Contracts Ledger and CVR

What is Contracts Ledger and CVR?

The Contracts Ledger is the central hub of Contracts365, providing access to live data on the performance of each contract.

With Contracts Ledger, you can  monitor and manage contracts to gain greater control, improve margins and drive growth. The Cost Value Recognition (CVR) functionality allows you to easily monitor contract performance and make month end adjustments as required.

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Key Features Explained...

  • Contract Record – The Contract Record stores all essential contract details, including status, contract dates, retentions, analysis, contacts, approval workflows, and site information. This centralized record ensures easy access to key contract data for effective management.
  • Cost Codes & Work Packages – A customisable cost code and work package structure can be set up to effectively manage costs against the budget and for reforecasting. This flexibility ensures that your financials remain aligned with project goals.
  • Budgets – Original budgets can be created or imported from estimates. Amendments can then be made for reforecasts or agreed variations, ensuring budgets reflect the latest project requirements and changes.
  • Contract Analysis – Track costs easily by committed, accrued, and actual figures against the budget, categorized by cost code and work package. This detailed financial analysis helps you monitor contract performance and stay within budget.
  • Variation Management – Add and manage variations, controlling their status and approval process. Once approved, additional revenue and cost budgets are added to the contract record. Contracts365 tracks both incurred costs and received revenues, providing a comprehensive view of financial performance. This enables effective contract management for both profitability and liquidity.
  • Paid Costs and Revenues – In addition to recording costs and revenues as they are incurred, Contracts365 also monitors paid costs and received revenues. This dual tracking ensures that all contracts are managed with a focus on profitability and liquidity.
  • CVR (Cost Value Reconciliation) – The CVR module provides an easy way to monitor contract performance at month-end and make adjustments for accurate financial reporting. Adjustments can be made for revenues, costs, work-in-progress, or budget reforecasts. These adjustments can be subject to an approval process before being posted to the contract ledger or the general ledger. Contracts can be configured for either a Quick CVR (ideal for minor works) or a Detailed CVR (better suited for larger, long-term contracts).

  • Quick CVR Example:

quick cvr

  • Detailed CVR Example:

detailed cvr

“We decided to go to the market with the hope of finding a construction industry solution, tailored to meet our unique business needs, without being bespoke. When we learned about Xperience and its industry-specific solutions, Contracts365, and Service365, we felt it would be an excellent fit.”

– Colin Hemphill, Group Finance Manager at Emtec Group.

emtec

Contracts365 ERP construction software