Wilmington, MA -- (SBWIRE) -- 01/19/2006 -- 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™ or Oracle® database. Conducting business any place, any time, any where is a reality, deployable with unprecedented flexibility.