project cost budget and commitments aﬀected by a change request need to be updated through a separate
change order before the revenue part has been approved, for one change request you process a cost change order
and a revenue change order.
A cost change order is a change order that contains only the cost and commitment parts of the change request
based on the settings of the selected change order class. This change order created for a change request is shown
in the Cost Change Order Nbr. box in the Summary area of the Change Requests form.
A revenue change order is a change order that contains the revenue part of the change request as well as all types
of estimation lines—that is, revenue budget, cost budget, and commitment lines. This change order created for a
change request is shown in the Change Order Nbr. box in the Summary area of the Change Requests form.
When both the cost part and revenue part of the change request have been linked to change orders, the system
assigns the Closed status to the change request. If the customer has not approved the revenue part of the change
request, you do not need to create a revenue change order and can manually close the change request for which
the cost change order has been created. To do this, you click Close on the form toolbar of the Change Requests
form to assign the change request the Closed status.

You can also cancel a change request by clicking Cancel on the form toolbar of the Change Requests
form to indicate that the changes will not be processed further. This will assign the change request
the Canceled status and decreases the potential CO values in the project budget.

For information on further processing of change orders, see Single-Tier Change Management: General Information.

Workflow of Processing a Change Request

The following diagram illustrates the workflow of processing a change request.
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Change Requests: Implementation Checklist

The following sections provide details you can use to ensure that the system is configured properly for the
processing of change requests, and to understand (and change, if needed) the settings that aﬀect the processing
workflow.

Implementation Checklist
We recommend that before you initially create change requests, you make sure the needed features have been
enabled, settings have been specified, and entities have been created, as summarized in the following checklist.
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Form Tasks to Perform

Enable/Disable Features (CS100000) form Make sure that the Project Accounting, Change Orders,
and Change Requests features are enabled.

Also, make sure that the default markups are specified

on the General tab (Markups section).

Change Order Classes (PM203000) form Make sure that all needed change order classes have
been configured and the Two-Tier Change Manage-
ment check box has been selected for these classes in
the Summary area.

Account Groups (PM201000) form Make sure that the default line markup is specified for
all the needed account groups of the Expense type in
the Default Line Markup, % box on the Defaults tab.

Non-Stock Items (IN202000) form Make sure that the default price markup is specified for
all the needed inventory items in the Markup % box
on the Price/Cost tab (Price Management section).

Stock Items (IN202500) form Make sure that the default price markup is specified for
all the needed inventory items in the Markup % box
on the Price/Cost tab (Price Management section).

Projects (PM301000) form Make sure that the project has been created, as de-
scribed in Project Creation and Processing: General In-
formation.

Also, make sure that the Change Order Workflow

check box is selected on the Summary tab (Project
Properties section) and the document markups are
configured properly on the Defaults tab (Document
Markups table).

Project Commitment Checklist

If you want to use the functionality of change requests to manage changes in commitments, make sure that
all the needed features have been enabled and settings have been specified, as described in Committed Costs:
Implementation Checklist.

Other Settings That Aﬀect the Workflow

You can aﬀect the workflow of managing changes in projects by specifying additional settings as follows:
• By default, the CHANGERST numbering sequence specifies that the change request identifier is an
automatically generated numeric string of six digits, such as 000001. To change the format of change request
identifiers, adjust the CHANGERST numbering sequence on the Numbering Sequences (CS201010) form
or create a new auto-numerated numbering sequence and select this sequence in the Change Request
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Numbering Sequence box on the General tab (Numbering Sequence section) of the Projects Preferences
(PM101000) form. For more information on numbering sequences, see Use of Numbering Sequences.
• To allow users to create change requests by using the Create Change Request command on the More
menu of the Projects (PM301000) form, clear the Manual Numbering check box in the Summary area of the
Numbering Sequences form for the numbering sequence used for change requests.
• To make it possible to create a change order for a change request selected on the Change Requests
(PM308500) form, select the change order class that supports the two-tier change management in the
Default Change Order Class box on the General tab (General Settings section) of the Projects Preferences
form. That is, the selected change order class must have the Two-Tier Change Management check box
selected on the Change Order Classes (PM203000) form.

Even if the default change order class selected in the project accounting preferences does
not support the two-tier change management, you still can add a change request to a change
order by creating a change order directly on the Change Orders (PM308000) form, selecting for
this change order a change order class that supports the two-tier change management, and
adding the change request to the change order.

• To cause the system to automatically select a revenue account group for new estimation lines of a change
request if there are multiple account groups of the Income type defined on the Account Groups (PM201000)
form, specify the Default Revenue Account Group for account groups of the Expense type in the Summary
area of the Account Groups form. For more information on account groups, see Account Groups: General
Information.
• To cause the system to automatically select the Creates Commitment check box for a new estimation
line with a particular account group selected on the Change Requests form, which results in creation of a
commitment based on such an estimation line, select the Creates Commitment check box on the Settings
tab of the Account Groups form for this account group. For example, it can be an account group to which you
map the expense accounts of the services that a subcontractor usually provides.
With these settings specified, users in your company can process change requests quickly and accurately with a
minimum of manual actions.

Validation of Configuration
To make sure that all configuration has been performed correctly, we recommend that you process a change
request by performing instructions similar to those described in Change Requests: Process Activity.

Change Requests: Implementation Activity

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

Story
Suppose that you, as the system administrator, need to configure two-tier change management so that the change
requests to projects can be processed in the system. Also, you need to configure the following price markups to be
applied to the new projects:
• A default price markup of 25% to be applied to each individual change made with a change request
• 8% of the profit to be applied to an entire change request
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• 4% of overhead to be applied to an entire change request

• 5% of all the previously charged markups to be applied to an entire change request
• A flat fee of $100 per change request
You also need to specify price markups for the ITALIAN project, which has already been created in the system. Acting
as the system administrator, you will perform these tasks.

Process Overview
You will enable the Change Requests feature on the Enable/Disable Features (CS100000) form. You will then
configure the default price markups on the Projects Preferences (PM101000) form. You will also create change order
classes that support two-tier change management on the Change Order Classes (PM203000) form.

System Preparation
To sign in to the system and prepare to perform the instructions of the activity, do the following:
1. Launch the Acumatica ERP website, and sign in vto a company with the U100 dataset preloaded. You should
sign in as a system administrator by using the gibbs username and the 123 password.
2. Sign in to the system as the system administrator by using the gibbs username and the 123 password.
3. Sign in to the system as the system administrator by using the gibbs username and the password provided
in the class.
4. Open the Enable/Disable Features (CS100000) form, and on the form toolbar, click Modify.
5. In the Projects group of features, select the Change Requests check box.
6. On the form toolbar, click Enable.

Step 1: Specifying the Default Markups

Make sure that you have signed in by using the gibbs user account before you start completing the
following instructions. If you are signed in to another user account, this can aﬀect the workflow of the
activity and the results of the processing.

To specify the default markups that the system will assign to change requests, do the following:
1. In the Markups section on the General tab on the Projects Preferences (PM101000) form, enter 25 in the
Default Price Markup, % box.
2. In the Document Markups table, add rows with the following settings.

Type Description Value

% Profit 8

% Overhead 4

Cumulative % Default cumulative % 5

Flat Fee Additional charges 100

The system will apply these document-level markups to the total amount of change requests by default.
3. Save your changes.
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Step 2: Creating a Change Order Class for Cost Change Orders

To create a change order class for the change orders that aﬀect only the project cost budget, do the following:
1. On the Change Order Classes (PM203000) form, add a new record.
2. In the Summary area, specify the following settings:
• Class ID: INTERNAL
• Description: Cost change orders
• Two-Tier Change Management: Selected
Because you have selected the Two-Tier Change Management check box, the Cost Budget and
Commitments check boxes are selected by default and cannot be cleared.
3. On the Details tab, clear the Revenue Budget check box.
4. Save the change order class.

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

To create a change order class for the change orders that aﬀect the project revenue budget, while you are still
viewing the Change Order Classes (PM203000) form, do the following:
1. Click Add New Record on the form toolbar, and specify the following settings in the Summary area:
• Class ID: EXTERNAL
• Description: Cost and revenue change orders
• Two-Tier Change Management: Selected
Again, notice that on the Details tab, all of the check boxes are selected by default. The Cost Budget and
Commitments check boxes are unavailable to be cleared; you will leave the Revenue Budget check box
selected.
2. Save the change order class.
3. On the General tab of the Projects Preferences (PM101000) form, in the Default Change Order Class box,
select EXTERNAL, and then save your changes.

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

Step 4: Updating Project-Specific Markups

Update the markups that have been specified for the ITALIAN project by doing the following:

In a production system, a newly created project will have the default markup settings specified on the
Projects Preferences (PM101000) form. In the provided company, the project was predefined before
you defined the markups, so you have to specify these settings for the project manually.

1. On the Projects Preferences (PM101000) form, on the General tab (General Settings section), select
the Internal Cost Commitment Tracking check box, and save your changes to the project accounting
preferences. This exposes the committed values of the budget.
2. On the Projects (PM301000) form, open the ITALIAN project.
3. In the Document Markups table on the Defaults tab, add lines with the following settings.

Type Description Value Project Task Account Group Cost Code

% Profit 9.00 02 REVENUE 02-000

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Type Description Value Project Task Account Group Cost Code

% Overhead 6.00 02 REVENUE 02-000

Cumulative % Default 7.00 02 REVENUE 02-000

Cumulative
%

Flat Fee Additional 1250 02 REVENUE 02-000

charges

4. Save your changes to the project.

Change Requests: Process Activity

In this activity, you will learn how you can turn on the change order workflow for a project and manage changes to
the project’s budgeted values by creating change requests and including these change requests to change orders.

Story
Suppose that the West BBQ Restaurant customer has ordered a juicer, along with the following services from the
SweetLife Fruits & Jams company: two hours of site review, four hours of installation, and eight hours of employee
training on operating the juicers. The SweetLife company has contracted the Squeezo Inc. vendor to provide the
juicer and perform the installation while SweetLife will perform the services of site review and training.
Acting as SweetLife's project accountant, you will create a project. SweetLife's consultant will provide the service
of site review and you will then realize that the following adjustments to the project should be agreed upon with
the customer: the site review, which has taken an additional hour beyond what was planned, has shown that the
installation of the juicer will take two hours beyond the planned time frame. The customer will then ask you for an
additional staﬀ person to be trained, so the training will take two additional hours.
You will make the needed corrections to the project budget by using change requests.

Process Overview
In this activity, you will create the project on the Projects (PM301000) form and configure the document-level
markups for it. To make changes to the project budget, you will create change requests on the Change Requests
(PM308500) form. When an agreement with the customer about the changes is reached, you will add open change
requests to two change orders on the Change Orders (PM308000) form; you will then release the change orders.
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System Preparation
To sign in to the system and prepare to perform the instructions of the activity, do the following:
1. Implement the two-tier change management and configure change order classes as described in Change
Requests: Implementation Activity.
2. Sign in to the system as Pam Brawner by using the brawner username and the 123 password.
3. Sign in to the system as the project accountant by using the brawner username and the provided password.
4. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to 1/30/2023. If a diﬀerent date is displayed, click the Business Date menu
button, and select 1/30/2023 on the calendar. For simplicity, in this activity, you will create and process all
documents in the system on this business date.
5. On the Projects Preferences (PM101000) form, on the General tab (General Settings section), select the
Internal Cost Commitment Tracking check box to expose commitments and committed values in the
project budget; save your changes to the project accounting preferences.
6. On the Projects Preferences (PM101000) form, on the General tab (General Settings section), select the
Internal Cost Commitment Tracking check box to expose commitments and committed values in the
project budget; save your changes to the project accounting preferences.

Step 1: Creating a Project

Make sure that you have signed in by using the brawner user account before you start completing the
following instructions. If you are signed in to another user account, this can aﬀect the workflow of the
activity and the results of the processing.

To create a project and define the project-specific document markups, do the following:
1. On the Projects (PM301000) form, add a new record.
2. In the Summary area, specify the following settings:
• Project ID: WESTBBQ3
• Customer: WESTBBQ
• Description: A juicer with the installation and training for employees
3. On the Summary tab (Project Properties section), make sure that the Change Order Workflow check box
is selected, which means you can make changes to the project budget with change orders, including the
creation of change requests.
4. In the Cost Budget Level box, select Task and Item.
5. On the Tasks tab, click Add Row on the table toolbar and specify the following settings in the row:
• Task ID: INSTALL
• Type: Cost and Revenue Task
• Description: A juicer with the installation and training
• Status: Active
• Default: Selected
6. On the Revenue Budget tab, click Add Row on the table toolbar, and, in the added line, enter 3,400 in the
Original Budgeted Amount column. (The system has automatically selected the INSTALL project task in the
row as it is the default project task.)
7. On the Cost Budget tab, add four budget lines (by clicking Add Row on the table toolbar) with the settings
shown in the following table.
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Project Task Inventory ID Original Budgeted Unit Rate

Quantity
INSTALL SITEREVIEW 2.00 40.00

INSTALL TRAINING 8.00 40.00

INSTALL JUICER15 1.00 2,000.00

INSTALL INSTALL 4.00 80.00

8. On the Defaults tab, in the Document Markups table, configure the default document markups that the
system has populated from the project accounting preferences as follows: for each markup in the table,
select INSTALL in the Project Task column and REVENUE in the Account Group column.
9. Save the project.
10.On the form toolbar, click Activate Project. The system assigns the project the Active status.

Step 2: Creating a Change Request

To make changes to the project budget with a change request, do the following:
1. While remaining on the Projects (PM308000) form with the WESTBBQ3 project opened, on the More menu,
click Create Change Request.
The system creates a change request for the project and opens it on the Change Requests (PM308500) form.
2. In the Description box in the Summary area of this form, type Additional time for site review
and installation.
On the Markups tab, notice that the system has copied the document markups from the project to the
change request with all the settings you have specified at the project level.
3. On the Estimation tab, to represent an additional hour of site review, click Add Row on the table toolbar,
and specify the following settings in the row:
• Project Task: INSTALL (specified by default)
• Account Group: LABOR
• Cost Code: 00-000
• Inventory ID: SITEREVIEW
• Description: Additional time for site review
• Quantity: 1.00
• Line Markup (%): 10.00
Notice that the system has filled in the Price Markup (%) column with the default price markup specified
in the project accounting preferences (25%). The Unit Price is calculated as the Unit Cost plus the price
markup ($40*1.25), and the Line Amount, which is $55, is calculated as the Ext. Price plus the line markup
($50*1.1).
4. Add one more line to represent the two additional hours needed for the installation by clicking Add Row on
the table toolbar and specifying the following settings in the row:
• Project Task: INSTALL (specified by default)
• Account Group: SUBCON
• Cost Code: 00-000
• Inventory ID: INSTALL
• Description: Additional time for installation
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• Quantity: 2.00
• Line Markup (%): 10.00
• Vendor: SQUEEZO
• Create Commitment: Selected
You are selecting this check box because you have contracted Squeezo Inc. to perform the installation, so
you need to create a purchase order for this change.
The line amount of the added row should be $220.
5. On the Markups tab, review the markup amounts that the system has calculated based on the document
totals.
The system calculated the Profit and Overhead markups ($22 and $11, respectively) based on the line total
of the change request, which is shown in the Amount Subject to Markup column and is $275.
The Default cumulative % markup is calculated based on the markups of the % type calculated above the
markup line ($22 + $11) and is equal to $1.65. The Additional charges markup amount is the flat fee in the
amount of $100, which does not depend on any document amounts.
6. Save the change request.
7. On the form toolbar, click Remove Hold to assign the change request the Open status.

Step 3: Creating the Second Change Request

To create one more change request for additional two hours of training, do the following:
1. While you are still viewing the Change Requests (PM308500) form, click Add New Record on the form
toolbar, and specify the following settings in the Summary area of the form:
• Project: WESTBBQ3
• Description: Additional time for training
2. On the Estimation tab, to represent two additional hours of training, click Add Row on the table toolbar,
and specify the following settings in the row:
• Project Task: INSTALL (specified by default)
• Account Group: LABOR
• Cost Code: 00-000
• Inventory ID: TRAINING
• Description: Additional time for training
• Quantity: 2.00
• Line Markup (%): 10.00
The line amount of the added row should be equal to $110 (2 * $50 * 1.1).
3. Save the change request.
4. On the form toolbar, click Remove Hold to assign the change request the Open status.
5. On the Projects (PM301000) form, select the WESTBBQ3 project in the Summary area, and review the
updated amounts in the project budget as follows:
• On the Change Requests tab, notice that both of the related change requests have the Open status (see
the screenshot below).
• On the Cost Budget tab, review the values in the Potential CO Quantity and Potential CO Amount
columns, which the system has filled in based on the estimation lines of the open change requests for the
rows with the SITEREVIEW, TRAINING, and INSTALL inventory items.
• On the Revenue Budget tab, review the values in the Potential CO Amount column, which is $633.51.
This amount equals the total price of both change requests ($409.65 + $223.86) and includes markup
totals calculated at the document level.
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Figure: Change requests related to the project

Step 4: Processing the Cost Part of the Change Request

To create a cost change order based on the first change request you created, do the following:
1. On the Change Orders (PM308000) form, add a new record. By default, in a newly created change order,
the system inserts the EXTERNAL class, which is specified as the default change order class on the Projects
Preferences (PM101000) form.
2. In the Class box, select INTERNAL. Notice that the Revenue Budget tab has been hidden because the
specified class is defined to make it impossible to add or modify revenue budget lines for change orders of
this class.
3. Specify the following settings in the Summary area:
• Project: WESTBBQ3
• Description: An adjustment to the WESTBBQ3 project
4. On the table toolbar of the Change Requests tab, click Select Change Requests to add a change request to
the change order.
5. In the Select Change Requests dialog box, which opens, select the change request with the Additional time
for site review and installation description by selecting the check box in the unlabeled column, and click Add
Change Requests & Close.
6. Review the details of the change order, and make sure the following information has appeared in the
change order:
• On the Cost Budget tab, the system has added two lines based on the estimation lines of the change
request.
• On the Commitments tab, the system has added a line with the New Document status for the installation
service based on the estimation line of the change request with the Create Commitment check box
selected.
• In the Summary area, the Cost Budget Change Total is 200 and the Commitment Change Total is 160.
• In the Summary area, the Revenue Budget Change Total is 0 because the change order makes no
changes to the revenue budget of the project.
• In the only line on the Change Requests tab, the change request still has the Open status because the
revenue part of the change request has not been processed yet.
7. Save the change order.
8. On the form toolbar, click Remove Hold to assign the change order the Open status.
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Step 5: Processing the Revenue Part of the Change Requests

Suppose that the agreement with the customer has been reached. To create a revenue change order based on both
change requests, do the following:
1. While you are still viewing the Change Orders (PM308000) form, click Add New Record on the form toolbar,
and specify the following settings in the Summary area:
• Class: EXTERNAL (specified by default)
• Project: WESTBBQ3
• Description: The second adjustment to the WESTBBQ3 project
2. On the table toolbar of the Change Requests tab, click Select Change Requests to add change requests to
the change order.
3. In the Select Change Requests dialog box, which opens, select both change requests you have created by
selecting the check boxes in the unlabeled column; click Add Change Requests & Close.
In the added lines, notice that both change requests have been assigned the Closed status because the
change requests have been fully processed with this change order.
4. Save the change order.
In the Summary area, make sure that the system has assigned a Revenue Change Nbr. to the change order
because the change order makes changes to the revenue budget of the project.
5. On the Cost Budget tab, notice that the system has added a line with 2 hours of training based on the
estimation line of the second change request.
6. On the Revenue Budget tab, make sure that the only line has a Change Request Total Amount of 633.51.
7. On the table toolbar, click View Change Request Details.
8. In the Change Request Details dialog box, which opens, review the change request lines and the markups
that correspond to the selected change order line, as shown in the following screenshot. There are three
estimation lines and eight markup lines that aﬀect the same revenue budget line.
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Figure: Lines of the change request and corresponding markups

9. Close the dialog box.

10.On the form toolbar, click Remove Hold to assign the change order the Open status.

Step 6: Reviewing the Project Budget

To review the project and the related change requests you have processed, do the following:
1. On the Projects (PM301000) form, open the WESTBBQ3 project.
On the Cost Budget and Revenue Budget tabs, notice that the potential change order quantities and
amounts remain the same aer you have created open change orders based on the change requests
because you have not released the change orders yet.
2. On the Change Requests tab, make sure that both change requests have been assigned the Closed status.
In the line with the Additional time for site review and installation description, click the link in the Reference
Nbr. column to open the first change request.
On the Change Requests (PM308500) form, which the system opens in a pop-up window, review the details
of the change request. In the Summary area, make sure that change request has both the Change Order
Nbr. box and the Cost Change Order Nbr. box filled in because the revenue part of the change request has
been processed with a separate change order, whose reference number is shown in the Change Order Nbr.
box.
3. Close the pop-up window, and return to the Projects form with the WESTBBQ3 project opened.
4. On the Change Requests tab, click the link in the Reference Nbr. column in the row with the Additional time
for training description to open the second change request. On the Change Requests form, which opens in a
pop-up window, review the change request. In the Summary area, notice that change request has only the
Processing Change Requests | 307

Change Order Nbr. box filled in (the Cost Change Order Nbr. box is hidden) because both the revenue part
and the cost part of the change request have been processed with a single change order.
5. Close the pop-up window and return to the WESTBBQ3 project on the Projects form.

Step 7: Releasing the Change Orders

To release the change orders, do the following:
1. While still reviewing the project on the Projects (PM301000) form, on the Change Orders tab, open and
release each created order by doing the following:
a. Click the link in the Reference Nbr. column to open the change order.
b. On the form toolbar of the Change Orders (PM308000) form, which opens in a pop-up window, click
Release.
c. Close the pop-up window with the form.
2. On the Projects form (to which you return), press Esc to refresh the form.
On the Change Orders tab, notice that both change orders have been assigned the Closed status.
On the Cost Budget and Revenue Budget tabs, notice that potential change order quantities and amounts
now equal zero. These quantities and amounts have been moved to the budgeted CO quantities and
amounts, which also have resulted in an increase of the revised budgeted quantities and amounts.
3. On the Projects Preferences (PM101000) form, on the General tab (General Settings section), clear
the Internal Cost Commitment Tracking check box, and save your changes to the project accounting
preferences.

Change Requests: Related Report and Forms

In the following sections, you can find details about the reports and forms you may want to review to gather
information about change requests.

Reviewing Change Requests by Project

You can review the list of change requests related to a particular project on the Change Requests tab of the Projects
(PM301000) form.

Reviewing Change Requests by Change Order

You can review the list of change requests related to a particular change order on the Change Requests tab of the
Change Orders (PM308000) form.

Printing of a Change Request

You can print a change requests with any status by clicking Print on the toolbar of the Change Requests
(PM308500) form. The system opens the printable form of the change request, which is project-specific and
specified for the CHANGE REQUEST mailing of the project on the Mailing & Printing tab of the Projects (PM301000)
form. By default, the generated report is the Change Request (PM643500) report, which supports the printing
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of estimation lines of the change request, header-level and line-level notes, and the detailed description of the
change request. You can review the change request and print it.

Change Requests: Configuration of Markups

You can configure markups to charge the customer with each created change request. The following types of
markup can be applied to a change request on the Change Requests (PM308500) form:
• Line-level markups: These markups apply to an individual estimation line on the Estimation tab and aﬀects
the Line Amount value. This type includes the Price Markup (%) and Line Markup (%).
• Document-level markups: These markups apply to the total line amount of the change request on the
Markups tab.
You can define one or several markups of this type for the change request as well as define no markups. A
document-level markup is applied to a change request only if all the key attributes of a project budget line—
project task, account group, and optionally inventory item—are defined for the markup on the Markups tab.
You can override all markups and delete document-level markups at the change request level.

Line-Level Markups
A price markup is an item-specific markup. When you select an inventory item in an estimation line on the
Estimation tab of the Change Requests (PM308500) form, the markup percent specified for the item is retrieved as
the Price Markup (%) value. You can specify the price markup for the item on the Price/Cost tab of the Stock Items
(IN202500) form or on the Price/Cost tab of the Non-Stock Items (IN202000) form. If no price markup is specified
for the item, the system uses the default price markup specified in the Default Price Markup, % box (Markup
section) on the General tab of the Projects Preferences (PM101000) form. If no default price markup is specified in
the project accounting preferences, the price markup of the estimation line is zero.
A line markup is defined at the account group level. When you select an account group in an estimation line in the
Account Group column on the Estimation tab of the Change Requests form, the default markup specified for the
account group is retrieved as the Line Markup (%) value. You can specify the default line markup for the account
group on the Settings tab of the Account Groups (PM201000) form. If no default markup is specified in the account
group, the line markup of the estimation line is zero.
The line amount of an estimation line considers the line-level markups and is calculated as follows:
Unit Price = Unit Price + Unit Price * Price Markup (%) / 100
Ext. Price = Quantity * Unit Price
Line Amount = Ext. Price + Ext. Price * Line Markup (%) / 100

Document-Level Markups
A document-level markup applies to the total line amount of a change request. On the Markups tab of the Change
Requests (PM308500) form, for a change request, you can define any number of document-level markups of the
following types as well as define no markups:
• %: A markup whose amount is calculated as follows:
Markup Amount = Line Total * % Markup Value / 100
You can define as many markups of this type as necessary.
• Cumulative %: A markup whose amount is calculated as follows:
Markup Amount = (all the previously applied % markups) * Cumulative % Value /
100
A markup of this type requires at least one markup of the % type.
Processing Change Requests | 309

• Flat Fee: A markup whose amount is specified manually to be added to the total markup.
You can define as many markups of this type as necessary.
A document-level markup is applied to a change request only if all the project budget key attributes—project task,
account group, and optionally inventory item—are defined for the markup on the Markups tab of the Change
Requests form.

A change request inherits document-level markup from the project that you can define on the Defaults tab
(Document Markups table) of the Projects (PM301000) form. The project inherits document markups from the
General tab (Markup section) of the Projects Preferences (PM101000) form.

Change Requests: Limitations to Processing Change Orders

The following limitations apply to processing of a change order with the related change requests linked to the
change order on the Change Orders (PM308000) form:
• You cannot delete a change order that has any number of linked change requests. To be able to delete such
a change order, you should first unlink all the change requests related to the change order.
You can unlink a change request from the change order selected on the Change Requests tab of the Change
Orders form by deleting the line with the change request.
• You cannot unlink a change request from a cost change order if the change request is also linked to a
revenue change order. You must unlink the change request from a revenue change order first.
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Tracking Cost Commitments

If you need to control purchases on projects by project budget lines, you can process purchase orders by project as
project cost commitments. The topics of this chapter explain how you can prepare and process commitments.

Committed Costs: General Information

Acumatica ERP supports the tracking of purchase orders for each project as project cost commitments, which gives
you the ability to control purchases made for projects. When the commitments are created, the system uses them
to populate the cost budget for the corresponding project, project task, inventory item, and account group.

Learning Objectives
In this chapter, you will learn how to do the following:
• Enable tracking of project commitments in the system
• Create commitments by creating a purchase order for a project
• Review how the commitments aﬀect the project cost budget during the processing of the purchase order

Applicable Scenarios
You enable commitment tracking if you want to distinguish purchases within the cost budget of a project.
When you process a purchase order with detail lines related to the project, the system tracks this purchase as a
commitment to the project and updates the cost budget of a project with purchased services and materials. The
commitment values are shown in separate columns in the cost budget.

Tracking of Committed Costs for Projects

If the Internal Cost Commitment Tracking check box is selected on the General tab (General Settings section) of
the Projects Preferences (PM101000) form, the system tracks project-related purchase orders as commitments to
these projects and exposes these commitments on the Commitments (PM306000) form.

If the Construction feature is enabled on the Enable/Disable Features (CS100000) form, the system
also tracks subcontracts as commitments to projects. For more information about processing
subcontracts, see Subcontracts: General Information.

