]po[ Finance Module

Horizontal and vertical classification of costs

The finance module is composed of several independed packages handling each a different aspect or corporate financial management.

Horizontal and Vertical Classification of Costs

The philosophy of the module is based on a matrix structure, classifying costs:

• "Horizontally" according to projects:
  Costs are classified according to projects or subprojects, allowing to specify the project tasks being executed. This allows to calculate loss/benefit on the project level.
• "Vertically" according to cost centers:
  Costs are classified according to project phases and cost types. This classification allows to calculate loss/benefit on the cost center level using external accounting software.

Importance of the "Horizonal" Classification of Costs

The horizontal classification allows ]project-open[ to collect all costs (and benefits from customer invoices) on the project level. These project normally represent the "Profit Centers" of the company, so that we need the horizontal classification to calculate the companys profit and loss.

Importance of the "Vertical" Classification of Costs

The vertical classification of costs corresponds to the distribution of costs between departmens or functional units. Vertically classified costs allow us to answer questions about the distribution of costs between the project phases or with respect to general costs such as the administrative overhead.

Three options for entering costs:

1. Explicit classification of costs:
Costs can be entered into any project, subproject or task. The user needs to classify his costs according to the variables Project Phase and Cost Type.

2. Logging costs by "Project Task":
Project tasks are the lowes level in the structuration of projects. Tasks correspond to concrete actions in a specific project phase that causes costs of a single cost type. Costs logged on a specific project task inherit the tasks project phase and cost type properties.

3. Explicit classification with Task defaults:
Same as option 1, but Project Phase and Cost Type are set to default values based on the Project Task.

Finance "Packages"

The finance module is structured into several "packages" can can be obtained, installed and updated individually. This modular approach allows your company an easy start with ]po[ and a solid perspective for growth.

Please see the download page for the availability of individual packages.

Invoicing

Allows to create, send and track the payment of invoices. The module supports multiple invoice templates and the invoicing of multiple projects in a single invoice.

Timesheet Management

Timesheet management consists in reporting the dedication of employees and other fixed-salary resources. Dedication can be classified "horizontally" according to projects or subprojects and "vertically" according to project phases and cost types.

In addition, the timesheet module manages a calendar of working days that require dedication logging. Employees can log vacations, sickness time and travel absences.

Travel Costs

A module to capture and assign travel expences to projects. The cost categories are configurable.

General Costs

Allows to capture general costs such as non-project emplyoees, rent etc. in a cost structure that is compatible with the supported accounting applications. As an alternative, general costs can be distributed at the end of every month to the current projects.

Provider Costs

Allows the companys providers to emit "bills" to the company via Internet. The provider himself enters the bill amount, due date etc., so that the company saves the administrative overhead. These bills are subject to a confirmation workflow. Both the provider and the accounting personal can track the status of bills and their payments.

Cost Center Permissions

Allows the delegate the responsability to create Purchase Orders and Provider Bills to operative departments while maintaining centralized financial control at the accounting department.

Financial Reporting

Includes several important financial reports, allowing to export all data to Excel. More detailed reporting is available with the Data Warehouse module.

Export Interfaces

Accounting rules differ from country to country, so ]project-open[ provides export interfacess to important SME accounting programs.