Posting operational work (Position Journal) – part 2

If we decide to use Position Journal, we will get easier operational work, but less of analysis quality (we cannot get COGS and resource cost per position). In some other post, I will detail explain different between Output Order using and Position/Job Journal posting. Also, posting results are not in posted documents, but there are only in Position Entries.

Position Journal is standard journal as all other journals in NAV. As standard NAV journals, Position Journal also has Journal Batches. This table contains the batches we set up for our position journals. Batches let us group entries in a posting session and place a unique stamp on that session. This provides an additional measure of audit control. Whereas, source codes and reason codes tell us the source of an entry and why the entry was made, batches tell us when the entry was made and in what group of entries it was made.

Entering data in Position Journal is simply and fast. Data are the same as Output Order header, but we can put them for many different Projects, Construction Positions and Dates. When we start to fill Position Journal, we need to input:

  • Document No. (automatic from No. Series or manually)
  • Document Date and Posting Date (there are usually the same)
  • Project No. and Project Task No.
  • Position No. (system will make automatic filter for positions and we get only positions we define on Bill of Quantities, as on Output Order; if we eventually must post position out-of-BoQ, we can press ‘Show All’ and we will get complete Construction Position code list.)
  • Quantity (in Cons. Position UOM)
  • Dimension Values and some other groups

All other data (UOM, Costs, Prices, Posting Groups…) will be entered automatically from setup. If this is not first posting for this position on this project, we can see previous posted quantity for this position. We also can see contracted position quantity from BoQ. On this way, we have control before posting this values. All of that data are placed in bottom statistic area.

There are some another small additional functionality, but globally, this is all for input. After that, we only need to post journal. Posting is easy, by press Post or Post and Print button. Posting result will be placed (only) in Position Ledger Entry.

All posting of COGS and resource cost, we must do with Job Journal. About Job Journal in my next post.

Posting operational work (Construction Management) – part 1

In NAV4Construction, we can post the operational work on next ways:

  • Using ‘Output Order’ – posting of Construction Position output work and Resource and Item consumption per Project in the same time;
  • Using ‘Position Journal’ – posting only Construction Position output work per Project; we need to post consumption separately;
  • Using ‘Job Journal’ (standard NAV functionality with some specific customizations) – posting only Resource and Item consumption per Project; we need to post output separately;

Advantage of the first method is that we can post all entries with the one document. We get posted document with ‘Navigate’ functionality. Also, this method enables us to have complete statistic of cost per every Construction Position for each Project. Failing of this method is that if we have many complex position works per day, it is too complicated to make evidence and post it.

If we choose posting without ‘Output Order’, we get simply procedure for posting. We use ‘Position Journal’ for evidence of work per all Construction Position we have and separately we use ‘Job Journal’ for evidence of consumption all Items and Resources, not linked with Construction Positions. On this way we get simpler method, but we lose connection of consumption with Construction Position output. We cannot get all things and we must to decide what method we want. Good thing is that we can choose different method for each project, depend of complexity and project requirement.

Output Order

New ‘Output Order’ we get with ‘New’ command on the ribbon. We need to put Project and Task we work on them and choose Construction Position for posting. System will make automatic filter for positions and we get only positions we define on Bill of Quantities.

Image

If we eventually must post position out-of-BoQ, we can press ‘Show All’ and we will get complete Construction Position code list. After that, we need to fill ‘Quantity’ field with output quantity for this position in presented Unit of Measure. If this is not first posting for this position on this project, we can see previous posted quantity for this position. We also can see contracted position quantity from BoQ. On this way, we have control before posting this values. If we want to see what we post for this position previous, we can press on ‘Position Executed Quantity’ field and we will get complete evidence from Position Ledger Entry.

Image

We can fill another specific filed, depend of construction type (civil-engineering, building construction, road, maintenance…), but I will explain this in some other posts.

When we fill all necessary header fields, we have to fill lines with consumption data. We can fill lines automatic or manually. Results is the same, but automatic can make work easier if we have good normatives for construction positions.

Automatic fill process can be started by the ‘Import outputs’ command. System will use all normative lines for position in header, recalculate consumption quantity with position quantity on header and fills it. I have to notice, these are planned quantities and I am sure, we need to change some of them.

If we have manually input of data, we need to choose line Type (Resource or Item) and choose desired Resource/Item. After that, process is different depend of line type:

Item

For Item, we need to fill ‘Location Code’. We can get default location code for project if we make this setup on Project Card. We need to fill item quantity, as well and this is all. All costs and prices for the item will be filled automatically.

Resource

For Resource, we can fill more fields. There are not all mandatory and this depend of setup for company and/or project. It is necessary to fill quantity per Unit of Measure and we can choose ‘Work Type Code’ for different Unit of Measures/Cost/Price. If this is people type of resource, this is enough and as items, costs and prices will be automatic filled. But if we choose machine resource type, we can fill more fields.