The system creates a commitment for a purchase order line in the amount of the Ext. Cost of the line and updates
the committed values of the corresponding budget line of a project on the Cost Budget tab of the Projects
(PM301000) form if all of the following conditions are met on the Purchase Orders (PO301000) form:
• The type of the purchase order is Normal, Drop-Ship or Project Drop-Ship.
• The status of the purchase order is Pending Printing, Pending Email, or Open.
• The purchase order line specifies the project and the applicable project task (and, optionally, cost code).
On the Cost Budget tab of the Projects form, for each budget line, the system displays the total values of all the
commitments that are associated with the same project, project task, account group, and inventory item. The
system tracks the following committed values of the project budget on the Cost Budget tab of the Projects form:
• Original committed quantity and amount
• Revised committed quantity and amount
• Committed open quantity and amount
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• Committed received quantity

• Committed invoiced quantity and amount
The initial commitment amount is displayed in the Original Committed Amount column and the Revised
Committed Amount column. The Committed Open Amount of a new commitment is equal to the Revised
Committed Amount.
When you release an accounts payable bill with the purchase order lines of the Service type, the Committed
Invoiced Quantity and Committed Invoiced Amount of the corresponding commitments are updated with the
Quantity and Ext. Cost values of the bill lines, respectively. The Committed Invoiced Quantity and Committed
Invoiced Amount are subtracted from the Committed Open Quantity and Committed Open Amount and added
to the Actual Quantity and Actual Amount, respectively.
When an inventory receipt that corresponds to the purchase receipt with the purchase order lines of the Goods for
IN or Non-Stock type is released, the Committed Received Quantity of the corresponding commitments is updated
with the received quantity. The received quantity and the amount of the Ext. Cost of the related purchase order
lines that correspond to the received quantity are subtracted from the Committed Open Quantity and Committed
Open Amount and added to the Actual Quantity and Actual Amount, respectively. When the purchase order
lines of the Goods for IN or Non-Stock type are billed, the Committed Invoiced Quantity and Committed Invoiced
Amount of the corresponding commitments are updated with the Quantity and Ext. Cost values of the bill lines,
respectively.
Aer a purchase order line is assigned the closed status, the Committed Open Quantity and Committed Open
Amount of the corresponding commitment become zero. If a purchase order has been canceled, the incomplete
amounts are subtracted from the Committed Open Amount.

Workflow of Commitments
The following diagram illustrates the workflow of processing a commitment and the ways the commitment aﬀects
the project budget.
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Committed Costs: Implementation Checklist

The following sections provide details you can use to ensure that the system is configured properly for processing
cost commitments on projects, and to understand (and change, if needed) the settings that aﬀect the processing
workflow.

Implementation Checklist
We recommend that before you initially process cost commitments, you make sure the needed features have been
enabled, settings have been specified, and entities have been created, as summarized in the following checklist.
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Form Tasks to Perform

Also, make sure that the Internal Cost Commitment

Tracking check box is selected on the General tab
(General Settings section).

Account Groups (PM201000) form Make sure that all needed account groups have been
configured. For more information about account
groups, see Account Groups: General Information.

Enable/Disable Features (CS100000) form Make sure that the Inventory and Order Management
and Inventory features are enabled.

Multiple forms Make sure that the basic inventory and order manage-
ment preferences have been configured, as described
in Configuration of Order Management: General Informa-
tion.

Projects (PM301000) form Make sure that the project has been created, as de-
scribed in Project Creation and Processing: General In-
formation.

Also, make sure that the following accounts are

mapped to account groups:
• The expense account of the item specified in the
Expense Account box on the GL Accounts tab of
the Non-Stock Items form
• The expense account of the corresponding post-
ing class specified in the COGS/Expense Account
box on the GL Accounts tab of the Posting Classes
form if the non-stock item requires receipt—that is,
the Require Receipt check box is selected on the
General Settings tab (Item Defaults section) of the
Non-Stock Items form
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Form Tasks to Perform

Stock Items (IN202500) form Make sure that all stock items have been defined. For
more information about stock items, see Stock Item
Creation: General Information.

Also, make sure that the following accounts are

mapped to account groups:
• The COGS account of the item specified in the
COGS Account box on the GL Accounts tab of the
Stock Items form
• The inventory account of the corresponding post-
ing class specified in the Inventory/Accrual Ac-
count box on the GL Accounts tab of the Posting
Classes (IN206000) form

Warehouses (IN204000) form Make sure that a separate location is created and asso-
ciated with each project task for which you need to re-
ceive inventory items to a warehouse. For details, see
Warehouse Locations and Single-Step Transfers: Gener-
al Information.

Vendors (AP303000) form Make sure that all needed vendors have been defined
in the system, as described in Vendors: General Infor-
mation.

Also, make sure that the expense account of the ven-

dor specified in the Expense Account box on the GL
Accounts tab is mapped to an account group.

Other Settings That Aﬀect the Workflow

You can aﬀect the workflow of processing commitments by specifying additional settings as follows:
• To change the format of purchase order identifiers, adjust the POORDER numbering sequence on the
Numbering Sequences (CS201010) form or create a new numbering sequence and select this sequence
in the Regular Order Numbering Sequence box on the General tab of the Purchase Orders Preferences
(PO101000) form. For more information on numbering sequences, see Use of Numbering Sequences.

If the Require Single Project per Document check box is selected on the Accounts Payable
Preferences (AP101000) form, a user can create purchase orders by using the Create
Purchase Orders button on the Commitments tab of the Projects (PM301000) form only if the
numbering sequence that is used for numbering purchase orders is auto-numerated.

• To cause the system to automatically select a project task when a particular project is selected during the
creation of a purchase order, select the Default check box on the Tasks tab of the Projects (PM301000) form
for one of the tasks of the project.
• To avoid obligatory printing of created purchase orders, clear the Print Orders check box on the Purchase
Settings tab (Default Location Settings section) of the Vendors (AP303000) form for all applicable vendors.
(A user can still print any purchase order of the vendor, if needed.)
• To avoid obligatory emailing of created purchase orders, clear the Send Orders by Email check box on the
Purchase Settings tab (Default Location Settings section) of the Vendors form for all applicable vendors.
(A user can still email any purchase order of the vendor, if needed.)
Tracking Cost Commitments | 315

• To cause the system to automatically release inventory receipts created on release of purchase receipts,
select the Release IN Documents Automatically check box on the General Settings tab (Other section) of
the Purchase Orders Preferences PO101000 form.
• To cause the system to create purchase receipts with the Balanced status, clear the Hold Receipts On Entry
check box on the General tab (Other section) of the Purchase Orders Preferences form.
• To cause the system to not copy non-stock lines of the Service type in purchase orders of the Normal type
to purchase receipts and bill such lines directly from purchase orders, clear the Process Service Lines
from Normal Purchase Orders via Purchase Receipt check box on the General tab (Other section) of the
Purchase Orders Preferences form.
• To cause the system to not copy non-stock lines of the Service type in purchase orders of the Drop-Ship type
to purchase receipts and bill such lines directly from purchase orders, clear the Process Service Lines from
Drop-Ship Purchase Orders via Purchase Receipt check box on the General tab (Other section) of the
Purchase Orders Preferences form.
With these settings specified, users in your company can process commitments quickly and accurately with a
minimum of manual actions.

Validation of Configuration
To make sure that all configuration has been performed correctly, we recommend that you perform instructions
similar to those described in Committed Costs: Process Activity.

Committed Costs: Process Activity

This activity will walk you through the creation of a purchase order for a project and tracking this purchase order as
a commitment to the project cost budget.

Story
Suppose that the HM's Bakery and Cafe customer has ordered the installation of three juicers it previously
purchased from the SweetLife Fruits & Jams company. Acting as SweetLife's project accountant, you have created
a project related to the planned installation work. The installation, which is performed by the vendor of the juicers,
has been provided for each juicer. Based on the agreement with the vendor, your company will be billed in two
parts—that is, first for the installation of the first two juicers and then for the installation of the third juicer. Acting
as the project accountant, you need to capture the installation cost on the project.

Configuration Overview
In the U100 dataset, the following tasks have been performed for the purposes of this activity:
• The following features have been enabled on the Enable/Disable Features (CS100000) form:
• Project Accounting, which provides support for the project accounting functionality
• Inventory and Order Management, which provides the purchase order functionality
• On the Projects (PM301000) form, the HMBAKERY8 project has been created and the INSTALL project task has
been created for the project. This task is the default project task.
• On the Non-Stock Items (IN202000) form, the INSTALL non-stock item has been configured. On the Price/Cost
tab (Standard Cost section), the Current Cost of the item has been set to 80.00. On the GL Accounts tab, the
54200 - Project Subcontract Expense account has been specified as the Expense Account.
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• On the Account Groups (PM201000) form, the SUBCON account group has been created. The 54200 - Project
Subcontract Expense account has been mapped to the account group.
• On the Vendors (AP303000) form, the SQUEEZO vendor has been created.

Process Overview
In this activity, you will create a purchase order on the Purchase Orders (PO301000) form with lines related to the
project. You will then create a partial bill for the purchase order and release the bill on the Bills and Adjustments
(AP301000) form.
Finally, you will review how the processed commitments aﬀect the project budget on the Projects (PM301000) form.

System Preparation
To sign in to the system and prepare to perform the instructions of the activity, do the following:
1. Launch the Acumatica ERP website and sign in as Pam Brawner using the brawner username and 123
password.
2. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to 1/30/2023. If a diﬀerent date is displayed, click the Business Date menu
button, and select 1/30/2023 on the calendar. For simplicity, in this activity, you will create and process all
documents in the system on this business date.
3. On the General tab (General Settings section) of the Projects Preferences (PM101000) form, select the
Internal Cost Commitment Tracking check box to expose commitments and committed values in the
project budget, and save your changes to the project accounting preferences.

System Preparation
To prepare to perform the instructions of the activity, do the following:
1. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to 1/30/2023. If a diﬀerent date is displayed, click the Business Date menu
button, and select 1/30/2023 on the calendar. For simplicity, in this activity, you will create and process all
documents in the system on this business date.
2. On the General tab (General Settings section) of the Projects Preferences (PM101000) form, select the
Internal Cost Commitment Tracking check box to expose commitments and committed values in the
project budget, and save your changes to the project accounting preferences.

Step: Creating Commitments for the Project

To process a purchase order for the project that updates the project budget with committed values, do the
following:
1. On the Projects (PM301000) form, open the HMBAKERY8 project, and on the Cost Budget tab, review the cost
budget of the project. Because you have enabled the tracking of cost commitments, the table now contains
additional columns for the original committed, revised committed, committed received, committed
invoiced, and committed open values. On the Cost Budget tab, notice the committed and actual values of
the cost budget line, which are both zero.
2. On the Purchase Orders (PO301000) form, create a purchase order, and specify the following settings in the
Summary area:
• Vendor: SQUEEZO
• Description: Purchase for HM's Bakery & Cafe
• Date: 1/30/2023
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3. On the Details tab, add three purchase order lines, and specify the settings shown in the following table in
the lines you add.

Inventory ID Line Description Order Qty. Project Cost Code

INSTALL Installation of the 3 00-00HMBAK-
first juicer ERY80

INSTALL Installation of the 4 HMBAKERY8 00-000

second juicer

INSTALL Installation of the 5 HMBAKERY8 00-000

third juicer

The system automatically selects the INSTALL project task when you select the project of the
line because this task is the default task of the HMBAKERY8 project.

4. Make sure the Ext. Cost of the added lines is equal to 240.00, 320.00, and 400.00, respectively, which will be
the cost committed to the project.
5. In the Summary area, make sure that the Order Total value, which is the sum of the Ext. Cost values of the
three lines, is 960.00, and save the purchase order.
6. On the form toolbar, click Remove Hold. The system assigns the purchase order the Open status.
When the Open status is assigned to the purchase order, the system creates the commitments for the
project.
7. On the Projects form, open the HMBAKERY8 project, and on the Cost Budget tab, review the updated cost
budget line.
Notice that the committed quantities and amounts of the cost budget line have been updated and the
Original Committed Amount, Revised Committed Amount, and Committed Open Amount columns
contain the purchase order total (960.00).
8. On the table toolbar, click View Commitment Details to review the commitments that correspond to the
cost budget line on the Commitments (PM306000) form, which the system opens in a pop-up window. Notice
that the system has created a commitment for each purchase order line and that all the commitments
correspond to one cost budget line.
9. Close the pop-up window and return to the Projects form with the HMBAKERY8 project.
10.On the Commitments tab, click the link in the Order Nbr. column to open the purchase order that you have
created earlier in this activity.
11.On the More menu of the Purchase Orders form, which the system opens, click Enter AP Bill to create a bill
for the purchase order.
The system creates an accounts payable bill and opens the bill on the Bills and Adjustments (AP301000) form.
12.On the Details tab of this form, delete the line with the Quantity of 5.00 to bill the purchase order partially,
as your company agreed on with the vendor.
When you delete the line, the amount in the Detail Total box in the Summary area becomes 560.00.
13.On the form toolbar, click Remove Hold to assign the bill the Balanced status, and then click Release to
release the bill.
14.Return to the Projects form with the HMBAKERY8 project, press Esc to refresh the form, and review the
updated cost budget on the Cost Budget tab.
Notice that the billed quantity and amount (7.00 and 560.00, respectively) of the purchase order have
been subtracted from the committed open quantity and amount, which is now equal to 5.00 and 400.00,
respectively. The billed quantity and amount have been added to the committed invoiced quantity and
Tracking Cost Commitments | 318

amount, to the actual quantity and amount, and to the received committed quantity, as shown in the
following screenshot.

Figure: Committed values of the project cost budget

15.On the General tab (General Settings section) of the Projects Preferences (PM101000) form, clear the
Internal Cost Commitment Tracking check box, and save your changes to the project accounting
preferences.

You have processed the commitment to the project.

Committed Costs: Generated Transactions

When you process a purchase order from which commitments originate, you create purchase receipts and accounts
payable bills. On release of the inventory receipt associated with the purchase receipt or the AP bill associated with
the purchase order, the system generates the GL and project transactions described in the following sections.

GL Transactions Generated on Inventory Receipt Release

Account Source of Account Debit Credit

PO accrual account Item 0.00 Amount

Inventory/expense account Posting class of the Amount 0.00

item

On the Financial tab of the Receipts (IN301000) form, you can click the link in the Batch Nbr. box to view the details
of the batch on the Journal Transactions (GL301000) form.

Project Transaction Generated on Inventory Receipt Release

When a batch of general ledger transactions created on release of the inventory receipt is released, the system
generates the project transaction shown in the following table.
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Debit Account Credit Account Source of Account Amount

Inventory/expense ac- Empty GL transaction Amount

count

You can review the created project transaction on the Project Transaction Details (PM401000) form. In the Selection
area of this form, you select the project in the Project box.

GL Transactions Generated on AP Bill Release

When an accounts payable bill prepared for a service line of a purchase order is released, the system creates a
batch of the general ledger transactions shown in the following table.
The system uses the following accounts as the source accounts in the GL batch it creates:

Account Source of Account Debit Credit

Accounts payable account Vendor 0.00 Amount

Expense account Item Amount 0.00

Project Transaction Generated on AP Bill Release

When a batch of general ledger transactions is created on release of an accounts payable bill, the system also
generates the project transaction shown in the following table.

Debit Account Credit Account Source of Account Amount

Expense account Empty GL transaction Amount

You can review the created project transaction on the Project Transaction Details (PM401000) form. In the Selection
area of this form, you select the project in the Project box. In the table, you can find the project transaction created
on release of the accounts payable bill by the reference number of the AP bill in the Orig. Doc. Nbr. column.

Committed Costs: Related Reports and Forms

In the following sections, you can find details about the reports and forms you may want to review to gather
information about commitments.

Reviewing Commitments of a Project

You can review the list of commitments on the Commitments (PM306000) form. In the Selection area of this form,
you select a project to review all the corresponding project commitments. You can filter the selected transactions
by selecting a project task, account group, and inventory item in the Selection area.

Reviewing Commitments of a Project Budget Lines

You can review the list of commitments corresponding to a project budget line with nonzero committed values on
the Cost Budget tab of the Projects (PM301000) form. To review the corresponding commitments of a line, you click
the line; then on the table toolbar, you click View Commitment Details, and the system opens the Commitments
(PM306000) form.

Reviewing Commitments by Account Groups

You can review the project budget broken down by account groups on the Balances tab of the Projects (PM301000)
form. To review the corresponding commitments of an account group, you click a line on this tab; then on the table
toolbar, you click View Commitment Details, and the system opens the Commitments (PM306000) form.

Reviewing Purchase Orders Related to a Project

You can review the list of purchase orders from which the commitments related to a project originate on the
Commitments tab of the Projects (PM301000) form.

Retrieving Committed Data for Analytical Reports

The commitment data is available in the analytical reports and aggregated by the following key fields of a project
budget line:
• Project ID: The project
• Project Task ID: The project task
• Account Group ID: The account group
• Inventory ID: The inventory item

Committed Costs: External Commitments

Project commitments that do not originate from purchase orders existing in the system have the External
type on the Commitments (PM306000) form, in contrast to those that have the Internal type and originate from
documents created in the system. External commitments can be created regardless of the state of the Internal Cost
Commitment Tracking check box on the Projects Preferences (PM101000) form (which indicates that purchase
orders are tracked by project as cost commitments). You can create external commitments in two ways:
• From scratch on the External Commitments (PM209000) form. To open the form, you click Create External
Commitment on the form toolbar of the Commitments form.
• By importing commitments from an external system into Acumatica ERP for further analysis against budget
and actual figures by using import scenarios on the External Commitments form. Aer the initial import, you
can update imported commitment records as the project proceeds and the system changes the applicable
committed quantities and amount of the project budget.
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Committed Costs: Mass Processing of Documents

This topic explains how to perform mass-processing operations related to project commitments, and how the
system generates, changes, or works with documents as a result of the mass processing.

Mass-Rebuilding Project Commitments

In some cases (for instance, if committed values of the project budget have been modified through external tools
or import scenarios), you may need to rebuild commitments to make committed values match the quantities and
amounts of the purchase orders.
To rebuild commitments, you use the Recalculate Project Balances (PM504000) form. On this form, you select the
Rebuild Commitments check box in the Selection area. You also select the unlabeled check boxes in the rows of
the projects to be processed and click Process on the form toolbar to process the selected projects; alternatively,
you can click Process All to process all the projects shown in the table. For more information, see Project Budget:
Recalculation of the Project Budget.
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Tracking Changes to Commitments

If you need to track changes to the project commitments and control the profitability of every change initiated by a
customer, you use the functionality of change orders. In this chapter, you will learn more about how change orders
are used with commitments if internal cost commitment tracking is used in the system.

Change Orders for CommitmentsNegative CommitmentsChange Orders for

Commitments: General Information

By using the change order functionality in Acumatica ERP, you can manage changes to a project's committed
values if the commitment functionality has been configured for project accounting. For more information on
commitments, see Committed Costs: General Information.

Learning Objectives
In this chapter, you will learn how to do the following:
In this lesson, you will learn how to do the following:
• Create a change order class for tracking commitments
• Update cost commitments with a change order
• Review the changes to the project budget that have been made with change orders
• Make changes to closed commitments

Applicable Scenarios
You turn on the change order workflow for a project and enable commitment tracking if you want to distinguish
purchases within the cost budget of a project, control changes made to the committed values of the project budget,
and track these changes at the budget level. To make changes to the project budget, you create change orders,
which do not alter the original committed values.

Configuration of a Change Order Class

If the Internal Cost Commitment Tracking check box is selected on the General tab (General Settings section)
of the Projects Preferences (PM101000) form, the system exposes commitments on the Commitments (PM306000)
form. To allow users to make changes to commitments, you configure a change order class on the Change Order
Classes (PM203000) form. On the Details tab of this form, you select the Commitments check box to allow changes
to committed values.
You can grant access rights to particular change order classes for particular users. For example, you can
configure access rights so that an employee responsible for purchases can use only a change order class with the
Commitments check box selected on the Details tab of the Change Order Classes form. This class of change orders
will have only the Commitments tab on the Change Orders (PM308000) form, and the employee will not be able to
adjust the revenue or cost budget of a project by using change orders.

Change Orders for Project Commitments

You can track changes to project commitments that have been created based on subcontracts or purchase orders
that have the Normal and Project Drop-Ship type and that have been processed for a project.
Tracking Changes to Commitments | 323

Subcontracts are available in the system if the Construction feature is enabled on the Enable/
Disable Features (CS100000) form. For more information about the processing of subcontracts, see
Subcontracts: General Information.

On the Change Orders (PM308000) form, in a change order with the On Hold status, you can process the following
changes to a project's committed values:
• Creating a new purchase order for a project
• Adding a new line to an existing purchase order
• Adjusting an existing purchase order by adding a new negative line
• Making an addition to or deduction from an existing purchase order with a positive or negative amount

The amount of a negative change order line may not exceed the Line Total amount of the
purchase order.

• Making an addition to or deduction from an existing purchase order line with a positive or negative amount

The quantity and amount of a negative change order line may not exceed the received or billed
quantities and amounts of the purchase order.

• Reopening a purchase order or subcontract

When you release the change order, based on the Quantity and Amount of a commitment line on the
Commitments tab of the Change Orders form, the system updates the related purchase order or creates a new
one, depending on the type of the commitment line, and updates the Committed CO Quantity and Committed CO
Amount of the corresponding cost budget line of the project on the Projects (PM301000) form.
For information on how to make changes to closed commitments, see Change Orders for Commitments:
Commitment Reopening.

Workflow of Managing Changes to Commitments

The following diagram illustrates the workflow of managing changes to commitments.
Tracking Changes to Commitments | 324

Update of a Purchase Order when a Change Order Is Released

When a change order is released, the system updates or creates purchase order or orders on the Purchase Orders
(PO301000) form based on the commitment lines of the change order—that is, the lines on the Commitments tab
of the Change Orders (PM308000) form—as follows:
• If a commitment line of the change order has the Update, the system updates the following columns of the
corresponding purchase order line on the Details tab of the Purchase Orders form, with the column values
computed as noted:
• Order Qty.: The original Order Qty. of the purchase order line, plus (or minus) Quantity of the
corresponding commitment line of the change order.
• Ext. Cost: The original Ext. Cost of the purchase order line, plus (or minus) Amount of the corresponding
commitment line of the change order.
• Requested: The Order Date of the corresponding commitment line of the change order.
• Completed and Closed check boxes: Cleared
• Canceled check box: Cleared, except for the following case.
In a purchase order line, the Order Qty. of lines with stock items cannot be equal to zero. If a change
order line with the negative amount is applied to a purchase order line with the stock item so that the
resulting quantity must be zero, the system does not change the Order Qty., sets the Unbilled Qty. to
zero, and selects the Canceled check box in the line to indicate that this line was canceled.
• If a commitment line of the change order has the New Line status, the system adds a new line with the
following column values to the Details tab of the Purchase Orders form of the corresponding purchase
order:
• Order Qty.: Quantity of the corresponding commitment line of the change order
• Ext. Cost: Amount of the corresponding commitment line of the change order
• Requested: Order Date of the corresponding commitment line of the change order
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• If any commitment lines of the change order have the New Document status, the system groups these lines
by vendor and creates a new purchase order on the Purchase Orders form for each vendor with key settings
determined as follows:
• The date of the created purchase order is the earliest Order Date of the commitment lines of the change
order.
• The Requested date of each purchase order line is the Order Date of the corresponding commitment
line of the change order.
• The description of the created purchase order is Change Order #CONumber, where CONumber is
the reference number of the change order.

Update of the Project Budget when a Change Order Is Released

For each purchase order line on the Purchase Orders (PO301000) form updated by a change order, the system
updates the corresponding project commitment. For each purchase order line created from a change order, the
system creates a new project commitment. If the project has a cost budget line with the same project task, account
group, and inventory item on the Cost Budget tab of the Projects (PM301000) form as an updated or newly created
purchase order line, the system updates the cost budget line of the project. Otherwise, the system creates a new
cost budget line for the project based on the commitment. The Original Committed Quantity and Original
Committed Amount of the updated cost budget line remain the same, whereas other columns on the Cost Budget
tab of the Projects form are updated with the column values computed as noted:
• Revised Committed Quantity: Order Qty. of the purchase order line
• Revised Committed Amount: Ext. Cost of the purchase order line
• Committed CO Quantity: Revised Committed Quantity minus Original Committed Quantity
• Committed CO Amount: Revised Committed Amount minus Original Committed Amount
• Committed Open Amount: Open Amount of the purchase order line

Change Orders for Commitments: Commitment Reopening

In some situations, you may need to make changes directly to the purchase order or subcontract that have already
been completed, or canceled. The following sections describes how you can reopen project commitments to be
able to make changes to them.

Reopening a Commitment Not Linked to a Change Order

If a commitment has no related change orders and you do not want to track the change separately, you can reopen
the commitment and modify it directly, as follows:
• To make changes to a purchase order with the Canceled, Completed, or Closed status, you open it on the
Purchase Orders (PO301000) form and on the More menu, click Reopen Order. The system assigns the order
the On Hold status and makes it available for editing.
• To make changes to a subcontract with the Canceled or Closed status, you open it on the Subcontracts
(SC301000) form and on the More menu, click Reopen Order. The system assigns the subcontract the On
Hold status and makes it available for editing.
If you need to make a change to the commitment and be able to track it, you need to create a change order for this
commitment.

Reopening a Commitment Linked to a Change Order

If a commitment has at least one related change orders, you cannot reopen it directly on the Purchase Orders form
or Subcontracts form.
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You reopen a purchase order or subcontract linked to a change order by creating a change order with zero amount
and adding the purchase order or subcontract to it on the Commitments tab of the Change Orders (PM308000)
form. For the commitment lines of a change order with zero amount, the system sets the Reopen status to indicate
that no line amounts will be aﬀected. When the change order is released, the system assigns the purchase order
or subcontract the Open, Pending Printing, or Pending Email status. Also, the system clears the check boxes in the
Completed, Closed, and Canceled columns of the corresponding lines on the Details tab of the Purchase Orders
form or Subcontracts form.

Change Orders for CommitmentsNegative CommitmentsChange Orders for

Commitments: To Create a Change Order Class

This activity will walk you through the process of configuring a change order class.

Story
Suppose that you, as the system administrator of the SweetLife Fruits & Jams company, need to configure a change
order class to be used by a purchase manager for creating change orders for project commitments. The change
order class must prevent users from changing the revenue and cost budgets of a project.

Configuration Overview
For the purposes of this activity, the following features have been enabled on the Enable/Disable Features
(CS100000) form:
• Project Accounting, which provides support for the project accounting functionality
• Construction, which provides support for the construction functionality
• Change Orders, which gives you the ability to track changes to projects with change orders

Process Overview
You will configure a change order class on the Change Order Classes (PM203000) form.

System Preparation
Launch the Acumatica ERP website, and sign in as the system administrator by using the gibbs username and the
123 password.

System Preparation
To prepare to perform the instructions of this activity, sign in to the system as the system administrator by using the
gibbs username and the 123 password.

System Preparation
To prepare to perform the instructions of this activity, sign in to the system as the system administrator by using the
gibbs username and the password provided in the class.
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Step: Configuring a Change Order Class

To configure a change order class that will be used for creating change orders for project commitments, perform
the following instructions:
1. On the Change Order Classes (PM203000) form, create a new record.
2. In the Summary area, enter the following settings:
• Class ID: COMMITMENT
• Description: Change orders to commitments
Notice that the Active check box is selected by default.
3. On the Details tab, clear the Cost Budget and Revenue Budget check boxes, and leave the Commitments
check box selected. With these settings, for the change orders with this class selected, users can make
changes to only commitments without the cost and revenue budgets being aﬀected.
4. Save the change order class you have created.

You have defined a change order class that can be used for creating change orders that aﬀect project
commitments.

Change Orders for Commitments: Process Activity

In this activity, you will learn how you can track changes to project commitments with change orders.

Story
Suppose that the HM's Bakery and Cafe customer has ordered the services of installation and employee training
on operating the previously bought juicer from the SweetLife Fruits & Jams company. The project accountant
of SweetLife has created the project in Acumatica ERP and ordered the following services from the Squeezo Inc.
vendor:
• Three hours of juicer installation
• Eight hours of training on operating the juicer
The vendor has provided the services. Acting as the project accountant, you will create a purchase order with both
of the provided services in the appropriate quantities. You will then receive the invoice from the vendor and realize
that the quantity of the provided services diﬀers from the quantity of the ordered services as follows:
• An hour of an additional service, the site review, was provided.
• The vendor also provided and installed a feeder basket for the juicer.
• The installation took one hour more than the ordered quantity.
• The training took two hours less than the ordered number of hours.
Per the agreement with the vendor, you will adjust the provided services within the created purchase order and
create a new purchase order for the feeder basket.

Configuration Overview
In the U100 dataset, the following tasks have been performed for the purposes of this activity:
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• On the Enable/Disable Features (CS100000) form, the following features have been enabled:
• Project Accounting, which provides support for the project accounting functionality
• Change Orders, which gives you the ability to manage changes to the project’s budgeted and committed
values
• Inventory and Order Management feature, which provides the functionality of purchase orders
• On the Projects (PM301000) form, the HMBAKERY12 project has been created and the INSTALL project task
has been created for the project. This project task is also the default task of the project. On the Summary
tab of the form (Project Properties section), the Change Order Workflow check box is selected for the
project so that users can track all the changes to the budgeted values by using change orders.
• On the Non-Stock Items (IN202000) form, the SITEREVIEW, INSTALL, and TRAINING non-stock items have been
defined.
• On the Stock Items (IN202500) form, the BASKET stock item has been defined.
• On the Vendors (AP303000) form, the SQUEEZO vendor has been created.

