Track Project Cost and Revenue

When accounting for a project based company, you might want to track the project’s cost and revenue, and also summarise it accordingly. 

In Zoho Books, this process can be done by associating projects with transactions. Once the projects are associated with transactions, you can view the summary of the project’s profitability from the Reports module.

In this page…

Record Transactions with Projects

Projects can be linked directly to different sales and purchase transactions in Zoho Books. It can either be associated at the Entity level or the Line Item level. Entity and Item Level

Entity and Line Item Level

Projects can be associated with transactions at the Entity level for Estimates and Retainer Invoices, and at the Line Item level for Sales Orders, Credit Notes, Invoices, Bills, Purchase Orders and Vendor Credits. Let us understand this case better with a scenario.

Scenario: Patricia is the manager of a project based company. She works on a project for her customer, Brandon. While working on the project, she requires a few items in her organisation. When she uses these items, the project cost subsequently increases, and she has to bill her client for the same. In this case, she can associate a billable expense (cost of the items utilised) for the project, and also create an invoice for the same. To do this, Patricia creates a new invoice, adds the items she uses in the project, and links them to the project that she is working on for Brandon.

To associate projects at the line item level:

Add Additional Info Associate Projects

To associate projects to the entire transaction:

Entity level

Insight: To enable the Project Name dropdown, you will have to select a customer.

Bulk Update

You can bulk associate Projects to line items of an Invoice. You can select multiple items and associate projects easily in just one click. 

To bulk update projects:

Bulk Update Projects Update Update Project

Create Transactions from Projects

You can track your project cost or revenue by creating transactions right within the Projects module. To allocate cost, you can choose any of the Purchase module to create a transaction, and similarly a Sales module to track revenue.

To create a purchase or sales transaction from projects:

Transactions in Projects

Insight: When creating transactions from projects, you can change the project associated with individual line items by clicking the Edit icon next to the project name in the project line.

 

Project Reports (Project Profitability)

You can customise reports and filter them based on the projects associated with different transactions. The overall profitability of a project can be viewed from the Profit and Loss report and the transaction based project details can be viewed from the transaction specific reports.

Profit and Loss Report

Project profitability can be customised and read from the Profit and Loss report. You can tailor the report and view them based on specific projects. To do this:

Customise reports Advanced Filters

Insight: You can view the project’s profitability in a chart format right in the project’s Overview page by clicking the Profitability Summary. You can directly go to the specific Projects Profit and Loss report from this page by clicking Profitability Report below the chart.

Other Reports

You can view the reports of transactions created for a project. These reports include:

  1. Purchase Order Details Report
  2. Invoice Details Reports
  3. Estimate Details Report
  4. Sales Order Details Report
  5. Bills Details Report
  6. Expense Details Report
  7. Debit Note Details Report

For instance, to view the projects associated with bills:

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