I’m currently managing multiple project accounting implementations. When dealing with several similar projects simultaneously, I concentrate on common aspects. Recently, my focus has been on the default project account configuration in Dynamics GP (Tools»Setup»Project»Project»Accounts). Explaining this to clients who inquire about how the project determines account usage is interesting. The answer usually depends on their setup.
Default posting accounts in Dynamics GP’s core modules are straightforward. The system prioritizes the master record for account specifications. If absent, it refers to the posting account setup (Tools»Setup»Posting»Posting Accounts). For instance, when inputting a payables transaction, the vendor card is the primary source for default posting accounts. Any accounts not found there are pulled from the general posting accounts setup.
Project accounting offers more flexibility, allowing default locations based on transaction types and accounts. Additionally, segment overrides at the contract and project levels enhance flexibility in how the system defaults accounts and where setup is needed.
Let’s explore the options:
For every cost transaction type in project accounting:
- Miscellanous Logs
- Equipment Logs
- Purchases/Materials
- Employee Expenses
- Timesheets
And for each account type (using a few basic examples):
- Cost of Goods Sold/Expense
- Contra Account for Cost
- Project Revenue/Sales
- Accounts Receivable
You can specify a default account “source”:
- None (no distributions for this account)
- Customer (Cards»Sales»Customer»Project»Accounts)
- Contract (Cards»Project»Contract»Accounts)
- Project (Cards»Project»Project»Accounts)
- Cost Category (Cards»Project»Cost Category»Accounts)
- Trx Owner (Employee, Equipment, Miscellaneous, or Vendor depending on transaction type)
- Specific (one specific account for consistent use)
Here’s an example from a project involving timesheets. The client requirements were:
- Expense account on timesheets should differ by cost category, with the project dictating the department segment.
- The expense offset (contra account for cost) is based on the employee’s home department.
- Upon billing labor, the revenue account should vary by cost category, but the project determines the department segment.
- When billing labor, the AR account will differ depending on the customer.
Getting to these bullet points sometimes involves discussion. I begin with a cost category worksheet for clients to complete, documenting the necessary cost categories and accounts. This helps us analyze requirements and determine the optimal account sourcing setup. If you’re interested in this worksheet, I’m happy to share it – just let me know!
Here’s the outcome for timesheets in the example:
- Cost of Goods Sold/Expense - Source: Cost Category
- Contra Account for Cost - Source: Trx Owner
- Project Revenue/Sales - Source: Cost Category
- Accounts Receivable - Source: Customer
We’ll specify a sub-account format at the project level (Cards»Project»Project»Sub Account Format Expansion Arrow»Account Segment Overrides). This format includes the department segment value, overriding the Cost of Goods Sold/Expense and Project Revenue/Sales account segment. This setup will use the department value specified on the project, pulling other segments from the cost category.
With this setup, the client only needs to specify accounts in the following locations:
- Cost of Goods Sold/Expense and Project Revenue/Sales accounts on the cost category (Cards»Project»Cost Category»Accounts).
- Contra Account for Costs on the employee (Cards»Payroll»Employee»Project»Accounts).
- Accounts Receivable account for timesheets on the customer (Cards»Sales»Customer»Project»Accounts).
Importantly, this eliminates repetitive account setup and the need for cost categories for each department, simplifying the process.
While determining the optimal configuration takes effort, it minimizes posting errors and simplifies long-term setup compared to defaulting all accounts from the cost category.
Feel free to share your experiences and perspectives. Happy holidays!