First of them are ‘Waiting Time’ and ‘Extremely Stagnation Time’. ‘Waiting Time’ is time when resource did not work because bad organization. System will be calculate cost for all quantity time, but price for (‘Quantity’ – ‘Waiting Time’) if ‘Waiting Time’ is acceptable. If this time is not acceptable, system will calculate price based on specific formula (this is very complex setup, and I will explain it in independent post). ‘Extremely Stagnation Time’ is time we use only for evidence. This is a time when we was prevented for work (nasty weather or some other force majeure).

We can fill ‘Mechanization Resource Code’ if we know exactly what machine is worked. System can propose only machines for choosing resource. If we in advance know what machine worked, we can fill this field, and ‘Resource No.’ will be filled automatically. If we have configured machinist for mechanization resource, this field will be filled automatically, but if we have not it, we can choose ‘Employee No.’ for machinist from filtered employee list only from departments who use machines.

Know we know what time machines spend for making position, but we don’t know what they are worked exactly. Because of that, we have ‘Ongoings Code’ where we can define what our machine really do. ‘Ongoings Code’ list has Unit of Measures and they are configured depending resource types. When we choose this code, we need to fill ‘Ongoings Quantity’.

If our machine is the vehicle, we can fill additional fields: ‘Mileage’ and ‘Tour Quantity’.

This is only base story about this process and I will detailed explain some specifics in some new posts.

Posting

Before posting, we need to change status. Changing status make checking of all necessary fields input. NAV will make evidence of username, date and time for making document and for status changing, because these are very important data.

After that, posting process is simply. For each posted document, we can make storno (correction) document very easy, but I will explain it in later posts.

Operational work on construction project

We finished with contracting process, We start with quote requirement from potentional customer and we have gone through full cycle contracting process. Quantity Surveyors finished their Bill of Quantites and customer accepted our quote; contract is signed.

Now we have to start with operational process. Our people and mechanization are on project site. They have own first working day and we need to monitor their activities. Before that, we had to prepare dynamic schedules and our Gantt Chart, but I will explain this process later. Curently, in next posts I will devote to operational work. I will explain all about posting of output and consumption on project. First, I will explain own consumption, and after that subcontractors work.

Tomorow, I will writte about “Output Order” in NAV4Construction…

Cost Accounting for Resources (reporting) 4/4

Resource Cost Accounting has stay in many reports and analysis. These reports from Quantity Surveyor Section (in Bill of Material calculation), to Construction Management (actual costs per project) and Mechanization Management (detail costs of finer level of resources – each mechanization/vehicle resource).

The most of reports can make cost breakdown from total amount or amount per unit to amounts per cost types (depreciation, fuel, oil, maintenance…) for each capacity plan or usage in Job Ledger Entry or Resource Ledger Entry. System present complete breakdown cost structure, but present separately usage cost and standby cost also. We can see all deviations from G/L to calculated and applied entries.

Depends of options you choose, the most of these reports can give analysis with less or more details. Solution has many and many analysis, but I will recommend BI tools we have.

The best of these reports is that they can give you “smart” analysis and you can make right business decision, e.g. are you need to buy new resource or keep old one with maintenance. You can compare credit/leasing installment costs (with fuel/oil consumption for new machine) with maintenance costs (with increased fuel/oil consumption for old machine). Of course, you can use actual costs, not planned.

Image

Cost Accounting for Resources (intro) 1/4

Previous serial was devoted to calculate actual cost for goods in production. On the same way, we have way to automatic calculate actual cost for resources (machines, vehicles and labor work) in NAV4Construction for project consumption. We have standard NAV calculation of actual cost for materials in purchase process and when we complete cost account for manufacturing and resources, we have all prerequisite for calculate construction position cost using norms on Bill Of Quantity in Quantity Surveyor process.

The goal of cost accounting is calculation of really actual cost for each resource in usage. Calculation work for resources usage in Job Ledger Entry, but also in Resources Ledger Entry. The process of cost accounting calculation is accomplished using the following steps:

  1. Posting of all Job Journal Resources Journal for period – standard NAV solution
  2. Posting of all Output Orders for period – NAV4Construction process
  3. Adjust Resource Cost automatic calculation for period – NAV4Construction process
  4. Applying Calculated Cost – NAV4Construction process

Posting of all Job Journal Resources Journal: We need to post all consumption of resources using Job Journal (if usage is for some project) or Resource Journal (usage out of projects). Job Journals and Resources Journals has some specific for using in NAV4Construction, but the most important is to post quantity of usage.

Posting of all Output Orders: As we need to post all Job and Resources Journal, we need to post all Output Orders. This is document for posting in construction management in NAV4Construction, but its results are the same as results of Job and Resources Journal postings.

