Setup ProjectGroup for Time and Material Project Type

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Posted on by Rohin

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Hi All,

I am going to setup Project Group for Time & material Project Type but i don't understand the Ledger fast tab shown below:

can you please tell what is use of all these option and how to setup for time and material project type ?

Thanks

Regards

Visvash Walia

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Ludwig Reinhard Microsoft Employee on at

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Hi Visvash Walia,

What you setup above is a typical T&M project setup.

That is, all costs are immediately recoded in the income statement.

The same holds for the revenues.

If you would have longer running projects that run over several periods (3, 4, 5, ... months) you could 'store' the costs in the balance sheet first but for short running T&M projects where you regularly create customer invoices this is not necessary and you can continue with the setup that you have.

Best regards,

Ludwig

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Rohin 4,624 on at

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Hi Ludwig,

Thanks for reply.

Okay if i have short running project (let say <1 month) , i can use same setup as screenshot shows.

And if i have long running project then screenshot will be :

what is use of this ? what are those Accrue revenue (hours, expense, item ,fee ) option ? please explain as i don't have idea about accounting .

Thank you!

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Ludwig Reinhard Microsoft Employee on at

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Hi Rohin,

Here is a screenshot that illustrates what happens if you record costs from Jan-April an write a single invoice in May with the Profit and Loss setup:

(blue = cost, red = Revenue)

If you make use of accruals you will see something like this from a costing perspective

(green = accruals)

The advantage of making this setup is that you can track and compare cost and revenues in each period and get a detailed control of your Project.

The Balance Setup results in the following:

(Grey = Balance sheet Transactions)

The disadvantage is that you do not have a control until you write your invoice.

Does this answer your question?

Best regards,

Ludwig

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Rohin 4,624 on at

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Thank you so much Ludwig for such detail.

I am satisfied with your answer.

Regards

Visvash Walia

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