One ledger, tagged by project and item of work
You will be able to: Explain what it means that one ledger carries the project and the item of work on every cost row; State what makes a project and an item of work a valid tag; Read the refusals Zeyto gives when a tag is wrong.
- Read not done yet
- Self-check: not taken not done yet
- Lesson complete not done yet
Zeyto Construction & Contracting does not keep a separate set of books per project. It keeps one general ledger, and every posted cost or revenue row can carry two extra tags: the project (called a project centre in the ledger) and the item of work, which is a node of the project's breakdown. A project report is then a filter on the ledger, not a second system that must be reconciled to it.
What carries the tag
- Purchase invoices, goods receipts, material issues, returns and write-offs, tagged on the document or on each line.
- Journals and petty cash vouchers, tagged on each journal line.
- Sales invoices, progress bills and VAT entries, so billing and VAT can also be read by project.
- Payroll allocation and asset charge-out journals, which move cost onto the items they were worked on.
When Zeyto refuses a tag
Before a document posts, Zeyto checks the tag and refuses with a plain reason. The checks that matter most:
| Refusal | Meaning | How to fix it |
|---|---|---|
| Item not a leaf | Cost can only go to an item, not to a category that groups items | Pick a sub-level item |
| Item belongs to another project | The item chosen is in a different project's breakdown | Change the project or the item |
| Project closed or cancelled | A closed project takes no new cost | Reopen through the project, or post elsewhere |
| Cost locked | The posting date is on or before the project's cost lock date | Use a date after the lock, or lift the lock with authority |
Cancelling a document is never blocked by these checks, because a cancel only reverses what was posted. When a tagged document is amended or cancelled, the reversal is netted per item, so two lines to two items are never blended into one.
Walk it through
- Take one supplier invoice and write down the project and item it belongs to before looking at the ledger.
- Write the three journal rows (cost, input VAT, payables) with the tags.
- In the demo, if you have access, open a project's Structure tab and find the item's actual cost; then find the same invoice in the Purchase Invoice register and compare the amounts.
Public demo company, sign in as admin / demoAdmin123. Data refreshes nightly.
- One ledger; project and item of work are tags, not separate books.
- Cost can only be posted to an item (a leaf) of an open project.
- Reversals are netted per item, and a cancel is never refused by the tag checks.
Check yourself
5 questions on this lesson. Not timed, not the exam, and you can try again. Score 60% or more, and read the lesson, to complete it.
1. In Zeyto Construction & Contracting, what is the project centre of a project?
2. A supplier invoice for AED 8,400 plus 5% VAT is tagged to project P-00001 and item W1.1. What is the payables credit?
3. Which tags can a posted cost row carry in Zeyto Construction & Contracting?
Select all that apply.
4. Which checks can refuse a tagged document before it posts?
Select all that apply.