ERPnext is loaded with many features for project costing. For project based companies, it is crucial to capture all the costs incurred at project level. Various categories of costs including material/stock consumed, man hours spent on the project, expenses incurred can be captured.
Moreover, the revenue for the project can also be captured at transaction level. This helps in evaluating the total revenue of a project, total cost incurred for a project and the Gross Profit or Loss. The below report shows the profitability analysis at project level and same report can also be used to track the profitability cost-center wise.
The above shown report can be used to have a quick overview of the gross profit/loss at project or cost center level. For further analysis of the project profitability, we can look at the Costing and Billing section in Project.
As shown in the image below, we can track the Manpower costs entered using time-sheets, expenses claimed for the project, cost of purchases for the project, cost of material consumed, Total amount billed for the project.
To conclude, along with the amazing project management features, ERPnext also comes with Project cost management. In the upcoming posts, I will explain how a company we can set budgetary controls at project level.