Hello, I appreciate if you help me to understand the various financial related parts with following question. As Instance: My company is about to build a bridge.
A: Direct costs (which directly helps to build the bridge):
1. Sources:
1.1. We already have in hand: Such as Machines (Truck, Shovel, …), Manpower (labor, Civil Engineer) ==> Is it related to Resource section and their costs?
1.2. We must hire or order to buy: Such as Raw materials (bricks, Cement, Concrete) ==> Is it related to Order section and its cost? Is there any part to handle the project stocks to check how the order should be?
2. Assigning some of activities to Out Sources (OS) teams: Such as excavation teams ==> Is it related to Quotation section and its related cost?
B: Indirect costs (Which indirectly help the bridge projects)
1. The project permanent cost: Such as Equipping bridge construction workshop on location and Energy infrastructure providing cost ==> Is it related to Project Expense section and its costs?
2. The project variable cost:
2.1. We already have in hand: Such as our Office manpower, our Office machines ==> Is it related to Project Expense section and its costs?
2.2. We must hire: Such as experts that we hire for technical aspects of architecture ==> Is it related to Individual Expense section and its cost?
Questions:
3. What is activity price section and how can it be used in above mentioned project?
Thank you very much for your time to answer my question
Manpower (labor, Civil Engineer) ==> Is it related to Resource section and their costs?
Yes, if you manage work for them. Otherwise, they are project expense.
We must hire or order to buy: Such as Raw materials (bricks, Cement, Concrete) ==> Is it related to Order section and its cost? Is there any part to handle the project stocks to check how the order should be?
No, these are project expense. .Order, are orders received from customers.
Assigning some of activities to Out Sources (OS) teams: Such as excavation teams ==> Is it related to Quotation section and its related cost?
No, project expense again.
The project permanent cost: Such as Equipping bridge construction workshop on location and Energy infrastructure providing cost ==> Is it related to Project Expense section and its costs?
Yes
We already have in hand: Such as our Office manpower, our Office machines ==> Is it related to Project Expense section and its costs?
It can be project expense or Resource cost (machine can be a resource)
We must hire: Such as experts that we hire for technical aspects of architecture ==> Is it related to Individual Expense section and its cost?
Yes. And it can also be an expense.
What is activity price section and how can it be used in above mentioned project?
IKt is just a way to bill customer for Manpower really spend. It is designed (even if it can be used elsewhere) for IT services hiring experts bill on worked done (Time & Material contracts)
Dear Mr babynus;
First of all. let me thank you for your helpful answers; I appreciate if you help me with following questions:
Question 1. What is Quatation section in Projeqtor? What does it do?
* I can add activities to Term section based on each activity real work and its used resource costs. i have 2 problems with it:
Question 2. I need to add Project Expense and Individual Expense to Term section in order to find the total cost i have payed during my project by my own sources and the out sources (OS). How can i do that then?
Question 3. If i want to find my source activity costs by their work (for example they have completed 5 meters^2 of wall painting and each meter^2 wall painting costs 30 $. Then the source work payment should be 150 $. This operation has taken 2 days but i do now want to pay the source based on day, i want to have the days that wall painting has taken but i do now want to pay based on the day, but the performance. How can i do that?
Question 3. Would you give me one sentence explanation about each project type? I can not find the proper project type for my own purpose
Question 4. Why Project Expense or Individual Expense is not included in any bill for any project type? What for can i use them, then?
Thank you so much.
1) Quotation is an estimate that project sends to customer.
When customer aggrees, it become an order.
When order is done, a bill can be sent to customer.
On term billng mode uses Terms, defined on some activities, t determine amount of bill fot the term.
2) Expenses are not linked to terms. You just have dates on expenses (planned and real)
3) You cannot, costs ar not determined on product or service base, only on work base.
3) (again !) Project types defined by defaut are linked each to a specific billing mode.
4) Expense is what you buy. Bill is what you sell.