Project order (POD)
The Project order (POD) application is a Sales sub-module that has to be turned on before a company can start using the functionality. The application is a an internal work tool that can be used by companies to carry out a job, which include working hours, materials and other expenses. The purpose of the Project order (POD) application is to have a tool that can be used to provide a cost/price estimate in advance, and a place to log hours and follow up logistics after a project order has been started. This solution will also show correct accrued costs along the way and be the basis for invoicing to the customer.
There are two pricing models for project orders:
Time & Material (T&M) - The agreement is that the customer will pay based on the real accrued cost.
Fixed Price - The agreement is that the customer pays a fixed price regardless of the real accrued cost.
Regardless of the pricing model, a Project order (POD) can be partially invoiced during the entire process, for example monthly or when milestones are reached. A Project order (POD) can either be external or internal. An external Project order (POD), is always related to a customer. An internal Project order (POD) can e.g be a development project, where cost of hours and materials can be linked to this Project order (POD).
Cost and sales in project orders are not booked directly to the general ledger. The material cost is based on the same way as one calculates cost in stock, the cost is a part of the Project (POD) after one has confirmed consumption of material.