Hello all, Please help us regarding the ERPNext implementation for the following scenario . A construction company required ERPnext for its business operations.
Company takes up a construction project → Divide the work to sub contractors → Sends money to sub contractors for work & material → Sub Contractors will finish the work , then sends back work & material bills → Final accounts will be calculated with the amount sent and bills generated.
For this we thought of using
Manufacturing module since the company creates a end product (Building) from raw material. But confused with accounting system.
Service module by creating a project for every construction site , but cant find a way to link sub contractors & weekly bills to the project.
Thanks in advance .
Service module with creating project for each site sounds like the best way moving forward.
You could create each sub contractor as member of the project and put their time/cost against the project.
You can also create cost centres and allocate cost for each project against the cost centre and setup all sub contractors as vendors.
Yeah, moving forward by your suggestion, will try this method to test if it suits us. Thank you .
Below is an example sub contractor bill. This is how the company performs its day-to-day transactions. All these operations are carried out in excel which is becoming very tough task. So, the company decided to implement ERPNext.
1.VERTEX is the name of project / site. In ERPNext we replicated this by creating a Project with this name.
2.Then, the sub-contractor undertakes works like carpentering and sends the total bill amount for a period . In this example He billed a total of Rs. 2,96,000 for the month of August.
We considered sub-contractor as a supplier and created a purchase invoice with above details.But,could not achieve the bill period and other charges like retention money , TDS which are calculated on the total bill amount.
3.The company pays an amount periodically based on requirements. Final amount is calculated with the amount sent and work done.
Here the total bill amount for this sub contractor is Rs. 2,87,130 including all deductions , and the company paid Rs. 1,52,000 against this . So, now the outstanding amount comes out .
Now, the doubts are
a. For a sub-contractor bill, which one should we use purchase order or purchase invoice?
b. Calculating deductions like TDS, retention charges based on bill from contractor.
c. How to link purchase order/ invoice to a project so that total transactions get integrated?
Progress made till now:
1.Created a project and cost center corresponding to it.
2.Considered sub-contractor as a supplier and made a purchase order for sub-contractor. Still, struck at deductions table. All the deductions are calculated by percentage based on total order amount. Some help needed with this.
3.Made Payment Entries to the sub-contractor , they linked successfully to purchase order and project.
4.Installed civil contracting app for managing daily worker wages etc.,
How can we add a custom field with formula? Here, I added a custom discount- TDS same like Additional Discounts, but its not getting calculated when we enter percentage.
You can’t do journal the advance payment into Vendors account and when paying from credit then you’ll just use the advance amount instead of cash account?
Hi @raghu9. Hope you doing well. Have you made any progress on this. Would help if you can share your experience and any custom app that you may have developed. Thank you.
Any updates (progress) on development ?
in my case, I work with residential projects most of the time. may times I got different projects under the same customer. sometimes during the same time, sometimes different times. From my point of view, “construction site” would be “project” linkable to a customer. An organized and easy way to access this information, I think, is having the projects under the client/customer. Have the customer database, then, link the jobs/construction sites/projects to the customer/client. you will know which job belongs to who, etc.
just a thought!