How is Project-Based ERP Different from Generic ERP?

Can the traditional generic ERP help the project accountant? What are the main differences? This article is not an exhaustive review but a brief overview of what to expect from a Project based ERP solution.

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Project-based ERP is not a new approach to enterprise software that utilizes project management practices and features. In the early DOS days such systems have been developed and deployed.

While the generic ERP system are great and usually focus on trading and manufacturing it was not designed to handle the complexity of a Project based organization such as an engineering project or construction project. Generic or traditional ERP offer tools that managed trading, production and accounting. It doesn’t provide the comprehensive analysis needed to be highly competitive cost variable as in a project operation. You won’t get a snapshot of your project’s profitability at any time.

What are the Features of Project-Based ERP?

In fact, generic ERP causes many companies to took to working outside of an ERP platform to put together reports on entire projects, such as spreadsheets or other disparate systems to keep records of past milestones and timelines, order fulfilment strategies, and perform other kinds of complex planning. Every engineer has their own version of truth. This can be chaotic to the project accountant. It is not integrated and in silos without a central database. Others traditional generic ERP will track its projects in the GL COA thereby creating a long and cumbersome GL COA. Not an efficient way of tracking projects.

Features of Sage 300 Project (Illustration only) 

Project-Based Accounting

Project accountants needs to know the financial state on a project level. These functions allow your accounting staff to record costs and revenues associated with different projects on a timely basis. This makes your financial reporting far more useful, providing in-depth insight into your operations.

The Sage 300 Project Job Cost –is especially suited to the construction, project and engineering firm that need to track cost and monitor WIP, cost overrun, variation order, time & material cost, equipment and subcontractor etc. On the Project Accounting side, it supports difference Income Recognition Methods and Retainage Accounts typical of project accounting requirements.

Conclusion

With many ERP vendors in the market today, choosing the right one for your business can be challenging. To find the right solution for your project business, we suggest looking at Sage 300 ERP. We have the Domain experience and successful implementations for many years.

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To learn more about Sage 300 Project Solutions contact CAREWARE Account Manager today by calling (03) 27143855 or by emailing sales@careware.com.my. There are multiple licensing options; one is sure to be a perfect fit for your company. Visit: www.careware.com.my