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Former Member

Projects & Digital Signatures

Hi Experts,

One of our Client deals with Projects.

According to my solution, every Project will have a Project Code and WH with same name.

1. The material lying at one project location some time is transfered to another Project location, and that has to be linked with Project Code for Costing purpose in Stock Transfers.

In SBO there can be only One Project linked, how to deal with this situation.

2. When the material is Purchase, it is booked as expense insted of current asset and they also want the quantity available.

Can i assign Expense account at Inventory account in G/L Determination, If so what all the things i should mind

3. My Client also wants Digital Signature of the approved person on the doc's. I have no idea about this, Can any help me about this.

Thanks in Advance

Regards,

Sandeep

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5 Answers

  • Best Answer
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    Former Member
    Sep 05, 2008 at 09:01 AM

    Hi Sandeep

    My concern is that if you expense the trading stock upfront, what will the Cost Of Sale be when you invoice the customer. How will the system handle the moving average in terms of COS? If they are used to build internal Assets, then the handling is different. Let me know how invoicing is handled.

    Kind regards

    Peter Juby

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    • Former Member

      Hi Peter,

      The Valuation Method is FIFO.

      As the Material is already Shipped to the Project Location(Goods Receipt by selecting a project location WH), Only Service type A/R Invoices are raised. So there is no Concept of COGS.

      Regrads,

      Sandeep

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    Former Member
    Sep 04, 2008 at 03:00 PM

    Hi Sandeep

    The best way to handle items to an expense account is to set them as non inventory items. This will automatically use the expense account for the account determination. The only problem is that SAP Business One will not have any on hand quantity for the item. You could try changing the stock account to be an expense account but I would not recommend this (as it seems you might have already done).

    In the scenario you have, the best would be to purchase stock into the asset account and then use stock transfer to move it between projects or use goods issue to expense as the items are consumed for the project. That way you would know which items have being used or not. Please let me know what kind of projects these are, ie. construction over time, etc. How are customers billed, on milestones, etc.?

    Note that you can change the allocated project code against the journal entry, though I would advise you to use this carefully as any mistakes would cause the project reports to be inaccurate.

    As for the project on stock transfers, in the project column (form settings to activate) you can select a different project for each item in the rows. If the same item is being moved to 2 different locations, this will not be a problem as each project is also a warehouse and you must add 2 rows for the item and set a warehouse for each one.

    With regards to digital signatures, this is not that easily handled in SAP Business One. The problem is how to relate a jpg or bmp image file (for example) to a specific user and not allow other users to access the file.

    Kind regards

    Peter Juby

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    • Former Member

      Thank you very much for the reply peter Juby,

      My Client Deals with Insulation Projects, the billing is done on the basis of mildstones, for the first phase we are not having project scheduling, Aging, payterms, covering of site etc,

      1. The material is normaly shiped to the project location, this guys take it as expense instead of Current asset because there work in progress is measured on expenses so we cant ask them to consider it as current asset. as you said if we make it as non-inventory item we cannot have quantity which is very important to have a control.

      even though i agree with you for not to asign expense at inventory account, but i feel we hardly have any option.

      As per the basic 3 financial laws Asset & Expences have same treatment, guess we can take a chance (Pls correct me if am wrong).

      2. In the stocktransfer as there are two warehouse(projects) i belive there should be two projects in my scenario.

      One project should be credited and the other should be debited.

      The person how creates stock tranfers will not have right to access JE screen.

      Thanks & Regards

      Sandeep

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    Former Member
    Sep 05, 2008 at 08:04 AM

    Hi Sandeep

    Unfortunately the project is copied from the row to the header warehouse in stock transfers. I would log this with SAP as a bug and raise a DRQ to have it considered in a future release. In the interim, the best would be to use an offset G/L account called "Project Offset". Then post a goods issue against the sending warehouse with its project code and post to the aforementioned G/L Account. Then when the stock arrives at the other project site, post a Goods Receipt against the receiving warehouse and project code and post against the same offset G/L account.

    Kind regards

    Peter Juby

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    • Former Member

      Thank you,

      The open issue is

      1. The material is normaly shiped to the project location, this guys take it as expense instead of Current asset because there work in progress is measured on expenses so we cant ask them to consider it as current asset. as you said if we make it as non-inventory item we cannot have quantity which is very important to have a control.

      even though i agree with you for not to asign expense at inventory account, but i feel we hardly have any option.

      As per the basic 3 financial laws Asset & Expences have same treatment, guess we can take a chance (Pls correct me if am wrong).

      Regards,

      Sandeep

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    Former Member
    Sep 08, 2008 at 03:08 PM

    Hi Sandeep

    We have the same sort of problem with projects and milestones so we are looking at Enprise, www.enprise.com.

    Best regards

    Stewart Clark

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    Former Member
    Oct 02, 2008 at 10:27 PM

    Hi there

    I am the pre-sales consultant from Enprise responsible for assisting any partners with any potential deals that they may have in thri pipeline where may assist.

    Our job costing module allos you to track and record all the materials, labour, purchases etc associated to a project which provides you with one central area to see all the relavant costs aginst the project.

    You then have the ability to bill out the work either on a time and materials basis or else on a milestone basis if you have specific phases and milestones that you need to bill to.

    Via our web based interface into the system, consultants or technicians are able to take a digital signature from a customer in acknowlegement of the work that needs to be carried out.

    If you want to discuss this any further I would be happy to discuss this

    Regards

    James

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    • Former Member

      Hi James,

      Thanks for the help,

      I already spoken to Jason Langley regarding this, the issue is Enprice doesn't work for B Version.

      Regards,

      Sandeep