Process Overview
In this activity, you will create a purchase order on the Purchase Orders (PO301000) form. On the Commitments
(PM306000) form, you will review the commitments that the system has made to the project based on the purchase
order. You will also review the corresponding committed values of the project budget on the Projects (PM301000)
form. On the Change Orders (PM308000) form, you will create a change order to adjust the created commitments.
You will then modify and process the created change order on the Change Orders form.

System Preparation
To sign in to the system and prepare to perform the instructions of the activity, do the following:
1. As a prerequisite to the current activity, perform the Change Orders for CommitmentsNegative
CommitmentsChange Orders for Commitments: To Create a Change Order Class activity to configure the
change order class for commitments.
2. Launch the Acumatica ERP website and sign in as Pam Brawner using the brawner username and 123
password.
3. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to 1/30/2023. If a diﬀerent date is displayed, click the Business Date menu
button, and select 1/30/2023 on the calendar. For simplicity, in this activity, you will create and process all
documents in the system on this business date.
4. Open the Projects Preferences (PM101000) form, and on the General tab (General Settings section), select
the Internal Cost Commitment Tracking check box to expose commitments and committed values in the
project budget, and save your changes to the project accounting preferences.

System Preparation
To prepare to perform the instructions of the activity, do the following:
1. Sign in to the system as Pam Brawner using the brawner username and 123 password.
2. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to 1/30/2023. If a diﬀerent date is displayed, click the Business Date menu
button, and select 1/30/2023 on the calendar. For simplicity, in this activity, you will create and process all
documents in the system on this business date.
Tracking Changes to Commitments | 329

Step 1: Creating Commitments for the Project

To create a purchase order for the project, which entails the creation of commitments, do the following:
1. On the Purchase Orders (PO301000) form, add a new record.
2. In the Summary area, enter the following settings:
• Vendor: SQUEEZO
• Description: Purchase for HM's Bakery and Cafe
3. On the Details tab, add two purchase order lines, and specify the settings shown in the following table in
the lines you add.

Inventory ID Order Qty. Project Cost Code

INSTALL 3 HMBAKERY12 00-000

TRAINING 8 HMBAKERY12 00-000

The system inserts INSTALL as the project task automatically in each line because this is the
default task of the HMBAKERY12 project.

4. Save the purchase order.

5. On the form toolbar, click Remove Hold. The system assigns the purchase order the Open status and creates
commitments for the project.
6. In the Summary area of the Commitments (PM306000) form, select HMBAKERY12 in the Project box, make
sure the other boxes are cleared, and on the Cost Commitments tab, review commitments that the system
has created when you saved the purchase order with the Open status. There are two commitments:
• The commitment with the INSTALL item and committed original and revised amounts of $240
• The commitment with the TRAINING item and committed original and revised amounts of $320
7. On the Projects (PM301000) form, open the HMBAKERY12 project, and on the Commitments tab, review the
list of purchase orders related to the project. Notice that the project has only one related purchase order,
which is the one you have just created. On the Cost Budget tab, review the original committed values and
the revised committed values. Notice that the original committed quantity of each line equals the revised
committed quantity (8 for the TRAINING item and 3 for the INSTALL item) and the original committed amount
of each line equals the revised committed amount ($320 for the TRAINING item and $240 for the INSTALL
item).
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Step 2: Changing the Project Commitments

To change the project commitments by using a change order, do the following:
1. While you are remaining on the Projects (PM301000) form with the HMBAKERY12 project selected, on the
More menu, click Create Change Order. The system creates a change order and opens it on the Change
Orders (PM308000) form.
2. In the Summary area, specify the following settings:
• Class: COMMITMENT
• Description: Adjustment to the purchase orders from Squeezo Inc.
3. On the Commitments tab, to increase the quantity and amount of an existing line of the purchase order, do
the following:
a. On the table toolbar, click Select Commitments.
b. In the Select Commitments dialog box, which opens, select the unlabeled check box for the line with
the INSTALL inventory item, and click Add Lines & Close.
The system adds the selected purchase order line to the change order and closes the dialog box. Notice
that the status of the added line is Update.
c. In the added line, enter 1 in the Quantity box.
When you update the Quantity value, the system automatically calculates the Amount value ($80) based
on the Unit Cost of the line.
The system also calculates the Potentially Revised Quantity value, which is 4, as the sum of the Order
Qty. and Quantity values (3 + 1), and calculates the Potentially Revised Amount value, which is $320,
as the sum of the Ext. Cost and Amount values ($240 + $80).
4. To decrease the quantity and amount of an existing line of the purchase order, do the following:
a. On the table toolbar, click Select Commitments.
b. In the Select Commitments dialog box, select the commitment with the TRAINING inventory item by
selecting the check box in the unlabeled column, and click Add Lines & Close.
The system closes the dialog box and adds the selected purchase order line to the change order. Notice
that the status of the added line is Update.
c. In the added line, enter -2 in the Quantity column.
When you update the Quantity value, the system automatically calculates the Amount (-$80),
Potentially Revised Quantity (6), and Potentially Revised Amount ($240) values.
5. To add a new line to the existing purchase order, add a commitment line and specify the following settings
for it (see the screenshot below):
• Project Task: INSTALL
• Cost Code: 00-000
• Inventory ID: SITEREVIEW
• Description: Site review
• Quantity: 1
• Unit Cost: 40
• Commitment Nbr.: The reference number of the purchase order

This is the same reference number as in previous two lines.

Notice that the system has assigned the line the New Line status.
Tracking Changes to Commitments | 331

6. To add a new purchase order for the project, add a commitment line, and specify the following settings for
it:
• Project Task: INSTALL
• Cost Code: 00-000
• Inventory ID: BASKET
• Description: Feeder basket
• Quantity: 1
• Unit Cost: 250
• Vendor: SQUEEZO
Notice that the system has assigned the line the New Document status.
7. Save your changes to the change order.
The Commitments Change Total in the Summary area must be equal to $290, as shown in the following
screenshot.

Figure: Changes to project commitments

8. On the form toolbar, click Remove Hold to assign the change order the Open status, and then click Release
to release the change order.
9. On the Purchase Orders (PO301000) form, open the purchase order that you have prepared earlier in this
activity and review how the purchase order that has been modified as follows:
a. On the More menu, notice that the Hold command is unavailable, which means that you cannot put the
purchase order on hold and make changes to the purchase order. This is because the related project has
the change order workflow turned on and the purchase order has a related change order.
b. On the Details tab, make sure the purchase order now contains three lines. In the lines with the INSTALL
and TRAINING inventory items, the updated Order Qty. must be equal 4 and 6, respectively. Also notice
the newly added line with the SITEREVIEW item and a quantity of 1.
c. On the Change Orders tab, make sure that three change order lines related to the purchase order are
displayed.
10.On the Purchase Orders (PO301000) form, open the new purchase order that have been created on release
of the change order.
11.In the Summary area, review the description of the created purchase order, which contains the number of
the change order based on which the purchase order has been created.
12.On the Details tab, make sure that the order has a single line with the BASKET inventory item and a quantity
of 1.
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Step 3: Reviewing the Updated Commitments

To review the commitments that the system has updated based on the change order you have processed earlier in
this activity, do the following:
1. Open the Commitments (PM306000) form.
2. In the Summary area, select HMBAKERY12 in the Project box, make sure that the other boxes are cleared,
and on the Cost Commitments tab, review the commitments that have been updated.
Notice that the commitments that have been updated with the change order have nonzero Committed CO
Quantity and Committed CO Amount values. The Revised Committed Quantity and Revised Committed
Amount values of these commitments also diﬀer from the Original Committed Quantity and Original
Committed Amount values, respectively.

Figure: Project commitments updated with the change order

3. On the Projects (PM301000) form, open the HMBAKERY12 project, and on the Cost Budget tab, review the
updated committed values of the cost budget lines.
Notice that the system has updated the revised committed values that have been calculated as the sum of
the original committed values and committed CO values.
4. On the Commitments tab, make sure that the second purchase order created based on the change order
has appeared in the table.
5. On the General tab (General Settings section) of the Projects Preferences (PM101000) form, clear the
Internal Cost Commitment Tracking check box, and save your changes to the project accounting
preferences.

You have finished processing a change order for the project commitment.
Forecasting Budgets by Periods | 333

Forecasting Budgets by Periods

This chapter describes how to create a budget forecast for a project and how to breakdown the project budget in
the budget forecast by financial periods.

Project Budget Forecasts: General Information

You prepare a budget forecast for a long-term project if you need to break down the structure of the project budget
by financial period. This gives you the ability to compare and analyze monthly budgets versus actual revenue and
expenditures.

Learning Objectives
In this chapter, you will learn how to do the following:
In this lesson, you will learn how to do the following:
• Create a budget forecast for a project
• Add financial periods to the budget forecast
• Distribute budgeted values among the financial periods
• Update the project budget based on the forecast
• Update the financial periods in the forecast based on the updated actual values

Applicable Scenarios
You create a budget forecast for a project if you need to break down the budget structure by financial periods to be
able to control the budget performance by periods.

Creation of the Project Budget Forecast

Each project can have multiple revisions of the budget forecast. For a new project budget forecast, in the Summary
area of the Project Budget Forecast (PM209600) form, you select the project and enter an alphanumeric revision
identifier of the budget forecast, which must be unique within the project. When you enter the revision, the system
automatically fills in the table with the revenue and cost budget lines of the selected project.
In a forecast revision, you distribute the original and revised budget amounts of existing revenue and cost budget
lines among the financial periods in the selected range to estimate planned project revenue and expenses by these
periods.
You can manually add financial periods for a selected budget line of the forecast revision by clicking Add Periods
on the table toolbar and selecting the range of financial periods in the Add Periods dialog box.
You can also make the system automatically add financial periods for all the project budget lines of the forecast
revision listed in the table according to the selection criteria specified in the Summary area. When you click
Generate Periods on the form toolbar, for each line in the table, the system adds financial periods based on the
settings of the project task and related project transactions. For more information on how the system determines
the range of periods to be added, see Project Budget Forecasts: Generation of Periods.
Each financial period added for a project budget line of the forecast revision has quantities and amounts of zero.
You can manually specify the Original Budgeted Quantity, Original Budgeted Amount, Revised Budgeted
Quantity, and Revised Budgeted Amount values for each period of the project budget line.
You can also distribute the original and revised quantities and amounts of project budget lines among period lines
automatically by clicking Generate Forecast on the form toolbar. In the Distribute dialog box, you specify which
Forecasting Budgets by Periods | 334

values the system should distribute, in which columns, and for which budget lines. The distribution function rounds
equally distributed values by using the logarithmic rounding algorithm. For an example of rounding, see Project
Budget Forecasts: Example of Rounding.

For each project budget line with added period lines, the system calculates the following totals in the Original
Budgeted Quantity, Original Budgeted Amount, Revised Budgeted Quantity, and Revised Budgeted Amount
columns:
• Total: The total of the period lines
• Delta: The diﬀerence between the value of the project budget line and the total of the period lines

Processing Project Budget Forecasts

When the actual values of a project are updated, the system automatically updates the actual values of the budget
forecasts of the project. The system calculates the diﬀerences between the revised budgeted values and the actual
values in the Revised Quantity - Actual Quantity and Revised Amount - Actual Amount columns on the Project
Budget Forecast (PM209600) form, so that you can compare the performance of each budget line by period.

If you need to update financial periods of a project budget line of the forecast revision, you click this line in the
table on the Project Budget Forecast form, and on the table toolbar, click Update Forecast Lines. For the selected
line, the system adds the financial periods to which actual values or change order values have been posted for the
corresponding project budget line and that have been missed in the forecast revision.
If you need to update the original and revised budgeted values of the corresponding project budget line on the
Projects form with the delta values of a project budget line of the forecast revision, you click this line of the forecast
revision in the table on the Project Budget Forecast form, and on the table toolbar, click Update Project Budget
Line.
The system allows to restructure the budget of the project and delete the project budget lines for which the
corresponding forecast lines have been created. The changes in the project budget structure aﬀects the project
budget forecast as follows:
• If you delete a project budget line, the corresponding budget forecast lines are not deleted. The system will
keep the forecast and if you restore this project budget line, the forecast for this line will be also restored.
• If you delete a project task along with all the cost budget lines that includes this project task, the
corresponding budget forecast lines are deleted.

Project Budget Forecasts: Implementation Checklist

The following sections provide details you can use to ensure that the system is configured properly for creating
project budget forecasts, and to understand (and change, if needed) the settings that aﬀect the processing
workflow.

Implementation Checklist
We recommend that before you initially create project budget forecasts, you make sure the needed features
have been enabled, settings have been specified, and entities have been created, as summarized in the following
checklist.

Form Tasks to Perform

Enable/Disable Features (CS100000) form Make sure that the Project Accounting and Budget Fore-
cast features are enabled.
Forecasting Budgets by Periods | 335

Form Tasks to Perform

Projects (PM301000) form Make sure that the project has been created, as de-
scribed in Project Creation and Processing: General In-
formation, the project budget is not locked, and the
Change Order Workflow check box is cleared.

Validation of Configuration
To make sure that all configuration has been performed correctly, we recommend that in your system, you create a
project budget forecast by performing instructions similar to those described in Project Budget Forecasts: Process
Activity.

Project Budget Forecasts: Process Activity

This activity will walk you through the process of creating and processing a project budget forecast.

Story
Suppose that the HM's Bakery and Cafe customer has ordered 80 hours of new-employee training on operating
juicers from the SweetLife Fruits & Jams company. SweetLife's project manager has created a project to account for
the provided training.
The project accountant of SweetLife has been asked to prepare a budget forecast by periods to be able to compare
and analyze monthly budgets versus actual costs within the project work breakdown structure. Because the
training will take place in January and February, the project accountant wants to distribute the total budget across
the periods when this work is going to be performed for further review and analysis of budget performance.
Acting as the project accountant, you will create a project budget forecast. Distributing the budget across periods,
you will realize that the budget requires an update. You will update the project budget based on the budget
forecast. When the training takes place, you will update the progress of the project and review the budget forecast.

• On the Project Transactions (PM304000) form, the PM00000020 batch of project transactions related to the
project has been created.

Process Overview
In this activity, you will create the first revision of the budget forecast and generate periods for the revision on the
Project Budget Forecast (PM209600) form. On this form, you will then distribute budgeted amounts by period and
update the project budget based on the distributed values. You will update actual values of the project by releasing
transactions on the Project Transactions (PM304000) form. You will finally update the budget forecast on the Project
Budget Forecast form based on the updated actual values.

System Preparation
Before you begin performing the steps of this activity, perform the following instructions to prepare the system:
1. Download the HMBAKERY13_Project_Transactions file to your computer.
2. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset preloaded; you should
sign in as project accountant by using the brawner username and the 123 password.
3. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to 1/30/2023. If a diﬀerent date is displayed, click the Business Date menu
button, and select 1/30/2023 on the calendar. For simplicity, in this activity, you will create and process all
documents in the system on this business date.
4. Open the Enable/Disable Features (CS100000) form, and on the form toolbar, click Modify.
5. In the Projects group of features, select the Budget Forecast check box to enable the Budget Forecast
feature, which gives you the ability to create budget forecasts for projects.
6. On the form toolbar, click Enable.

Step 1: Creating a Project Budget Forecast and Generating Periods

To create a forecast revision for the project, do the following:
1. On the Projects (PM301000) form, open the HMBAKERY13 project.
On the Revenue Budget and Cost Budget tabs, notice that the project has a single revenue budget line and
a single cost budget line.
2. On the More menu, under Budget Operations, click Project Budget Forecast.
The system opens the Project Budget Forecast (PM209600) form with the HMBAKERY13 project selected in the
Summary area. The project has no budget forecast revision yet, so you need to create a new one.
3. In the Summary area, specify the following settings for the revision:
• Revision: 1
• Description: 2023 budget forecast
When you specify the revision number, the system adds to the revision all the project budget lines. In the
table, the system displays all the cost and budget lines of the forecast revision because All is selected in the
Type box of the Summary area.
4. In the Summary area, select Expense as the Type, and on the form toolbar, click Generate Periods to make
the system add period lines for the cost budget line only.
Notice that the system has added a line with the 01-2023 period. Also, the Total and Delta lines are now
shown.
5. In the table, click the budget line with the LABOR account group, and on the table toolbar, click Add Periods
to add period lines to the selected budget line.
Forecasting Budgets by Periods | 337

6. In the Add Periods dialog box, select 02-2023 in the Period To box, and click OK.
The system closes the dialog box and adds one more period line to the budget line.
7. In the Summary area, select All in the Type box. The system displays in the table all the budget lines of the
forecast revision. As a result, the revenue budget line with the REVENUE account group has again appeared
in the table. Notice that no period lines have been added to the revenue budget line.
8. Save your changes to the forecast revision.

Step 2: Distributing Amounts Across the Periods

To distribute budgeted amounts across periods of the forecast revision, do the following:
1. While you are still viewing the project budget forecast on the Project Budget Forecast (PM209600) form, on
the form toolbar, click Generate Forecast.
2. In the Distribute dialog box, leave the default settings and click OK.
For the budget line with the LABOR account group, which have period lines, the system equally distributes
original and revised budgeted quantities (40) and amounts ($1,600) among period lines.
3. For the 01-2023 period line, adjust the automatically distributed values as follows:
• Original Budgeted Quantity: 30.00
• Original Budgeted Amount: 1200.00
• Revised Budgeted Quantity: 30.00
• Revised Budgeted Amount: 1200.00
Notice the system has calculated values in the Total and Delta lines based on the changes you made. The
total budgeted quantity of the period lines is 70, the total budgeted amount is $2,800, the delta of the
budgeted quantity is 10, and the delta of the budgeted amount is $400.
4. Save your changes to the forecast revision. The original and revised values in the cost budget of the project
have not yet been updated.
5. In the table, click the budget line with the LABOR account group, and on the table toolbar, click Update
Project Budget Line.
The system updates the corresponding budget line of the project with the values from the Total line of the
selected line of the forecast revision. The values in the Delta line become zero and the Delta line disappears
from the forecast.
6. Save your changes to the forecast revision.
7. On the Projects form, open the HMBAKERY13 project.
8. On the Cost Budget tab, notice that the Original Budgeted Quantity and Revised Budgeted Quantity of
the cost budget line are 70 and the Original Budgeted Amount and Revised Budgeted Amount are $2,800.

Step 3: Updating Actual Values of the Project

To upload and process the transactions that represent the training provided within the project, do the following:
1. On the Project Transactions (PM304000) form, add a new record.
2. In the Summary area, specify the following settings:
• Module: PM
• Description: A training for employees of HM's Bakery and Cafe
3. On the table toolbar, click Load Records from File, and upload the transactions from the
HMBAKERY13_Project_Transactions file, which you have downloaded. While you are uploading the
transactions, leave the default column mapping.
Forecasting Budgets by Periods | 338

4. Make sure that the Total Amount in the Summary area is 2,800.00.
Notice that 20 hours of the training were provided in the 01-2023 period, 40 hours were provided in the
02-2023 period, and 10 hours were provided in the 03-2023 period.
5. On the form toolbar, click Save to save the project transaction, and then click Release to release it.
6. On the Project Budget Forecast (PM209600) form, select HMBAKERY13 in the Project box and 1 as the
Revision.
In the table, find the Actual Quantity and Actual Amount columns, and notice that for the project budget
line with the LABOR account group, the values in the Delta line in these columns are highlighted in red. This
means that at least one period for which actual values exist is not displayed in the forecast revision.
7. In the table, click the budget line with the LABOR account group, and on the table toolbar, click Update
Forecast Lines.
The system updates budget line of the forecast revision selected in the table and adds the 03-2023 period
with the actual quantity of 10 and the actual amount of $400.
8. To analyze monthly cost budget versus actual expenses and control the cost budget performance by
periods, for the budget line with the LABOR account group, review the value in the Revised Quantity -
Actual Quantity and Revised Amount - Actual Amount columns for the following financial periods (see the
screenshot below):
• 01-2023: The company provided 10 hours of training less than it was planned.
• 02-2023: The training was performed as it was planned.
• 03-2023: The company provided 10 hours of training more than it was planned.

Figure: Tracking budget performance by periods

9. Save your changes to the forecast revision.

You have finished creating a forecasting budget for the project for the specified periods.

Project Budget Forecasts: Generation of Periods

For a forecast revision selected on the Project Budget Forecast (PM209600) form, you can make the system
automatically add financial periods for all the project budget lines listed in the table according to the selection
criteria specified in the Selection area. When you click Generate Periods on the form toolbar, for each line listed in
the table, the system adds periods of the master calendar in the range of periods that it selects as follows:
• As the starting financial period of the range, the system selects the earliest of the following periods, subject
to the additional conditions specified:
• The financial period to which the Planned Start Date of the project task, which has been specified on
the Project Tasks (PM302000) form, belongs.
Forecasting Budgets by Periods | 339

• The earliest financial period to which actual amounts, including amounts of unreleased transactions, or
change order amounts of the budget lines related to the project task belong.
• The financial period to which the Start Date of the project task, which has been specified on the Tasks
tab of the Projects (PM301000) form, belongs. This option is applicable only if no planned start date is
found for the project task and no actual or change order amount has been posted for the project budget
lines related to the project task.
• The financial period to which the Start Date of the project, which has been specified on the Summary
tab of the Projects form, belongs. This option is applicable only if no start date is found for the project
task.
• As the ending financial period of the range, the system selects the latest of the following periods:
• The financial period to which the Planned End Date of the project task, which has been specified on the
Project Tasks form, belongs
• The latest financial period to which actual amounts, including amounts of unreleased transactions, or
change order amounts of the budget lines related to the project task belong
Each financial period added for a project budget line of the forecast revision has quantities and amounts of zero.

Project Budget Forecasts: Example of Rounding

When the system automatically distributes the quantities and amounts of a project budget line among period
lines, the DistibuteRound distribution function rounds equally distributed values using the built-in logarithmic
rounding algorithm.
The DistibuteRound(value, rowCount) function has the following values as the input parameters:
• value: The quantity or amount of the project budget line to be distributed divided by the rowCount
• rowCount: The number of period lines to distribute the quantity or amount of the project budget line
among
Rounding on a logarithmic scale is accomplished by taking the log of the amount and doing normal rounding to
the nearest value on the log scale. Using the rounded value, which has been calculated, the system calculates the
leover for the last period line.
The following example shows the way the system rounds a distributed amount.
Suppose that the original budgeted amount to distribute is 1,176.00. The number of period lines to distribute the
amount among is five. Thus, rowCount = 5 and value = 1,176.00 / rowCount = 235.2
The DistributeRound function rounds the value and returns 240, which is the nearest number on the log
scale. The leover for the last period line is 1,176.00 - ((rowCount - 1) * 240) = 216.
Thus, the distribution function splits the original budgeted amount among five period lines as follows:
• 240.00: Period lines from the first one to the fourth
• 216.00: The last period line

Project Budget Forecasts: Related Reports and Inquiries

In the following sections, you can find details about the reports and inquiry forms you may want to review to gather
information about project budget forecasts.
Forecasting Budgets by Periods | 340

Navigating to the Last Modified Revision of the Budget Forecast

You can navigate to the last modified revision of the budget forecast of the project by clicking Project Budget
Forecast on the More menu of the Projects (PM301000) form. The system opens the last modified revision of the
project budget forecast on the Project Budget Forecast (PM209600) form. If the project has no budget forecast, a
new budget forecast revision is created for the project.
Reclassifying Project Expenses | 341

Reclassifying Project Expenses

If a project-related accounts payable bill has been released with the wrong information specified, the cost budget
of the corresponding project will be calculated incorrectly. You can reclassify the bill to correct any of the following
data: GL account, subaccount, project, project task, or cost code. You can also change the link to commitment in a
bill line to another commitment.
In this chapter, you will find general information on how to reclassify project expenses, a checklist for system
implementation, report and inquiries that can be useful to find and view related transactions, and the description
of GL transactions and project transactions generated by the system during the reclassification process.

Project Expense Reclassification: General Information

If an accounts payable bill related to a project was released with any incorrect information, you can reclassify this
bill to move the amount to another line of the project budget, or to correct the account or subaccount in a bill line.

Learning Objectives
In this chapter, you will learn how to do the following:
• Perform the reclassification of an AP bill related to a project
• Perform the reclassification of a commitment-related line of an AP bill
• Review the GL and project transactions that are generated on release of a reclassified bill
• Review how the reclassified expense amounts are shown in the project budget

Applicable Scenarios
You may need to reclassify an accounts payable bill related to a project in any of the following cases:
• A project expense has been recorded to an incorrect project (or to a non-project code).
• A project expense has been recorded to an incorrect project task or cost code.
• A project expense has been recorded to an incorrect account or subaccount.
• A project commitment has been recorded to an incorrect cost budget line.

Bill Reclassification Process

You can reclassify bills that are assigned the Open or Closed status. To reclassify project expenses that have been
recorded incorrectly, you open a bill on the Bills and Adjustments (AP301000) form, and click Reclassify Bill on the
More menu. The system assigns the bill the Under Reclassification status. In the bill lines on the Details tab, the
columns whose values are available for reclassification are highlighted in green and can be edited.
The following values in bill lines can be reclassified, with the corresponding columns available on the Details tab if
the corresponding features are enabled on the Enable/Disable Features (CS100000) form:
• Account
• Subaccount (if the Subaccounts feature is enabled)
• Project and project task (if the Project Accounting feature is enabled)
• Cost code (if the Cost Codes feature is enabled)
You can change any of the listed values in the lines of the bill being reclassified. Aer you have made all needed
corrections in the bill lines, you release the bill by clicking Release on the form toolbar. On release of the bill, the
system reverses the original AP transaction linked to the bill and generates a reversing GL transaction and a new
Reclassifying Project Expenses | 342

AP transaction based on the updated bill details. In the bill, the link to the original AP transaction is replaced with a
link to the newly generated AP transaction.
On release of the generated GL transactions, the system reverses the original project transaction and generates a
new project transaction with the updated information to update the values of the project cost budget.

Reclassification of Commitment-Related Bill Lines

In a bill on the Bills and Adjustments (AP301000) form with the Under Reclassification status, if a bill line is linked to a
commitment (that is, a purchase order or subcontract), you can link this line to another commitment line with the
same Inventory ID.
If a bill line is linked to a commitment, aer you click Reclassify Bill on the More menu, the only columns available
for editing in this line are PO Line and Subcontract Line.

These columns are hidden by default on the Details tab of the Bills and Adjustments form. To be able
to reclassify these expenses, you need to add these columns via the Column Configuration dialog
box.

When you select a new commitment line to be linked to a bill line in the PO Line or Subcontract Line box,
the system copies the following settings from the newly specified commitment line to the bill line: Account,
Subaccount, Project, Project Task, and Cost Code. Aer you release the bill, the system generates GL transactions
and project transactions that update the actual values in the cost budget of the corresponding project.

Workflow of the Business Process

For the reclassification of project expenses, the typical process involves the actions and generated documents
shown in the following diagram.
Reclassifying Project Expenses | 343
Reclassifying Project Expenses | 344

Project Expense Reclassification: Implementation Checklist

The following sections provide details you can use to ensure that the system is configured properly for reclassifying
project expenses.

Implementation Checklist
We recommend that before you reclassify project expenses, you make sure the needed features have been enabled,
and settings have been specified, as summarized in the following checklist.

Form Criteria to Check

Enable/Disable Features (CS100000) form Make sure that the Project Accounting feature is en-
abled.

Projects Preferences (PM101000) form Make sure that all necessary settings related to project
accounting have been specified. For more information
about the configuration steps that you have to per-
form before you can start accounting for projects, see
Basic Project Configuration: General Information.

Accounts Payable Preferences (AP101000) Make sure that the Allow Bill Reclassification check
box is selected. With this setting, the reclassification of
bills can be performed in the system.

User Roles (SM201005) Make sure that each user that will perform bill reclassi-
fication is assigned at least one of the following prede-
fined roles: Financial Supervisor or Project Accountant.

Other Settings That Aﬀect the Workflow

To cause the system to automatically post reversing batches generated by the system during the reclassification
process, select the Automatically Post on Release check box on the General tab of the Accounts Payable
Preferences (AP101000) form. This setting aﬀects the workflow of expense reclassification in projects.

Project Expense Reclassification: Generated Transactions

When you reclassify project expenses, on the Bills and Adjustments (AP301000) form, you correct information in
a bill with the Under Reclassification status and release this bill. To update the general ledger, accounts payable,
and the project cost budget, the system generates a reversing GL transaction, a new AP transaction, and the
corresponding project transactions; the generated transactions are described in the following sections.

