How to Implement Microsoft Dynamics NAV in Construction Aleksandar Totovic, MVP [email protected]

How to Implement Microsoft Dynamics NAV in Construction

How to Implement Microsoft Dynamics NAV in ConstructionAleksandar Totovic, [email protected] in Construction BusinessProject Oriented BusinessEntitles and DocumentsThree Implementation Scenarios Using Standard NAV SolutionSpecific Processes WorkflowGoing Vertical or NotConstruction 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?

3Project OrientedSpecific EntitiesSpecific DocumentsSpecific Processes WorkflowWhat is specific in Construction?4First Scenario Only FinancialProject OrientedThree Main Business Scenarios5Project OrientedEXPENSEREVENUENAV standard FinancialRaw MaterialInternal WorkExternal WorkG/L Expense Accounts by Project DimensionG/L Revenue Accounts by Project Dimension% profit6G/L Account and Dimension BasedStandard Financial ReportsAnalysis by DimensionsStandard Invoicing - no AIA modelNo Pre-calculations and WIPCOGS - somewhere?Project OrientedNAV standard Financial7First Scenario Only FinancialSecond Scenario More DetailsProject Oriented8Project Oriented

Raw MaterialLabor WorkMachine WorkEXPENSEREVENUENAV standard Jobs and Resources9Project and GL/Dimension BasedJob & Resources and Financial ReportsJob Analysis & Analysis by DimensionsNo Pre-calculations, but with WIPPercentage of Execution per ProjectStandard Invoicing no AIA modelProject OrientedNAV standard Jobs and Resources10First Scenario Only FinancialSecond Scenario More DetailsThird Scenario We Need All DetailsProject Oriented11

Project Oriented

Raw MaterialLabor WorkMachine WorkEXPENSEREVENUEConstruction(mostly)12Project/Item and GL/Dimension BasedFinancial and Item & Sales ReportsAnalysis by Dimensions and Item AnalysisStandard Invoicing possible as AIA modelYes Pre-calculations and No-WIPPercentage of Execution per ProjectProject OrientedMfg. as Construction (mostly)13PositionsBill Of QuantityPosting Consumption and OutputsPercentage Of ExecutionAIA Billing (Cumulative Invoicing)Project PlanningEntities and Documents14Parts of JobPoint of BillingPositions

15Pre-calculation of Position CostsCollection of CalculationsProject Expenses and RevenueBill of Quantity

16Items or Resources?ItemResourceUsing as Construction PositionsYESYESMake a Bill of QuantityYES-Using Resources as Machines-YESUsing MC/WC as MachinesYES-Using NAV ProjectsYESYESAIA Billing ProvidedYES-WIP Natively-YESPercentage of Execution per PositionYES-17Item as PositionsMCs as MachinesIf We Choose an Item

18Bill of Quantities (Cost Analysis)Simulated Production OrdersIf We Choose an Item

19Bill of Quantities (List of Positions)Sales Order -> Production OrderIf We Choose an Item

20Posting:Consumption: Mfg. Consumption JournalsOutput: Mfg. Output JournalsProjects as DimensionsIf We Choose an Item

21Percentage of Execution (Sales Order)Quantity Shipped * 100 / QuantityNew Report per Each LineIf We Choose an Item

22AIA Billing (Cumulative Invoicing)Sales Data: Sales Order and Posted InvoiceNew ReportIf We Choose an Item

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AIA Billing (Cumulative Invoicing)Different Layouts per CustomerNAV 2016: Document LayoutsIf We Choose an Item24Project PlanningAll standard NAV Planning FeaturesIf We Choose an Item

25Item as ServiceIf We Choose an Item26Using Job ModuleResources as Machines and Labor WorkItems as MaterialResources as PositionsWe have not Bill of QuantityIf We Choose a Resource

27But We Have WIPJob WIP CockpitIf We Choose a Resource

28Invoicing as Contract Posting TypeEvery month prepare Contract Type:For Resources and ItemsStill Has Not HierarchyIf We Choose a Resource29Based on Job Planning Lines:Percentage of ExecutionAIA BillingIf We Choose a Resource30Specific Processes Workflow

Create Position(s)Create ProjectCreate Norm(s)ItemsResourcesCosts Analysis (Actual, Assessment)BiddingFixing of Conditions31

Specific Processes WorkflowPlan of Execution (Project Plan)Machine ConsumptionLabor ConsumptionItem ConsumptionPositions OutputsOther CostsDaily Based CostsPeriodicallyMonthly OutputsRecognitions ProcessDepends of Quality, Quantity, Scheduling, Evidence, BillsAccepted QuantitiesSpecific ContractsBilling ProcessCumulative Billing from the Beginning AIA Billing Model:Based on BoQ, Scheduling, All Positions, ExecutionPercentage of ExecutionPosting of AIA Bill is not Posting to GL, Customer, VAT,Accepting and SigningRevenue32Going Vertical or Not?Depends of the Project Type

33Benefits & IssuesBenefits:Small and Easy Projects with Standard NAVSmall Project BudgetSmall CustomizationsMain Issues:A Lot of Items (Items are Positions and Materials)A Lot of Machines (MC are Mfg. and Machines)Calculating WIPSpecific Calculations and AnalysisConstruction Manager doesnt love ERP34Going Vertical or Not?Huge Construction CompanyCivil EngineeringHouse BuildingConstruction Is the Main BusinessConstruction and ManufacturingLot of Mechanization ResourcesLot of Items and/or PositionsAIA Billing with Hierarchy Positions Showed35Going Vertical or Not?Depends of the Project Type and Requirements

36Thank You!Please remember to fill out your session survey usingthe Directions 2015 Mobile App!Aleksandar Totovic:

Mail:[email protected]:totovic.comTwitter:@atotovic37