6 registered users
in last 24 hours
FI - Finance
(Please click on the hexagons for more information)
The ]po[ Finance Module implements a financial system specifically designed for profit and loss calculation of projects in real-time with specific emphasis on [|controlling] processes and easy reporting using the ]po[ data-warehouse and other analytical functions.
The financial modules defines a number of different types of financial objects, that are ordered in a hierarchy:
- Financial Item:
This is the base type of all financial items. It defines important files including amount, currency, cost_type, customer_id and provider_id.
- Financial Document:
The financial document represents Customer Invoices, Customer Quotes, Provider Bills, Provider Purchase Orders and several other exotic documents. All of these financial documents consist of a "header" with an ID, a customer and a provider, plus a number of "lines" each with a description, unit of measure, number of units and price per unit.
- Expense Item:
Expense items represent individual travel cost elements including airfare, hotel costs or similar.
- Expense Bundles:
Expense bundles represent a stack of "bundle" of expense items. Expense bundles are usually associated with a package_acs_workflow workflow that manages the expense approval process.
- [Repeating Costs]:
Repeating costs are used to represent recurring expenses including employee salaries etc.
Financial Items in a Matrix Structure
Every financial item can be associated with four other objects:
- A project:
Associating a cost items with a project allows to calculate the profit & loss per project.
Employee salaries and several other financial items representing structural costs don't need to be associated with a project.
- A Cost Center, Profit Center or Department:
This association allows to calculate profit and loss per profit center or department.
- A Customer Company:
The customer is the company that pays for the financial document.
- A Provider Company:
The provider will receive the payment of the financial document.
The following figure explains the association of financial documents with projects and departments/cost centers:
PSA Accounting Integration
For PSA (Professional Services Automation, i.e. small or medium independent service companies) the ]po[ financial system is designed to work together with an accounting back-end system. The accounting system can be the SAP FI system of a large enterprise or a small country-specific accounting package in the case of a smaller organization. I]project-open[ is normally used for the creation of invoices to customers and bills to providers
- Creates Customer Invoices and Provider Bills,
- captures travel expenses and
- captures time sheet expenses.
Based on this information, ]po[ will:
- Calculate Profit & Loss per project, customer and cost center and
- export financial items to the accounting back-end using one of the predefined financial reports.
The Accounting Back-End
- Import customer invoices and provider bills from ]project-open[ and
- generate the reports required by the tax authorities including tax declarations, income statement, balance etc.
Corporate Accounting Integration
In a corporate setting, the accounting integration usually works the other way round. In these settings, ]project-open[ usually manages the finance of a project-oriented department, while the rest of the corporation uses SAP FI or other corporate accounting solutions in order to handle invoicing, purchasing and other financial functions.
In these environments ]po[ will:
- Import financial items (external project costs) from the accounting system and
- associate these financial items with ]po[ projects.
This way, project managers gain access to financial information that were difficult to access previously.
"Group" or Multi-Company Accounting Integration
]project-open[ represents in some settings the finance of a group of companies. For instance a software company might have a central office producing software and several sales and support offices in different countries with staff servicing local customers.
In this case ]po[ will represent an organization with multiple accounting systems. Please see the our Multi-Company Finance HowTo for details on how to manages these cases.
The financial functionality of ]project-open[ is implemented in the following packages:
- Cost Core:
This "core" implements financial items and cost centers.
- Invoices & Financial Documents:
Implements the financial document type representing invoice, bills, quotes etc.
- Finance Payments:
Implements payments and the accounts payable process.
Implements expense management and travel costs.
- Expenses Workflow:
Implements an approval workflow for expense management.
- Profit Center Permissions:
Implements special permissions per cost centers required to keep profit centers from interfering with other profit centers.
- [Time & Material Invoicing]:
Implements a specific invoicing process for service companies billing time and material based projects to customers.
- [Translation Freelance Invoicing]:
Implements a specific invoicing process for translation providers.
- [Translation Invoicing]:
Implements a specific invoicing process for translation agencies and other translation related organizations.
- Financial Reports:
Defines a number of standard financial reports.
Defines several data-warehouse cubes, some of them related to finance.