GL Transactions Generated on Release of the Reclassified Bill

On release of a bill created on the Bills and Adjustments (AP301000) form with the Under Reclassification status and
at least one corrected value in a bill line, the system generates the following batches:
• A GL transaction batch of the Normal type that reverses the AP transaction batch that had been generated
on release of the original accounts payable bill.
The following table shows the journal entries of the reversing batch.
Reclassifying Project Expenses | 345

Source of Values Account Debit Credit

Original AP batch Accounts Payable Amount 0.00

Original AP batch Expense 0.00 Amount

The reversing batch is numbered in accordance with the numbering sequence selected in the Batch
Numbering Sequence box on the General Ledger Preferences (GL102000) form.
• The AP transaction batch that posts the updated amounts to the general ledger; the journal entries of this
batch are shown in the following table.

Source of Values Account Debit Credit

Reclassified AP bill Accounts Payable 0.00 Amount

Reclassified AP bill Expense Amount 0.00

Depending on which information you have corrected in the bill line, the transaction will
include updated values in the following columns on the the Journal Transactions form:
Account, Subaccount, Project, Project Task, Cost Code.

The batch is numbered in accordance with the numbering sequence selected in the Batch Numbering
Sequence box on the Accounts Payable Preferences (AP101000) form. The batch number is specified in the
reclassified bill on the Financial tab of the Bills and Adjustments (AP301000) form.

The Reversing Project Transaction

On release of the reversing GL batch, the system generates a project transaction with GL selected in the Module
box of the Summary area of the Project Transactions (PM304000) form; the project transaction line is shown in the
following table.

If the non-project code has been changed to the identifier of a particular project in the bill line during
reclassification, the system does not generate a reversing project transaction.

Source of the Project Budget Account Group Debit Account Amount

Key

The line of the reversing GL Account group mapped Expense account in the –(Amount)
transaction to the Expense account original project transac-
tion

You can review the generated project transaction on the Project Transaction Details (PM401000) form. In the
Selection area of this form, you select the project. In the table, you can find the project transaction with GL selected
in the Module column, Bill in the Orig. Doc. Type column, and the reference number of the bill in the Orig. Doc.
Nbr. column.
Reclassifying Project Expenses | 346

Project Transaction with Reclassified Values

On release of the AP transaction batch that was generated on release of the reclassified bill, the system generates a
project transaction with AP selected in the Module box of the Summary area of the Project Transactions (PM304000)
form; the project transaction line is shown in the following table.

If a particular project identifier has been changed to the non-project code in the bill line during
reclassification, the system does not generate a new project transaction.

Source of the Project Budget Account Group Debit Account Amount

Key

The line of the new AP batch Account group mapped Expense account in the Amount
to the Expense account line of the new AP batch

Depending on which information you have corrected in the bill line, the project transaction will
include updated values in the following columns on the Details tab of the Project Transactions form:
Account, Subaccount, Project, Project Task, Cost Code.

You can review the generated project transaction on the Project Transaction Details (PM401000) form. In the
Selection area of this form, you select the project. In the table, you can find the project transaction with AP selected
in the Module column, Bill in the Orig. Doc. Type column, and the reference number of the bill in the Orig. Doc.
Nbr. column.

Project Expense Reclassification: Limitations

This topic describes criteria that preclude the reclassification of an accounts payable bill.
A bill (whether or not it is related to a project) on the Bills and Adjustments (AP301000) form cannot be reclassified if
any of the following criteria are met:
• The bill has applied retainage; the retainage has been released.
• It is a retainage bill.
• The bill has multiple-installment credit terms.
• For the bill, a consolidated GL transaction has been generated and either the Generate Consolidated
Batches check box was selected on the General Ledger Preferences (GL102000) form or the Post Summary
on Updating GL check box was selected on the Accounts Payable Preferences (AP101000) form.
• The GL transaction corresponding to the bill has been reclassified on the Journal Transactions (GL301000)
form.
• The bill has been created in migration mode.
• The bill is linked to an expense claim (that is, on the Financial tab, the Original Document box contains a
link to the expense claim).
• The bill is linked to a service order or appointment.
A project-related bill cannot be reclassified if any of the following criteria are met:
• The project transaction corresponding to the bill has been reallocated (that is, the Allocated check box is
selected in the project transaction line on the Project Transactions (PM301000) form).
• The project transaction corresponding to the bill has been billed (that is, the Billed check box is selected in
the project transaction line on the Project Transaction Details (PM401000) form).
Reclassifying Project Expenses | 347

An individual bill line on the Details tab of the Bills and Adjustments (AP301000) form cannot be reclassified if any of
the following is true:
• The Deferral Code column contains the deferral code.
• The PO Line column contains the reference number of a purchase order line with a line type other than
Service.
• The PO Number column contains the reference number of a purchase order that is linked to a receipt.

Project Expense Reclassification: Related Reports

In the following sections, you can find details about the reports, inquiry forms, and dialog boxes you may want to
review to gather information about the reclassification of expenses related to a project.

Reviewing Reclassified Bills

To view the list of bills that are pending reclassification or have been reclassified, you can use the Reclassified Bills
(PM657000) report. The report shows the list of bills, along with the list of GL batches that correspond to these bills.
On the report form, you can select a particular financial period (or a range of periods) and a particular project to
review the information about each reclassification that has been performed for the project during this time range.

Finding Reversing Batches for an Original Batch

To view the list of reversing batches related to an original batch, you can use the GL Reversing Batches (GL690010)
report. On the report form, you run the report for the original batch, and you can then view the list of reversing
batches and their details.
You can also open this report by clicking the link in the Reversing Batches box of the Journal Transactions
(GL301000) form for the original batch. The system opens the GL Reversing Batches (GL690010) report with the list
of reversing batches and their details.
Reclassifying Project-Related GL Transactions | 348

Reclassifying Project-Related GL Transactions

If the batch was posted to the wrong GL account, subaccount, branch, project, project task, or cost code, you can
correct it by reclassifying the batch.
In this chapter, you will find general information on how to reclassify transactions, a checklist for system
implementation, an activity that describes how to reclassify transactions in the system, and report and inquiries
that can be useful to find and view related transactions.

Transaction Reclassification: General Information

If a batch of project-related GL transactions was posted with any incorrect information, you can reclassify this batch
to move the amount to the correct line of the project budget, or correct other financial data.

Learning Objectives
You will learn how to perform the reclassification of GL transactions related to a project.

Applicable Scenarios
You reclassify a project-related transaction in the following cases:
• A transaction has been posted to the wrong account, subaccount, or branch.
• A transaction has been posted to the wrong project, project task, or cost code.
• A project-related transaction has been posted with the non-project code.
• A part of transaction amount posted to a project should be moved to another project.

Reclassification of Project-Related GL Transactions

You initiate the reclassification process on the Reclassify Transactions (GL506000) form. You open this form in one of
the following ways:
• Open the document for which the transaction has been generated on the Invoices and Memos (AR301000) or
Bills and Adjustments (AP301000) form, and on the More menu, click Reclassify GL Batch
• Open the transaction on the Journal Transactions (GL301000) form and on the More menu, click Reclassify.
The Reclassify Transactions form opens, displaying the transactions included in the selected GL batch. On this form,
for each journal entry that you need to reclassify, you need to modify the transaction details. You can change the
required settings in each needed row manually, or perform mass changing of settings in multiple rows. In each
needed row, you modify any of the following values:
• The branch (To Branch column). The transaction amount will be moved to the branch specified in this
column from the originally specified branch (Branch column.

This box is available only if the Multibranch Support feature is enabled on the Enable/Disable
Features (CS100000) form.

• The account (To Account column). The transaction amount will be moved to the account specified in this
column from the originally specified GL account (Account column).

The new account that you specify must have the same default currency as the default currency
of the batch.
Reclassifying Project-Related GL Transactions | 349

• The subaccount (To Subaccount column). The transaction amount will be moved to the subaccount
specified in this column from the originally specified subaccount (Subaccountcolumn).

This box is available only if the Subaccounts feature is enabled on the Enable/Disable Features
(CS100000) form.

• The project (To Project column). The transaction amount will be moved to the project or non-project code
specified in this column from the originally specified project or non-project code (Project column).

This box is available only if the Project Accounting feature is enabled on the Enable/Disable
Features (CS100000) form.

• The project task (To Project Task column). The transaction amount will be moved to the project task
specified in this column from the originally specified project task (Project Task column).

This box is available only if the Project Accounting feature is enabled on the Enable/Disable
Features (CS100000) form.

• The cost code (To Cost Code column). The transaction amount will be moved to the cost code specified in
this column from the originally specified cost code (Cost Code column).

This box is available only if the Cost Codes feature is enabled on the Enable/Disable Features
(CS100000) form.

Once you have changed any of the default values, the system selects the unlabeled check box in the row, indicating
that the entry will be reclassified. In addition, in the transaction being reclassified, you can correct the transaction
date (New Tran. Date column) and provide an updated transaction description (New Transaction Description
column).

The new transaction date must be within the financial period of the original transaction.

Aer you have made all needed changes to the transaction details, you click Process on the form toolbar of the
Reclassify Transactions form. The system generates a new GL transaction of the Reclassification type that oﬀsets the
original transaction and posts the transaction amounts. Also, on release of the reclassification batch, the system
generates a project transaction that updates the actual values in the project budget of the project for which the
reclassification has been performed.

Workflow of Reclassification Transactions

The following diagram shows the general process of reclassifying project-related transactions.
Reclassifying Project-Related GL Transactions | 350
Reclassifying Project-Related GL Transactions | 351

Transaction Reclassification: Implementation Checklist

Before users begin reclassifying GL batches related to projects, you must make sure that the system has been
configured properly, as described in the following table.

Form Criteria to Check

Enable/Disable Features (CS100000) form Make sure the Standard Financials and Project Account-
ing features have been enabled.

Settings That Can Aﬀect the Processing Workflow

The settings on the General Ledger Preferences (GL102000) form can aﬀect the processing workflow as follows:
• If the Hold Batches on Entry check box is selected, a batch is saved with the On Hold status by default. If
the batch is on hold, you should click Remove Hold on the toolbar of the Journal Transactions (GL301000)
form for the batch so that you can process it further. If the check box is cleared, the batch is saved with the
Balanced status.
• If the Validate Batch Control Totals on Entry check box is selected, you have to enter the batch control
total before you save the batch on the Journal Transactions form. If this check box is cleared and the status of
the batch is Balanced, the system automatically validates the batch.
• If the Automatically Post on Release check box is selected, the system posts batches on release. If this
check box is cleared, you have to post the batches aer release.

Transaction Reclassification: Generated Transactions

When a reclassification batch is released, the system moves the incorrectly posted amount to the correct branch,
account, subaccount, project, project task, or cost code.

Reclassification Batch
The following table shows the journal entries of the GL transaction of the Reclassification type.

Corrected columns Debit amount Credit amount

Original value 0.00 –(Amount)

Destination value Amount 0.00

You can find and view transactions of the Reclassification type on the Journal Transactions (GL301000) form. On
this form, in the Orig. Batch Nbr. column of the table, the reclassified journal entries contain links to the original
general ledger transactions (that is, to the batches generated for the transactions).
Reclassifying Project-Related GL Transactions | 352

Project Transaction Generated on Reclassification Batch Release

On release of a batch created on release of the reclassification GL batch, the system generates a project transaction
with the following information.

Project transaction columns Source of value

Project GL batch line

Project task GL batch line

Cost code GL batch line

Branch GL batch line

Account GL batch line

Subaccount GL batch line

Account group Account in the GL batch line

Date GL batch line

Fin. period GL batch line

You can review the created project transaction on the Project Transaction Details (PM401000) form.

Transaction Reclassification: Related Report and Inquiry Forms

In this topic, you can find the list of reports and inquiries that help you to collect information about project-related
GL transactions that have been reclassified.

Viewing the Reclassification History of a Transaction

You can view the reclassification history for a transaction on the Reclassification History (GL405000) form.
You can open this form by clicking the Reclassification History button in either of the following places:
• On the form toolbar of the Account Details (GL404000) form for the transaction you have selected (if it has
been reclassified)
• On the table toolbar of the Journal Transactions (GL301000) form for the transaction you have selected in the
GL batch, if it has the Reclassification type
You can reclassify only the last transaction in the list of transactions on the Reclassification History form by clicking
Reclassify on the form toolbar.
Reclassifying Project-Related GL Transactions | 353

Finding Reclassification Transactions for a Particular Account

On the Account Details (GL404000) form, to include in the list of entries the journal entries that have been
reclassified for a selected GL account within the specified period, select the Include Reclassified check box in the
Summary area. In the Reclass. Batch Number column, each of the reclassified entries has a link to the appropriate
Reclassification transaction.
You can also view a list of transactions that include the reclassified journal entries by preparing the Transactions for
Account (GL633500) or Transactions for Period (GL633000) report with the Include Reclassified Transactions check
box selected.

Transaction Reclassification: Mass-Processing

If you need to modify the same details in multiple transactions, you can perform the reclassification of multiple
transactions simultaneously. To reclassify multiple transactions at a time, you prepare the list of transactions to be
reclassified by doing either of the following:
• In the Summary area on the Account Details (GL404000) form, you select the GL account to which the
transactions have been posted. In the list of transactions, you select the unlabeled check box for the
transactions that you need to reclassify, and click Reclassify on the form toolbar. The system opens the
Reclassify Transactions (GL506000) form with the list of transactions.
• You open the Reclassify Transactions form and click Load on the form toolbar. In the Load Transactions
dialog box, which opens, you specify the settings of the transactions to be uploaded, and click Load.
To perform mass-changing of settings in multiple transactions, on the form toolbar of the Reclassify Transactions
form, click Replace. In the Find and Replace dialog box, which opens, specify the original and replacement
transaction settings. Then click Replace to close the dialog box and replace the settings in the needed rows. Aer
you have modified all needed data, you make sure that the unlabeled check boxes are selected for all the rows in
the table, and click Process on the form toolbar to run the reclassification process.

Transaction Reclassification: Limitations

Transactions that Cannot be Reclassified

The following general ledger transactions cannot be reclassified:
• Project-related transactions that have been billed.
• Project-related transactions that have been allocated.
• Project-related transactions linked to project commitments.
• Project-related transactions that are related to a project that is not active.
• Journal entries of transactions in which a control account is specified, such as entries posted on release
of accounts receivable and accounts payable documents to AR and AP accounts, respectively, and to Tax
Payable and Tax Claimable accounts. (A control account is a general ledger account that accumulates
the summary information of a subledger, such as AR or AP. The details of the control account balance are
contained in the subledger, so the balance of the control account should match the total of the related
subledger.)

You can reclassify GL entries posted on release of AR and AP documents to income and
expense accounts.

• Transactions generated in the general ledger when consolidation data has been imported on the Import
Consolidation Data (GL509000) form. For details, see GL Consolidation: General Information.
Reclassifying Project-Related GL Transactions | 354

• Transactions generated by a user invoking the run allocation process on the Run Allocations (GL504500)
form. For details, see Allocation Rules and Running Allocations.
• All currency-related GL transactions, such as transactions generated based on the currency translation and
revaluation processes.
• Transactions that have already been reclassified.
Accounting for WIP Costs in Cost-Plus Projects | 355

Accounting for WIP Costs in Cost-Plus Projects

If you have long-term cost-plus projects with expenses posted to several financial periods and in accordance with
GAAP you want to record these expenses to the same financial period as the income generated by the invoice, you
can to move the expenses to the needed period by allocating the projects.

WIP Costs in Cost-Plus Projects: General Information

According to the GAAP matching principle, the expenses related to the revenue have to be recorded to the same
financial period as the revenue is. Expenses may happen in several financial periods before an invoice is created for
the customer for those costs and the generated revenue can be recognized.
To set up the accounting for work-in-progress (WIP) costs for a project so that it corresponds to the GAAP matching
principle, you can temporarily allocate the project costs to a work-in-progress account group and then reverse the
allocation back to the initial labor account group in the financial period in which an accounts receivable invoice is
generated for the project and the revenue is recognized.

Learning Objectives
In this chapter, you will learn how to do the following:
In this lesson, you will learn how to do the following:
• Configure an allocation rule to move project costs to a WIP account group
• Configure a cost-plus project for allocating costs to the WIP account group
• Temporarily allocate costs of the project to the WIP account group

Applicable Scenarios
If you have a long-term cost-plus project with expenses that have been posted to multiple financial periods but
the project has not been billed yet, and in accordance with GAAP you want to record these expenses to the same
financial period as the income generated by the invoice, you can move the expenses to the needed period by
allocating the project.

Creating the Allocation Rule

To temporarily allocate the costs of a cost-plus project to a WIP account, you create an allocation rule on the
Allocation Rules (PM207500) form. By using this allocation rule, the system creates allocation transactions based
on the project transactions posted to a particular account group or specific groups, which moves costs from the
original accounts to a WIP account.
For this allocation rule, you specify the following settings on the Calculation Rules tab:
• Allocation Method: Allocate Transactions
With this setting, the system calculates the amount to allocate by using the underlying transactions and
their amounts.
• Create Allocation Transaction: Selected
With this check box selected, the system creates the allocation transactions resulting from the step.
• Select Transactions (Selection Criteria section): Not Allocated Transactions
The step is applied to project transactions that have not been allocated yet.
• Branch (Selection Criteria section): The branch to be used as the filtering criteria for project transactions to
be allocated.
Accounting for WIP Costs in Cost-Plus Projects | 356

• Account Group From (Selection Criteria section): The account group that starts the range of account
groups whose transactions are involved in the allocation step
• Account Group To (Selection Criteria section): The account group that ends the range of account groups
whose transactions are involved in this allocation step
If you want to allocate the transactions posted to a single account group, you select the same account group
in the Account Group From and Account Group To boxes.
• If @Rate is not defined (Rate Settings section): Set @Rate to 0
You do not need to adjust the quantity and amount of the allocation transaction, so you will not use rates in
the formulas of the allocation rule.
• Quantity Formula (Calculation Settings section): =[PMTran.Qty]
• Billable Qty. Formula (Calculation Settings section): =[PMTran.BillableQty]
• Amount Formula (Calculation Settings section): =[PMTran.Amount]
As the quantity, billable quantity, and amount of the allocation transaction, the system uses the
corresponding values of the original transaction. You do not modify the quantity and amount of the original
transactions and just move them to a temporary WIP account as is.
• Description Formula (Calculation Settings section): The description of the created allocation transaction
You specify the following settings for the allocation rule on the Allocation Settings tab:
• Post Transaction to GL (Transaction Options section): Selected
With this check box selected, allocation transactions and reversing allocation transactions are posted to the
general ledger.
• Reverse Allocation (Transaction Options section): On AR Invoice Generation or On AR Invoice Release
With this setting, the allocation transaction is reversed automatically when an AR invoice is generated based
on the allocation transactions or when this AR invoice is released, respectively.
• Account Origin (Debit Transaction section): Replace with a WIP account
With this setting, the system generates an allocation transaction that debits the specified WIP account. The
account must be mapped to a dedicated WIP account group that reflects the allocated amount and that you
will later use in the billing rule.
• Account Origin (Credit Transaction section): Debit Source
With this setting, the system generates an allocation transaction that credits the debit account of the source
transaction.

Configuring Cost-Plus Projects for Allocation

On the Projects (PM301000) form, for a cost-plus project to be allocated, you assign the created allocation rule to
the project tasks on the Tasks tab.
To be able to use the created allocation transactions in project billing, you need to modify the existing billing rule
that is used for the project or create a new one on the Billing Rules (PM207000) form. For that billing rule, you create
a Time and Material step that processes allocated transactions posted to the WIP account group. Except for the
account group, the settings of this step are the same as the settings of the billing rule step that is used to process
the original transactions, which are the source of the allocation transactions. On the Tasks tab of the Projects
(PM301000) form, the modified or created billing rule must be assigned to project tasks.

Allocating and Billing Projects

You run the allocation process for a project by clicking Run Allocation on the More menu of the Projects
(PM301000) form while reviewing the project. As a result, the system creates allocation transactions based on the
project transactions selected by using the allocation rules specified for project tasks on the Tasks tab. To make
it possible to identify a batch of created allocation transactions, the system assigns the Allocation for <Project ID>
Accounting for WIP Costs in Cost-Plus Projects | 357

description to such a batch. For the project transactions that have been used as a source of the allocation, the
system selects the Allocated check box on the Project Transaction Details (PM401000) form.
When you bill a cost-plus project, the system automatically reverses the allocation transactions on creation or
release of the accounts receivable document, depending on the settings of the corresponding allocation rule.
Reversing allocation transactions copy original allocation transactions and reverse the sign of the amount.
Allocation transactions are always reversed in the full amount. The reversing clears the WIP account group and
moves the allocated costs back to the original accounts in the financial period the AR document created in.

WIP Costs in Cost-Plus Projects: Implementation Checklist

The following sections provide details you can use to ensure that the system is configured properly for billing a
cost-plus projects with WIP costs, and to understand (and change, if needed) the settings that aﬀect the processing
workflow.

Implementation Checklist
We recommend that before you initially bill a cost-plus projects with WIP costs, you make sure the needed features
have been enabled, settings have been specified, and entities have been created, as summarized in the following
checklist.

Form Tasks to Perform

Enable/Disable Features (CS100000) form Make sure that the Project Accounting feature is en-
abled.

Chart of Accounts (GL202500) form Make sure that an asset account for work in progress
has been created. For details on configuring the chart
of accounts, see Chart of Accounts.

Account Groups (PM201000) form Make sure that an account group of the Asset type
for work in progress has been created and the WIP
account has been added to the account group. For
details on configuring account groups, see Account
Groups: General Information.

Allocation Rules (PM207500) form Make sure that an allocation rule is configured as de-
scribed in WIP Costs in Cost-Plus Projects: General In-
formation.

Billing Rules (PM207000) form Make sure that all the needed billing rules have been
configured to process allocation transactions posted
to the WIP account group. For details on configuring
billing rules, see Billing Rules: General Information.
Accounting for WIP Costs in Cost-Plus Projects | 358

Form Tasks to Perform

Projects (PM301000) Make sure that the project has been created, as de-
scribed in Project Creation and Processing: General In-
formation.

Other Settings That Aﬀect the Workflow

To cause the system to automatically release allocation transactions, including allocation reversal transactions,
select the Automatically Release Allocations check box on the General tab (General Settings section) of the
Projects Preferences (PM101000) form.

Validation of Configuration
To make sure that all configuration has been performed correctly, we recommend that in your system, you allocate
projects by performing instructions similar to those described in WIP Costs in Cost-Plus Projects: Process Activity.

WIP Costs in Cost-Plus Projects: Implementation Activity

The following implementation activity will walk you through the process of configuring an allocation rule for work-
in-progress labor.

Story
Suppose that the SweetLife Fruits & Jams company needs to process projects in accordance with the GAAP
matching principle—that is, the expenses related to the revenue have to be recorded to the same financial period
as the revenue is, even if the expenses have been already posted to the system. Acting as an administrative user of
SweetLife, you will configure an allocation rule that can temporarily allocate the project labor costs to a work-in-
progress account group and then reverse the costs back to the initial labor account group in the financial period in
which the revenue is recognized—that is, an AR invoice is released.

Process Overview
You will configure an allocation rule for work-in-progress labor on the Allocation Rules (PM207500) form.
Accounting for WIP Costs in Cost-Plus Projects | 359

System Preparation
To prepare to perform the instructions of the activity, sign in to the system as system administrator by using the
gibbs username and the 123 password.

System Preparation
To prepare to perform the instructions of the activity, sign in to the system as system administrator by using the
gibbs username and the password provided in the class.

Step: Configuring an Allocation Rule

To configure an allocation rule used for allocating work-in-progress labor costs, perform the following instructions:
1. On the Allocation Rules (PM207500) form, add a new record.
2. In the Summary area, specify the following settings:
• Allocation Rule: WIP_CP
• Description: WIP allocation
3. In the le pane, add a row for the allocation rule step with the following settings:
• Step ID: 10
• Description: Labor
4. In the right pane, on the Calculation Rules tab, specify the following settings for the step selected in the le
pane:
• Allocation Method: Allocate Transactions
• Create Allocation Transaction: Selected
• Select Transactions (Selection Criteria section): Not Allocated Transactions
• Account Group From (Selection Criteria section): LABOR
• Account Group To (Selection Criteria section): LABOR
Based on this setting and the previous setting, with this step, the allocation rule processes only
transactions of the LABOR account group.
• If @Rate is Not Defined (Rate Settings section): Set @Rate to 0
• Quantity Formula (Calculation Settings section): =[PMTran.Qty]
• Billable Qty. Formula (Calculation Settings section): =[PMTran.BillableQty]
• Amount Formula (Calculation Settings section): =[PMTran.Amount]
• Description Formula (Calculation Settings section): ='WIP allocation transaction'
5. In the right pane, on the Allocation Settings tab, specify the following settings for the step selected in the
le pane:
• Post Transaction to GL (Transaction Options section): Selected
Accounting for WIP Costs in Cost-Plus Projects | 360

• Reverse Allocation (Transaction Options section): On AR Invoice Release

With this setting, the allocation transaction is reversed automatically when an AR invoice generated
based on this allocation transaction is released.
• Account Origin (Debit Transaction section): Replace with 12400 (Work in Progress)
With this setting, the system generates an allocation transaction that debits the specified account—that
is, the 12400 (Work in Progress) account, which is mapped to the WIP account group.
• Account Origin (Credit Transaction section): Debit Source
6. Save the created allocation rule.

You have configured the allocation rule that can be used for allocating work-in-progress labor expenses of a cost-
plus project. To allocate the expenses of a project by using this rule, you need to assign the rule to the project tasks.
To review how a project's expenses are allocated when an allocation rule is used, complete WIP Costs in Cost-Plus
Projects: Process Activity.

WIP Costs in Cost-Plus Projects: Process Activity

In this activity, you will learn how to temporarily allocate project expenses to a work-in-progress account group and
then use the allocation transactions for billing.

Story
Suppose that in January, the West BBQ Restaurant customer ordered training for new employees on the operation
of juicers from the SweetLife Fruits & Jams company. The customer did not know the exact number of employees
or the number of training sessions that would be needed. The SweetLife company agreed with the customer to
provide as many training sessions as the customer needed in January and February. Further, both parties agreed
that on 2/25/2023, the customer would pay for all the hours of training sessions that took place.
The project manager of SweetLife created a project for this work. Then suppose that on 1/21/2023, a consultant
of SweetLife provided eight hours of training and logged the time spent by creating and releasing a time card in
Acumatica ERP. In February, no additional training sessions were needed.
Acting as SweetLife's project accountant, you need to bill the customer, and you want the project expense incurred
in January to be recorded in the same financial period as the project revenue—that is, in February. You will allocate
the project expenses and bill the project.

of an AR invoice created based on the allocation transaction. (For an example of the configuration of an
allocation rule see WIP Costs in Cost-Plus Projects: Implementation Activity.)
• On the Billing Rules (PM207000) form, the WIP billing rule has been created, which processes the allocated
transactions from the WIP account group during the project billing.
• On the Employee Time Card (EP305000) form, the 0000001 time card, reflecting the work of Pam Brawner on
the WESTBBQ6A project, has been created. The time card has also been released, and the PM00000019 batch
of project transactions that corresponds to the time card has been created.

Process Overview
In this activity, you will first specify the allocation rule and billing rule for the project task on the Project Tasks
(PM302000) form. You will review existing project transactions to be allocated on the Project Transaction Details
(PM401000) form and then perform allocation for the project on the Projects (PM301000) form. On the same form,
you will bill the project and release the AR invoice created as a result of the billing on the Invoices and Memos
(AR301000) form. The system will create the reversing allocation transactions that you review on the Project
Transaction Details form.

System Preparation
To prepare to perform the instructions of this activity, in the info area, in the upper-right corner of the top pane of
the Acumatica ERP screen, make sure that the business date in your system is set to 2/25/2023. If a diﬀerent date is
displayed, click the Business Date menu button, and select 2/25/2023 on the calendar. For simplicity, in this activity,
you will create and process all documents in the system during this business date.

