Project Staff Cost Management Guide – XFlow ERP
This guide explains how to efficiently track and manage the costs of staff assigned to projects within the XFlow ERP system. It outlines the process of charging staff costs to projects, handling payroll, subcontractor payments, and ensuring accurate financial reporting without double counting.
1. Understanding Cost Categories
- General Admin Category (GE500):
- This account includes the salary and allowances of general staff who are not assigned to specific projects.
- Contract Direct Cost (CA900):
- If a staff member is employed solely for a specific project, their cost should be charged directly to this category, avoiding any impact on general operational costs.
- Cost Transfer to Projects (GE502):
- When general admin staff are reassigned to a project, their costs are transferred from GE500 to GE502, ensuring proper cost allocation and avoiding double counting in financial records.
2. Assigning Staff to Projects
- Navigate to the ‘Project Management’ module:
- In XFlow ERP, go to the Project Management module to view or manage project-specific data.
- Select ‘Project Staff’:
- Within the module, select Project Staff to view, add, or edit staff assigned to a specific project.
- Add staff members to a project by selecting their profile and assigning them a role in the project.
3. Submitting Timesheets
- Staff Assigned to Projects:
- General admin staff who are assigned to a project must submit their timesheets to record the number of hours worked on the project.
- Capture Time and Allocate Costs:
- The timesheet submission captures the time spent on the project, and the system automatically allocates the associated costs to the project.
- The costs are transferred from GE500 (general admin expenses) to GE502 or charged directly under CA900 (contract direct costs), depending on the staff member’s role.
4. Charging Costs to Projects
- Timesheet-Based Cost Calculation:
- Upon timesheet submission, XFlow ERP will calculate the cost based on the staff member's salary and the hours worked. This cost is then charged to the contract under Contract Cost and credited to GE502 if the staff was originally a general admin staff member.
- Avoiding Double Counting:
- The transfer from GE500 to GE502 ensures that general admin costs are not counted twice, maintaining the integrity of financial reports. This reallocation of costs is crucial for tracking the productivity of general staff.
5. Managing Subcontractor Costs
- Direct Charges to Projects:
- If a project requires subcontractor services, navigate to the Project Cost section in the Project Management dashboard.
- Add Subcontractor Costs:
- Under the Subcontract option, click Add Project Item to input subcontractor details and the cost associated with their services.
- Payment for Subcontractor Services:
- When making payments to subcontractors, the system will automatically credit the Accrued Project Expense account (CL301) for accurate financial tracking.
6. Handling Material Costs from Inventory
- Inventory-Linked Projects:
- If materials are purchased for a project or manufacturing, XFlow ERP will automatically manage the account transfers for inventory-related costs.
- Automated Cost Transfer:
- The system handles material purchases for Manufacturing or Products for Resale by automatically transferring the cost to the appropriate project or inventory account.
7. Financial Reporting
- Cost Transfer for Project Staff:
- When general admin staff (GE500) are assigned to a project, the system will automatically transfer their cost to GE502 or CA900 for project-specific staff.
- Accurate Reporting:
- This ensures accurate financial reporting, preventing double counting of expenses. All costs will reflect correctly in the project-specific financial statements, showing a transfer from the general admin category to the project's cost.
8. Review and Approval of Project Costs
- Project Cost Review:
- Within the Project Management dashboard, you can review the costs associated with each staff member assigned to the project.
- Approve or Revise Entries:
- Review the staff cost allocations and approve or revise the entries as necessary. This step ensures that project costing is accurate and that financial reporting reflects real-time expenses.
9. Project Cost Summary
- Accessing the Project Cost Summary:
- For a comprehensive view of all project-related expenses, including staff costs, navigate to the Project Cost section in the Project Management module.
- Comprehensive Financial Tracking:
- This summary provides a detailed breakdown of costs across various categories, allowing for effective tracking and management of financial resources. Subcontractor payments, material costs, and staff salaries will be reflected in the summary for easy reporting.
Conclusion
This guide provides a clear process for managing staff costs, subcontractor expenses, and material purchases in XFlow ERP. By following the steps outlined above, you can ensure accurate cost allocation, financial reporting, and project productivity.