Nonprofit organizations and indirect contractors in the public sector need to comply with complex sets of regulations that pertain to government contracting and nonprofit management. To-Increase GovCon complements and extends Microsoft Dynamics AX for nonprofits with a number of valuable features. Here’s an overview.
In recent blog posts, we talked about how project-based architecture, engineering, and construction (AEC) and professional services companies in government contracting can benefit from the right ERP system to manage their finances and processes in compliance with regulatory requirements. Most often, these businesses, as well as some manufacturers, are direct government contractors. They, however, are not the only entities that may need to follow such financial management practices as indirect cost allocations, cost segregation, and cost pools. Nonprofit organizations may also receive federal funding and, in consequence, be subject to the same rules as for-profit businesses that perform work within government contracts. Nonprofits may also receive grant funding, with different requirements per grant to determine what can and cannot be allocated to projects linked to a grant.
In Microsoft Dynamics AX 2012 R2 and R3, Microsoft has progressively enhanced the capabilities that businesses and nonprofits require when they engage with the public sector. For nonprofit organizations, this includes such features as grant management, membership and donation tracking, and fund accounting. They can also use Microsoft Dynamics AX as enhanced for the public sector to meet more standard business requirements and support processes such as purchasing or the assembly and manufacture of products.
With To-Increase GovCon for Microsoft Dynamics AX, we complement what Microsoft offers to nonprofits. While a nonprofit organization may not have any need for standard forms for invoicing or shipping, the solution’s cost allocation functionality, for instance, is ideal for controlling indirect costs as well as the resulting allocation and billing. By deploying To-Increase GovCon, nonprofits can reap all the benefits of the features of Microsoft Dynamics AX 2012 R3 that are built with them in mind. What’s more, they can easily manage their indirect cost allocations and run a compliant operation.
Several functionalities in To-Increase GovCon go beyond Microsoft Dynamics AX and are of particular interest to nonprofit organizations. Working with the solution, they can:
- Segregate direct and indirect costs in a project.
- Control what may be allocated to a project as indirect costs.
- Control what may be billed to a client for indirect costs, such as ceilings.
- Simplify the setup and maintenance of indirect cost plans in a flexible manner that fits their requirements.
- Use provisional rates that differ from a target plan without setting up additional indirect cost plans.
Apply actual rates with a true-up process at the end of each month and year. If you work in or with a nonprofit organization and have an interest in modern ERP that is optimized for nonprofits in the public sector, we should talk. Please send me an email at firstname.lastname@example.org, or contact To-Increase.