Step 1: Configuring the Project for Allocation and Allocating the Project

To configure the project for allocation and allocate project transactions, do the following:
1. On the Projects (PM301000) form, open the WESTBBQ6A project, and do the following:
Accounting for WIP Costs in Cost-Plus Projects | 362

a. In the table on the Tasks tab, click the TRAINING link in the Task ID column.
The system opens the task on the Project Tasks (PM302000) form in a pop-up window.
b. In the Billing and Allocation Settings section on the Summary tab, specify the following settings:
• Allocation Rule: WIPTM
• Billing Rule: WIP
• Non-Billable WIP Account Group: Empty
c. On the form toolbar, click Save & Close to save your changes to the project task and close the pop-up
window with the Project Tasks form.
2. On the Project Transaction Details (PM401000) form, in the Selection area, select WESTBBQ6A in the Project
box, and make sure the Account Group and Project Task boxes are empty.
In the table, review the only project transaction and notice the values in the following columns:
• Orig. Doc. Type: The value in this column is Time Card because the transaction has been created based
on the release of the time card created for Pam Brawner for the WESTBBQ6A project.
• Fin. Period: The transaction has been posted to the 01-2023 financial period.
• Debit Account Group: The transaction has debited the LABOR account group.
• Billed: This check box is cleared, indicating that the transaction has not been billed yet.
• Allocated: This check box is cleared, indicating that the transaction has not been allocated yet.
3. On the Projects form, open the WESTBBQ6A project.
On the Balances tab, review the project balance. Notice that the actual amount of the project expenses
($360) is currently posted to the LABOR account group.
4. On the More menu, under Billing and Allocations, click Run Allocation to perform the allocation for the
selected project.
When the allocation is completed, on the Balances tab, review the project balance again. Notice that the
actual amount of the project expenses has been moved from the LABOR account group to the WIP account
group.
5. Open the Project Transaction Details form, and in the Summary area, make sure the WESTBBQ6A is selected
in the Project box.
In the table, notice that a new transaction has appeared. Review the transactions, noticing the values in the
following columns:
• Orig. Doc. Type: The value in this column is Allocation for the new transaction, which means the
transaction is an allocation transaction.
• Date: The date of the allocation transaction is the same as the date of the original transaction. Thus,
the allocation transaction has been posted to 01-2023, which is the same financial period to which the
original transaction was posted.
• Debit Account Group: The allocation transaction has debited the WIP account group.
• Credit Account Group: The allocation transaction has credited the LABOR account group, which is the
debit account group of the original transaction.
• Billed: This check box is cleared, indicating that the allocation transaction has not been billed yet (as is
the case with the original transaction).
• Allocated: This check box is selected for the original transaction with the Time Card original document
type, indicating that the transaction has been used as the source for allocation.

Step 2: Billing the Project

To bill the project, do the following:
1. On the Projects (PM301000) form, open the WESTBBQ6A project, and on the form toolbar, click Run Project
Billing.
Accounting for WIP Costs in Cost-Plus Projects | 363

The system creates an AR invoice and opens it on the Invoices and Memos (AR301000) form in a pop-up
window.
2. In the Summary area of the form, make sure that the Date of the invoice is 2/25/2023, which is the business
date, and that the Post Period is 02-2023.
3. On the form toolbar, click Remove Hold to assign the invoice the Balanced status, and then click Release to
release the AR invoice.
4. Open the Project Transaction Details (PM401000) form, and in the Selection area, make sure WESTBBQ6A is
selected in the Project box.
In the table, notice that two new transactions have been created (see the following screenshot).

Figure: Project transactions of the WESTBBQ6A project

Review the transactions, noticing the values in the following columns:

• Orig. Doc. Type: The values in this column are Allocation Reversal and Invoice for the new transactions,
which means that the first one is a reversing transaction for the allocation transaction, and the second
one originates from the released invoice.
• Date: The date of the new transactions is the invoice date. Thus, the transactions have been posted to
the 02-2023 financial period.
• Debit Account Group: The transaction with the Allocation Reversal original document type has cleared
the WIP account group (debited the account group with an opposite amount) and debited the LABOR
account group. This reversing allocation transaction, which moved the expenses back to the original
account group, was created on release of the AR invoice, based on the Reverse Allocation setting of the
allocation rule on the Allocation Settings tab of the Allocation Rules (PM207500) form.
The transaction with the Invoice original document type has debited the REVENUE account group with
the amount calculated with the billing rule of the project task.
• Released: This check box is selected for all the transactions, including the transaction with the Allocation
Reversal original document type, indicating that all the transactions have been released.
• Billed: This check box is selected for the transaction with the Allocation original document type,
indicating that the allocation transaction has been used in billing.
5. On the Projects form, open the WESTBBQ6A project, and on the Balances tab, review the project balance.
Notice that the actual amount of project expenses ($360) has been moved back from the WIP account group
to the LABOR account group. The actual amount of the REVENUE account group has been updated and is
now $450.

You have allocated project expenses to a work-in-progress account group and then performed billing based on the
allocation transactions.
Accounting for WIP Costs in Cost-Plus Projects | 364

WIP Costs in Cost-Plus Projects: Generated Transactions

When you allocate projects, the system creates allocation transactions based on the settings of the allocation rules
associated with the project tasks. Depending on the settings of the allocation rules and project tasks, the system
also can create reversing allocation transactions. These transactions are described in the following sections.

Allocation Transactions Generated on Allocation of a Project

When a project is allocated, the system generates a batch of the allocation transactions shown in the table below.
The system assigns the Allocation for <Project ID> description to the generated batch.
The system uses the following accounts as the source accounts in the batch it creates:
• The debit account, which is specified in the Account Origin box on the Allocation Settings tab (Debit
Transaction section) of the Allocation Rules (PM207500) form
• The credit account, which is specified in the Account Origin box on the Allocation Settings tab (Credit
Transaction section) of the Allocation Rules form

Debit Account Credit Account Source of Account Orig. Doc Type Amount

Debit account Credit account Allocation rule Allocation Amount

You can review the created allocation transactions on the Project Transaction Details (PM401000) form. In the
Selection area of this form, you select the project in the Project box. In the table, you can find the allocation
transactions by the Allocation type in the Orig. Doc. Type column. You can also select Show only Allocation
Transactions check box in the Summary area of the form to review only allocation transactions in the table.

Reversing Allocation Transactions Generated on Billing of a Cost-Plus Project

When a cost-plus project is billed with a time and material billing rule, the system generates a batch of reversing
allocation transactions shown in the table below, which prevents the allocation transactions used for billing from
aﬀecting the project balance. Reversing transactions copy original allocation transactions and reverse the sign of
the amount.
The system assigns one of the following descriptions to the reversing batch, depending on when the reversing
batch is created according to the option selected in the Reverse Allocation box on the Allocation Settings tab
(Transaction Options section) of the Allocation Rules (PM207500) form:
• Allocation Reversal on AR Invoice Release: The batch is created with the Released status on the release of the
corresponding accounts receivable document based on the On AR Invoice Release option of the allocation
rule.
• Allocation Reversal on AR Invoice Generation: The batch is created on the creation of the corresponding
accounts receivable document based on the On AR Invoice Generation option of the allocation rule.
If the accounts receivable document is created with the Balanced status, the reversing batch is also created
with the Balanced status. The reversing batch is automatically released or deleted when the corresponding
accounts receivable document is released or deleted, respectively.

Debit Account Credit Account Source of Account Orig. Doc Type Amount

Debit account Credit account Allocation transac- Allocation Reversal –(Amount)

tion
Accounting for WIP Costs in Cost-Plus Projects | 365

You can review the created allocation transactions on the Project Transaction Details (PM401000) form. In the
Selection area of this form, you select the project in the Project box. In the table, you can find the allocation
transactions, which have the Allocation Reversal type in the Orig. Doc. Type column. You can also select Show
only Allocation Transactions check box in the Summary area of the form to review in the table only the allocation
transactions of the project.

WIP Costs in Cost-Plus Projects: Related Reports and Forms

In the following sections, you can find details about the reports and forms you may want to review to gather
information related to the allocation process performed for a project.

Reviewing Allocation Transactions

You can review the list of all the corresponding allocation transactions of a project, including reversing allocation
transactions, on the Project Transaction Details (PM401000) form. In the Selection area of this form, you select the
project, as well as the project task, account group, and inventory item to narrow the listed project transactions.
The project transactions that have already been used as a source of allocation transactions have the check box
selected in the Allocated column. The Allocation type in the Orig. Doc. Type column corresponds to allocation
transactions. The Allocation Reversal type in the Orig. Doc. Type column corresponds to reversing allocation
transactions. You can select the Show only Allocation Transactions check box in the Summary area of the form to
review in the table only allocation transactions.

Printing Allocation Transactions

You can prepare the printable list of project transactions related to a particular project, including allocation
transactions and reversing allocation transactions, by using the Project Transaction Register (PM633000) report.

Reviewing Project Balances

You can review the project budget broken down by account group on the Balances tab of the Projects (PM301000)
form. To review the corresponding project transactions of an account group, including allocation transactions and
reversing allocation transactions, you click the line with this account group; then on the table toolbar, you click
View Transactions, and the system opens the Project Transaction Details (PM401000) form.

WIP Costs in Cost-Plus Projects: Mass-Processing of Documents

This topic explains how to allocate multiple projects, and how the system generates, changes, or works with
projects as a result of the mass processing.

Mass-Allocating Projects
You can initiate allocating for multiple projects on the Run Allocations by Projects (PM502500) form; this allocation
entails the creation of allocation transactions. On this form, you select the unlabeled check boxes in the rows of
the projects to be processed in the table, and you click Allocate on the form toolbar. The system initiates allocation
for the selected projects. Allocation transactions will be created for only those projects that have tasks with an
associated allocation rule.
Accounting for WIP Costs in Cost-Plus Projects | 366

To initiate processing for all the projects listed in the table of the Run Allocations by Projects form, you click Allocate
All on the form toolbar. The system initiates allocating for all the projects listed in the table.

Mass-Allocating Project Tasks

You can initiate allocating for multiple project tasks on the Run Allocations by Tasks (PM502000) form; this
allocation entails the creation of allocation transactions. On this form, which displays only those project tasks
that have an associated allocation rule, you select the unlabeled check boxes in the rows of the project tasks to be
processed in the table, and you click Allocate on the form toolbar. The system initiates allocation for the selected
project tasks.
To initiate processing for all the project tasks listed in the table of the Run Allocations by Tasks form, you click
Allocate All on the form toolbar. The system initiates allocation for all the project tasks listed in the table.
Accounting for WIP Costs in Fixed-Price Projects | 367

Accounting for WIP Costs in Fixed-Price Projects

If you have long-term fixed-price projects with expenses posted to several financial periods and in accordance with
GAAP you want to record these expenses to the same financial period as the income generated by the invoice, you
can to move the expenses to the needed period by allocating the projects.

WIP Costs in Fixed-Price Projects: General Information

Learning Objectives
In this chapter, you will learn how to do the following:
In this lesson, you will learn how to do the following:
• Configure an allocation rule to move project costs to a WIP account group
• Configure a fixed-price project for allocating costs to the WIP account group
• Temporarily allocate costs of the project to the WIP account group

Applicable Scenarios
If you have a long-term fixed-price project with expenses that have been posted to several financial periods but
the project has not been billed yet, and in accordance with GAAP you want to record these expenses to the same
financial period as the income generated by the invoice, you can move the expenses to the needed period by
allocating the project.

Creating the Allocation Rule

To temporarily allocate costs of a fixed-price project to a WIP account, you create an allocation rule on the Allocation
Rules (PM207500) form. Using this allocation rule, the system creates allocation transactions based on the project
transactions posted to a particular account group or groups, which moves costs from the original accounts to a WIP
account.
For this allocation rule, you specify the following settings on the Calculation Rules tab:
• Allocation Method: Allocate Transactions
With this setting, the system calculates the amount to allocate by using the underlying transactions and
their amounts.
• Create Allocation Transaction: Selected
With this check box selected, the system creates the allocation transactions resulting from the step.
• Select Transactions (Selection Criteria section): Not Allocated Transactions
The step is applied to project transactions that have not been allocated yet.
• Branch (Selection Criteria section): The branch to be used as the filtering criteria for project transactions to
be allocated.
Accounting for WIP Costs in Fixed-Price Projects | 368

• Account Group From (Selection Criteria section): The account group that starts the range of account
groups whose transactions are involved in the allocation step
• Account Group To (Selection Criteria section): The account group that ends the range of account groups
whose transactions are involved in this allocation step
If you want to allocate the transactions posted to a single account group, you select the same account group
in the Account Group From and Account Group To boxes.
• If @Rate is not defined (Rate Settings section): Set @Rate to 0
You do not need to adjust the quantity and amount of the allocation transaction, so you will not use rates in
the formulas of the allocation rule.
• Quantity Formula (Calculation Settings section): =[PMTran.Qty]
• Billable Qty. Formula (Calculation Settings section): =[PMTran.BillableQty]
• Amount Formula (Calculation Settings section): =[PMTran.Amount]
As the quantity, billable quantity, and amount of the allocation transaction, the system uses the
corresponding values of the original transaction. You do not modify the quantity and amount of the original
transactions and just move them to a temporary WIP account as is.
• Description Formula (Calculation Settings section): The description of the created allocation transaction
You specify the following settings for the allocation rule on the Allocation Settings tab:
• Post Transaction to GL (Transaction Options section): Selected
With this check box selected, allocation transactions and reversing allocation transactions are posted to the
general ledger.
• Reverse Allocation (Transaction Options section): Never
With this setting, the allocation transaction is not reversed automatically. A fixed-price project with a
progress billing rule does not use allocation transactions for billing so you cannot use the allocation rule for
creating reversing allocation transactions.
• Account Origin (Debit Transaction section): Replace with a WIP account
With this setting, the system generates an allocation transaction that debits the specified WIP account. The
account must be mapped to a dedicated WIP account group that reflects the allocated amount and that you
will later use in the billing rule.
• Account Origin (Credit Transaction section): Debit Source
With this setting, the system generates an allocation transaction that credits the debit account of the source
transaction.

Configuring Fixed-Price Projects for Allocation

On the Projects (PM301000) form, for a fixed-price project to be allocated, you assign the created allocation rule to
the project tasks on the Tasks tab.
You bill a fixed-price project with a billing rule with a Progress Billing step that does not use project transactions,
including allocation transactions, for billing. To make the system automatically reverse created allocation
transactions, which prevents the allocation transactions from aﬀecting the project balance aer you bill the
project, you select the WIP account group to which you allocate the project costs in the Non-Billable WIP Account
Group box on the Summary tab (Billing and Allocation Settings section) of the Project Tasks (PM302000) form.

Allocating and Billing Projects

description to such a batch. For the project transactions that have been used as a source of the allocation, the
system selects the Allocated check box on the Project Transaction Details (PM401000) form.
When you bill a fixed-price project and create the accounts receivable document, the system automatically reverses
the allocation transactions posted to the account group selected in the Non-Billable WIP Account Group box
on the Summary tab (Billing and Allocation Settings section) of the Project Tasks (PM302000) form. Reversing
allocation transactions copy original allocation transactions and reverse the sign of the amount. Allocation
transactions are always reversed in the full amount. When you release the reversing allocation transactions, the
system clears the WIP account group and moves the allocated costs back to the original accounts in the financial
period the AR document created in.

WIP Costs in Fixed-Price Projects: Implementation Checklist

Form Tasks to Perform

Enable/Disable Features (CS100000) form Make sure that the Project Accounting feature is en-
abled.

Chart of Accounts (GL202500) form Make sure that an asset account for work in progress
has been created. For details on configuring the chart
of accounts, see Chart of Accounts.

Allocation Rules (PM207500) form Make sure that an allocation rule is configured as de-
scribed in WIP Costs in Fixed-Price Projects: General In-
formation.

Form Tasks to Perform

Projects (PM301000) Make sure that the project has been created, as de-
scribed in Project Creation and Processing: General In-
formation.

Project Tasks (PM302000) Make sure the WIP account group is selected for the
project tasks in the Non-Billable WIP Account Group
box on the Summary tab (Billing and Allocation Set-
tings section).

WIP Costs in Fixed-Price Projects: Implementation Activity

The following implementation activity will walk you through the process of configuring an allocation rule for work-
in-progress labor.

Story
Suppose that the SweetLife Fruits & Jams company needs to process projects in accordance with the GAAP
matching principle—that is, the expenses related to the revenue have to be recorded to the same financial period
as the revenue even if the expenses have been already posted to the system. Acting as SweetLife’s administrative
user, you will configure an allocation rule that can temporarily allocate the project labor costs to a work-in-progress
account group. To reverse the costs back you will not use the allocation rule.

Process Overview
You will configure an allocation rule for work-in-progress labor on the Allocation Rules (PM207500) form.

System Preparation
To prepare to perform the instructions of the activity, sign in to the system as system administrator by using the
gibbs username and the 123 password.

System Preparation
To prepare to perform the instructions of the activity, sign in to the system as system administrator by using the
gibbs username and the password provided in the class.

Step: Configuring an Allocation Rule

To configure an allocation rule used for allocating work-in-progress labor costs, perform the following instructions:
1. On the Allocation Rules (PM207500) form, create a new record.
2. In the Summary area, specify the following settings:
• Allocation Rule: WIP_FP
• Description: WIP allocation
3. In the le pane, add a row for the allocation rule step with the following settings:
• Step ID: 10
• Description: Labor
4. In the right pane, on the Calculation Rules tab, specify the following settings for the step selected in the le
pane:
• Allocation Method: Allocate Transactions
• Create Allocation Transaction: Selected
• Select Transactions (Selection Criteria section): Not Allocated Transactions
• Account Group From (Selection Criteria section): LABOR
• Account Group To (Selection Criteria section): LABOR
Based on this setting and the previous setting, with this step, the allocation rule processes only
transactions of the LABOR account group.
• If @Rate is Not Defined (Rate Settings section): Set @Rate to 0
• Quantity Formula (Calculation Settings section): =[PMTran.Qty]
• Billable Qty. Formula (Calculation Settings section): =[PMTran.BillableQty]
• Amount Formula (Calculation Settings section): =[PMTran.Amount]
• Description Formula (Calculation Settings section): ='WIP allocation transaction'
5. In the right pane, on the Allocation Settings tab, specify the following settings of the step selected in the
le pane:
• Post Transaction to GL (Transaction Options section): Selected
• Reverse Allocation (Transaction Options section): Never
A fixed-price project with a progress billing rule does not use allocation transactions for billing so you will
not use the allocation rule for creating of reversing allocation transactions.
• Account Origin (Debit Transaction section): Replace with 12400 - Work in Progress
Accounting for WIP Costs in Fixed-Price Projects | 372

With this setting, the system generates an allocation transaction that debits the specified account—that
is, the 12400 - Work in Progress account, which is mapped to the WIP account group.
• Account Origin (Credit Transaction section): Debit Source
6. Save the created allocation rule.

You have configured the allocation rule that can be used for allocating work-in-progress labor expenses of a cost-
plus project. To allocate the expenses of a project by using this rule, you need to assign the rule to the project tasks.
To review how a project is being allocated by using the allocation rule, complete WIP Costs in Fixed-Price Projects:
Process Activity.

WIP Costs in Fixed-Price Projects: Process Activity

In this activity, you will learn how to temporarily allocate project expenses to a work-in-progress account group and
bill the project without using allocation transactions as a basis for billing.

Story
Suppose that in January, the West BBQ Restaurant customer ordered training on operating juicers for 10 employees
from the SweetLife Fruits & Jams company. The parties were not able to determine how many training sessions
would be needed for the employees to master the use of the juicers. The SweetLife company agreed with the
customer to provide as many training sessions as the customer needed in January and February, and that
2/25/2023, the customer would pay $80 for each employee who attended these training sessions.
SweetLife's project manager has created a project for this work. Then suppose that 1/21/2023, a consultant of
SweetLife provided eight hours of training and logged the time spent by creating and releasing a time card in
Acumatica ERP. All 10 of the customer's employees attended that training session, and no more training sessions
were needed in February.
Acting as SweetLife's project accountant, you need to bill the customer, and you want the project expense incurred
in January to be recorded in the same financial period as the project revenue—that is, in February. You will allocate
the project expenses and bill the project.

Configuration Overview
In the U100 dataset, the following tasks have been performed for the purposes of this activity:
• On the Enable/Disable Features (CS100000) form, the Project Accounting feature has been enabled to support
the project accounting functionality.
• On the Projects (PM301000) form, the WESTBBQ6B project has been created an the TRAINING task has been
created for the project.
• On the Account Groups (PM201000) form, the WIP and LABOR account groups have been created; also, the
12400 - Work in Progress account has been mapped to the WIP account group.
• On the Allocation Rules (PM207500) form, the WIPPROGRESS allocation rule has been created. This allocation
rule will be used to allocate project transactions that represent a particular type of expenses to the WIP
account group. The allocation rule will not create a reversing allocation transaction. (For an example of
allocation rule configuration, see WIP Costs in Fixed-Price Projects: Implementation Activity.)
• On the Billing Rules (PM207000) form, the PROGRESS billing rule has been created. The billing rule has been
configured for progress billing and has been assigned to the TRAINING task of the WESTBBQ6B project.
Accounting for WIP Costs in Fixed-Price Projects | 373

• On the Employee Time Card (EP305000) form, the 0000001 time card, reflecting the work of Pam Brawner on
the WESTBBQ6B project, has been created. The time card has been also released and the PM00000019 batch
of project transactions that corresponds to the time card has been created.

Process Overview
In this activity, you will first specify the allocation rule, the billing rule, and the non-billable WIP account group for
the project task on the Project Tasks (PM302000) form. You will review existing project transactions to be allocated
on the Project Transaction Details (PM401000) form and then perform allocation for the project on the Projects
(PM301000) form. On the same form, you will bill the project and release the AR invoice created as a result of the
billing on the Invoices and Memos (AR301000) form. The system will create the reversing allocation transactions
that you review on the Project Transaction Details form and release on the Project Transactions (PM304000) form.

System Preparation
To sign in to the system and prepare to perform the instructions of the activity, do the following:
1. Sign in to the system as project accountant by using the brawner username and the 123 password.
2. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to 2/25/2023. If a diﬀerent date is displayed, click the Business Date menu
button, and select 2/25/2023 on the calendar. For simplicity, in this activity, you will create and process all
documents in the system during this business date.

Step 1: Configuring the Project for Allocation and Allocating the Project

To configure the project for allocation and allocate project transactions, do the following:
1. On the Projects (PM301000) form, open the WESTBBQ6B project and do the following:
a. In the table on the Tasks tab, click the TRAINING link in the Task ID column.
Accounting for WIP Costs in Fixed-Price Projects | 374

The system opens the project task on the Project Tasks (PM302000) form in a pop-up window.
b. In the Billing and Allocation Settings section on the Summary tab, specify the following settings.
• Allocation Rule: WIPPROGRESS
• Non-Billable WIP Account Group: WIP
Notice that the PROGRESS billing rule is selected in the Billing Rule. You do not need to change the
progress billing rule because the allocation transactions are not used in the billing of fixed-price projects.
c. On the form toolbar, click Save & Close to save your changes to the project task settings and close the
pop-up window.
2. On the Project Transaction Details (PM401000) form, in the Selection area, select WESTBBQ6B in the Project
box.
In the table, review the only project transaction and notice the values in the following columns:
• Fin. Period: The transaction has been posted to the 01-2023 financial period.
• Debit Account Group: The transaction has debited the LABOR account group.
• Allocated: This check box is cleared, indicating that the transaction has not been allocated yet.
• Orig. Doc. Type: The value in this column is Time Card because the transaction has been created based
on the release of the time card created for Pam Brawner for the WESTBBQ6B project.
• Billed: This check box is cleared, indicating that the transaction has not been billed yet.
3. On the Projects form, open the WESTBBQ6B project.
On the Balances tab, review the project balance. Notice that the actual amount of project expenses ($360) is
posted to the LABOR account group.
4. On the More menu, under Billing and Allocations, click Run Allocation to perform the allocation for the
selected project.
When the allocation is completed, on the Balances tab, review the project balance again. Notice that the
actual amount of project expenses has been moved from the LABOR account group to the WIP account
group.
5. On the Project Transaction Details form, in the Summary area, make sure WESTBBQ6B is selected in the
Project box.
In the table, notice that a new transaction has appeared. Review the transactions, noticing the values in the
following columns:
• Date: The date of the allocation transaction is the same as the date of the original transaction. Thus,
the allocation transaction has been posted to 01-2023, which is the same financial period to which the
original transaction was posted.
• Debit Account Group: The allocation transaction has debited the WIP account group.
• Credit Account Group: The allocation transaction has credited the LABOR account group, which is the
debit account group of the original transaction.
• Allocated: This check box is now selected for the original transaction with the Time Card original
document type, indicating that the transaction has been used as the source for allocation. For the
allocation transaction, the check box is cleared.
• Orig. Doc. Type: The value in this column is Allocation for the new transaction, which means the
transaction is an allocation transaction.
• Billed: This check box is cleared, indicating that the allocation transaction has not been billed yet along
with the original transaction.

Step 2: Billing the Project

To update the progress of project completion and bill the project in an amount that corresponds to the progress,
do the following:
Accounting for WIP Costs in Fixed-Price Projects | 375

1. On the Projects (PM301000) form, open the WESTBBQ6B project.

2. On the Revenue Budget tab, specify 100.00 in the Completed (%) column of the revenue budget line.
That is, the project has been entirely completed.
Notice that the system calculates the Pending Invoice Amount in the row ($800).
3. On the form toolbar, click Save to your changes to the project, and then click Run Project Billing.
The system creates an AR invoice and opens it on the Invoices and Memos (AR301000) form in a pop-up
window.
4. In the Summary area of the form, make sure that the Date of the invoice is 2/25/2023, which is the current
business date, and that the Post Period is 02-2023.

If a diﬀerent date is selected, select 2/25/2023. The system will adjust the post period
accordingly.

5. On the form toolbar, click Remove Hold to assign the accounts receivable invoice the Balanced status, and
then click Release to release the AR invoice.
6. Open the Project Transaction Details (PM401000) form, and in the Selection area, select WESTBBQ6B in the
Project box.
In the table, notice that two new transactions have been created, as shown in the following screenshot.

Figure: Project transactions of the WESTBBQ6B project

Review the transactions, noticing the values in the following columns.

• Orig. Doc. Type: The value in this column is WIP Reversal and Invoice for the new transactions, which
means that the first one is a reversing transaction and the second one originates from the released
invoice.
• Date: The date of the new transactions is the invoice date. Thus, the transactions have been posted to
the 02-2023 financial period.
• Debit Account Group: The transaction with the WIP Reversal original document type has cleared the
WIP account group (debited the account group with an opposite amount) and the LABOR account group
(credited the account group with an opposite amount)). This reversing transaction was created on
project billing to clear the WIP account group selected for the project task.
The transaction with the Invoice original document type has debited the REVENUE account group with
the amount calculated with the billing rule of the project task. The transaction was created on release of
the AR invoice.
• Billed: This check box is cleared for all the transactions, including the original and the allocation
transactions, indicating that the transactions have not been used in billing because you have billed the
project for progress.
• Released: This check box is cleared for the reversing transaction with the WIP Reversal original
document type, indicating that it has not been released yet.
7. Release the reversing allocation transaction as follows:
Accounting for WIP Costs in Fixed-Price Projects | 376

a. In the table, in the row with the WIP Reversal original document type, click the link in the Ref. Number
column to open the project transaction.
b. On the form toolbar of the Project Transactions (PM304000) form, which opens, click Release. The system
releases the project transactions.
8. On the Projects form, open the WESTBBQ6B project, and on the Balances tab, review the project balance.
Notice that the actual amount of project expenses ($360) has been moved back from the WIP account group
to the LABOR account group. The actual amount of the REVENUE account group has been updated.

WIP Costs in Fixed-Price Projects: Generated Transactions

Allocation Transactions Generated on Allocation of a Project

Debit Account Credit Account Source of Account Orig. Doc Type Amount

Debit account Credit account Allocation rule Allocation Amount

Reversing Allocation Transactions Generated on Billing of a Fixed-Price Project

When a fixed-price project is billed with a progress billing rule and the accounts receivable document is created,
the system generates a batch of reversing allocation transactions shown in the following table, which prevents the
allocation transactions from aﬀecting the project balance. The reversing transactions copy the original allocation
transactions and reverse the sign of the amount. The reversing batch is created with the WIP Reversal description
and the Balanced status.

Debit Account Credit Account Source of Account Orig. Doc Type Amount

Debit account Credit account Allocation transac- WIP Reversal –(Amount)

tion

You can review the created reversing allocation transactions on the Project Transaction Details (PM401000) form.
In the Selection area of this form, you select the project in the Project box. In the table, you can find the allocation
transactions by the WIP Reversal type in the Orig. Doc. Type column.
Accounting for WIP Costs in Fixed-Price Projects | 377

WIP Costs in Fixed-Price Projects: Related Reports and Forms

In the following sections, you can find details about the reports and forms you may want to review to gather
information related to the allocation process performed for a project.

Reviewing Allocation Transactions

You can review the list of all the corresponding allocation transactions of a project, including reversing allocation
transactions, on the Project Transaction Details (PM401000) form. In the Selection area of this form, you select the
project, as well as the project task, account group, and inventory item to narrow the listed project transactions.
The project transactions that have been already used as a source of allocation transactions have the selected
check box in the Allocated column. The Allocation type in the Orig. Doc. Type column corresponds to allocation
transactions. The WIP Reversal type in the Orig. Doc. Type column corresponds to reversing allocation
transactions. You can select Show only Allocation Transactions check box in the Summary area of the form to
review in the table only allocation transactions.

Printing Allocation Transactions

Reviewing Project Balances

WIP Costs in Fixed-Price Projects: Mass-Processing of Documents

This topic explains how to allocate multiple projects, and how the system generates, changes, or works with
projects as a result of the mass processing.

