This article describes how to work with Variation Orders (VO) in Next Project.
Variation Orders (VO) - General
Consider the following when handling Variation Orders in Next Project for effective project monitoring:
For ongoing work: Create Variation Orders directly in the project under the Variation Order tab. When invoicing, you can either invoice Variation Orders separately or create a cumulative invoice that includes all costs and markups, regardless of Variation Orders or work orders.
For fixed-price jobs: Create a separate VO project. Have a dedicated project for the fixed part of the main agreement. The reason for this is to differentiate Variation Orders from the fixed part in your monitoring.
In the Variation Order (VO) module in Next Project (as mentioned above), all Variation Orders are listed, allowing you to view each individual VO's VO amount, type of VO, recorded costs/revenues, bid amounts, and more.
In the lower part of the window, details for each VO are displayed, with the following tabs:
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VO General: General information about VO, including name, description, internal notes.
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Order Lines: Order lines associated with VO, such as materials, machinery, etc.
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Photos/Documents: Images and documents registered with VO, which can be attached as appendices.
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Booked Costs: All costs associated with VO, including hours, materials, and supplier invoices.
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Booked Revenue: All customer invoices linked to VO.
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Booked Hours: Logged hours on VO, which can be invoiced continuously or included in a fixed price.
Variation Order Buttons and Reports:
On the Variation Order tab, the following buttons are displayed:
Create New Variation Order (VO)
Save Variation Order / Save Changes in Variation Order
Delete Variation Order (Delete all content in Variation Order first)
Create a separate Variation Order invoice for the selected Variation Orders in the Variation Order list.
Print Variation Order, Variation Order Specification, Variation Order Journal. It can be saved as a PDF and emailed, for example.
Notify the customer that a Variation Order has occurred; the customer receives an email with the information.
Create Variation Order
In the Variation Order module, you can create a new Variation Order using the "+" button and then enter relevant details. Note that the customer reference number will appear on the customer's invoice. The markup template may differ from the project's master contract, and the cost regulation specifies how the Variation Order should be regulated, against the client, subcontractor, or internal.
Once the Variation Order is created, it's possible to report back on it from a mobile device.
To Create a Variation Order (VO), Follow These Steps:
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On your computer, log in to Next Project, select the project, and click on the Variation Order tab.
Here, you'll see a list of your Variation Orders with their respective statuses and financial information. Refer to the image above for an example.
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To create a new Variation Order, click on:
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Fill in the details about the Variation Order (description, customer, type of Variation Order, compensation form, etc.).
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Click on Add. The Variation Order is now created, and you can start adding materials to it. For the Variation Order to appear on the mobile device, the status must be set to at least Ordered.
Reporting a Variation Order (VO) in Mobile:
To report changes and additional work (Variation Orders or VO) using the mobile app, follow the steps below. When you reach the screen where you report your time, click on + VO in the upper right part of the window. This will open a page displaying any existing Variation Orders.
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Click on + to create a new Variation Order.
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Fill in the description for the Variation Order, specify the customer, choose the compensation form, and set the status. In the description, provide details about the origin and the action to be taken.
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Click Save. Now, you can take one or more pictures with your mobile device. Press the Image button to do this. You can also have the Variation Order signed using the button in the upper right corner of the screen.
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Once the Variation Order is signed, you can send it to the customer via email using the button with an envelope symbol. When you're done, click Save. The Variation Order will now appear when you press Work Order/Variation Order when reporting time (provided that the status allows the Variation Order to be displayed on the phone).
Fixed Price Variation Order (VO) and Link to Forecast
Create the Variation Order as described above. Then, add an order line for the fixed price, either as free text or by selecting an existing fixed-price item from the price list.
Note the following:
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Specify the correct cost account for accurate matching in the Forecast.
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Enter either the total fixed price to the customer in the a-price column or your cost in a-price and Markup% thereafter. The bid amount is the amount the customer will pay and what will be included in the Forecast's revenue side.
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Ensure that "Calculation amount" is filled in, and enter the cost/unit under the Budget cost forecast section to include the cost of the Variation Order in the Forecast's cost side.
In the case of reporting back on the Variation Order, it will be presented in the sub-tabs Order Lines and Booked hours.
Variation Order invoices are created from the Variation Order module, refer to a separate article for details.
Explanation of Fields in the Variation Order (VO) Module
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Project Number
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Project number to which the Variation Order is linked, visible only if you have "Show Subsidiary Data" selected.
