Sage Timberline Office a.k.a. Sage 300 Construction and Real Estate allows construction and real estate firms an opportunity to streamline workflow and processes between departments to improve accounting efficiencies. This blog will provide a brief overview of the Contracts module.
The Contracts module allows you to track all your contracts and set up, see or change the way each job or contract is budgeted, billed, etc. You can choose from a contract-based or cost based contract set up and assign mark up or rate tables for each contract.
The contracts module will also allow you to define the billing terms. Individual cost codes are assigned in this module to allow for billing at these cost codes also known as contract item level. The contract status on the general tab allows you to track the progress or development of a contract or job from beginning to end.
Depending on your contracts and your type of business, you can choose to mark jobs closed as they are completed. My clients that use percent of completion mark the jobs closed as they are completed in order to keep track of their jobs they are contract based jobs. I also have other clients that don’t mark their jobs as completed but they have a mix of both contract and cost based contracts or jobs.
The contract must be approved in the contracts module before you can bill anything on the job. If the contract is not approved, costs will not post to these jobs as the contract will not be active in the system.
Timberline’s contracts module allows you to manage and/or approve change orders if necessary. This option is only available to companies using Timberline versions 9.1.0 or higher. It’s best to make sure your clients are too far behind the curve since the newer software generally has updated their software with the newest features to help facilitate your contracts and their management.
The contracts modules must be closed and rolled forward each month or the contract amounts to date will not be accurate. Currently, closing the modules is part of the month end checklist for my Timberline clients.
The contract module allows you to set up or see what general ledger accounts the revenue and costs will be posted to if you decided to go against the normal default accounts as well as what has been billed against this contract.
You can run certain reports that will list each contract or job and what their budgeted amounts are. There are numerous reports in this module however I have only generated a few reports and don’t generally use this module after the contract has been set up.
There are many other features of this module so please feel free to reach out to me should you have any questions on this topic.Written by: Annie Terracciano TGG Accounting