Mass-Allocating Projects
You can initiate allocating for multiple projects on the Run Allocations by Projects (PM502500) form; this allocation
entails the creation of allocation transactions. On this form, you select the unlabeled check boxes in the rows of
the projects to be processed in the table, and you click Allocate on the form toolbar. The system initiates allocation
for the selected projects. Allocation transactions will be created for only those projects that have tasks with an
associated allocation rule.
To initiate processing for all the projects listed in the table of the Run Allocations by Projects form, you click Allocate
All on the form toolbar. The system initiates allocating for all the projects listed in the table.
Accounting for WIP Costs in Fixed-Price Projects | 378

Mass-Allocating Project Tasks

Mass-Releasing Reversing Allocation Transaction

To mass-release project transactions, including reversing allocation transaction, you use the Release Transactions
(PM501000) form. On this form, you select the unlabeled check boxes in the rows of the transactions to be released
and click Release on the form toolbar to process the selected transactions; alternatively, you can click Release All
to process all the transactions shown in the table.
Capturing Project Overhead | 379

Capturing Project Overhead

A project can have indirect costs, such as administrative expenses, that are not presented in the project budget.
This chapter explains how you can capture such expenses as the project overhead by allocating the project.

Overhead in the Project Budget: General Information

Your company can have such expenses as oﬀice rent or administrative expenses that are posted to the general
ledger but not classified against projects and not presented in the project budget. For a more accurate estimation
of the project profitability, you can capture such expenses as the project overhead by allocating the project.

Learning Objectives
In this chapter, you will learn how to do the following:
In this lesson, you will learn how to do the following:
• Configure an allocation rule to capture project overhead as a percentage of incurred costs
• Capture the overhead on the project

Applicable Scenarios
If you need to more accurately estimate the profitability of a project—for example, for making management
decisions or for project management—but the project has some indirect costs that are posted to the general ledger
but not classified against the project, you capture these expenses as project overhead.

Creation of an Allocation Rule

To calculate the overhead for projects, you create an allocation rule on the Allocation Rules (PM207500) form.
Using this allocation rule, the system creates allocation transactions based on the project transactions posted to a
particular account group or specific groups. These allocation transactions post the calculated overhead amount to
the specified account group.
For this allocation rule, you specify the following settings on the Calculation Rules tab:
• Allocation Method: Allocate Transactions
With this setting, the system calculates the amount to allocate by using the underlying transactions and
their amounts.
• Create Allocation Transaction: Selected
With this check box selected, the system creates the allocation transactions resulting from the step.
• Selected Transactions (Selection Criteria section): Not Allocated Transactions
The step is applied to project transactions that have not been allocated yet.
• Account Group From (Selection Criteria section): The account group that starts the range of account
groups whose transactions are involved in the allocation step
The account groups are ordered alphabetically.
• Account Group To (Selection Criteria section): The account group that ends the range of account groups
whose transactions are involved in this allocation step.
If you want to allocate the transactions posted to a single account group, you select the same account group
in the Account Group From and Account Group To boxes.
• Quantity Formula (Calculation Settings section): =0
Capturing Project Overhead | 380

• Billable Qty. Formula (Calculation Settings section): =0

You usually do not need to calculate the overhead quantity.
• Amount Formula (Calculation Settings section): The overhead amount that you can calculate as
a percentage of the amount of the original transaction. In this case, you use the following formula:
=[PMTran.Amount]*multiplier. You can use a percentage as a multiplier (for example, 0.2 as 20%),
a project attribute to define the percentage at the project level, or a rate. For more information on rates, see
Billing Rates: General Information.
• Description Formula (Calculation Settings section): The description of the created allocation transaction.
You specify the following settings for the allocation rule on the Allocation Settings tab:
• Post Transaction to GL (Transaction Options section): Cleared
With this check box cleared, allocation transactions and reversing allocation transactions will not be posted
to the general ledger.
• Reverse Allocation (Transaction Options section): Never
With this setting, the system does not create a reversing transaction for the allocation transactions. The
allocation transactions that you create with this allocation rule do not aﬀect the general ledger and are not
posted to any account, so you do not need to reverse them.
• Account Group (Debit Transaction section): Replace with an account group for capturing the overhead
With this setting, the system generates an allocation transaction that debits the specified account group.
• Account Group (Credit Transaction section): None
You create an additional cost with the allocation transaction and do not need to credit any account group.

Configuration of Projects for Allocation

On the Projects (PM301000) form, for a project to be allocated, you assign the created allocation rule to the project
tasks on the Tasks tab.

Allocation of Projects
You run the allocation process for a project by clicking Run Allocation on the More menu of the Projects
(PM301000) form while reviewing the project. As a result, the system creates allocation transactions based on the
project transactions selected by using the allocation rules specified for project tasks on the Tasks tab. To make
it possible to identify a batch of created allocation transactions, the system assigns the Allocation for <Project ID>
description to such a batch. For the project transactions that have been used as a source of the allocation, the
system selects the Allocated check box on the Project Transaction Details (PM401000) form.

Overhead in the Project Budget: Implementation Checklist

The following sections provide details you can use to ensure that the system is configured properly for considering
the project overhead, and to understand (and change, if needed) the settings that aﬀect the processing workflow.

Implementation Checklist
We recommend that before you initially consider the project overhead, you make sure the needed features have
been enabled, settings have been specified, and entities have been created, as summarized in the following
checklist.
Capturing Project Overhead | 381

Form Tasks to Perform

Enable/Disable Features (CS100000) form Make sure that the Project Accounting feature is en-
abled.

Account Groups (PM201000) form Make sure that an account group of the Expense type
for the overhead has been created. For details on con-
figuring account groups, see Account Groups: General
Information.

Allocation Rules (PM207500) form Make sure that an allocation rule is configured as de-
scribed in Overhead in the Project Budget: Implementa-
tion Activity.

Projects (PM301000) Make sure that the project has been created, as de-
scribed in Project Creation and Processing: General In-
formation.

Overhead in the Project Budget: Implementation Activity

The following implementation activity will walk you through the process of configuring an allocation rule for
capturing the overhead for projects.

Story
Suppose that the project manager of the SweetLife Fruits & Jams company wants to estimate the project costs
considering the administrative overhead of the project management to be able to estimate the project profitability
more accurately. The company estimates the project overhead as 20% of labor costs, such as a worker's time spent
on performing the project.
Acting as SweetLife’s implementation manager, you need to configure an allocation rule to capture the project
overhead as 20% of labor costs to reflect the overhead in the project budget. Because the administrative overhead
is already presented in the general ledger in the form of transactions that are not classified against projects, you do
not need to post to the general ledger allocation transactions that are created.
Capturing Project Overhead | 382

Process Overview
You will configure an allocation rule for capturing the labor overhead on the Allocation Rules (PM207500) form.

System Preparation
To prepare to perform the instructions of the activity, sign in to a company with the U100 dataset preloaded; you
should sign in as system administrator by using the gibbs username and the 123 password.

System Preparation
To prepare to perform the instructions of the activity, sign in to a company as system administrator by using the
gibbs username and the password provided in the class.

Step: Configuring an Allocation Rule

To configure an allocation rule used for capturing the project overhead as a percentage of labor costs, perform the
following instructions:
1. On the Allocation Rules (PM207500) form, add a new record.
2. In the Summary area, specify the following settings:
• Allocation Rule: LABOVERHEAD
• Description: Labor overhead
3. In the le pane, add a row for the allocation rule step with the following settings:
• Step ID: 10
• Description: Labor
4. In the right pane, on the Calculation Rules tab, specify the following settings of the step selected in the le
pane:
• Allocation Method: Allocate Transactions
• Create Allocation Transaction: Selected
• Select Transactions (Selection Criteria section): Not Allocated Transactions
• Account Group From (Selection Criteria section): LABOR
Capturing Project Overhead | 383

• Account Group To (Selection Criteria section): LABOR

Based on this setting and the previous setting, with this step, the allocation rule processes only
transactions of the LABOR account group.
• If @Rate is Not Defined (Rate Settings section): Set @Rate to 0
You will not use rates to calculate the amount of the allocation transaction.
• Quantity Formula (Calculation Settings section): =0
• Billable Qty. Formula (Calculation Settings section): =0
• Amount Formula (Calculation Settings section): =[PMTran.Amount]*0.2
You calculate the overhead amount as 20% of the transaction amount.
• Description Formula (Calculation Settings section): ='Project overhead for labor'
5. In the right pane, on the Allocation Settings tab, specify the following settings of the step selected in the
le pane:
• Post Transaction to GL (Transaction Options section): Cleared
• Reverse Allocation (Transaction Options section): Never
The project overhead is not considered in billing and you do not need to create reversing allocation
transactions.
• Account Group (Debit Transaction section): Replace with OVERHEAD
With this setting, the system generates an allocation transaction that debits the specified account group
—that is, the OVERHEAD account group.
• Account Group (Credit Transaction section): None
6. Save the created allocation rule.

You have configured the allocation rule that can be used for capturing the project overhead as 20% of labor costs.
To allocate the labor expenses of a project by using this rule, you need to assign the rule to the project tasks.
To review how a project is being allocated by using the allocation rule, complete Overhead in the Project Budget:
Process Activity.

Overhead in the Project Budget: Process Activity

In this activity, you will learn how to estimate the project overhead calculated based on the project costs.

Story
Suppose that the West BBQ Restaurant customer ordered 40 hours of new-employee training on operating juicers
from the SweetLife Fruits & Jams company. The parties agreed that the project should be billed in the amount of
$2,000 when the services were provided.
SweetLife's project manager created a project to account for the provided services. Then suppose that starting
from 1/27/2023, a consultant of SweetLife provided three days of training (24 hours) and SweetLife's project
accountant entered the corresponding project transaction.
Acting as the project accountant, while preparing monthly reports for the project manager, you need to estimate
the project costs that have been already incurred considering the administrative overhead, which is 20% of labor
costs.
Capturing Project Overhead | 384

Configuration Overview
In the U100 dataset, the following tasks have been performed for the purposes of this activity:
• For the purposes of this activity, on the Enable/Disable Features (CS100000) form, the Project Accounting
feature has been enabled to support the project accounting functionality.
• On the Projects (PM301000) form, the WESTBBQ8 project has been created an the TRAINING task has been
created for the project.
• On the Account Groups (PM201000) form, the OVERHEAD account group has been created.
• On the Allocation Rules (PM207500) form, the OVERHEAD allocation rule has been created. This allocation
rule is configured to process project transactions that represent labor expenses and post the overhead
that is calculated as 20% of the transaction amount to the OVERHEAD account group. (For an example of
allocation rule configuration, see Overhead in the Project Budget: Implementation Activity.)
• On the Project Transactions (PM304000) form, the PM00000023 batch of project transactions related to the
project has been created and released.

Process Overview
In this activity, you will first specify the allocation rule for the project task on the Projects (PM301000) form. On the
same form, you will then perform allocation for the project.

System Preparation
To prepare to perform the instructions of the activity, do the following:
1. Sign in to the system as project accountant by using the brawner username and the 123 password.
2. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to 1/30/2023. If a diﬀerent date is displayed, click the Business Date menu
button, and select 1/30/2023 on the calendar. For simplicity, in this activity, you will create and process all
documents in the system on this business date.

Step: Capturing Project Overhead

To configure the project for allocation and capture the project overhead, do the following:
1. On the Projects (PM301000) form, open the WESTBBQ8 project.
2. On the Tasks tab, in the line with the TRAINING task, select the OVERHEAD allocation rule in the Allocation
Rule column.
3. Save your changes to the project.
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On the Balances tab, notice that there is only one expense line with the LABOR account group, and the
actual amount is $960.
4. On the More menu, under Billing and Allocations, click Run Allocation.
The system performs the allocation using the allocation rule you have specified for the project task.
When the allocation is completed, on the Balances tab, review the project balance again, as shown in the
following screenshot. Notice that one more expense line with the OVERHEAD account group has appeared in
the table. The actual amount of the line is $192, which is 20% of $960.

Figure: The captured overhead in the project expenses

5. In the table, click the line with the OVERHEAD account group, and on the tab toolbar, click View
Transactions.
On the Project Transaction Details (PM401000) form, which opens in a pop-up window, review the created
allocation transaction that correspond to the account group. The original document type of the transaction
is Allocation and the debit account group is OVERHEAD.

You have estimated the project overhead.

Overhead in the Project Budget: Generated Transactions

When you allocate projects, the system creates allocation transactions based on the settings of the allocation rules
associated with the project tasks. Depending on the settings of the allocation rules and project tasks, the system
can also create reversing allocation transactions. These transactions are described in the following sections.

Allocation Transactions Generated on the Allocation of a Project

When a project is allocated, the system generates a batch of allocation transactions shown in the table below. The
system assigns the Allocation for <Project ID> description to the generated batch.
The system uses the following account groups as the source accounts in the batch it creates:
Capturing Project Overhead | 386

• The debit account group, which is specified in the Account Group box on the Allocation Settings tab (Debit
Transaction section) of the Allocation Rules (PM207500) form.
• The credit account group, which is specified in the Account Group box on the Allocation Settings tab
(Credit Transaction section) of the Allocation Rules form.

Debit Account Group Credit Account Group Source of Account Orig. Doc Type

Debit account group Empty Allocation rule Allocation

You can review the created allocation transactions on the Project Transaction Details (PM401000) form. In the
Selection area of this form, you select the project in the Project box. In the table, the allocation transactions have
the Allocation type in the Orig. Doc. Type column. You can also select the Show only Allocation Transactions
check box in the Summary area of the form to review only allocation transactions in the table.

Overhead in the Project Budget: Related Reports and Forms

In the following sections, you can find details about the reports and forms you may want to review to gather
information related to the allocation process performed for a project.

Reviewing Allocation Transactions

You can review the list of all the corresponding allocation transactions of a project, including reversing allocation
transactions, on the Project Transaction Details (PM401000) form. In the Selection area of this form, you select the
project, as well as the project task, account group, and inventory item to narrow the listed project transactions.
For project transactions that have already been used as a source of allocation transactions, the check box in
the Allocated column is selected. The Allocation type in the Orig. Doc. Type column corresponds to allocation
transactions. You can select the Show only Allocation Transactions check box in the Summary area of the form to
review only allocation transactions in the table.

Printing Allocation Transactions

Reviewing Project Balances

Overhead in the Project Budget: Mass-Processing of Documents

This topic explains how to allocate multiple projects, and how the system generates, changes, or works with
projects as a result of the mass processing.
Capturing Project Overhead | 387

Mass-Allocating Projects
You can initiate allocating for multiple projects on the Run Allocations by Projects (PM502500) form; this allocation
entails the creation of allocation transactions. On this form, you select the unlabeled check boxes in the rows of
the projects to be processed in the table, and you click Allocate on the form toolbar. The system initiates allocation
for the selected projects. Allocation transactions will be created for only those projects that have tasks with an
associated allocation rule.
To initiate processing for all the projects listed in the table of the Run Allocations by Projects form, you click Allocate
All on the form toolbar. The system initiates allocating for all the projects listed in the table.

Mass-Allocating Project Tasks

You can initiate allocating for multiple project tasks on the Run Allocations by Tasks (PM502000) form; this
allocation entails the creation of allocation transactions. On this form, which displays only those project tasks
that have an associated allocation rule, you select the unlabeled check boxes in the rows of the project tasks to be
processed in the table, and you click Allocate on the form toolbar. The system initiates allocation for the selected
project tasks.
To initiate processing for all the project tasks listed in the table of the Run Allocations by Tasks form, you click
Allocate All on the form toolbar. The system initiates allocation for all the project tasks listed in the table.
Processing Expense Receipts with Corporate Credit Cards | 388

Processing Expense Receipts with Corporate Credit Cards

To help employees to categorize and track the expenses, including the expenses related to a project, Acumatica
ERP supports the use of corporate credit cards in expense receipts and claims. In this chapter, you will find topics
that explain how to configure the system and process expense receipts with corporate cards.

Expense Receipts with Corporate Cards: General Information

Acumatica ERP supports the use of corporate credit cards on the Expense Claim (EP301000) and Expense Receipt
(EP301020) forms. This helps employees to categorize and track the expenses, including the expenses related to a
project. For example, while in the field, your employees can buy something that they want to charge on a project
and pay for it with a corporate card. Employees can still have out-of-pocket expenses that are reimbursed through
the standard process.

Learning Objectives
In this chapter, you will learn how to do the following:
In this lesson, you will learn how to do the following:
• Create a GL account, cash account, and payment method for a corporate credit card
• Create a corporate credit card in the system
• Create an expense receipt for company's expenses paid by the corporate credit card
• Process an expense claim for the expense receipt paid with the corporate credit card
• Process personal expenses paid with the corporate credit card
• Process company's expenses paid with a personal account

Applicable Scenarios
You process an expense receipt with a corporate credit card if you are an employee who wants to record expenses
paid by a company credit card.
You process an expense claim for expense receipts, including receipts paid with corporate credit cards, if you are an
accountant who wants to process the recorded expenses.

Configuration of Corporate Cards

You configure corporate credit cards on the Corporate Cards (CA202500) form. You enter the card number for
matching transactions on a bank statement. Multiple employees can use a single corporate card; you add these
employees to the table on the form.
In order to create corporate cards on the Corporate Cards form, GL accounts, cash accounts, payment methods, and
employees must be configured as described below.
You configure a separate GL account for each bank and currency. For each GL account, you create a separate cash
account with the following settings on the Cash Accounts (CA202000) form:
• The Clearing Account check box is cleared.
• The Restrict Visibility with Branch check box is cleared.
• The Use for Corporate Cards check box is selected.
• Only one payment method can be associated with the cash account.
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• Optionally, the Requires Reconciliation check box is selected; if it is, a numbering sequence must be
specified in the Reconciliation Numbering Sequence box. The predefined CARECON numbering sequence
can be selected.
• The cash account must be associated with the same branch as the corporate card.
Although the cash account that is used for a corporate card must have only one associated payment method, this
payment method can be selected for multiple cash accounts. If a payment method is selected for a cash account
that is used for a corporate card, in the Summary area of the Payment Methods (CA204000) form, the Use in AP
check box is selected. Also, on the Settings for Use in AP tab of the form, this payment method should have the
following settings:
• Not Required (Additional Processing section): Selected
• Require Unique Payment Ref. (Payment Settings section): Cleared
If the card currency diﬀers from the currency of an employee who uses the corporate card, for this employee,
the Enable Currency Override and Enable Rate Override check boxes must be selected on the General Info
tab (Employee Settings section) of the Employees (EP203000) form. (This section of the form also contains the
Currency ID box, where the employee currency is specified.)

Payment of Expense Receipts with Corporate Cards

On the Expense Receipt (EP301020) form, you create expense receipts to the employee that is associated with
your user. You can also create expense receipts for any subordinates of that employee. In the Paid With box (in
the Expense Details section of the Details tab), you select how the expense receipt has been paid. The following
options are available:
• Personal Account: The company's expenses that the employee paid with his or her own funds and the
company will need to reimburse this amount to you. This is the default option if the employee has no active
corporate card assigned.
• Corporate Card, Company Expense: The company's expenses that are paid with a corporate card. This is the
default option if the employee has an active corporate card assigned.
• Corporate Card, Personal Expense: The employee's personal expenses that are paid with a corporate card.
In the Corporate Card box, you select a corporate card associated with the employee. The default corporate card, if
any, is selected as follows:
• The corporate card used in the employee's most recent expense receipt is selected, if it is available. The
most recent receipt is determined by the receipt's creation date.
• If the corporate card that was used most recently is unavailable—that is, inactive, deleted, or no longer
assigned to the employee—the employee's only active card or the first active card the system finds
for the employee. The first corporate card is the first card in the employee's card list; this list is sorted
alphabetically by name.

If the Multiple Base Currency feature is enabled on the Enable/Disable Features form, the base
currency of the cash account that corresponds to corporate card must be the same as base currency
of the employee. For more information on configuring multiple base currencies, see Multiple Base
Currencies: General Information.

Corporate card expenses cannot be split. That is, on the Expense Receipt form, in the Expense Details section of
the Details tab, the Employee Part of an expense receipt paid with a corporate card must be zero.
In the Ref. Nbr. box, you enter the reference number that usually matches the number of the original receipt.

Claiming of Expense Receipts Paid with Corporate Cards

On the Expense Claim (EP301000) form, you can claim with a single expense claim all the employee's expense
receipts paid with corporate cards as long as they have the same card currency. Each expense claim line on the
Details tab refers to an expense receipt. If you create a new expense claim line on the form that does not originate
Processing Expense Receipts with Corporate Credit Cards | 390

from any expense receipt, on release of the expense claim, the system creates the corresponding expense receipt
for that expense claim line.
On release of an expense claim, the system creates documents as follows for the expense claim lines, depending on
the value in the Paid With column:
• Personal Account: A single AP bill is created on the Bills and Adjustments (AP301000) form for all the expense
claim lines with positive amounts and a single AP debit adjustment is created on the same form for all the
expense claim lines with opposite amounts.
• Corporate Card, Company Expense: An AP quick check is created on the Quick Checks (AP304000) form for
each expense claim line if the Post Summarized Company Expenses by Corporate Card check box is
cleared on the General tab of the Time and Expenses Preferences (EP101000) form.
If the Post Summarized Company Expenses by Corporate Card check box is selected, the system creates
a separate AP quick check for each group of the expense claim lines with the same date, corporate card, and
reference number.
• Corporate Card, Personal Expense: A single AP debit adjustment is created on the Bills and Adjustments form
for all the expense claim lines.

Workflow of Claiming Expenses Paid with Corporate Cards

The following diagram illustrates the workflow of an employee claiming an expense paid with a corporate credit
card.
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Expense Receipts with Corporate Cards: Implementation Checklist

The following sections provide details you can use to ensure that the system is configured properly for processing
expense receipts with the corporate cards, and to understand (and change, if needed) the settings that aﬀect the
processing workflow.

Implementation Checklist
We recommend that before you initially process expense receipts with the corporate cards, you make sure the
needed features have been enabled, settings have been specified, and entities have been created, as summarized
in the following checklist.

Form Tasks to Perform

Enable/Disable Features (CS100000) form Make sure that the Expense Management feature is en-
abled.
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Form Tasks to Perform

Chart of Accounts (GL202500) form Make sure that the necessary GL accounts for the cor-
porate cards have been created.

Payment Methods (CA204000) form Make sure that the necessary payment methods for
the corporate cards have been created. For more in-
formation on payment methods, see Payment Methods
for Vendors. Also, make sure that the following settings
have been specified for the created payment methods:
• Use in AP (Summary area): Selected
• Not Required (Additional Processing section of
the Settings for Use in AP tab): Selected
• Require Unique Payment Ref. (Payment Settings
section of the Settings for Use in AP tab): Cleared

Entry Types (CA203000) form Ensure that the entry types to be used for cash ac-
counts have been created. For details, see Entry Types.

Cash Accounts (CA202000) form Verify that the necessary cash accounts have been cre-
ated with the following settings:
• The Clearing Account check box is cleared.
• The Restrict Visibility with Branch check box is
cleared.
• The Use for Corporate Cards check box is selected.
• Optionally, the Requires Reconciliation check box
is selected; if it is, a numbering sequence must be
specified in the Reconciliation Numbering Se-
quence box.
For more information, see Cash Account Configuration.

Employees (EP203000) form The employees who are going to use the corporate
cards have been created. For more information, see
Employee Settings.

Corporate Cards (CA202500) form Verify that the corporate cards of the company have
been created and the related employees have been as-
sociated with the cards.

Non-Stock Items (IN202000) form Ensure that the inventory items to be used in expense
receipts have been created and the Expense type has
been specified for the items.

Other Settings That Aﬀect the Workflow

You can aﬀect the workflow of processing expense receipts with the corporate cards by specifying additional
settings on the Time and Expenses Preferences (EP101000) form, as follows:
• To cause the system to make a newly created expense claim have the On Hold status by default, select the
Hold Expense Claims on Entry check box.
• To cause the system to create a single accounts payable quick check for each group of expense claim
lines that are paid with a corporate card and have the same date and reference number, select the Post
Summarized Corporate Card Company Expenses check box. If the check box is cleared, which is the
Processing Expense Receipts with Corporate Credit Cards | 393

default value, the system creates a separate AP quick check for each expense claim line that is paid with a
corporate card.
• To make it not mandatory to specify a value in the Ref. Nbr. box on the Details tab (Expense Details
section) of the Expense Receipts (EP301010) form, clear the Require Ref. Nbr. in Expense Receipts check
box. If this check box is selected, users must specify a value in the Ref. Nbr. box.
• To cause the system to automatically release corresponding accounts payable documents created on
release of an expense claim, select the Automatically Release AP Documents check box on the General
Settings tab (Posting Settings section).
With these settings specified, users in your company can process change requests quickly and accurately with a
minimum of manual actions.

Testing of Settings
To make sure that all settings are configured correctly, we recommend that you process expense receipts with the
corporate cards, as described in Expense Receipts with Corporate Cards: To Process Expense Receipts.

Expense Receipts with Corporate Cards: Implementation Activity

This activity will walk you through the process of creating the necessary entities for processing of expense receipts
with corporate credit cards.

Story
Suppose that Jon Waite and Bill Owen—employees of the SweetLife Fruits & Jams company—can use a corporate
credit card for charging their business expenses. Acting as an implementation manager of SweetLife, you need
to create an account, payment method, and cash account for company corporate cards, as well as to create the
corporate card itself in the system.

Configuration Overview
In the U100 dataset, the following tasks have been performed for the purposes of this activity:
• The Expense Management feature has been enabled on the Enable/Disable Features (CS100000) form.
• On the Entry Types (CA203000) form, the BANKFEE entry type has been added.
• On the Employees (EP203000) form, the accounts for Jon Waite and Bill Owen have been created.

Process Overview
To create a corporate card, you will first create a GL account on the Chart of Accounts (GL202500) form. You will
create a payment method for the card on the Payment Methods (CA204000) form. You will specify the GL account
and payment method for a cash account, which you will create on the Cash Accounts (CA202000) form. Finally, you
will create a corporate credit card on the Corporate Cards (CA202500) form.
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System Preparation
To prepare to perform the instructions of the activity, launch the Acumatica ERP website, and sign in to a company
with the U100 dataset preloaded as an implementation manager by using the gibbs username and the 123
password.

System Preparation
To prepare to perform the instructions of the activity, sign in as an implementation manager by using the gibbs
username and the 123 password.

System Preparation
To prepare to perform the instructions of the activity, sign in as the implementation manager by using the gibbs
username and the provided password.

Step 1: Creating a GL Account for a Corporate Card

Create a GL account as follows:

1. Open the Chart of Accounts (GL202500) form, and on the form toolbar, click Add Row.
2. In the new line, create an account with the following settings:
• Account: 29000
• Account Class: OTHCURLIAB
• Type: Liability
• Description: Corporate Credit Card
• Post Option: Detail
3. Save your changes.

Step 2: Creating a Payment Method

To create a payment method for the corporate credit card, do the following:
1. On the Payment Methods (CA204000) form, add a new record.
2. In the Payment Method ID box of the Summary area, type CORPCC.
3. In the Summary area, specify the following settings:
• Means of Payment: Credit Card
• Description: Corporate card payment method
• Use in AP: Selected
• Use in AR: Cleared
This payment method is not going to be used for customer payments.
• Require Remittance Information for Cash Account: Cleared
Remittance information is not required by this payment method for the related cash accounts.
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4. On the Settings for Use in AP tab, clear the Require Unique Payment Ref. check box in the Payment
Settings section so that a unique payment reference number is not required for each payment document
created with this payment method.
Make sure that Not Required is selected in the Additional Processing section. Payment documents created
with this payment method do not require additional processing, such as printing checks.
5. Save the payment method.

Step 3: Creating a Cash Account

Create a cash account as follows:
1. On the Cash Accounts (CA202000) form, add a new record.
2. In the Cash Account box of the Summary area, type 29000, and specify the following settings:
• Account: 29000 - Corporate Credit Card
• Branch: SWEETEQUIP
• Requires Reconciliation: Selected
• Restrict Visibility with Branch: Cleared
• Use for Corporate Cards: Selected
• Reconciliation Numbering Sequence: CARECON - CA Reconciliation
3. On the Payment Methods tab, on the table toolbar, click Add Row, and in the Payment Method column,
select CORPCC.
4. On the Entry Types tab, on the table toolbar, click Add Row, and in the Entry Type ID column, select
BANKFEE.
5. Save the created cash account.

Step 4: Creating the Corporate Credit Card

To create the corporate credit card, do the following:
1. On the Corporate Cards (CA202500) form, add a new record.
2. In the Summary area, specify the following settings:
• Branch: SWEETEQUIP
• Name: USD Corporate Card
• Card Number: 7890
• Cash Account box: 29000 - Corporate Credit Card
3. On the table toolbar, click Add Row, and in the Employee ID column, select EP00000003 - Jon Waite.
4. Add one more row and select EP00000004 - Alberto Jimenez in the Employee ID column.
5. Save the created credit card.

