Summit CVR module – consistent, controllable, efficient
We’ve been talking to a lot of construction organisations about how they manage their cost value reconciliation (CVR) process. The message that’s come through loud and clear is that every company approaches CVR in its own way.
We also found that many CVR processes rely on disparate Excel spreadsheets and databases located outside the central system, ‘hidden away’ in people’s own laptops and PCs. It’s interesting that people are often very reluctant to step away from Excel and move to a more formalised process within the system. But it’s important that they do.
Why? Because although in the short term, these isolated systems provide a personalised source of information to the author, they soon create what we like to call ‘islands of information’ that result in a range of inefficiencies, including errors, duplications and inaccurate data.
When data is held in an Excel file on an employee’s PC, it’s not accessible to anyone else in the organisation and it’s not auditable. In sharp contrast, when data is gathered and securely stored within a central system like Summit, it becomes visible across the organisation, manageable and auditable.
A highly configurable solution
As mentioned above, when it comes to CVR, every organisation has its own unique approach. That’s why in developing the Summit CVR module, we ensured that it is highly configurable. That’s not to say that a company can adopt one of the example CVR templates from day one and then extend and expand the functionality as and when required.
Shown below are three examples of the Summit CVR module (Figures 1-3), to give you an idea of how it can look.
Don’t worry about having to configure the system yourself; we’ll do it for you. Our developers will visit your company, study your existing CVR processes and methodologies, and your reporting requirements, then replicate them within the system. We’ll also incorporate industry best practice, to make sure your Summit CVR module does exactly what you need it to.
The beauty of the Summit CVR module is that all information is held within the system. There are no islands of information. The module will automatically pull in all the relevant information from the core system. For example, let’s say that you want to create a CVR for a given valuation date or period. The system will automatically do a cost cut-off and then capture all the cost and sales information that has been defined in the CVR up to that period.
Accruals, adjustments and variations
You may already be able to get a lot of the CVR information you need by running enquiries and reports within Summit. But what you won’t be able do is change the numbers that are in the system. For example, you may have £1,000 showing in labour costs but one of your QSs may know of another cost that hasn’t yet hit the system. This cost needs to be taken into account when calculating the monthly CVR figures.
What’s special about the Summit CVR module is that it allows you to adjust the figures that the system has calculated. You can also add a commentary explaining why the accrual, adjustment or variation is necessary.
Our consultant can also configure your system to give you information about things like cost complete or what profit the job is making, both as a value and as a percentage. Or, for example, you may prefer the Summit CVR module to calculate the profit a job is anticipated to make, based on taking the cost away from the budget.
With the Summit CVR in place, your management team will be able to rely on reported valuation and margin because they are sourced from a central database. And because movements in cost from valuation date to accounting period end are reconcilable, all parties in the business are working to the same basis.
How long does it take?
We’ll help you identify your existing processes and methods, then develop a configuration that mirrors them. We’ll also provide training in how to run the CVR within Summit – it’s very straightforward and user-friendly.
In all, that work usually takes between two and four consultancy days, depending on the complexity of your requirements.
You can produce CVR reports using the Summit Business Analytics module. Alternatively, you can achieve a more traditional report output using Crystal Reports.
Find out more about Summit CVR or any of RedSky’s construction-specific software solutions.