Projects Opening Balance

A project opening balance represents the financial starting point of a project at the go-live of VOGSY. It captures:

Beginning Costs are costs that have already been incurred before the start of the current period. These could include initial planning expenses, preliminary designs, or any other costs associated with the project's initiation.

Beginning Revenue: Any revenue generated before the start of VOGSY is included in the opening balance. This occurs if some early deliverables have already been completed and billed. For instance, if early deliverables were billed, the corresponding revenue would be part of the opening balance.

Why is it important?

Accurate Tracking: It provides a clear and precise picture of the project's financial position from day one.

Budgeting and Forecasting: This helps create realistic budgets and forecasts for the project, as it considers any pre-existing financial commitments or gains.

Performance Measurement: A baseline for measuring the project's financial performance throughout its lifecycle.

VOGSY's Opening Balances feature lets you input historical costs and revenue (invoice amounts) for projects that were already in progress.

Before entering opening balances, complete the following steps:

Create projects

This includes creating deliverables, activities, and estimated hours. The article about the work breakdown structure (WBS) of projects in VOGSY explains how to set up projects in VOGSY.

Create invoicing schedules

For fixed-price projects, make sure the full invoicing schedule is created from the start of the project.

Uncheck the checkbox

Each department in VOGSY has a checkbox titled "Opening balances for projects are done." This checkbox needs to be unchecked to enter the opening balances. After all opening balances are entered, this checkbox can be checked.

Ending balances.

The last step of your preparation for entering the opening balances is gathering the data of the ending balances. You need to know the ending balances of each in-progress project that needs to go into VOGSY. How many hours, costs, and expenses have been spent already up until the go-live moment of VOGSY, and how much has been invoiced.

When all projects that need an opening balance are created and all the billing periods are in place, you can begin entering opening balances.

Balance items

For each activity in each deliverable, the following data should be entered:

• activity

• amount of hours

• cost rate

• sales rate

Billing periods

For each billing period, mark the checkbox if it has already been invoiced.

Done

When you're ready with the project opening balances, the "Done" button will save and process all the opening balances. The data will now appear in your projects, charts, and reports.

Mistakes happen, and it is possible to revert an already processed opening balance.

On the left side of the screen, select "Done" from the dropdown menu. This will show you a list of all processed opening balances. You can now select and revert any of them. This will allow you to edit and reprocess the entry.