You have configured a corporate credit card. Now you can process expense receipts with this credit card.

Expense Receipts with Corporate Cards: To Process Expense Receipts

This activity will walk you through the process of creating and processing expense receipts with corporate cards.
Processing Expense Receipts with Corporate Credit Cards | 396

Story
Suppose that the West BBQ Restaurant customer ordered the installation service for previously bought juicers from
the SweetLife Fruits & Jams company. The project accountant of SweetLife created a project to account for the
provided services.
Jon Waite, a SweetLife employee, worked in the customer's restaurant installing a juicer on January 29, 2023, and
realized that there was not enough electric cable. Jon went to a construction store and bought 20 meters of electric
cable for $27, which he paid for with a company corporate card. He also bought a cup of coﬀee in a cafe near the
store and paid $6 for it by using the same corporate credit card. Then Jon took a taxi, for which he paid $10 in cash,
to return to SweetLife. The next day, January 30, another SweetLife employee, Alberto Jimenez, went to a meeting
with the customer to discuss the project. He took a taxi and paid $25 by using a corporate card.
Acting as Jon Waite, you will enter all related expenses into the system and file a claim for the reimbursement of
expenses.

Configuration Overview
In the U100 dataset, the following tasks have been performed for the purposes of this activity:
• The Expense Management feature has been enabled on the Enable/Disable Features (CS100000) form.
• On the Projects (PM301000) form, the WESTBBQ7 project has been created, and the INSTALL project task
has been created for the project and specified as the default task. The cost budget of the project includes a
single line with 12 hours of installation.
• On the Non-Stock Items (IN202000) form, the CABLE, MEAL, and TAXI non-stock items with the Expense type
have been created.
• On the Employees (EP203000) form, the accounts for Jon Waite and Alberto Jimenez have been created.

Process Overview
First, you will create an expense receipt for Jon Waite paying for electric cable on the Expense Receipts (EP301010)
form. You then will create an expense claim, which will also include expenses for the taxi and coﬀee, on the
Expense Claim (EP301000) form. As the last step, you will create the second expense receipt, for Alberto Jimenez
paying for the taxi, on the Expense Receipts form.

System Preparation
To sign in to the system and prepare to perform the instructions of the activity, do the following:
1. As a prerequisite activity, create a corporate card as described in Expense Receipts with Corporate Cards:
Implementation Activity.
2. Launch the Acumatica ERP website, and sign in as Jon Waite by using the waite username and the 123
password.
3. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to 1/29/2023. If a diﬀerent date is displayed, click the Business Date menu
button, and select 1/29/2023 from the calendar. For simplicity, in this activity, you will create and process all
documents in the system during this business date.

System Preparation
To prepare to perform the instructions of the activity, do the following:
1. Sign in to the system as Jon Waite by using the waite username and the 123 password.
Processing Expense Receipts with Corporate Credit Cards | 397

2. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to 1/29/2023. If a diﬀerent date is displayed, click the Business Date menu
button, and select 1/29/2023 from the calendar. For simplicity, in this activity, you will create and process all
documents in the system during this business date.

System Preparation
To prepare to perform the instructions of the activity, do the following:
1. Sign in to the system as Jon Waite by using the waite username and the provided password.
2. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to 1/29/2023. If a diﬀerent date is displayed, click the Business Date menu
button, and select 1/29/2023 from the calendar. For simplicity, in this activity, you will create and process all
documents in the system during this business date.

Step 1: Creating the First Expense Receipt

Make sure that you have signed in by using the waite user account before you start completing the
following instructions. If you are signed in to another user account, this can aﬀect the workflow of the
activity and the results of the processing.

To create an expense receipt to enter the purchase of electric cable, do the following:
1. Open the Expense Receipts (EP301010) form.
2. On the form toolbar, click Add New Record. The system opens the Expense Receipt (EP301020) form.
3. In the Summary area, select CABLE in the Expense Item box.
4. Make sure that the expense date is 1/29/2023 and EP00000003 - Jon Waite is selected in the Claimed by box.
5. On the Details tab, specify the following settings:
• Description: Electric cable
• Unit Cost: 27.00
• Project/Contract: WESTBBQ7
• Project Task: INSTALL (inserted automatically)
• Cost Code: 00-000
• Paid With: Corporate Card, Company Expense
• Corporate Card: 000001 - USD Corporate Card
6. Save the receipt, and notice that it has the Open status.

Step 2: Processing an Expense Claim for the Expense Receipt

To claim the expense receipt you have created, along with the cost of coﬀee and a taxi, do the following:
1. While you are still viewing the expense receipt on the Expense Receipt (EP301020) form, on the form toolbar,
click Claim.
The Expense Claim (EP301000) form opens. On the Details tab, notice the line for the electric cable.
2. On the table toolbar of the Details tab, click Add Row, and specify the following settings in the new row (see
the screenshot below):
• Date: 1/29/2023
• Expense Item: MEAL
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• Description: Coffee
• Quantity: 1
• Unit Cost: 6
• Paid With: Corporate Card, Personal Expense
Notice that when you select Corporate Card, Personal Expense in the Paid With column, the system
automatically populates the Project/Contract column with the non-project code (X) and clears the
Project Task column.
• Corporate Card: 000001 - USD Corporate Card
3. Click Add Row, and specify the following settings in the new row:
• Date: 1/29/2023
• Expense Item: TAXI
• Description: Taxi
• Quantity: 1
• Unit Cost: 10
• Project/Contract: WESTBBQ7
• Project Task: INSTALL (inserted automatically)
• Cost Code: 00-000
• Paid With: Personal Account

Figure: The expenses to be claimed

4. In the Summary area, make sure that the claim total is $43.
5. Save the expense claim.
6. On the form toolbar, click Submit.
The system assigns the Approved status to the claim.
7. On the form toolbar, click Release.
The system assigns the Released status to the claim.
In the table on the Financial tab, review the documents that the system has generated for the claim: a $27
quick check for the cable, a $6 debit adjustment for the coﬀee, and a $10 bill for the taxi.

Step 3: Creating the Second Expense Receipt

To create an expense receipt to enter the amount spent on the taxi by Alberto Jimenez, do the following:
1. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, set the business date
to 1/30/2023.
2. Open the Expense Receipts (EP301010) form, and on the form toolbar, click Add New Record.
The system opens the Expense Receipt (EP301020) form.
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3. In the Summary area, specify the following settings:

• Expense Item: TAXI
• Claimed by: EP00000004 - Alberto Jimenez
4. On the Details tab, specify the following settings:
• Description: Taxi to the customer's site
• Unit Cost: 25.00
• Project/Contract: WESTBBQ7
• Project Task: INSTALL (inserted by default)
• Cost Code: 00-000
• Paid With: Corporate Card, Company Expense
• Corporate Card: 000001 - USD Corporate Card
5. Save the expense receipt.
6. On the Projects (PM301000) form, open the WESTBBQ7 project.
On the Cost Budget tab, notice that two lines have been added to the budget when the expense claim that
you have processed in this activity has been released. The line with the CABLE item has an actual amount of
27.00 and the line with the TAXI item has an actual amount of 10.00. Alberto Jimenez's expenses on the taxi
have not been recorded to the project budget because these expenses have not been claimed yet.

You have recorded corporate card expenses to the project budget.

Expense Receipts with Corporate Cards: Generated Transactions

The release of an expense claim does not generate general ledger transactions or project transactions directly.
When you release the expense claim, the system creates the corresponding accounts payable documents. On
release of the accounts payable documents, the system generates the general ledger transactions and, optionally,
project transactions described in the following sections.

GL Transactions Generated on Release of an AP Quick Check

When an accounts payable quick check that has been created on release of an expense claim is released, the
system generates a batch of the general ledger transactions shown in the table below.

Account Source of Account Debit Credit

The expense account The inventory item Amount 0.00

The liability account The cash account of the corpo- 0.00 Amount
rate card

You can view the details of the batch associated with the release of a quick check by clicking the link in the Batch
Nbr. box on the Financial tab (GL Link section) of the Quick Checks (AP304000) form. The system opens the batch
on the Journal Transactions (GL301000) form.

GL Transactions Generated on Release of an AP Bill

When an accounts payable bill that has been created on release of an expense claim is released, the system
generates a batch of the general ledger transactions shown in the following table.
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Account Source of Account Debit Credit

The expense account The inventory item Amount 0.00

The liability account The AP bill 0.00 Amount

You can view the details of the batch associated with the release of a bill by clicking the link in the Batch Nbr. box
on the Financial tab (Link to GL section) of the Bills and Adjustments (AP301000) form. The system opens the batch
on the Journal Transactions (GL301000) form.

GL Transactions Generated on Release of an AP Debit Adjustment

When an accounts payable debit adjustment that has been created on release of an expense claim is released, the
system generates a batch of the general ledger transactions shown in the following table.

Account Source of Account Debit Credit

The liability account The AP account of the employ- Amount 0.00

The liability account The cash account of the corpo- 0.00 Amount
rate card

You can view the details of the batch associated with the release of a debit adjustment by clicking the link in the
Batch Nbr. box on the Financial tab (Link to GL section) of the Bills and Adjustments (AP301000) form. The system
opens the batch on the Journal Transactions (GL301000) form.

Project Transactions Generated on Release of the GL Batch

On release of an accounts payable quick check or bill with a line associated with a project, which has been created
on release of an expense claim, in addition to the creation of a batch of general ledger transactions, the system also
generates a batch of the project transactions shown in the following table.

Debit Account Credit Account Source of Account Amount

The expense account Empty GL batch Amount

You can review the created transactions on the Project Transaction Details (PM401000) form. In the Selection area
of this form, you select the project in the Project box. In the table, you can find the project transactions created on
release of the accounts payable quick check or bill by the reference number of the document in the Orig. Doc. Nbr.
column.

Expense Receipts with Corporate Cards: Related Reports and Forms

In the following sections, you can find details about the reports and forms you may want to review to gather
information about expense claims.
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Printing Expense Claims

You can print an expense claim that you are viewing on the Expense Claim (EP301000) form by clicking Print on
the More menu. The system opens the printable form of the expense claim, which is the Expense Claim Details
(EP612000) report. You can review the expense claim and print it.

Printing the Expense Claims of an Employee

You can prepare a printable list of expense receipts that are grouped by expense claims related to the employee
associated with the current user, as well as any subordinates of this employee, by using the Expense Claim Details
(EP613000) report.

Printing Expenses Claimed by Employee

You can prepare a printable list of expenses claimed by the employee associated with the current user, as well as
any subordinates of this employee, by using the Expense Claim Details by Employee (EP614020) report. The report
displays total claimed amounts that can be optionally broken down by expense items.

Printing Expenses Claimed by Department

You can prepare a printable list of expenses claimed by a particular department by using the Expense Claim Details
by Department (EP614010) report. The report displays the total claimed amounts, which can be optionally broken
down by expense items.

Expense Receipts with Corporate Cards: Mass-Processing of Documents

This topic explains how to process multiple expense claims, and how the system generates, changes, or works with
documents as a result of the mass processing.

Mass-Claiming Expense Receipts

Expense receipts can be mass-claimed. To claim multiple expense receipts at a time, you open the To Be Claimed
tab of the Expense Receipts (EP301010) form, select the unlabeled check boxes in the rows of the expense receipts
to be claimed, and click Claim on the form toolbar. The system creates expense claims for the selected expense
receipts.
To create expense claims for all the expense receipts listed on this tab, you click Claim All on the form toolbar.

Mass-Releasing Expense Claims

Expense claims can be mass-released. To release multiple expense claims at a time, you open the Release Expense
Claims (EP501000) form, select the unlabeled check boxes in the rows of the expense claims to be processed, and
click Release on the form toolbar. The system releases the selected expense claims.
To release all the expense claims listed in the table on this form, you click Release All on the form toolbar.
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Mass-Billing Customers for Claimed Expenses

Customers can be mass-billed for claimed expenses. To create invoices for all the approved expense claims of
particular customers at a time, you open the Bill Expense Claims (EP502000) form, select the unlabeled check
boxes in the rows of the customers to be billed, and click Process on the form toolbar. The system releases the
corresponding expense claims of the selected customers and creates invoices.
To bill all the customers listed in the table on this form for claimed expenses, you click Process All on the form
toolbar. The system releases the corresponding expense claims of all the customers listed in the table and creates
invoices.

Expense Receipts with Corporate Cards: Bank Reconciliation

You can maintain internal control over corporate credit cards by performing regular reconciliations of the cash
account configured for corporate cards. Generally, the goal of reconciliation is to find discrepancies between
account balances tracked by diﬀerent means, locate any errors, and make needed corrections or adjustments.
Reconciliation is usually done at the end of each period or more frequently. For more information on the
reconciliation process, see Bank Reconciliation: General Information.

Learning Objectives
In this topic, you will learn how to do the following:
• Reconcile a bank statement for the corporate credit card
• Create and release a bill for the bank

Importing of Bank Transactions

On the Import Bank Transactions (CA306500) form, you upload bank statement records for the liability cash account
of corporate cards. If a bank statement record contains the corporate card number in text format, this number is
shown in the Card Number column on the form. A single bank statement may contain the transactions of all the
corporate cards associated with the same cash account. For more information about importing bank transactions,
see Bank Reconciliation: Uploading and Processing of Bank Transactions and Importing Transactions.

Processing of Imported Bank Transactions

On the Process Bank Transactions (CA306000) form, for the selected liability cash account configured for corporate
cards, you match an uploaded bank statement record to an existing payment, AP bill, or expense receipt, as well as
create a cash transaction if such a transaction has not been found in the system. For details about matching bank
transactions, see Processing Imported Transactions.
When you click Auto-Match on the form toolbar, the system uses the available information about imported
transactions for calculating the relevance rate, which is a measure of how closely a document matches the selected
transaction and for searching for matching documents with the following priority:
1. The system searches payments and invoices as matching candidates by using the following settings in
the Weights for Relevance Calculation section of the Transaction Match Settings dialog box: Ref. Nbr.
Weight, Doc. Date Weight, and Doc. Payee Weight. For more information about the matching process and
the relevance calculation, see Transaction Matching Settings.
2. If no payment or invoice is found, the system searches expense receipts for matching candidates by using
the following settings in the Weights for Relevance Calculation and Expense Receipt Matching sections of
the Transaction Match Settings dialog box: Ref. Nbr. Weight, Doc. Date Weight, and Amount Weight.
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Aer the system has matched imported bank transactions on the Process Bank Transactions form, for a bank
transaction selected in the le pane, in the right pane, the system shows the list of matching documents it has
found. Payments are shown on the Match to Payments tab. AP documents are shown on the Match to Invoices
tab. A cash transaction can be created for the bank transaction on the Create Payment tab. Expense receipts are
shown on the Match to Expense Receipts tab, which is displayed on the form only for the cash accounts that are
used for corporate cards. The system selects the Matched check box for the best candidate among all the found
candidates by using the following rules:
1. The best match is the document with the highest match relevance that is greater than 0.75.
2. If multiple documents have the same highest match relevance, the system selects the first document it finds
by using the following priority: a payment, an AP document, and an expense receipt.
3. If no documents have a match relevance greater than 0.75, the best match is a document whose match
relevance is greater than or equal to 0.2.
For example, if the match relevance of one document is 0.25 and the match relevance of another document
is 0.5, the system selects the document with a match relevance of 0.5.
If more than one document satisfies this condition, the system selects the first document it finds by using
the following priority: a payment, an AP document, and an expense receipt.
4. If only one document is found, it is the best match if its match relevance is greater than or equal to 0.2.

If none of the conditions above has been met, there is no best match for the transaction of the bank statement.
When the imported transactions are matched, you click Process on the form toolbar of the Process Bank
Transactions form to complete reconciliation. An expense receipt and a corresponding bank statement record that
have been matched and processed are no longer displayed on the form.

Limitations of the Matching Process

The matching process on the Process Bank Transactions (CA306000) form has the following limitations:
• If you match a bank transaction to an expense receipt in a different currency with an amount that is within
the amount difference threshold, release the corresponding claim, and the cash transaction is posted, and
then you unmatch the bank transaction from the expense receipt, the cash transaction will not appear as a
candidate for matching because the amounts differ.
• If a cash transaction originates from an expense claim, the cash transaction date in the system is the
same as the expense claim date. There can be a significant delay between the date of the bank statement
transaction and the date of the cash transaction in the system, which should be considered in the filter of
dates in the Transaction Match Settings dialog box.

Calculation of the Relevance Rate for Expense Receipts

Unlike the relevance calculation for payments and invoices, for calculating the relevance rate for expense receipts
on the Process Bank Transactions (CA306000) form, the system includes in the calculation the amount weight
instead of the payee weight, by using the following formula:
AmountDistance() = NORMDIST(x, 0, DifferenceAmount, probability mass
function) / NORMDIST(0, 0, DifferenceAmount, probability mass function)
x = ABS(BankTransactionAmount - ExpenseCardCurrencyAmount)
DifferenceAmount = Amount Difference Threshold (%) * BankTransactionAmount /
100
Payments and invoices are selected as matching candidates by the exact amount of a bank transaction, which is
consistent to the logic of bank transaction matching for regular bank accounts. The Amount Diﬀerence Threshold
(%) is not applied for matching of payments and invoices and applied for matching of expense receipts that are
Processing Expense Receipts with Corporate Credit Cards | 404

recorded with the expense currency that diﬀers from the card currency and therefore a diﬀerence between the
amount of a bank transaction and the amount of an expense receipt may take place.
The AmountDistance() formula returns a floating number that ranges in value from 0 to 1.
The system calculates the relevance rate for an expense receipt by using the following formula:
Match Relevance = DocDateWeight*DateDistance() + RefNbrWeight*RefNbrDistance()
+ AmountWeight*AmountDistance()

Expense Receipts with Corporate Cards: To Reconcile Bank Statements

This activity will walk you through the process of reconciliation of a bank statement.

Story
Suppose that employees of the SweetLife Fruits & Jams company used a corporate card related to the New York
Bank. At the end of January, 2023, the New York Bank sent a monthly statement. Acting as SweetLife's accountant,
you will reconcile this statement and process a bill for the bank in the system.

Configuration Overview
For the purposes of this activity, the standard set of features has been enabled on the Enable/Disable Features
(CS100000) form.
On the Chart of Accounts (GL202500) form, the 29000 - Corporate Credit Card account has been created. On the Cash
Accounts (CA202000) form, the 29000 cash account linked to the GL account has been created.

On the Corporate Cards (CA202500) form, the 000001 - USD Corporate Card corporate card has been added, as
described in Expense Receipts with Corporate Cards: Implementation Activity.
On the Vendors (AP303000) form, the NYBANK vendor account for the New York Bank has been created.

Process Overview
To reconcile a bank statement, you will first import bank transactions on the Import Bank Transactions (CA306500)
form. You will match the bank transactions with the transactions in the system on the Process Bank Transactions
(CA306000) form. You then will reconcile the bank statement on the Reconciliation Statements (CA302000) form.
Finally, you will create a bill to pay the outstanding balance to the bank on the Bills and Adjustments (AP301000)
form.

System Preparation
To prepare to perform the instructions of this activity, do the following:
1. Download the NewYorkBank_CorpCard_Transactions_January file to your computer.
2. Make sure that you have completed the Expense Receipts with Corporate Cards: To Process Expense
Receipts activity.
3. Launch the Acumatica ERP website, and sign in as Pam Brawner by using the brawner username and the 123
password.
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4. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to 1/31/2023. If a diﬀerent date is displayed, click the Business Date menu
button, and select 1/31/2023 from the calendar. For simplicity, in this activity, you will create and process all
documents in the system during this business date.

Step 1: Importing Bank Transactions

To import the bank transactions, do the following:
1. Open the Import Bank Transactions (CA306500) form, and on the form toolbar, click Add New Record.
2. In the Summary area, specify the following settings:
• Cash Account: 29000 - Corporate Credit Card
• Start Balance Date: 1/1/2023
• End Balance Date: 1/31/2023
Make sure that 1/31/2023 is selected in the Statement Date box.
3. On the form toolbar, click Load Records from File ( ).
4. In the File Upload dialog box, which opens, select the file path to the
NewYorkBank_CorpCard_Transactions_January file, and click Upload.
5. In the Common Settings dialog box, which opens, leave the default settings, and click OK.
6. In the Columns dialog box, which opens, leave the current mapping, and click OK.
The system uploads transactions. Make sure that the value in the Calculated Balance box in the Summary
area is -58.00.
7. In the Summary area, specify -58.00 in the Ending Balance box.
8. Click Save on the form toolbar.

Step 2: Matching Transactions in the System

To match the uploaded bank transactions with system documents, do the following:
1. Open the Process Bank Transactions (CA306000) form.
2. In the Summary area, select 29000 - Corporate Credit Card in the Cash Account box.
3. On the form toolbar, click Auto-Match.
Notice that the system has found documents with transactions that match the bank statement transactions.
4. On the form toolbar, click Process.
5. On the Import Bank Transactions (CA306500) form, open the bank statement you have imported and notice
that the transactions have been processed and matched—that is, the check boxes in the Matched and
Processed columns are selected.

Step 3: Reconciling a Bank Statement

Reconcile the bank statement as follows:
1. Open the Reconciliation Statements (CA302000) form, and on the form toolbar, click Add New Record.
2. In the Cash Account box, select the 29000 - Corporate Credit Card account.
3. In the table, for both uploaded rows, select the Reconciled check box.
4. In the Summary area, in the Statement Balance box, specify -33.
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5. On the form toolbar, click Remove Hold to assign the statement the Balanced status, and then click Release
to release the statement.

Step 4: Paying the Outstanding Balance to the Bank

To create an accounts payable bill for the bank, do the following:
1. Open the Bills and Adjustments (AP301000) form, and on the table toolbar, click Add New Record.
2. In the Summary area, specify the following settings:
• In the Vendor box, select NYBANK.
• In the Description box, type Bank account settlement.
Make sure that the bill date is 1/31/2023.
3. On the Details tab, add a row with the following settings:
• Branch: HEADOFFICE
• Ext. Cost: 33.00
• Account: 29000 (selected by default based on vendor settings)
4. On the form toolbar, click Remove Hold to assign the bill the Balanced status, and then click Release to
release the bill.

You can now pay the bill and process the related documents in the system.
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Grouping Invoices
This topic describes how to configure project billing to create a single invoice for the project or to create multiple
separate invoices.

Grouping Invoices: General Information

In Acumatica ERP, the billing procedure provides opportunities for grouping invoices and creating separate
invoices depending on the project settings and the settings of billing rules.

Learning Objectives
You will learn how to do the following:
• Configure project billing to create a single invoice for the project or to create multiple separate invoices
• Bill the project with diﬀerent billing rules assigned to the project tasks
• Bill a project task separately from the other tasks of the project
• Bill project transactions that are associated with particular account groups separately from the other

Applicable Scenarios
You bill a project with separate invoices if, for example, the customer has asked you to provide a separate invoice
for a particular project task, or if you need to create a separate invoice for a particular type of expenses.

Grouping of Invoices
When you run project billing for a particular project, the system creates a single invoice for all project tasks that
have the same customer location selected in the Location box on the Project Tasks (PM302000) form.
The system also groups the billable amounts into multiple invoices based the originating branch of the invoice
prepared during project billing that the system specifies by using the following priority:
1. If a billing is performed with a pro forma invoice, the system first searches for a project branch, which is
specified in the Branch box on the Summary tab (Billing and Allocation Settings section) of the Projects
(PM301000) form. If project is billed with direct accounts receivable invoice, the system ignores the project
branch.
2. The system searches for the shipping branch of the customer location selected in the project task, which is
specified in the Default Branch box on the General tab of the Customer Locations (AR303020) form, if any.
(Therefore, multiple pro forma invoices with diﬀerent originating branches can be created for the same
project if the project branch is not defined.)
3. The system searches for the shipping branch of the default location of the customer specified for the project
task.
4. The system specifies the current branch selected in the Company and Branch Selection menu for the user
that ran the project billing.

The system groups invoices to a single invoice for all the billing steps of billing rules for which the same Invoice
Group is specified on the Billing Rules (PM207000) form. That is, if some project tasks are assigned a billing rule
or multiple billing rules with billing steps that have the same invoice group, during the project billing, the system
groups the lines created with these billing steps into a separate invoice.
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To create a separate invoice for a particular project task, you need to select the Bill Separately check box in the
Billing and Allocation Settings section on the Summary tab of the Project Tasks form.

Grouping Invoices: Configuration Prerequisites

Before starting to bill a project, you must be sure that the system has been configured in a proper way and all
required entities have been created, as described in this topic.

Enabling Features
In Acumatica ERP, you can bill a progress billing project if the Project Accounting feature is enabled on the Enable/
Disable Features (CS100000) form.

Configuring Basic Preferences and Entities

You make sure that the following settings are configured to ensure that the system is ready for project billing:
• Basic project accounting preferences are configured.
• The project status is Active, Completed, or Suspended.
• The status of the project tasks is Active or Completed
• A billing rule is specified for each project task.

Grouping Invoices: Implementation Checklist

To ensure that the system is configured properly for project billing, make sure that the features and settings listed
in the table are configured as described in the following table.

Form Validation of Settings Comments

Enable/Disable Features (CS100000) Make sure that the Project Ac-

form counting check box is selected.

Projects Preferences (PM101000) Make sure that all necessary set-

form tings of project accounting have
been specified.

Account Groups (PM201000) form Make sure that all necessary ac-
count groups are configured.

Billing Rules (PM207000) form Make sure that all necessary billing
rules are configured.

Grouping Invoices: Process Activity

This activity will walk you through the process of configuring project billing to create a single invoice for the project
or to create multiple separate invoices. You will learn how to bill the project with diﬀerent billing rules assigned to
the project tasks, how to bill a project task separately from the other tasks of the project, and how to bill project
transactions that are processed by particular steps of billing rules with a separate invoice.
Grouping Invoices | 409

Story
Suppose that the Thai Food Restaurant customer has ordered two juicers from the SweetLife Fruits & Jams
company, along with the following services: site review, installation, and employee training on operating the
juicers. The project accountant of SweetLife has created the project to handle the tracking and billing of the
provided materials and services. The project has three tasks that represent three phases of the project execution:
• Phase 1: Installation of the first juicer
• Phase 2: Installation of the second juicer
• Phase 3: Training on operating the juicers
The juicers have been delivered and installed, and SweetLife's consultant has provided the training. Before each
invoice is sent to the customer for payment, the customer has requested that a pro forma invoice be submitted for
acceptance.
Acting as the project accountant, you will bill the customer with a single invoice. Aer the first the billing, you will
group the invoices in diﬀerent ways based on the following customer's requests:
• Create a separate invoice for the third phase
• Create a separate invoice for the juicers

Process Overview
To bill a time and material project, you first will review and configure project invoices with the billing rule on
the Billing Rules (PM207000) form and with the project tasks on the Projects (PM301000) form. Then you will bill
the project on the Projects form. Finally, you will review the created pro forma invoice on the Pro Forma Invoices
(PM307000) form.

System Preparation
Before you begin performing the steps of this activity, perform the following instructions to prepare the system:
1. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset preloaded; you should
sign in as project accountant by using the brawner username and the 123 password.
2. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to 1/30/2023. If a diﬀerent date is displayed, click the Business Date menu
button, and select 1/30/2023 on the calendar. For simplicity, in this activity, you will create and process all
documents in the system on this business date.
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System Preparation
Before you begin performing the steps of this activity, perform the following instructions to prepare the system:
1. Sign in to the system as the project accountant by using the brawner username and the provided password.
2. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to 1/30/2023. If a diﬀerent date is displayed, click the Business Date menu
button, and select 1/30/2023 on the calendar. For simplicity, in this activity, you will create and process all
documents in the system on this business date.

Step 1: Billing a Project with Multiple Billing Rules

To bill the project with diﬀerent billing rules assigned to the project tasks, do the following:
1. On the Projects (PM301000) form, open the TOMYUM9 project.
2. On the Cost Budget tab, review the cost budget of the project. Make sure it includes three lines with the
PHASE1 project task, three lines with the PHASE2 project task, and one line with the PHASE3 project task.
3. On the Tasks tab, in the line with the PHASE2 task, change the billing rule in the Billing Rule column to TM.
When you bill the project, the system will use this billing rule to process unbilled transactions associated
with this project task.
4. Save your changes to the project.
5. On the form toolbar, click Run Project Billing.
The system creates a pro forma invoice and opens it on the Pro Forma Invoices (PM307000) form.
6. On the Time and Material tab, review the invoice lines and notice that lines related to all the project tasks
are in the same invoice, even though the project tasks have diﬀerent billing rules assigned. You need to
reconfigure the billing to prepare a separate pro forma invoice for each project task.
7. Delete the pro forma invoice, so you can bill this project again when you change the configuration of project
billing.

