Creating project hierarchies

You must create a hierarchy for each project structure. Your project hierarchy can contain an unlimited number of levels.

  1. Select Project Ledger > Setup > Project Setup.
  2. Click the Structure tab.
  3. Open a project structure and click the Hierarchy tab.
  4. Click Create.
  5. Specify this information:
    Project Type
    Select the project type. If you select Posting, then you cannot create a child project for this project.
    Project
    Specify the project name. You cannot change the name after you save the project, but you can change the description.
    Description
    Provide a description of the project.
    Watch
    Select this check box to designate the projects to watch. If this check box is selected for a project, then it can be viewed and filtered in lists and reports.
    • Reports can be viewed in the Infor EPM Platform App Studio Project Watch Report.
    • The Infor EPM Platform App Studio Project Watch Report can be added as a EPM Platform Widget to home pages.
    • The report can be added to Landmark Custom Landing pages. Use the Landing Page Designer.
    Begin Date
    Projects are temporary in nature with a begin and end date. Select the project begin date on summary projects in the enterprise structure. The begin and end dates of a parent project are the default values for child projects. Child project dates must equal or be within parent dates. Begin and end dates on posting projects define valid date ranges for subsystem journal entries.
    End Date
    Select the project end date.
    Address Code
    Specify the location address code for the project.
  6. If the Project Type is Summary, then specify this information:
    Budget Identifier
    If you use budget edit, select the budget identifier for the budget edit.
    Contract
    For project invoicing, select this check box if the summary level project is a contract. Only one summary level project in a branch can be designated as a contract.
    Contract Amount
    If the project is a contract, specify the contract amount.
    Currency
    If the project is a contract, select the currency. If this field is blank, then the default currency from the project structure is used when the project is saved.
    Contract ID
    Specify a contract ID. If this field is blank, then the project contract is the default value.
    Contract Type
    Select a contract type.
    Maximum Fees
    If the project is a contract, then specify the maximum amount for the contract fees. The fees cannot exceed the contract amount.
    Billing Method
    If the project is a contract, then select the billing method.
    • Select Cost Reimbursement, Cost Plus, Time and Materials, or Rate Table for transaction-based billing.
    • Select Milestone billing for event- or deliverable-based billing.
    • Select Installment billing for billing that is based on the number of installments.

    You can change a billing method of Milestone or Installment if milestones or installments do not exist. You cannot change a transaction-based billing method, but you can create override milestones for the funding source. The override milestone is invoiced in addition to the transaction billing. If you do not want to invoice the expense transactions, then you can put them on hold and only invoice the milestones.

    Markup Percent
    If the project is a contract and the Billing Method is Cost Plus, Time And Materials, or Rate Table, then specify the markup percentage to use for billing.
    Billing Rate Table
    If the Billing Method is Rate Table, then select the rate table to use for billing.
    Revenue Recognition
    Select the way in which revenue is recognized for this contract. Project contract revenue can be recognized as Combined at the time of invoicing or Separate, which means it is independent of invoicing.
    Revenue Method
    If the Revenue Recognition is Separate, select the method for recognizing revenue:
    • Select Full Accrual for a valid transaction-based revenue method.
    • Select Milestone for event revenue recognition and percent complete.
    • Select Installment for revenue that is based on a number of installments.
    • Select Percentage of Completion for revenue that is based on percent complete.

    You can change a revenue method of Milestone, Installment, or Percentage of Completion if milestones, installments, or percentage of completions do not exist. You cannot change a transaction-based revenue method, but you can create override milestones for the funding source. The override milestone is recognized in addition to the transaction revenue recognition. If you do not want to recognize revenue on the expense transactions, then you can put them on hold and only recognize revenue on the milestones.

    Defer and Hold Remainder
    Select this check box to defer and hold the remainder for transactions where the funding sources are not billed or recognized at 100%. When a single funding source is invoiced or recognized, a partially billed or partially recognized transaction is created for the remaining amount and put on hold.
    Allocate Expenditures
    Select this check box to allocate project expenditures to the project funding sources when you run the Journalize Invoice action. Billing and revenue methods and timing may differ if revenue is independent of invoicing in two separate programs. The amount invoiced and amount recognized are tracked and the balances are used to determine offset entry to invoicing and revenue. The offset is either billed and unearned as a liability or earned and unbilled as an asset. The project contract balance can change from being a billed and unearned or earned and unbilled balance over the life of the contract. The balance is correct at the end of the contract.

    If the contract is funded by multiple sources, then do not specify the project funding source for project time, requisitions, purchase orders, or Payables invoices. Only specify the project to which the expense should be posted. If this check box is selected, then expense distributions and revenue distributions are created to the funding source when invoices are journalized. You can create an income statement to the project and the funding source.

    Exclude Unpaid AP
    Select this check box to ensure that unpaid Payables invoices are not selected for billing in Billing if revenue is independent of invoicing. If this check box is cleared, then all Payables invoices for the contract activity are eligible for billing, regardless of whether they are paid.
    Front End Split
    Select this check box to split distributions before project contracts are invoiced. This applies to front end split distribution actions in the RQ, PO, AP, GL, and PS systems. Front end split must be enabled on the finance enterprise group.
    Program Income
    Select this check box if the project is a contract and the contract has program income.
    Program Income Type
    Select a value if the project is a contract and the project contains program income.
    Person Responsible
    Select the HR employee who is responsible for managing the project structure and its children. This field controls whether the My Project forms are displayed for the Project Manager role.

