CoreconLink for Xero Integration

Transcription

1 CoreconLink for Xero Integration

2 Available CoreconLink Options QuickBooks Pro, Premier, Enterprise (US, Canada, UK) QuickBooks Online (All Countries) Pro, Premier, Quantum (Canada) 9.X (US) Xero Online (All Countries)

3 Why Corecon as a Xero Addon? Job costing is a key aspect to project management and is one of the main reasons engineering and construction firms consider Corecon. Many of these firms are satisfied with their accounting software in terms of general accounting functions, but when it comes to handling project financials such as tracking Subcontracts, potential changes, approved COs and AIA Invoicing, these systems tend to fall short. Corecon s software suite will complement Xero and eliminate workarounds using spreadsheets!

4 Why Corecon for Estimating? Corecon s Estimating module includes the following features that are not possible with Xero s Quoting System: Use up to a 4-tier Work Breakdown Structure (WBS) to group and sort estimate cost line items Line items have cost and proposal rates for Material (M), Labor (L), Equipment (E), Sub (S) and Other (O). Markups can be applied to line items, sections or the entire estimate (aka global markups). The latter can be shown at the bottom of the proposal as an individual line item(s) or distributed proportionally across the WBS. Document inclusions, exclusions and clarifications per WBS Division which helps define the scope of work Generate professional looking proposals with options to show line items, sections (WBS) and markups in various ways Integrated Request For Pricing (RFP) Packages with Estimates: Request and collect item pricing from vendors via RFP Packages. Vendors will be able to submit pricing online via Corecon s TeamLink Portal. Compare vendor pricing side by side and award lowest bidder per line item or package total Create and Track Multiple Estimates per Lead or Project (Example: Base Bid, Rev 1, Rev 2, Rev 3) Wizards to automate complex processes and eliminate duplicate data entry: Lead to Project Wizard: Creates awarded Project and moves Drawings, Specs, Estimates, RFP Packages, and Correspondence over Estimate to Contract Setup Wizard: Creates Job Cost Codes, Prime/Client Contract, and Budgets using Estimate data Estimate to Procurement Wizard: Creates POs and Subcontracts using Awarded Vendor information in Estimate RFP Packages

5 Client Contract Administration Contractors should never purchase materials or mobilize staff to the jobsite unless there is a signed contract! This is an important aspect to construction that most accounting systems do not take into account! Corecon s Comprehensive Contract Admin Features: Built-in Wizards to setup Job Cost Codes, Client/Prime Contract and Budgets using a Corecon Estimate or spreadsheet Manage Multiple Prime Contracts for an Individual Project (e.g. Design Contract, Construction Contract) Four Contract Types for Prime Contracts: Fixed Lump Sum Cost Plus with Guaranteed Maximum Price (GMP) Cost Plus without Guaranteed Maximum Price (GMP) Unit Price Track 4 Types of Budgets for each Job Cost Code Referenced in a Prime Contract: Cost Budgets: Material (M), Labor (L), Equipment (E), Sub (S), Other (O) Contract Amount (aka Schedule of Values, Bank Draws) Labor Hours Equipment Hours Comprehensive Change Management: AIA Change Proposal Request (CPR) AIA Change Orders (CO) AIA Invoicing with Retention/Holdback Tracking Pending, Approved and Not Approved Status Options for Prime Contracts, CPRs, COs and Prime Contract Invoices

6 Procurement Designed For Contractors Corecon s Procurement Features: Two Separate Procurement Processes for Suppliers and Subs: POs and Bills Subcontracts, AIA Sub Change Orders (SCO) and Sub Invoices Estimate to Procurement Wizards for quick setup of POs and Subcontracts Pending, Approved and Not Approved Status Options for ALL Procurement Features Optional Workflow Rules for designating Approvers based on Transaction Value Eliminate over-billing using Subcontracts Percent Complete Style Subcontract Invoicing with Retention/Holdback Tracking

7 CoreconLink Integration Overview

8 Project Financials: AP, AR & Time Tracking Project Financial Transactions: Bills Subcontract Invoices Employee Misc. Expenses Client/Prime Contract Invoices Sync Wizard: Run Daily Corecon v8 CoreconLink Check and Deposit Information: Checks written for vendors bills Client checks deposited Payment Data: Run Weekly or Monthly

9 Customer, Supplier and Employee Integration Customers: New Clients in Corecon that are referenced on the Prime Contract are exported to Xero. Address, Phone & Fax Sync: Yes Suppliers: Suppliers can be imported/exported to either system. Address, Phone & Fax Sync: Yes Employees: Employees can be imported/exported to either system. Address, Phone & Sync: Yes

10 Customer and Job Integration Corecon Awarded Job Setup: Project #, Title Project Directory (e.g. Customer, Your Firm, Architect, Subs, Suppliers) Job Cost Codes Prime Contract (aka Client Contract) Budgets (e.g. Contract Amount, Cost, Hours) Xero: Customer

11 Inventory Item Setup - Cost Codes The Golden Rule of Job Costing: Regardless of software being used, estimating, project management and accounting staff need to agree on a master cost code list! Industry Standard Codes To Consider: Commercial: CSI 95, CSI 2004, CSI 2016, Uniformat Residential: NAHB Note: CSI 95 Division Cost Codes shown as Inventory Items.

