Construction and Engineering

Supplies and Purchases

Documentation and purchase approval processes are integrated with financial control over projects. Starting with the first stage of management, purchases linked to a construction project are added to budget control, reflecting the level of application of budget assignment and according to its stage of progress in purchase management processes.

Supplier offer management allows the organization to perform complete followup on the cycle from application to offer to comparative valuation and decision to purchase. Suppliers can consult the requests for contracting bids currently in progress, increasing their agility and visibility throughout the contracting cycle. This results in lower subcontracting and purchasing costs.

The system provides:

• WEB Services for publication of items which companies wish to acquire.
• Electronic notification of frequent suppliers in the bids being drawn up.
• WEB interface to help the supplier connect directly to the system in order to report: prices, discounts, product image attachments, technical documentation, etc.
• Security profile management to control supplier access.
• Comparative analysis system to be used with multiple suppliers.
• Provider bid-awarding proposal for one or more articles.
• Electronic notification of bidding results to suppliers.
• Purchase tax calculation based on data received from the supplier.
• Ability to generate open orders or periodic programming, based on the seasonal nature of products.

Assignment of income and expenses

The Axional ERP/CEMIS budgeting area receives financial data from the modules in which documents related to construction projects are filed, but also from purchase and sale documents (orders, acknowledgment of receipt, supplies, shipping, billing, etc.), the cash register subsystem, warehouse consumption, or activity recorded manually in budget lines.

Each budget line has an income and expenses area, where the origin of activity is identified to make future user consultations easier.

All income and expense activity updates the amounts charged and added to the budget line. In the case of activity originating from management documents, while these advance through the document flow of the purchase and sale process, their progress is automatically reflected in the application status of income and expenses on the line(s) to be charged to.

The approval workflows for each document also permit or refuse the addition of new amounts to a budget line. This linking process is also established from the budget with regard to document workflow validation. For example, factoring in the budgeted-for amount vs. the available amount for that line item.

Financial information on a project’s income and expenses is divided into two statuses, each of which corresponds to an application level. This division lets you compare changes in income and expenses relative to the budgeted-for amount, in a way more accurate to the progress that amount has made.

• Cost Reserved

This type of activity will originate in management document validation, e.g. agreements, applications, orders, acknowledgment of receipt, supplies, shipping, etc.

• Applied

This type of activity will originate in the validation of bills, purchase or sale documents, or the various financing models which interact with investments. They may also be introduced manually into the table itself.

Via income and expense control on a line item level, more detail about the stage of progress of financial charges is obtained, in a simple and agile way. This means user time saved and information integrity guaranteed.

Expenses and Hours

To facilitate the direct assignment of employee hours and expenses, an Hours and Expenses assignment master is available, to which a billing account can be associated to record the amounts introduced.

If employee expenses per hour are being assigned, an hour assignment tax master is available.

Budget Limits

Axional ERP/CEMIS lets you restrict budgeted quantities so that they cannot be exceeded. It also accepts percentages or amounts of permissible excess. Any restriction of costs can be applied to the entire budget or any line level, relative to the amount added to the lower-level budget lines dependent on the line which is exercising this control.

This functionality means that although some lines may be exceeding the budget limit, therefore blocking the assignment of more expenses, the budgeted amount assigned to that level is not exceeded, and new expenses are accepted on other lines.

Followup Reports

A broad range of reports and preset printing formats are available for budget followup.

• Centered
• Current budgets in progress
• Breakdown of income and expenses according to stage of execution and origin

Cost Control

Axional ERP/CEMIS facilitates complete segmentation and handling of costs and income related to each project. It lets you obtain a precise, real-time image of the financial volumes budgeted for, committed to or effectively consumed as the project progresses, as well as detailed analysis of quality, documentation, activity or work units, etc.

In addition to expenses charged directly to a project, cost control factors in the following aspects:

• Indirect purchases, distribution across multiple projects.
• Assignment of indirect and structural costs, including various distribution criteria: percentage, volume of direct costs, etc.
• Transfer of material/costs between projects.
• Calculation of costs by the difference between resource consumption/payments and billing/income.

Cost analysis:

• Cashflow management by project or by organizational unit.
• Analysis and comparisons of costs and deviations by project, expense description, or organizational unit.

 

Axional ERP/CEMIS is essential to anticipate future issues or cost improvements. It lets you create a statistical cost breakdown, whether bottom-up or top-down, creating an income and expense forecast according to the estimated curve of project evolution.

Execution Control

Records

Within a project, budget lines are grouped into Record contracts, providing us with a double vision: the record and the project as a group of various contracts, which may correlate to different clients, prices, methods or billing plans. This allows you to perform followup by contract and by annuity.

Execution

Each line has its own execution and certification control. Execution control allows you to introduce execution measurements in order to evaluate the stage of completion of each line, comparing the progress of execution with certifications and the financial control of each line.

Certifications

Axional ERP/CEMIS supports complete followup on certifications associated with projects, whenever it may be necessary. The base measurement for certifications incorporates the percentage of certification as well as production units.

Through the certification breakdown, aggregated information on units and certified prices are updated line by line, giving you the total amount of certified income and expenses for that line.

With regards to the date of each certification, measures are in place to prevent submitting a certification dated to an expired period.

Control for Site Managers

Starting with the options for financial and budget execution followup, site managers have various followup options for measurement:

• Sales:
  • Sale budget (with past records breakdown)
  • Production
  • Certification
• Expenses:
  • Expense budget (with past records breakdown)
  • Production costs
  • Other measurements

Risk Management

Axional ERP/CEMIS facilitates risk management with lists that show expired insurance certificates for subcontractors. Incidents on the job can be reported and resolved from moment to moment.