Project Cost Adjustments

Project cost adjustments can be used to add cost or remove cost from a project when the cost cannot be added/removed via the standard cost sources for project cost. The actual project cost is calculated by the sum of all line items or distribution detail from the following standard cost source documents:

Parts

· Posted Receipts (before a/p invoice is posted)

· Posted A/P Invoices

· Posted Inventory Requisitions

· Posted Inventory Returns

Labor

· Timecard Entries (Regular Time)

· Timecard Entries (Overtime)

· Timecard Entries (Other Premium Time)

· Hourly Miscellaneous Wages

· Piecerate Miscellaneous Wages

Miscellaneous

· Posted Receipts (before a/p invoice is posted)

· Posted A/P Invoices

Notice that Commissions are not included in project cost. This is because commissions are not included in the project estimate. The estimate is compared to the actual cost to obtain a percentage of completion. If figures not considered in the estimate are used in the cost, this would invalidate the percentage of completion calculation.

The Project Cost Adjustment Form

The project cost adjustment form can be accessed from the ‘phases’ page of the project form by right clicking and selecting ‘cost adjustment’ or clicking the +/- (plus/minus) toolbar button on phase page of the project form. This will open the cost adjustment form. Access the commands via the right click popup menu or use the hot keys (‘ins’ to add, ‘enter’ to edit, ‘ctrl+del’ to delete). Specify a phase, date, expense type, +/-hours, +/-dollar amount and comment. Entries here will show up as actual cost on the project estimate report (when the actual cost option is selected), the project cost/sale summary in the project form, and the Work In Progress report.

When identifying a phase for a cost adjustment entry, only phases where the job has been created will be allowed as a valid phase selection.

IMPORTANT: Be careful when making cost adjustments to projects: If the related cost for an adjustment has already been recorded within SuccessWare21® and associated with the project/phase via a timecard entry, miscellaneous wage entry, a/p invoice, receipt, material requisition or return, then this cost will be overstated on project reports.

GENERAL LEDGER NOTE: Entries made as cost adjustments to a project do not hit general ledger.