12 Inventory Item Setup Cost Codes (cont.) When exporting project financials from Corecon to Xero, Job Cost Code references will be replaced with Inventory Items. Thus, it is recommended that these items (code and description) would match in both systems. Typically, Cost Code Inventory Items would reference the same Expense/COGs and Income GL chart of accounts.

13 Inventory Item Setup - Unclassified Item The CoreconLink needs to have a "backup" item just in case a Corecon transaction references a cost code that is not in Xero. This unclassified item (ex. CCUnc) would be used in those rare cases. Although Corecon could create Inventory Items dynamically, this is not advised since duplicate cost codes could be created if the number was slightly off from one project to another. Thus, having an unclassified item is a better approach in the long term to avoid duplicates. Typically, the unclassified item would reference the same Expense/COGs and Income GL chart of accounts as standard cost code inventory items. See previous slide as an example.

14 Inventory Item Setup Retainage/Holdback This item is only applicable when Prime or Subcontract Retainage (aka Holdbacks) will be tracked in Xero. GL Chart of Accounts: Retentions Payable Account Type: Non Tax Related Other Current Liability Applicable Transactions: Subcontract Invoices Retentions Receivable Account Type: Non Tax Related Other Current Asset Applicable Transactions: Prime Contract Invoices Note: Example retention transaction shown on next slide.

15 Exporting Transactions with or without Retainage Corecon Prime or Sub Invoice Example - 10% Retainage Item Description Invoice Gross Total Retainage Invoice Less Retainage Job Cost Code Concrete $50,000 $5,000 $45, Masonry $40,000 $4,000 $36, Subtotal $90,000 $9,000 $81,000 Same Invoice Exported To Xero WITHOUT Retainage Shown (RECOMMENDED) Item Description Total Service Item Concrete $45, Masonry $36, Subtotal $81,000 Same Invoice Exported To Xero WITH Retainage Shown Item Description Total Service Item Concrete $50, Masonry $40, Retention -$9,000 Retention Subtotal $81,000

16 CoreconLink Sync Preferences

17 CoreconLink Sync Preferences Address and Phone # Syncing: Customer, Suppliers, and Employees Accounts Payable: Export as Draft (Yes, No) CC Job Cost Code / Xero AP Item Link Options * Default AP Item (when no match) Export Rules for Bill and Employee Misc. Expense Payment Types Show Sub Invoice Retainage and Corresponding Item References Accounts Receivable: Export as Draft (Yes, No) CC Job Cost Code / Xero AR Item Link Options * Default AR Item (when no match) Show Prime Invoice Retainage and Corresponding Item References Tax Codes: CC Tax Code / Xero Tax Code Link Options * Options shown on next slide

18 CoreconLink Sync Preferences (cont.) Job Cost Code Linking Options: Link all Corecon JCCs to single Inventory Item Link Items based on the Resource Type (M L E S O) * Link Items to a specific Project Classification Auto Link Item based on the Job Cost Code (exact match only) ** Auto Link Item based on the Job Cost Code Description (exact match only) Auto Link Item based on the Project Number (exact match only) * Applicable to AP Only ** Recommended Setting for AP and AR

19 CoreconLink Sync Wizard Sync Wizard is typically run daily by an accounting administrator.

20 CoreconLink - Sync Wizard Steps 1. Sync Linked Customers and Suppliers (Address, Phone, Fax Updates) 2. Sync Linked Employees (Address, Phone, Updates) 3. Export Approved Project Prime Contract (Creates Customer) 4. Export New Suppliers referenced on Approved Bills and Sub Invoices 5. Export Approved Bills and Sub Invoices 6. Export Approved Employee Misc. Expenses 7. Export Approved Prime Contract Invoices (aka Client Progress Invoices)

21 CoreconLink Example Sync Step Corecon provides accounting staff complete control on what should be exported and when this should be done!

22 CoreconLink Payments Check and Deposit information in Xero can be exported back to Corecon via the Payment function. Typically, this is run weekly by an accounting administrator.

23 CoreconLink Global Import AutoLink The Import / AutoLink tool is very practical when setting up Corecon since all Active Xero Suppliers and Employees can be quickly imported into Corecon. Companies and employees that have been manually entered in Corecon can also be auto linked if the name matches.

24 CoreconLink Advanced Utilities There can be scenarios where customers, suppliers, and employees need to be manually linked such as in the case where names do not match in both systems. In addition, project transactions such as Bills, Sub Invoices, or Prime Invoices have to be marked as exported or unlinked so they can be exported again. The latter scenario would occur when there are substantial changes made to a particular transaction. Fortunately, Corecon offers these functions in the Advanced Utilities section which can save valuable time.