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VO Number
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VO number, entered, for example, during a purchase to link an expense to the Variation Order.
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Description
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Name of the Variation Order.
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Mission Description
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Description of the work to be performed in the Variation Order.
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Customer
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Customer linked to the Variation Order; it doesn't need to be the same as the project's customer.
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Customer Contact
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Contact person at the customer's end
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Compensation Form
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Form of compensation for the Variation Order.
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VO Amount
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Sum of calculated order lines with calculated unit prices, excluding surcharges.
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Surcharges
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Sum of surcharges on order lines. Individual surcharges on order lines are also displayed.
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Bid Amount
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Sum of calculated order lines with calculated unit prices + Surcharge.
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Surcharge Template
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General surcharge template for the entire Variation Order, overrides individual surcharges on order lines and costs. Affects all order lines, supplier invoices, and imported vouchers. If you have or need individual surcharges on order lines, they won't appear here but on the specific order line instead.
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Hide Surcharge
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Hides surcharges in reports and invoices.
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Contract Type
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Type of Variation Order; choices can be modified under Administration in Next Project by an authorised person.
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Booked Cost
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Sum of booked costs in the Variation Order, including performed quantities on order lines, associated costs, supplier invoices, and hours.
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Booked Revenue
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Sum of booked revenues linked to the Variation Order. The revenue must be linked to the Variation Order.
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Booked Hours
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Compilation of reported hours on the Variation Order.
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Accumulated Revenue
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Sum of all chargeable items (order lines, hours, and supplier invoices) with unit prices including surcharges in the Variation Order.
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Not Yet Invoiced
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Accumulated chargeable costs including surcharges that have not yet been invoiced. If the sum is 0, everything has been invoiced.
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Variation Order Status
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Status of the Variation Order.
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Order Date
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Order date.
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Order Amount/Budget Revenue:
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If the Variation Order is on a fixed price: The sum of budgeted/calculated revenues (calculated order lines on the Order Lines tab, including surcharges). Performed quantities won't be included; only calculated order lines are considered for the budget. Á-pris (unit price) on the order line is required.
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If the Variation Order is on a time and material basis: Includes order lines with performed quantities, unit prices + hours + supplier invoices. Provided it is set as chargeable.
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Budget Cost Forecast
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Sum of budgeted/calculated costs (calculated order lines with costs on the Order Lines tab). Performed quantities won't be included; only calculated order lines are considered for the budget.
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Approved by Customer
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If using Next Portal, customers can approve the Variation Order via the Portal. If approved, the checkbox is marked.
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Customer Comment
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If using Next Portal, customers can provide comments when approving the Variation Order. The customer's comment is displayed here.
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Invoiced
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If all chargeable items are invoiced in the Variation Order, this box is checked.
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Invoice Date
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Date of the last invoice.
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Order Lines Tab in the Variation Order Module
In the Order Lines tab of the Variation Order module, order lines are entered as both calculation lines and reported material/machinery from the field.
When working on a Variation Order bid, you can use order lines to perform the calculation by specifying the Calculated Quantity and unit price/cost in order lines.
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Code
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Article code (from the price list or manually entered).
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Description
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Article description (from the price list or manually entered).
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Account Number
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Article's account number, affecting budget, forecast, and invoicing.
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Unit
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Unit.
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Quantity
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Number of units for the article.
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Á-pris (Unit Price)
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Price to the customer per unit.
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Price List Á-pris
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Indicates which price list the article comes from (if the article is retrieved from the price list).
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Number
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Factor for calculation and performed quantity. Number * Quantity; for example, if I have 10 in quantity and set 2 in number, it becomes 20 in quantity.
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Performed Date
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Date when the order line was reported from the field or added manually.
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Variation Order Amount
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Quantity * Number * Unit Price.
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Surcharge %
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Surcharge on the order line in percentage.
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Surcharge
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Surcharge, calculated automatically based on the surcharge percentage.
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Bid Amount
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Bid amount on the Variation Order (Variation Order amount + Surcharge), applicable only to order lines marked as Chargeable .
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Calculation Quantity
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Used for budget/forecast. Calculated quantity of the order line, can be entered manually or calculated automatically via Quantity * Number.
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Cost/Unit
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Cost per unit on the order line.
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Budget Cost Forecast
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Amount transferred to the budget/forecast, linked to the account specified on the order line.
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Chargeable
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Should the order line be included in the invoice and also generate an accrued revenue + become a budgeted revenue? If yes, check this box.
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Comment
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Comment on the order line (for example, for invoicing).
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