Engineer-to-Order Specifics Met by VISIBILITY.net
According to Stephen Carson, Executive Vice-President of
Visibility Corporation, "ETO Manufacturers operate their
businesses on a project basis managing and delivering activities
outside the normal product costing models. There are typically a
handful of projects in process at any one time, yet they can be
sizable and often last one to two years. Unable to carry the
financing on these projects these manufacturers employ progress
billing to maintain cash flow. This periodic invoicing cycle
takes place throughout the project and is driven by the
achievement of pre-defined contractual conditions. This
fundamental business model creates havoc for traditional
accounting systems linked to the enterprise resource planning
(ERP) system. As a direct result of progress billing,
manufacturers are challenged by revenue recognition. This
activity is crucial since the revenue has to be tracked in the
same accounting period as the expense in order to remain in
accordance with Generally Accepted Accounting Principles."
Key Challenges that Engineer-to-Order manufacturers face include
complex billing and revenue recognition issues including:
*Progress billings for long term projects *Revenue recognition
in every month *Actual cost collection by job *Comparison of
Actual Costs to Budget
Seamless revenue recognition - Using VISIBILITY Project
Accounting, ETO manufacturers are able to address the issues of
progress billing and revenue recognition integrating Sales
Orders, Work Orders, Purchasing, Labor Distribution, Accounts
Payable and Accounts Receivable as a seamless workflow. ETO
manufacturers are able to review the actual cost and revenue
each month and then recognize revenue with the touch of a
button.
Project life cycle profitability: The system posts to the proper
accounts for progress billings, revenue recognition and cost.
VISIBILITY's Project Management modules help the customer track
profit margins throughout the life cycle of the project and to
precisely account for the estimate to complete the project.
Visibility Corporation (www.visibility.com) is a leading
developer and supplier of business software solutions designed
for the unique needs of project-based, engineer-to-order and
to-order manufacturers. Visibility's Enterprise Application
solutions help midsize manufacturers of complex products operate
their businesses effectively.
VISIBILITY.net is an integrated ERP solution and more. Offering
unparalleled functionality and integrated workflow, this
browser-based solution cost effectively delivers the power of
.NET-based Web services for use with either a Microsoft SQL
Server