Operion Journal
Ask the project manager, accountant or buyer "what has this project cost so far and what budget is left?" and the answer is "we'll work it out at month end", after the overrun has happened. Cost sources are scattered. Linking them to the project and its tasks shows actual cost in real time.
The project as the hub
Every cost document carries the project, and ideally the task. In ERPNext the project field exists on purchase orders, supplier invoices, stock entries, timesheets, journal entries and expenses.
Cost sources
- Materials: material request, purchase order, receipt to site warehouse, issue to project; see buying and stock.
- Labour: timesheets with hourly cost per person or grade; daily labour via linked entries.
- Equipment: owned at an hourly or daily rate, rented via linked invoices.
- Subcontractors: contracts and bills linked to project and work items.
- Other direct costs: permits, transport, site petty cash, controlled with Smart Cash.
Tasks: from total to detail
Split projects into work items (excavation, concrete, finishing) to see where overruns happen.
Budget vs committed vs actual
| Concept | Meaning | Source |
|---|---|---|
| Budget | Planned spend | Project or cost centre budget |
| Committed | Orders and contracts not yet invoiced | Open purchase orders |
| Actual | Recorded spend | Invoices, stock entries, timesheets |
| Available | Budget minus actual and committed | Project report |
Committed cost reveals overruns before they happen; ERPNext budgets can warn or stop documents.
Reports
- Actual cost by type.
- Budget vs actual vs committed per item.
- Materials requested vs received vs issued.
- Planned vs actual hours per task.
- Project profitability.
See progress vs profitability and contract to cash.
Getting started and mistakes
- Make the project mandatory on cost documents; split into budgeted items; a warehouse per site; timesheets for key teams; weekly budget review.
- Avoid buying for a project but leaving stock unissued, one lump cost per project, ignoring committed orders and monthly lump labour entries.
Operion's Smart Buildex and ERPNext projects cover this. Request a demo.
Frequently asked questions
Can purchase orders link to projects?
Yes, as can supplier invoices, stock entries, timesheets and journals.
How do I spot overruns early?
Track committed orders with actuals and set budget alerts.
How is labour costed?
Timesheets with hourly cost, or linked entries for daily labour.
Cost per task?
Yes, by splitting the project into tasks and linking costs.
