1. NAV in Construction Aleksandar Totovic, MVP aleksandar.totovic@nps.rstotovic.com

2. Construction and ERP Is it Possible? Project-based industries such as construction have very different business challenges from other manufacturing or process based industries. Almost every project is unique, often with a new team, so each is a new challenge from the outset. Is construction industry ready for ERP?

3. Image page Aenean ornare bibendum metus, quis dignissim sem. Quisque et luctus diam. Pellentesque sodales, ligula elementum dignissim pulvinar, dolor

4.  Project Oriented  Specific Entities  Specific Documents  Specific Processes Workflow What is specific in cons?

5.  First Scenario – Only Financial Project Oriented  Three Main Business Scenarios

6. Project Oriented EXPENSE REVENUE NAV standard – Financial Raw Material Internal Work External Work G/L Expense Accounts by Project Dimension G/L Revenue Accounts by Project Dimension % profit

7.  G/L Account and Dimension Based  Standard Financial Reports  Analysis by Dimensions  Standard Invoicing – no AIA model  No Pre-calculations and WIP  COGS – somewhere? …… Project Oriented NAV standard – Financial

8.  First Scenario – Only Financial  Second Scenario – More Details Project Oriented

9. Raw MaterialLabor WorkMachine Work EXPENSE REVENUE NAV standard – Jobs and Resources

10.  Project and GL/Dimension Based  Job & Resources and Financial Reports  Job Analysis & Analysis by Dimensions  Standard Invoicing – no AIA model  No Pre-calculations, but with WIP  Percentage of Execution per Project …… Project Oriented NAV standard – Jobs and Resources

11.  First Scenario – Only Financial  Second Scenario – More Details  Third Scenario – We Need All Details Project Oriented

12. Raw MaterialLabor WorkMachine Work EXPENSE REVENUE Construction(mostly)

13.  Project/Item and GL/Dimension Based  Financial and Item & Sales Reports  Analysis by Dimensions and Item Analysis  Standard Invoicing – possible as AIA model  Yes Pre-calculations and No-WIP  Percentage of Execution per Project …… Project Oriented Mfg. as Construction (mostly)

14.  Positions  Bill Of Quantity  Posting Consumption and Outputs  Percentage Of Execution  AIA Billing (Cumulative Invoicing)  Project Planning Entities and Documents

15.  Parts of Job  Point of Billing Positions

16.  Pre-calculation of Position Costs  Collection of Calculations  Project Expenses and Revenue Bill of Quantity

17. Items or Resources? Item On stock Item Non-stock Resource Using as Construction PositionsYES Make a Bill of QuantityYES-- Using Resources as Machines-YES Using MC/WC as MachinesYES-- Using NAV Job Modules-YES

18.  Item on Stock as Positions  MC’s as Machines If We Choose an Item…

19.  Bill of Quantities (Cost Analysis)  Simulated Production Orders If We Choose an Item…

20.  Bill of Quantities (List of Positions)  Sales Order -> Production Order If We Choose an Item…

21.  Posting:  Consumption: Mfg. Consumption Journals  Output: Mfg. Output Journals  Projects as Dimensions If We Choose an Item…

22.  Percentage of Execution (Sales Order)  Quantity Shipped * 100 / Quantity  New Report for Each Line If We Choose an Item…

23.  AIA Billing (Cumulative Invoicing)  Sales Data: Sales Order and Posted Invoice  New Report If We Choose an Item…

24.  Project Planning  All standard NAV Planning Features If We Choose an Item…

25.  Item as Service If We Choose an Item…

26.  Using Job Module  We have not Bill of Quantity  But We Have WIP If We Choose a Resource…

27.  Invoicing as Contract Posting Type  Every month prepare Contract Type:  For Resources and Items  Still Has Not Hierarchy …… If We Choose a Resource…

28. Specific Processes Workflow Create Position(s) Create Project Create Norm(s) ItemsResources Costs Analysis (Actual, Assessment…) Bidding Fixing of Conditions

29. Specific Processes Workflow Plan of Execution (Project Plan) Machine Consumption Labor Consumption Item Consumption Positions Outputs Other Costs Daily Based Costs Periodically Monthly Outputs Recognitions Process Depends of Quality, Quantity, Scheduling, Evidence, Bills… Accepted Quantities Specific ContractsBilling Process Cumulative Billing from the Beginning – AIA Billing Model: Based on BoQ, Scheduling, All Positions, Execution… Percentage of Execution Posting of AIA Bill is not Posting to GL, Customer, VAT,… Accepting and Signing Revenue

30. Going Vertical or Not? Depends of the Project Type

31. Benefits & Issues Benefits: – Small and Easy Projects with Standard NAV – Small Project Budget – Small Customizations Main Issues: – A Lot of Items (Items are Positions and Raw) – A Lot of Machines (MC are Mfg. and Machines) – Calculating WIP – Specific Calculations and Analysis – Construction Manager doesn’t love ERP

32. Going Vertical or Not? Huge Construction Company – Civil Engineering – House Building Construction Is the Main Business Construction and Manufacturing Lot of Mechanization Resources Lot of Items and/or Positions AIA Billing with Hierarchy Positions Showed …

33. Going Vertical or Not? Depends of the Project Type and Requirements

34. Aleksandar Totovic: Mail:aleksandar.totovic@nps.rsaleksandar.totovic@nps.rs Blog:totovic.com Twitter:@atotovic Thanks