Solutions : Project Accounting

The “Project Accounting” application area enables detailed accounting and planning for all costs and billings for a project or job. Dynamics NAV for Government Contractors from PBVS allows companies that service the Federal Government to essentially create balance sheets for each project, which you typically cannot do with the average accounting application.  Program managers can make decisions now that would be in the best interest of the program.  You can look at the contract from an overall perspective and at a very granular level as well.  Program managers can drill down for detailed job costing and labor utilization; executive users, such as chief operating and financial officers, can easily spot trends with contract profitability and managing indirect rates. The solution makes great usage of common Microsoft look and feel and is very intuitive; special staff skills are not required.

Out of the box, the solution is structured around Standard Form 1408 (Pre-award Survey of Prospective Contractor (Accounting System)) for pre-award survey of accounting system adequacy. Government contractors need a project accounting solution that will do the following:

• Segregate direct costs from indirect costs
• Accumulate costs under general ledger control 
• Provide project cost ledgers that summarize incurred direct and indirect costs by cost element
• Indirect costs are allocated to final cost objectives using logical and consistent method
• Unallowable costs can be identified and segregated from billed costs to government
• Actual costs can be determined on an interim basis (for billing & reporting purposes)
• Special types of costs can be identified per terms of contract
• Pre-production costs can be segregated from production costs

Projects

PVBS has enhanced the foundation of the Dynamics NAV software, which fits in perfectly with the Dynamics NAV model, which meets the needs of specific clients or markets.  Fields within Dynamics NAV have been renamed to be government contractor appropriate. Such fields as “task orders” have been added and other features specific to government contractors.  Dynamics NAV is extremely flexible in that regard and is perfect for government contractors that want more than an average accounting system. The solution will produce actual direct costs by contract or job and represents the appropriate indirect cost centers which collects homogeneous costs, and provides a method of equitable assignment of those costs to final cost objectives. The solution also identifies unallowable costs.

You can define projects and related tasks, work breakdown structures (WBS), project cost elements, labor categories, and contract line items (CLINs). This will help you manage contracts, purchase order numbers, limitation of funds, and contract modifications.  Contract information such as task orders, contract amount, and funded amount are readily available.

Projects are the center of Microsoft Dynamics NAV for Government Contractors from PVBS.

Basic Projects:

• Keep track of inventory, resources and other usage
• Post usage transactions to a job header and job ledger
• Record sales transactions through the job journal or Customer Invoicing
• Record purchase transactions through the job journal or Vendor Invoicing
• Generate statistical reports

Create budgets and estimates for jobs

• Include inventory, resources and expense items in budgets and estimates
• Compare actual usage and sales with estimated costs and sales prices
• Integrate with Basic Resources and Resource Capacity for detailed capacity planning

Phases/Tasks/Steps

• Organize job budgets and estimates into phases, tasks and steps
• Create an unlimited number of subdivisions for each job
• Refer actual usage and sales to phases, tasks and steps
• Analyze each level easily for profitability statistics

Invoicing

Project Accounting for Government Contractors from PVBS provides you the capability to manage multiple invoicing requirements and automate your billing process. This lets your company take control of growth, cash flow, operations, and profits. Whether you are billing fixed price, time & materials, or cost plus contracts, you can systematically generate invoices and record these transactions for future detailed review.

 

Exceptional Reporting Capabilities

The exceptional reporting capabilities of the Dynamics NAV solutions ensure accurate assignment and presentation of actual incurred costs by project. Managers can use this data for the following:

• Derive reliable progress billings for specific contracts
• Special reporting requirements of government
• Monitor profitability of each project
• Use for future estimates

Click here for more information on our exceptional reporting capabilities.

Click here for your copy of the PVBS White Paper, Challenges Facing Fast-Growing Government Contractors.