    The person responsible is only designated on summary level projects.

    Responsible Team
    Select the team of HR employees who are responsible for managing the project structure and its children. This field controls whether the My Project forms are displayed for the Project Manager role. The responsible team is only specified on summary level projects.
  7. If the Project Type is Posting, then specify this information:
    Currency
    Select the posting level project currency. For project invoicing, the posting project currency must match its parent contract currency. If this field is blank, then the default currency from the project structure is used when the project is saved.
    Project Status
    Select the project status for posting projects. The status code indicates which actions are performed for posting projects.
    Billable
    For project invoicing, select this check box if the posting project is eligible for billing.
    Exclude From FES
    Select this check box to exclude the posting project from front end split if front end split is enabled on the contract. This field is displayed only if front end split is enabled on the finance enterprise group.
    Capital
    For Asset Accounting, select this check box if the posting project is eligible for asset interface capitalization.
    Include In Budget Edit
    Select this check box if the posting project is included in budget edit.
    System Project
    Select this check box if the posting project is the system project.

    We recommend that you create a system dimension for processes where the system dimensions are used, for example, the retained earnings process.

    Expense Management
    Select this check box if the project is eligible for expense management interface.
    Program Income
    Select this check box if the program income field is selected on the project contract and the posting project has program income.
    Program Income Type
    Select a value if the program income for the posting project is different from the program income that is selected on the project contract. If this field is blank, then the program income from the project contract is the default.
    Pre-Award ID
    If you are using a third party pre-award system, then specify a grant identification number. The grant identification number is used for tracking.
    Work Type
    Select a work type.
    Service Type
    Select a service type.
    Usage Type
    Select a usage type.
    Billing Method
    Select a billing method to override the billing parameters for posting projects. This is used to override the billing method that is specified on the project contract.
    Markup Percent
    If the project is a contract and the Billing Method is Cost Plus, Time And Materials, or Rate Table, specify the markup percentage to use for billing.
    Billing Rate Table
    If the Billing Method is Rate Table, then select the rate table to use for billing.
    Billing Maximum
    If there is a limit to what can be invoiced for the posting project, specify the amount.
    Tax Exempt
    Select this check box to override the tax exempt status for billable projects. This check box is used to override the tax status that is specified on the project contract.
    Buyer Tax Code
    Select the tax code or tax table for the project contract.
    Buyer Tax Location
    Select a buyer location for the project contract.
    Exclude Fees
    Select this check box if the posting project is not subject to project contract fees.
    Revenue Structure Option
    Select if the revenue structure is entered as a full finance code block or a partial for the funding source.
    Partial Revenue Finance Structure
    Specify the dimensions to override for revenue for the funding source. The dimensions that are blank inherit the value from the originating expense. The list is filtered on revenue accounts because the account is generally a revenue account. If another account type is required, then any account can be specified.
    Full Revenue Finance Structure
    Specify the full revenue finance structure for the funding source. The list is filtered on revenue accounts because the account is generally a revenue account. If another account type is required, then any account can be used.
    Labor Distribution Finance Structure
    Specify the labor distribution account finance structure to override the finance structure labor for the project.
    Fringe Burden
    If you are using labor distribution, select whether fringe benefit burden is created when running the Distribute Labor action.

    If fringe burden codes are not used on the project, then select No. If fringe burden codes are used, then select whether the default fringe burden code comes from the employee or project.

    Fringe Burden Code
    If you are using labor distribution, you can assign a fringe benefit burden code to the project. Fringe benefit burdens are created when you run the Distribute Labor action with the labor distribution transactions. A fringe benefit burden code is assigned to the project employee or to the project.
    Fringe Burden Finance Structure
    If you are using labor distribution fringe benefit burdens, specify the finance structure to post the fringe benefit. This field is used to override the finance structure on the original employee home account where employee project salary and wages are posted.
    Certification Required
    Select this check box if effort must be certified when the project is posted. This field indicates to the project accountant, project certifier, and project resource that the projects are federally sponsored and require effort certification.
    Salary Cap
    If the project is subject to a salary cap for labor distribution, select a salary cap code.
    Salary Cap Date
    Specify whether the salary cap date is for the start of the project or the end of the labor period. This field is required if the project is subject to a salary cap.
    Salary Cap Overage Finance Structure
    Specify where the overage for labor distributions that are above the salary cap are posted. If this field is blank, then the overage remains in the employee’s home account. If a specific field of the finance structure is different for the overage, then the field that is different must be specified. For example, an overage must be posted to the same accounting entity and accounting unit, but to another account. Specify the account field. If you specify an account, then it replaces the account on the original salary and wages account and not post to a project.
  8. Click Submit.
  9. Repeat steps for each project added to the structure. To create a child project within an existing project, select a project and click Create Child Project.