Adjust Resource Cost automatic calculation: Cost Accounting Calculation is based on the same mapping resources cost types with G/L Accounts and dimensions filters as Manufacturing Cost Accounting. We need to start Adjust Resource Cost automatic calculation process and we need to choose model of calculation and period. NAV use sum of amounts from G/L Entries, but it need to divide with work consumption quantity. We must choose model, regarding will we divide cost amount with actual work usage or with planned work usage. I will explains for offered reasons some later. When we choose model of calculation, system will complete process.

Applying Calculated Cost: When process of calculation is completed, we get Direct Unit Cost and Unit Cost for future posting. If we want to apply this cost values to earlier desired period, we must confirm that process. If we confirm, NAV will update Unit Costs and Cost Amounts for all resources in Resource Ledger Entry and Job Ledger Entry at period we choose in previous period.

This is briefly process description. In next few posts, I will explain on more detailed way the most important processes.

Mechanization Management (briefly)

Besides mechanization engagement posting and monitoring at number of different parameters at the same time (work hours, mileage, transported or excavated quantity…) using NAV Job Journal and Resource Journal and Construction Output Order, it is possible to manage the complete mechanization life cycle with many parameters (types, details, usage, replacement…).

Image

We can monitor at the same time for each mechanization resource:

  • total of all resource hours per day
  • total of working hours
  • total of deadlock and hours and reasons
  • what machine working in these hours
  • what is unit of measure and how much machine worked
  • if this is vehicle, how many tours and what mileage

Based on these information, we can make amazing analysis.

Of course, we have completely fuel consumption evidence, regardless we use our fuel or we buy fuel on gas station. We use standard NAV Item Journal functionality and modify into Fuel Journal with additional evidence about moment fueling (mileage, work hour, computer and EDM state). Based on these information, we can make analysis about fuel consumption in different working conditions.

Image

Each mechanization resource is connected to the fixed assets evidence and other postings in the system (GL, purchase, sale, service…). We have common evidence for all types of services, regardless it is internal or external service. Standard NAV Service Management can do only external service, but we change that and now it can posting internal service with automatic posting on Fixed Assets or FA Maintenance evidence. All costs (external by Purchase Invoice, internal by Internal Service Order) will be automatically posting to the FA with all NAV standard functions.

Besides regular service evidence, we add completely new functionality – Preventive Service. We can post and monitoring all minor activity on each Mechanization Resource, e.g. oil change, oil filter change, battery engagement, tire monitoring by each piece and serial number (installation, replacement, mending, repairing,…) per mileage and working hours, all sets greasing… System can tell us e.g. when we have to change oil and oil filter, based on combination of mileage, dates and work hours information.

System has information about vehicle registration, all types of insurance, technical inspection, MOT and it can inform us when we have to do these.

Construction Management (briefly)

By starting the project and quote acceptance, we start with work on new project. We need to add few specific characteristics: Contract Status (Accepted), Contract No. and Contract Date. We can add many preconfigured setup field (by the company, or by the project). Also, we have to define Job expected end date as the really end date (if we know that this date will be different of end date by the contract)L.

After that, it is possible to monitor effectively all project tasks. Executed works of mechanization or labor work could be entered for each project. Also, material or finish goods consumption could be added. A number of specific parameters in posting process could be added depending on the construction company. We can post all consumption (resources and/or items) and output (construction positions) by two different models. First model (Output Orders) is precise (monitoring all consumption per each position on date on task on project) but more complex for daily work in NAV. Second model (Project Journal and Position Journal) is more relax for posting, but we cannot get the most precise information. Regardless of posting model, we can add many parameters on each journal line. We can add specific monitoring of each resource (by specific mechanization resource no. and each employee if you want) with what is done (Work Type), how much is worked (Ongoing Quantity – different unit of measure), Stand By Time or Extremely Stagnation Time, Mileage (if this is a vehicle)…

When we have many subcontractors, we can post their invoice using Purchase Invoice or Purchase Order with specific Type – Position. When we post this invoice, we get automatically prepared constructing positions for invoice to investor.

Image

After construction output posting on the end of month, all construction lists (Book of Quantities) for all positions could be created with simple command that can be subsequently corrected by the project supervisor. System has multidimensions controls and prepare this constructing positions for invoice.

Image

After gathering signatures for construction lists by project supervisor, you can easily create invoices/certificates for investors without possibility of errors or data inconsistences (for all construction positions, subcontractors work and re-invoice). If invoice is still not accepted, it is possible to post WIP journal. So we can post income on different date, and we can look income per work period and income per invoice date (e.g. for VAT check).

Image

The user can monitor the subcontractor works on each individual position in the construction process if user does not work complete project alone. The user can monitor the subcontractors in complete collaboration life cycle, monitoring the receipt of offer and selection of the best offered deals and registering and posting complete work of subcontractors. Also, all of these tasks could be easily re-invoiced without repetitive entry typing.

Many others, but about that in some other post…