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Setting Up the PROJECTS Module Premium 2012

The PROJECTS Module: Overview 3 - H ow is the PROJECTS Module Used? 4 Setting Up the PROJECTS Module 5 - Set up the Project Title 6  Project Titles and Project Names 7  The PROJECTS Module Home Page 9 Set Up the PROJECT Names 10 Set up PROJECTS Module Default Settings - Budget 11 - Allocation 12 Contents Slideshow 11A

The PROJECTS Module: Overview The PROJECTS Module is commonly set up to store details of expenses and revenues associated with an event (as in the case of a banquet hall or an event planner), customers (in a service industry), job sites (for a construction company), departments or branches (in a store), etc. It is also useful if you need to decide if a new venture is going to make money. You can compare the actual cost of a project to a budget estimate and spot potential cost overruns early. In our example, HotTubs Company would like to track revenues and expenses for its product lines in order to find out their profitability: Hot tubs – all models All chemicals Study how the PROJECTS Module in Sage Simply Accounting works. Click to continue. Using the PROJECTS feature in Sage Simply Accounting, you can: Allocate all or part of a transaction to one or more projectAllocate all or part of a transaction to one or more project Allocate employee payroll expenses to one or more projectsAllocate employee payroll expenses to one or more projects Track a project's costs and earningsTrack a project's costs and earnings Produce summary or detailed reports on projectsProduce summary or detailed reports on projects Project Allocations You can allocate amounts from the following types of transactions to projects: Sales and Purchases. You can distribute all or part of an item's revenue or expense to one or more projects. Sales and Purchases. You can distribute all or part of an item's revenue or expense to one or more projects. Paycheques, including payroll cheque runs Paycheques, including payroll cheque runs Miscellaneous transactions Miscellaneous transactions Inventory adjustments Inventory adjustments Time slips Time slips All revenue and expense accounts are automatically set up to allow project allocations. You can also allocate assets to a project, but you must first set up the asset account to allocate amounts for projects.

The PROJECTS Module: Overview (continued) How is the PROJECTS Module Used? The best way to understand this is to study an example: An employee, Hillary Buchanan works 80 hours a week on various projects. You can distribute the various payroll-related expenses to the specific projects she works on. Click. Study the allocation of Hillary ’ s hours by % based on a total of 80 hours. Click and study the resulting Payroll Run Journal Entry. Allocation is entered in the corresponding module. The example above involves PAYROLL, and would therefore be entered in the PAYROLL Module. For transactions involving sales, the allocations should be entered in the RECEIVABLES Module, etc. Click to continue. % of allocation in hours PAYROLL Run Journal Entry Allocated amounts to specific divisions PAYROLL- Related Expenses

Setting Up the PROJECTS Module (continued) Activating/Displaying the PROJECTS Module The first step in using the PROJECTS Module is activating (displaying) it. Click.  From the Home window, you would click User Preferences, Click.  Select View,  then be sure that DIVISION Pages and Icon Windows are checked. Click.  The Divisions icon will then appear on the Home window. The next step is to enter the project title. Click to continue.    

Setting up the PROJECTS Module (continued) Set Up the Project Title  To set up the project title, click Setup, select Settings. Click.  Under Division, click Names. Click.  Enter the project title in the Project Title box. Notice that Division at the left panel changes to whatever project title you enter. Click to continue.   Enter the Project Title here. 

Project Title and Project Names See right for examples of project structures. It is important at this point that you understand between a project title and a project name. A project title is the name assigned to the PROJECT Module. You would give a title to the focus of the allocation. In our example, HotTubs company is focusing on its Tub/Chemic Division to find out the profitability of the products in the division. All windows and reports pertaining to the project will bear the project title’s name. Under the project title, you can have various Project Names (the specific products in the Tub/Chemic Division) to which you can allocate revenues and expenses. Click to continue. Examples of PROJECTS Structures Project Title: STOREDEPARTMENT Project Names:TorontoLadies’ Wear VancouverMen’s Apparel EdmontonChildren’s Wear MontrealFootwear Project Title: SALES REPCOMPONENT Project Names:MundyTower Case DennisonMotherboard ChesterHard Drive JacobsPorts Project Title: DIVISION SITES Project Names:PaperbacksSite #456 Hard coverSite #589 3-ring bindSite #896 cerlox bindSite #674 To keep track of revenues/expenses of each store. To keep track of revenues/expenses of each department in a store. To keep track of revenues/expenses of each sales representative To keep track of cost of each component of an assembled product. To keep track of revenues/expenses of each type of printed material. To keep track of revenues/expenses of each construction site

