02 May Dynamics GP Fixed Fee Projects
Dynamics GP Fixed Fee Projects functionality in Project Accounting allows you to track expenses, bill customers, and recognize revenue for projects with fixed fee arrangements. Project Accounting has these features for fixed fee projects:
- Track various types of expenses
- Maintain original budgets and forecasts
- Process and track change orders
- Bill customers on a percent complete, completed contract, or milestone basis
- Automated revenue recognition and proper accounting for deferred revenue, unbilled revenue, etc.
- Multiple invoice and supporting schedule templates
- Integration with general ledger with automated account selection
Revenue recognition with fixed fee projects is challenging, especially if the project spans a long period of time. Dynamics GP Fixed Fee Projects automates this process by automatically calculating the necessary transactions to properly present project activity in income statements and balance sheets. The revenue recognition process can be run for individual projects or groups of projects at a time.
You can also elect to markup expenses for overhead allowances if you want.
Here’s a sample of the Cost Category which is the most detail level for budgeting and expense tracking:
This is a nice project summary page that gives you a quick glimpse of a project and allows you to drill down to detail:
This is a quick video I created to show you the basics about accounting for fixed fee projects in Dynamics GP: