AIA Billing Process in NAV4Construction

NAV4Constrution vertical solution for Microsoft Dynamics NAV fully provide AIA billing process for construction business. The AIA billing system is a standardized method of construction percentage of completion contract billing developed by the American Institute of Architects (AIA).

Typically, AIA billing system consists of two forms or pages and on the same way NAV4Construction works with them:

  • G-702 Contractors Application for Payment
  • G-703 Continuation Sheet

When you want to print Invoice from posted document, you can print both of these forms in the same moment or separate if you want this.

Complete process of AIA billing process is presented on the next flow chart:

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You can find here completed process with collection and correction systems. This is simplified process on flow chart, and in practice, you can find more milestones for these activities.

You can see part of G-703 Continuation Sheet on the next picture:

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This is the great benefit in operational work, because completing the AIA G-702 and G-703 forms by hand is usually frustrating and difficult with lot of possible mistakes. This is only one benefit among all other in this construction vertical solution.

NAV4Construction – SWOT Analysis

You can find information about main strength of NAVConstruction solution, I’ve already wrote here. Also, if you want to use standard NAV in construction business, you can find information about these implementation possibilities here. You can find more texts about reason for using ERP in construction business in my earlier blog posts.

Some construction workers want separate (specific) solutions for construction and rest processes (ERP). But, in my experience, the main strength of construction in ERP is exactly possibility of using all actual data on each part of ERP. When you use this solution, you can use:

  • actual cost from purchase or manufacturing in construction or when you make bids
  • actual cost from cost accounting, about goods and/or all other resources
  • automatic posting of invoice to G/L with any number of dimensions
  • managing with purchase process using construction requirements
  • using forecasting and other planning processes for construction, mechanization, subcontractors, manufacturing, purchase, sale, WMS in the same time

Otherwise, Microsoft Dynamics NAV is not real project planning software and someone says that this is weakness of this solution. But NAV4Construction is fully integrated with Microsoft Project Server using web-services. Now, you can use the best things of both solutions; e.g. you can use planning process in Project and Normative and Material requirement process from NAV. Maybe, bidding process is more complex in NAV, but this process is more precise.

On next picture, you can find a short SWOT analyses. If you have additional answers or comments, you can ask and start with discussion.

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Road Construction Company Continues Business Growth by Using a New ERP Solution

With its substantial growth, the road construction and maintenance company ‘Novi Pazar – Put’ has overcome the possibilities of a functionally and technologically outdated business software they were using. Rational and efficient management of complex business processes and expensive resources created the need for the introduction of a new, modern and flexible business solution, so the company chose Microsoft Dynamics NAV, complemented with add-on solutions (NAV4Construction) developed by NPS.

I already wrote about this on my old blog post https://nav4construction.wordpress.com/2013/05/22/true-story-nav4construction-in-civil-engineering-company/.

Now, Microsoft officially released this case study on Microsoft site: http://www.microsoft.com/casestudies/Microsoft-Dynamics-NAV/Novi-Pazar-put/Road-Construction-Company-Continues-Business-Growth-by-Using-a-New-ERP-Solution/710000003788

Sochi 2014

One of our client is big construction contractor in Olympic Village in Sochi. This client use Microsoft Dynamics NAV 2009 and our vertical solution NAV4Construction. We will prepare Case Study about this implementation very soon and I don’t want write about that.

But, yesterday I find this Microsoft Dynamics video on Youtube. You can see it and find that Organizing Committee in Sochi will use Microsoft Dynamics AX. AX is not NAV, but this is still Dynamics solution.

https://www.youtube.com/watch?v=2KYShF2lnM0

Operational work – The bid evaluation – part 9

When we have some construction position we cannot do it, we need to find subcontractor. When we engage subcontractors, we usually have a less margin. Because of that, we need to find the subcontractor with the best condition for each position. Bid evaluation in NAV4Construction is based only on the lowest cost recommendation, but we have many other information in decision process (e.g. discounts, payment methods, due date, warranty period…).

Requirement for subcontractors we fill in Requisition Worksheet, with other requirements, as items. When we fill required positions, we need to fill Quote Query No. for all positions we want to purchase from one vendor (on one quote).

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From Requisition Worksheet, we can print Quote Requirement document or export requirement in Excel file.

When we get offers from potential vendors, we need to put them in Purchase Quote in NAV. We can do it manually or automatic using import from filled Excel files. We must to fill Quote Query No. on Purchase Quote Header. This is mandatory data if we want to use bid evaluation process.

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We can do bid evaluation process for complete quotes, or for each construction position individually.

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Individual                                   

We need to fill Quote Query No., type as Position and Position No. We can use Best quote windows for bid evaluation, not only for position; we can use it for item, resource… Because of that, we need to choose Type option as Position. System will make ranking based on Direct Unit Cost, with many other information.

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When we choose position for ordering, we need to run Apply and system will update Requisition Worksheet with data from this quote. After that, on Requisition Worksheet, we need to run Accept the action and we will get Purchase order with choosing positions.

Complete

If we want to make bid evaluation for complete offers, process is similar as individual process. We need to fill Quote Query No. and Row number. Row number is mandatory, because we cannot compare Quotes with different number of lines.

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System will make ranking based on Amount including discount (sum of Direct Unit Cost with discount), with many other information. Acceptation process is the same as in the previous example.

Posting Operational Work (Subcontractors) – Part 8

When we post purchase invoice from subcontractor with construction position works, we get standard Posted Purchase Invocie, but with Type = Position on Invoice Line:

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Next difference, we can see when look at Navigate:

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Besides all standard entries, we can see new entry type – Position Ledger Entry. Job Ledger Entry is different, as well.

When we look at Jov Ledger Entry, the most importabnt thing is that we get entry type as Usage and G/L Account as type. We got G/L Account No. from Posting Groups Setup.

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When we look at Position Ledger Entry, we have standard NAV4Construction entry table, but Document Type is Invoice (that mean, we get invoice from subcontractor). We don’t have to post usage a Position again. System enable us to prepare Certificate for Sales Invoice by automatic.

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