Units
This topic discusses how units are set up, entered, and included in revenue and billings. Information on unit COGS (Cost of Goods Sold) recognition and warranty expense accruals for units is also included.
The Sales Group Abbreviation code, which allows you to recognize unit cost and sales for one project and post billings to another project, is also discussed. Finally, some examples of both valid and invalid unit setups are provided.
Related Topics:
Before they can be included in revenue or billings, you must first set up units as items (parts, goods, or services) in Costpoint Product Definition, an add-on product used with Costpoint Purchasing, Inventory, Sales Order Entry, and Billing.
Enter unit transactions on the Manage Unit Usage screen. Think of the Manage Unit Usage screen as a transaction entry screen, similar to the accounts payable voucher entry or timesheet transaction entry screens.
To calculate revenue on projects with units, select the Calculate Revenue on Units check box on the Manage Revenue Information screen. This enables revenue to be calculated on units, in addition to the revenue that is calculated based by the revenue formula.
You can accomplish billing for units via three separate types of invoices: Standard Bills, Customer Product Bills, and Project Product Bills.
You can account for the cost of the units using two different methods.
You can record a unit warranty expense accrual with the COGS transfer.
In order for Costpoint to use the correct accounts for the COGS and warranty expense accruals, you must first identify them as the default accounts on the Set Up Sales Group Abbreviations screen.
In another topic, the Sales Group Abbreviation code was used solely to record unit COGS and warranty expense accruals while posting the bill to the same project. Revenue is recognized for the project when it is calculated and posted. However, with the Sales Group Abbreviation code, you can post your unit COGS, billings, and sales using many different scenarios.
You can use many different setup scenarios to bill units.
These scenarios are viewed as invalid or improper because they either duplicate the unit billing (both usage and cost) or they do not bill any units at all.