August 16 2012 Sage 300 CRE Cost at Completion Slides

Sage 300 Construction and Real Estate Percent Complete - Cost at Completion Presentation by Pete Gallagher, CPA, General Manager Aktion East

Transcript

1. Sage 300 Construction & Real Estate (formerly Sage Timberline Office) Cost At Completion Pete Gallagher, CPA General Manager Aktion East
2. Our Mission At Aktion Associates, being responsive, innovative and providing consistent delivery of leading edge technologies are the foundation of everything we do. We view our role as IT architects who partner with our customers to create a comprehensive technical roadmap that supports continued growth and profitability
3. About Aktion • Founded 1979 • Privately held company • HQ in Maumee, Ohio • Supporting over 4,000 companies • 100 Employees
5. Services • Managed Services – Application Hosting • Network Engineering • Software Engineering • Application Consulting • Website Design/eMarketing Solutions • Virtualization • Security • Cloud Technologies • Web Enablement • Collaboration • CRM • eCommerce • AktionLink Products • Custom Applications
6. Industries of Expertise • Construction and Real Estate • Supply Chain • Architects and Engineers • Professional Service Businesses and Organizations • Non-Profit Memberships
7. Technologies • Our strategy is to solve customer challenges with the technical tool set inherent in the customer’s platform of choice – IBM – Microsoft – Linux – HP
8. Our Partners
9. Pete Gallagher, CPA • Timberline Construction Accounting & Property Management Certified • Over 20 years Timberline experience • Over 25 years in Construction Accounting
10. Projected Cost At Completion (PCAC) Why is it so hard to calculate? By Pete Gallagher
11. Agenda • Purpose of PCAC • Psychology / Observed Problems • PCAC Methods • Forecasting in Sage 300 CRE: – Set up – Collect and Enter the projections – Integrate YOUR PCAC into Schedule of WIP
12. Why this topic? • It’s GAAP / IFRS – “it’s an accounting thing” • “The computer should calculate it automatically” • “Project Manager’s don’t have time for paperwork”
13. What is it? Actual cost + “REMAINING COST ESTIMATE”
14. Quiz Does PCAC = Estimate?
15. Quiz Answer: The day the bid is won PCAC = Estimate 1. Buy out 2. Internal change orders (C/O’s) 3. External C/O’s 4. Billable & Non-billable
16. Importance • Revenue recognition • Risk management • Proactive project management • PM/Superintendent performance/bonus factor
17. Challenge • PM who is responsible – “are you losing control” • PM compensation linked to projections • Logistics • Timing • Understanding why it is important
18. Observed Problems • One PCAC method – Not appropriate for diverse and varying job types • Changing “estimate” – Lose true Change Order Trail • Accounting only • Project Manager responsibility only with no guidance – No Corporate Standard
19. Why Misc. Worksheets? – Preserve true “Change” history on Estimate – Faster to enter Misc. WS versus process change orders – Manage Change Orders not manipulate them • Losing true CO picture
20. Methods • Cost to Cost: – Cost to complete – Cost at completion – Reported Percent complete – Committed cost – buy outs
21. Methods • Production based – Labor trending – Production units – Unit based margins
22. Technology can help! • Multiple PCAC methods  Job types • PCAC separate from Estimate • Customized WIP reporting – Max(formula 1,formula 2, formula 3)
23. Technology can help! • Retain history of overrides • Committed cost systems • Entry at different detail levels
24. PCAC in Sage 300 CRE • Custom Descriptions – Determine field, name and level • JC Settings – Levels to track • Customize Miscellaneous Worksheets • Customize Schedule of Work In Progress – Out of the box: Total Estimate = PCAC • Document, educate, implement internally
25. Custom Descriptions JC CC Amt 1 = Stored Material JC CC Amt 2 = Cost at comp JC CC Amt 3 = Cost to comp JC CC Amt 4 = Lab hrs to comp JC CC Amt 5 = Open JC CC Amt 6 = Open
26. Select Level & Rename
27. Custom Descriptions
28. Job Cost Settings • Define Level of Cost Code to Track • Options varies on Cost Code Structure • Any level of Cost Code • Can track PCAC at Category
29. Job Cost Settings
30. Customize Misc Worksheets
31. Misc Worksheets
32. Misc Worksheets • New Option: • Sage Excel-Based Reporting • Office Connector • Spreadsheet to collect projections • “Write” back to Misc. Worksheets • Understand: no transaction only record overwrite
33. Schedule of Work in Process % Complete = Job Cost/Estimate Earned = % Complete x Contract If Billed > Earned, Billings in Excess If Earned> Billed, Cost in Excess
34. Schedule of Work in Process SWIP Report Customization: 1. Add PCAC Column 2. Change: % complete = JTD Cost/PCAC (not JTD Cost/Estimate) 3. Earned = PCAC % Complete x Contract
35. PCAC Example Calculations: • IF(CAC<>0,CAC,MAX(Committed Cost + JTD Cost – Commitments Invoiced, Total Estimate))
36. PCAC Example Calculations: • IF(CTC<>0, MAX(CTC+JTD Costs@ME,Mgt CAC), MAX(JTD Costs,Total Estimate,Mgt CAC))
37. Tips • Numeric fields default to 0.00 • Use .01 to force zero • Must maintain monthly • Timing is everything • Display codes/symbols on report to identify overrides • EDUCATE – EDUCATE - EDUCATE
38. In closing…. Questions?
39. Sage CRE Cloud Services Other Cloud Services Mobility Property Portal
40. About Aktion – AEC Unit • Sage Business Partner • 3rd Largest Sage in North America • Sage Chairman Level • 35% of total Aktion Business • Supporting over 2,000 Sage Customers • 35 Employees • Project Accounting Focus • From Estimate to Management
41. Thank you for attending! • Pete Gallagher – Sage 300 CRE - Construction Accounting Certified – Sage 300 CRE - Property Management Certified – Certified Public Accountant (NC) with 25+ years in Construction Accounting – 20+ years construction software experience pgallagher@aktion.com 704-971-3170 To find future Aktion web casts, please visit www.aktion.com/events
42. Thank you for attending Pete Gallagher – pgallagher@aktion.com - 704-971-3170 Dan Catlett– dcatlett@aktion.com – 703-777-8808 To find future Aktion web casts, please visit www.aktion.com/events
43. Contact Us Info: • Aktion Support Line - Support@aktion.com – 888-865-9425 • Pete Gallagher – pgallagher@aktion.com - 704-971-3170 • Upcoming events @ www.aktion.com