5301.5 Muli Accounting Project Types (Muli Code 241)

1. Earned Value Project Types

L  Lump Sum

The Original Contract is equal to the contractually agreed Contract Value.

The Revised Contract is obtained by taking the Contract Value + Approved Variations.

The Forecast Contract Value (at Completion) is the Revised Contract Value + the safe value of Unapproved Variations. This is the value that the project manager believes will be approved by the client (Using a conservative recognition of RISK)

(Remember, you cannot recognise the Income unless the work is costed into the Final Forecast Cost).

C   Cost Based (Construction Management)

Most of these projects have a fixed price component (being a management fee); fixed preliminaries, and even use builders services and equipment at agreed rates. Therefore they need a complementary project to enable proper control.

The final cost may be based on a schedule of rates, or agreed costs + an agreed administration fee and profit margin.

So all costs allocated to a cost based project are subject to verification by the client.

Cost based projects make no profit contribution in their own right, project contribution emerges through the Complementary project.

M  Complementary Management Project

Used as the second project in association with a cost based project.

Costs at the agreed values are Journalised from the complementary project to the cost based project.

(The complementary project seldom has direct project income through Muli Allocation 1000).

2. Traditional Accrual Basis Project Types

V  Invoice

Where a project is defined in this manner the project contribution is automatically calculated based on the result of the AR invoice – Approved for payment + Accrued.

This can be used for traditional types of business.

J  Small Jobs

Each allocation between 2000 and 7998 may be used for a small job (or small project). All income and expense for each small job is included in the one allocation. A separate small jobs register keeps track of the project details, Client Method of calculating the invoice and method of payment etc. This concept could be used for Maintenance & Repair facilities. Each allocation in the project is then individually processed to give its project contribution.

G  General Ledger

In Muli we have one overhead project each year. For each Company the project is always in Profit centre Z. These projects only have cost allocations 000A to 0999 while operational projects only have allocations 1000 to 9997. All overhead allocations are presented in the Profit & Loss or Balance sheet.

R    Responsibility Overhead

This type is intended to provide a Branch Manager with the responsibility project containing expense accounts for which the Branch Manager is responsible. Assets are purchased in the General Ledger and internally rented to the projects, etc.

T    Template Project

Used as starting project, they cannot have any accounting transactions, and are intended to provide a starting framework for normal construction projects.