Project Title and Project Names (continued) In our example, Tubs/Chemic is the Project Title It is a product line of HotTubs Company. There are 6 products to which revenues and expenses will be allocated. The management of the company has decided to use the PROJECT Module to determine the profitability of each product. These products have to be entered as Project Names. Click. Study the project names under the project title Tubs/Chemic. You will learn how to set up the project names a bit later. Click to continue. PROJECT title Project Names

The PROJECT Module Home Page The PROJECT Module is different from the other Simply modules in the sense that it does not have its own journals. For example, if you are allocating a vendor purchases to various projects, you would record it in a Purchase Invoice. Likewise, if you want to allocate a sale to various projects, you would enter it in a Sales Invoice. In the company HotTubs, the Simply PROJECTS Module is used to track revenues and expenses for: - hot tubs – all models - all chemicals Before you continue, familiarize yourself with the Project Module Home Page (see right). Click the GENERAL JOURNAL icon. When you click the GENERAL JOURNAL icon, the General Journal appears. Notice the ALLOCATION (Allo) column. Click to continue.

Set Up the Project Names From the Home Window, select Add Tubs/Chemic from the drop-down arrow (see right). Click. The Tubs/Chemic Ledger will appear. This is where you would enter the information about each project name (in this case, Tubs/Chemic product names). Study the first page. Notice that you can enter revenue and expense current balances (if any) in the Balance Forward boxes. Click. On the Additional Info page, you can enter information/notes that you can display when the specific project name is selected in a transaction (see right red arrow). Click to continue.

Set Up Default Module Settings Module settings determine the manner by which Simply would allocate Payroll and all other transactions. Defaults can be set, but they but can be changed if necessary while entering allocations.Budget Study the settings for Tubs/Chemic: - Budget - Allocation - Names – you have already used this to set up Tubs/Chemic as Project Title. Click BUDGET. Read the explanation at the right. The sample company does not use the BUDGET feature. Click ALLOCATION. You probably have a rough idea of your revenue and expense targets for the year. If you have recently written a business plan or spoken with an accountant, it is likely that you have already created a budget. Budgets could be entered into Sage Simply Accounting for comparison between actual and budgeted revenue and expenses. You can then periodically print income statements that compare budgeted amounts to actual amounts.income statements You can also use create budgets for specific projects.

Set Up Default Module Settings (continued) Allocation Study the options by which you may allocate: Amount –You need to enter a specific amount in the allocation window for each project. Percent –Will instruct Simply to calculate the allocation according to the percentage you assign to each project. Hours – Employee hours are averaged to the nearest one-quarter (.25) of an hour. The amount allocated will depend on the hourly rate of the employee. If the employee is not paid on an hourly basis, the program uses the allocation method you chose for other transactions. The PROJECT Module is now ready. You can start processing transactions that involve allocations of revenue and expenses. Click to continue. You can distribute revenue and expense amounts to your divisions in the following transaction windows for tracking purposes: Purchase and Sales Invoices Inventory Adjustments Paycheque Payroll Cheque Run Time slips Miscellaneous Transactions You can allocate amounts line by line, or for an entire transaction. You can also allocate entries associated with asset accounts. You can allocate transaction amounts to divisions by a specified amount or percentage. For payroll transactions, you can also allocate by the number of hours. When payroll expenses are set up to allocate by the hour, but the paycheque does not contain hours, you must allocate based on a percentage.

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