Step 2: Billing Project Tasks Separately

To bill the PHASE3 project task separately from the other project tasks, do the following:
1. On the Projects (PM301000) form, open the TOMYUM9 project.
2. On the Tasks tab, do the following to add a needed table column to those displayed on the tab:
a. In the table, click the Column Configuration button, the lemost icon among the column headers. The
system opens the Column Configuration dialog box.
b. In the Available Columns list of the dialog box, click the Bill Separately column.
c. Click the Add Column button (the right arrow icon between the lists) to add the column to the Selected
Columns list.
d. Click OK to apply your changes to the list of columns and close the dialog box.
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3. In the row with the PHASE3 task, select the check box in the Bill Separately column to bill the task with a
separate invoice.
4. Save your changes to the project.
5. On the form toolbar, click Run Project Billing, and review the generated invoices on the Invoices tab.
The system created two pro forma invoices. One invoice includes the transactions related to the PHASE3
project task, and the other invoice includes the transactions related to the other project tasks.
6. Open and review each created pro forma invoice as follows:
a. On the Invoices tab, click the link in the Pro Forma Reference Nbr. column to open the pro forma
invoice.
b. On the Time and Material tab of the Pro Forma Invoices (PM307000) form, which the system opens in a
pop-up window, review the lines of the invoice.
Notice that the invoice with the total amount of $4,750 has lines related to the PHASE1 and PHASE2 tasks,
whereas the invoice with the total amount of $400 has a line related to only the PHASE3 task.
c. Delete the pro forma invoices, and return to the Projects form with the TOMYUM9 project selected.

You have deleted the pro forma invoices you created, so you are able to bill the project again when you change the
configuration of project invoices again.

Step 3: Grouping Invoices by Steps of Billing Rules

To create a separate invoice for the juicers whose costs are tracked within the MATERIAL account group, do the
following:
1. On the Billing Rules (PM207000) form, open the TM billing rule.
2. In the le pane, enter MATERIAL in the Invoice Group column of the 10 (Material cost plus markup) step.
This step of the billing rule is used for time and material billing of transactions associated with the MATERIAL
account group.
3. Save your changes to the billing rule.
4. Open the COMBINED billing rule.
5. In the le pane, enter MATERIAL in the Invoice Group column of the 20 (Material cost plus markup) step.
This step of the billing rule is used for time and material billing of transactions associated with the MATERIAL
account group.
6. Save your changes to the billing rule.
When you bill the project by using these billing rules, the system will group invoice lines created with the
steps of the billing rules with the MATERIAL account group in a separate invoice.
7. On the Projects (PM301000) form, open the TOMYUM9 project.
8. On the form toolbar, click Run Project Billing.
The system creates three pro forma invoices, as shown in the following screenshot. The system has created
one more separate invoice based on unbilled transactions with the MATERIAL account group using the steps
of the billing rules with the MATERIAL invoice group.
Grouping Invoices | 412

Figure: Pro forma invoices prepared during billing procedure

9. Open and review each created pro forma invoice as follows:

a. On the Invoices tab, click the link in the Pro Forma Reference Nbr. column to open the pro forma
invoice.
b. On the Time and Material tab of the Pro Forma Invoices (PM307000) form, which the system opens in a
pop-up window, review the lines of the invoice on the Time and Material tab.
Notice that the invoice with the total amount of $4,000 includes two lines with juicers related to the
MATERIAL account group, the invoice with the total amount of $750 includes four lines related to the
PHASE1 and PHASE2 tasks except the lines with juicers, and the invoice with the total amount of $400
includes one line related to the PHASE3 task.
c. Close the pop-up window with the form, and return to the Projects form with the TOMYUM9 project
selected.

You have configured the grouping of pro forma invoices for the project and performed project billing with the new
billing settings.

Grouping Invoices: Related Reports and Inquiries

This topic describes reports, inquiries, forms and dialog boxes you may review to gather information related to
project billing. The topic also explains how you can print documents related to project billing.

If you do not see a report or inquiry, this could mean that you have signed in to the system with a user
that do not have access rights to a form. Sign in as admin, or contact your system administrator.

Reviewing Project Transactions

You can review the list of corresponding project transactions of a pro forma invoice line on the Time and Material
tab of the Pro Forma Invoices (PM307000) form. To review the corresponding project transactions of a line, you
click the line, on the table toolbar, click View Transaction Details, the system opens the Project Transaction Details
(PM401000) form in a pop-up window.

Printing Invoices
You can print a pro forma invoice by clicking Print on the More menu of the Pro Forma Invoices (PM307000) form.
The system opens the printable form of the invoice that is project-specific and specified for the PROFORMA mailing
Grouping Invoices | 413

of the project on the Mailing & Printing tab of the Projects (PM301000) form. By default, this is the Pro Forma
Invoice (PM642000) form. You can review the invoice, and print it.
Approval of Projects and Project-Related Activities | 414

Approval of Projects and Project-Related Activities

If projects in your organization must be approved before they can be used to record project transactions and
activities, you can easily configure approval of projects and project tasks in Acumatica ERP.

The functionality of project approval is available only if the Approval Workflow feature is enabled on
the Enable/Disable Features (CS100000) form.

Approval of Projects
To make approval required for projects, in the Approval Map box on the Projects Preferences (PM101000) form,
you must specify the approval map to be used to assign projects to employees for approval. If no value is specified
in the box, approval is not required. You can create an approval map by using the Assignment and Approval
Maps (EP205500) form; in the map, you can specify conditions for assigning projects to specific workgroups and
particular employees for approval.
If approval of projects is configured, once a user takes a project oﬀ hold, the system assigns the project the Pending
Approval status and uses the rules defined by the approval map to assign the project to a workgroup or to a
particular employee (in the workgroup) for approval. If no assignment occurs, the project gets the Active status.
Once the project is assigned to a workgroup, any member of the workgroup can view the project on the Approvals
(EP503000) form and approve or reject it. If the project is rejected, it gets the In Planning status.
An approved project gets the Active status and becomes visible when users process project-related transactions.

Approval of Time Activities

To control completion of time activities related to a project, you can assign the person who will be responsible for
approving these time activities. An authorized approver of time activities can view the time activities assigned for
approval on the Approve Time Activities (EP507000) form. The approver can apply a filter to the list of documents on
this form to find specific time activities and then approve or reject them.
A time activity is assigned the Pending Approval status if the following conditions are met:
• An approver is assigned to the project task specified in this time activity.
To assign the approver to a particular project task, you specify the employee ID for the project task in the
Approver box on the Summary tab of the Project Tasks (PM302000) form. (Alternatively, you specify the
employee ID in the Approver column in the row with this project task on the Tasks tab of the Projects form.)
• A user has clicked the Complete button on the Activities (CR102000) form.
You can also specify an approver on the project level. To do this, you specify an employee ID in the Time Activity
Approver box on the Summary tab of the Projects form. This employee will be assigned to approve time activities
instead of the approver specified at the project task level. If no approver is specified at the project task level, time
activities with this project task will not require any approval (including the approval by the project-level approver).
If the same person is typically assigned for approving particular projects, you can configure approvers to be
assigned automatically for newly created project and project tasks, as follows:
• For time activities related to projects that are created based on a particular project template. To configure
this, you specify the employee ID in the Time Activity Approver box on the Summary tab of the Projects
form.
• For time activities related to project tasks created based on a common task (which is a typical task not
associated with any particular project template). To configure this, you specify the employee ID for the
common task in the Approver box on the Summary tab of the Common Tasks (PM208030) form.
Approval of Projects and Project-Related Activities | 415

• For time activities related to project tasks created based on a particular project template task. To configure
this, you specify the employee ID for the common task in the Approver box on the Summary tab of the
Project Template Tasks (PM208010) form.
Taxes in Projects | 416

Taxes in Projects
In Acumatica ERP, you can post expenses associated with sales and use taxes under the projects selected in AP bills
to accurately record project expenses. These expenses will be posted when such a bill is released.
On the Bills and Adjustments (AP301000) form, if a project identifier is specified in the Project column for a line of
an AP bill, the tax expense amount will be posted to the general ledger under the project ID of the line. Based on
the GL transactions that are generated for the bill, the system will create project transactions, and the tax expense
amounts will be reflected on the project balance. Use tax and sales tax amounts are posted under the project ID
of the corresponding AP document line if the tax expense account is included in an account group; otherwise, tax
expenses will be posted under the project ID defined as the non-project code (which by default is X ).
If multiple lines of the bill have the same combination of project ID (the Project column), project task ID (the
Project Task column), cost code (the Cost Code column), inventory item (the Inventory ID column), and GL
account (the Account column), the system will create an aggregated GL entry with that project ID and the total tax
expense amount.

GL Transactions
In the following example, an AP bill for $9095.00 with a 7% sales tax ($595) and a 3% use tax ($255) is created.

Table: AP Bill with Sales and Use Taxes

Project Task Amount Sales Tax Use Tax Amount Description

Amount

03-001 16-100 3000.00 210.00 90.00 Fire protection

03-002 15-300 4000.00 280.00 120.00 Electrical work

03-002 15-300 500.00 35.00 15.00 Electrical work

03-005 15-200 1000.00 70.00 30.00 Painting work

8500.00 595.00 255.00

When the bill is posted to the general ledger, the system creates the following GL entries.

Table: GL Entries Aer the AP Bill Is Posted

Account Project Task Debit Credit Description

AP Non-project 0.00 9095.00

code

Tax Payable Non-project 0.00 255.00 Use Tax

code

Expenses 03-001 16-100 3000.00 0.00 Fire protection

Expenses 03-002 15-300 4000.00 0.00 Electrical work

Expenses 03-002 15-300 500.00 0.00 Electrical work

Expenses 03-005 15-200 1000.00 0.00 Painting work

Taxes in Projects | 417

Account Project Task Debit Credit Description

Tax Expense 03-001 16-100 210.00 0.00 Sales Tax

Tax Expense 03-002 15-300 315.00 0.00 Sales Tax

Tax Expense 03-005 15-200 70.00 0.00 Sales Tax

Tax Expense 03-001 16-100 90.00 0.00 Use Tax

Tax Expense 03-002 15-300 135.00 0.00 Use Tax

Tax Expense 03-005 15-200 30.00 0.00 Use Tax

Appendix | 418

Appendix
The appendix provides some reference information relevant for this document. The additional information in this
section is a useful source for readers who need some reference material that is related to system forms and tables,
as well as running reports.
In this section:
• Reports
• Form Toolbar
• Table Toolbar
• Glossary

Reports

In addition to oﬀering a comprehensive collection of reports, Acumatica ERP gives you a high degree of control over
each report.
On a typical report form, described in Report Form, you can adjust the report settings to meet your specific
informational needs. You can specify sorting and filtering options and select the data by using report-specific
settings—such as financial period, ledger, and account—and configure additional processing settings for each
report. The settings can be saved as a report template for later use. For details, see To Run a Report and To Create a
Report Template.

Aer you run a report, the prepared report appears on your screen. You can print the report, export the report to a
file, or send the report by email.
This chapter describes a typical report form and the main tasks related to using reports.

In This Chapter
• Report Form
• To Run a Report
• To Modify a Filter on a Report Form
• To Create a Report Template

Report Form

Before you run a report, you set a variety of parameters on the report form. You can select a template or manually
make selections that aﬀect the information collected. Also, you can specify appropriate settings to print or email
the finished report.
The following screenshot shows a typical report form.
Appendix | 419

Figure: Parameters View of Report Form

1. Report Form Toolbar

2. Template Area
3. Details Area

Report Form Toolbar

The following table lists the buttons of the report form toolbar when you are configuring a report.

Button Description

Cancel Clears any changes you have made and restores default settings.

Run Report Initiates data collection for the report and displays the generated report.

Save Template Gives you the ability to save the currently selected report as a template with all the select-
ed settings.

Remove Tem- Removes the previously saved template.

plate
This button is available only when you select a template.

Schedule Tem- Opens the Select Schedule Name Dialog Box dialog box, which you can use to schedule re-
plate port processing.
This button is available only when you select a template.

Table: Select Schedule Name Dialog Box

Element Description

Schedule The schedule for report processing. Select an existing schedule, or leave the box blank
and click OK to open the Automation Schedules (SM205020) form to create a new sched-
ule for running the report. For more information on scheduling, see Automated Process-
ing: General Information in the Acumatica ERP System Administration Guide.
Appendix | 420

Element Description

Merge Reports A check box that indicates (if selected) that this report will be merged with the other re-
ports selected for merging into one net report when processed.

You can check the reports that will be merged when processed on the Send
Reports (SM205060) form.

Merging Order The number of the report in the net report.

Report Toolbar
The following table lists the buttons of the toolbar aer you run the configured report.

Buttons Icon Description

Parameters Navigates back to the report form to let you change the report parameters.

Refresh Refreshes the information displayed in the report (if any data changes were made).

Groups Adds to the report a le pane where the report structure is shown. Click a report node
to highlight the pertinent data in the right pane.

View PDF / Displays the report as a PDF, or displays the report in HTML format. The available but-
View HTML ton depends on the current report view; if you're viewing a PDF, for instance, you will
see the View HTML button.
/

First Displays the first page of the report.

Previous Displays the previous page.

Next Displays the next page.

Last Displays the last page of the report.

Print Opens the browser dialog box so you can print the report.
Appendix | 421

Buttons Icon Description

Send Opens the Email Activity dialog box, which you use to send the report file (in the cho-
sen format) to the specified email address.

Export Enables you to export the data in the chosen format (Excel or PDF).

Template Area
Use the elements in this area to select an existing template and then use the template, share it with other users, or
use it as your default report settings.
The Template area elements, which are available for all reports, are described in the following table.

Table: Template Area Elements

Element Description

Template The template to be used for the report. If any templates were created and saved, you can
select a template to use its settings for the report.

Default A check box that indicates (if selected) that the selected template is marked as the default
one for you. A default template cannot be shared.

Shared A check box that indicates (if selected) that the selected template is shared with other
users. A shared template cannot be marked as the default.

Locale A locale that you select to indicate to the system that the report should be prepared with
the data translated to the language associated with this locale. This box is displayed if
there are multiple active locales in the system. For details, see Locales and Languages.

Report Parameters Tab

The Report Parameters tab includes sections where you can specify the contents of the report depending on the
current report and vary in the following regards:
• How many elements and which elements are available on a particular report
• Whether elements contain default values
• Whether specific elements require values to be selected
• Whether elements may be le blank to let you display a broader range of data

Additional Sort and Filters Tab

The Additional Sort and Filter tab contains additional sorting and filtering conditions:
• Additional sorting conditions: Defines the sorting order. You can add a line, select one of the report-
specific properties, and select the Descending or Ascending sort order for the column.
• Additional filtering conditions: Defines the report filter. You can add a line, select one of the report-
specific properties, and define a condition and its value. The list of conditions include one-operand and
two-operand conditions. To create a more complicated logical expression, you can use brackets and logical
operations between brackets. For more information on creating filters, see Managing Advanced Filters. For
detailed procedures on using ad hoc filters, see Working with Reports: Process Activity.
Appendix | 422

Print and Email Settings Tab

If you plan to print the report or save the report as a PDF, select the appropriate settings in the Print Settings area.

Table: Print Settings Section

Element Description

Deleted Records Selects the visibility of the data deleted from the database.

Print All Pages Causes all pages of the report to be printed.

Print in PDF format Displays the report in PDF format.

Compress PDF file Indicates that the system will generate a compressed PDF.

Embed fonts in PDF file Indicates that the system will generate the PDF with fonts embedded.

If you plan to send the report as an email, in the Email Settings area, specify the format in which the report will be
sent, as well as the email subject, the recipients of copies of the report, and the email account of the recipient.

Table: Email Settings Section

Field Description

Format The format (HTML, PDF, or Excel) in which the report will be emailed.

Merge function for reports in Excel format is not supported. If you want to
merge a report with other reports and send an aggregated report by email,
you should select either the HTML or PDF format for the report.

Email Account The email address of the recipient.

CC An additional addressee to receive a carbon copy (CC) of the email.

BCC The email address of a person to receive a blind carbon copy (BCC) of the email; an address
entered in this box will be hidden from other recipients.

Subject The subject of the email.

Report Versions Tab

If the report has multiple versions, you can select one of them.
This tab displays the data only to users assigned with report designer user role.
Report versions are designed in the Report Designer. To activate editing report versions, give the user report
designer role.

Table: Report Versions Tab Toolbar

Button Description

Refresh Refreshes the list of report versions.

Appendix | 423

Button Description

Select Temporarily activates the selected report version.

Related Links
• To Run a Report
• To Create a Report Template
• Types of Filters
• Automation Schedule Statuses

Report

Once you click Run Report, the prepared report appears on your screen. You can print the report, export the report
to a file, or send the report by email.
The prepared report is displayed in the report view of the report form. For more information about setting up the
report parameters and the parameters view of the report form, see Report Form.

Report Toolbar
The following table lists report toolbar buttons.

Buttons Icon Description

Parameters Navigates back to the report form to let you change the report parameters.

Refresh Refreshes the information displayed in the report (if any data changes were made).

Groups Adds to the report a le pane where the report structure is shown. Click a report node
to highlight the pertinent data in the right pane.

First Displays the first page of the report.

Previous Displays the previous page.

Appendix | 424

Buttons Icon Description

Next Displays the next page.

Last Displays the last page of the report.

Print Opens the browser dialog box so you can print the report.

Send Opens the Email Activity dialog box, which you use to send the report file (in the cho-
sen format) to the specified email address.

Export Enables you to export the data in the chosen format (Excel or PDF).

Figure: The form toolbar and the More menu

Appendix | 425

You use the standard buttons on the form toolbar to navigate through entities that were created by using the
current form, insert or delete an entity, use the clipboard, save the data you have entered, or cancel your work on
the form.
A form toolbar on a particular form may include form-specific buttons in addition to standard buttons; it may also
(or instead) include commands on the More menu. These form-specific buttons and commands provide navigation
to related forms, invoke specific actions, and perform modifications or processing related to the functionality of the
form.

Standard Form Toolbar Buttons

The following table lists the standard buttons of the form toolbar. A form toolbar may include some or all of these
buttons.

Table: Standard Form Toolbar Buttons

Button Icon Description

Discard Changes Discards any unsaved changes made to the entity, and navigates to the list of
and Close records that is related to the current form.

If the system opened the current form in a pop-up window (from

a different form), this button is not displayed. To return to the
original form, click Close.

Save & Close Saves the changes made to the entity, and navigates to the list of records that
is related to the current form.

Save Saves the changes made to the entity.

Cancel Depending on the context, does one of the following:

• Discards any unsaved changes you have made to entities and retrieves the
last saved version.
• Clears all changes and restores the default settings.

Add New Record Clears any values you've specified on the form, restores any default values,
and initiates the creation of a new entity.

Delete Deletes the currently selected entity, clears any values you have specified on
the form, and populates elements with the default values that the system in-
serts when a new entity is created.

You can delete an entity only if it is not linked with another enti-
ty.
Appendix | 426

Button Icon Description

Clipboard Provides menu commands you can use to do the following:

• Copy: Copy the selected entity to the clipboard.
• Paste: Paste an entity or template from the clipboard.
• Save as Template: Create a template based on the selected entity.
• Import from XML: Import an entity or a template from an .xml file.
• Export to XML: Export the selected entity to an .xml file.
For more information on templates and copy-and-paste operations in
Acumatica ERP, see Using Forms. For more information on importing and ex-
porting .xml files, see Importing and Exporting Data to Excel and XML in the
Acumatica ERP User Guide.

Go to First Record Displays the first entity (in the list of entities of the specific type) and its de-
tails.

Go to Previous Displays the previous entity and its details.

Record

Go to Next Record Displays the next entity and its details.

Go to Last Record Displays the last entity (in the list of entities of the specific type) and its de-
tails.

View Schedule Gives you the ability to schedule the processing. For more information, see
Automated Processing: General Information.

Inquiry Form Toolbar Buttons

Acumatica ERP inquiry forms present data in a tabular format; they may also have selection criteria you can use
to filter the data in the table. Predefined inquiry forms are provided as part of Acumatica ERP out of the box, and
inquiry forms can be designed by a user with the appropriate access rights by using the Generic Inquiry tool (for
details, see Managing Generic Inquiries in the Acumatica ERP Reporting Tools Guide). A form toolbar of an inquiry
form contains both the standard form toolbar buttons (described in the table above) and the additional buttons
described below.

Button Icon Description

Refresh Refreshes the inquiry data in the table.

Cancel Clears all changes (including selection criteria that has been specified, if the
generic inquiry form has this criteria) and restores the default settings.
Appendix | 427

Button Icon Description

Add New Record Initiates the creation of a new entity.

Edit Opens the applicable data entry form with the selected record.

Fit to Screen Expands the form to fit on the screen and adjusts the column widths propor-
tionally.

Export to Excel Exports the data to an Excel file. For more information, see Integration with Ex-
cel in the Acumatica ERP Getting Started Guide.

Filter Settings Opens the Filter Settings dialog box, which you can use to define a new filter.
After the filter has been created and saved, the corresponding tab appears on
the table. For more information about filtering, see Filters.

The More Menu and Form-Specific Buttons

If there are multiple form-specific commands on the form toolbar, they are displayed on a single menu—the More
menu—and listed under descriptive categories, which makes it easier to find the needed menu command. On the
More menu, you can easily define your favorite menu commands, which eases access to them.
On some forms, the system places a button (which is highlighted in green) on the form toolbar for the expected next
command, which represents the likely next step to be performed on the selected record. The following screenshot,
which shows the Cash Transactions (CA304000) form, illustrates an example of the form toolbar and the More menu,
which contains categories and menu commands.

Figure: The form toolbar of the Transactions form

The numbered items in the screenshot indicate the following:

1. A highlighted button for the expected next command, which represents the next logical step to be
performed on the record selected on the form
2. Another button for a command that is commonly performed on the form
3. The More button, which you click to open the More menu
Appendix | 428

4. The More menu with most form-specific menu commands and descriptive categories on it
5. The star icon, which is used to mark the individual user's favorite commands on the form
6. An unavailable command

Favorite Commands
Based on your role in the company and your job duties, you may use some commands more oen than others.
On the form toolbar, you can specify these commands as favorites. This will cause the system to duplicate the
commands as form toolbar buttons, easing access to them.
To add a command to the form toolbar as a button, you open the More menu, hover over the needed command,
and click the star icon when it appears. The yellow color of the star indicates that the command has been added
to your favorites, and a button for the command appears on the form toolbar immediately. The following example
shows two commands that have been added to the user's favorites on the Invoices and Memos (AR301000) form
and thus added as buttons on the form toolbar.

Figure: Favorite commands on the More menu and the corresponding toolbar buttons

Favorites are individual to each user account, specific to a particular form, and preserved across user sessions.

Highlighted Buttons and Commands

On some forms, the system applies predefined logic to commands for specific records. Based on this logic, the
system may place a button on the form toolbar, highlight it using some color, or do both of these things.
If a command is the expected next command (that is, the command that is most likely to be clicked for a record
with the current status), it is shown both on the form toolbar and on the More menu. The primary command on the
form toolbar is highlighted in green (see Item 1 in the following screenshot), and on the More menu, it is marked
with a green dot (Item 2). Below is an example of a cash transaction on the Cash Transactions (CA304000) form that
has the On Hold status (Item 3). Before you can process it, you need to remove it from hold. Because Remove Hold
is the next logical command, it is displayed as a button on the form toolbar and highlighted in green.
Appendix | 429

Figure: The highlighted command and the corresponding status

Unavailable Commands on the More Menu

By default, on the More menu, the system displays all commands that could be available for the form, based on the
system configuration. Some of these commands may be unavailable (that is, they are listed but cannot be clicked).
These are the commands that are not applicable to the record based on its current status or other factors.

The Responsive Form Toolbar and More Menu

The form toolbar and the More menu have a responsive layout, meaning that they dynamically adjust to different
screen sizes. When there is enough space, buttons for highlighted and favorite commands are displayed on the
form toolbar. When the screen size decreases, the system moves the commands off the form toolbar one by one but
keeps them on the More menu.
If there are multiple categories on the More menu, the categories and menu commands can be displayed in
multiple columns on the More menu, depending on the screen size and the number of categories. When the
screen size decreases, the system moves some categories and menu commands to the le to decrease the number
of columns, and in the screens of the smallest size, all categories are displayed in one column. Below are two
examples of the same menu in different screen sizes for a record on the Bills and Adjustments (AP301000) form.
Appendix | 430

Figure: The form toolbar and More menu on a wide screen

Figure: The form toolbar and More menu on a narrow screen

Appendix | 431

Related Links
• Integration with Excel
• To Copy a Document Contents to a New Document
• To Create a Document with a Template

Table Toolbar

Each table on an Acumatica ERP form, tab, dialog box, or page has a table toolbar, which contains the buttons
you can use to work with the details or objects of the table. A toolbar, shown in the following screenshot, includes
buttons that are specific to the table, standard buttons that most table toolbars have, and the search box (for some
tables; for others, the search box is displayed in the filtering area).

Figure: Table toolbar

Standard Table Toolbar Buttons

The following table describes the standard table toolbar buttons. A table toolbar may include some or all of those
buttons. If a table toolbar includes table-specific buttons, they are described in the reference help topic.

Button Icon Description

Refresh Refreshes the data in the table.

Switch Between Controls how the elements are displayed: in a table (grid) with rows and columns;
Grid and Form or as separately arranged elements for one table row, with navigation tools you use
to move between row data.

Add Row Appends a new row to the table so you can define a new detail or object. The new
row may contain some default values.

Delete Row Deletes the selected row.

Appendix | 432

Button Icon Description

Move Row Up Moves the selected row one position up.

Move Row Down Moves the selected row one position down.

Fit to Screen Adjusts the table to the screen width and makes the column width proportional.

Export to Excel Exports the data in the table to an Excel file. For more information, see Integration
with Excel in the Acumatica ERP Getting Started Guide.

Filter Settings Opens the Filter Settings dialog box, which you can use to define a new advanced
filter. After you create and save the filter, the corresponding tab appears on the ta-
ble.
For more information about filtering, see Filters. For details on the Filter Settings
dialog box, see Filter Settings Dialog Box.

Load Records Opens the File Upload dialog box, described in detail below, so you can locate and
from File upload a local file for import. You can use this option to import data from an Excel
spreadsheet (.xlsx) or .csv file. For the detailed procedure, see To Import Data
from a Local File to a Table.

Search A box in which you can type a word, part of a word, or multiple words. As you type,
the system filters the contents of the table to display only rows that contain the
string you have typed in any column.

Download Downloads the selected file.

File Upload Dialog Box

With the File Upload dialog box, you select a file of one of the supported formats (.csv or .xlsx) to import data
from the file.

Element Description

File Path The path to the file you want to upload.

To select the file, click Browse, and then find and select the file you want to upload.

The dialog box has the following button.

Upload Closes the dialog box and opens the Common Settings dialog box, where you specify the
import settings.
Appendix | 433

Common Settings Dialog Box

In the Common Settings dialog box, which opens if you click Upload in the File Upload dialog box, you specify the
import settings for a file that you has selected in the File Upload dialog box.

Element Description

Separator Chars The character that is used as the separator in the imported file.
By default, the comma is used as the separator. You specify the separator character if the
imported file uses any other separator.
This box appears only if you import data from a .csv file.

Null Value Optional. The value that is used to mark an empty column in the imported file. You speci-
fy the null value if the value in the imported file differs from the empty string.

Encoding The encoding that is used in the imported file.

This box appears only if you import data from a .csv file.

Culture The regional format that has been used to display the time, currency, and other measure-
ments in the imported file.

Mode The mode defining which rows of the uploaded file will be imported into the table. The
following options are available:
• Update Existing: The rows already present in the table will be updated, and the rows
not present in the table will be added.
• Bypass Existing: Only the new rows that are not present in the table will be imported.
The rows that are already present in the table will not be updated.
• Insert All Records: All the rows from the file will be imported into the table.

If you select this option, you may get duplicated rows because the sys-
tem won't check for duplicates when importing rows from the file.

The dialog box has the following buttons.

OK Closes the dialog box and opens the Columns dialog box.

Cancel Closes the dialog box without importing the data from the file.

Columns Dialog Box

In the Columns dialog box, which opens if you click OK in the Common Settings dialog box, you match the
columns in the imported file that you have selected in the File Upload dialog box to the columns in the Acumatica
ERP table to which you are importing data.

Element Description

Column Name The name of the column in the uploaded file.

Property Name The name of the corresponding column in the table in Acumatica ERP.
Appendix | 434

Element Description

The dialog box has the following buttons.

OK Closes the dialog box and imports the selected file.

Cancel Closes the dialog box without importing the data from the file.

Related Links
• Tables
• Integration with Excel
• To Import Data from a Local File to a Table

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