Glossary for Projectactivity The smallest part of the activity structure used for a
time-scaled budget. An entity that is used to represent a part of a project in
an activity structure. LN distinguishes these activity types:
See: activity structure activity/activity budget The project budget is an activity budget with the budget
control on the activity budget. This means that an activity structure must be
filled and that the planning can be used. activity budget An activity budget functions in more or less the same way as
an element budget whose budget method depends on the way you structure your
project. Advantages of an activity budget over an element budget are:
You can either create activity budget lines in LN or in external scheduling packages. activity progress The progress of an activity. LN distinguishes two types of activity progress:
activity relationship Activities are sequenced with respect to work and specific
dates to provide realistic schedules. An activity relationship indicates that a
certain activity (successor) cannot start or end until another activity
(predecessor) starts or ends. You can define the following dependencies between the predecessor and the successor activities:
activity structure A hierarchical structure that organizes and defines the total
scope of the project. Each level represents an increasingly detailed definition
of a work project. In contrast to the element structure, the activity structure
is activity time oriented. actual cost The real costs incurred on a project. These costs are logged in
Project Cost Ledger. Example: Inventory Cost, Purchase Invoice Cost, Price
Variances, Manual Costs, and so on. actual value The costs incurred to accomplish the work performed within a
given period. Abbreviation: AV adjustment In LN,
a modification to a frozen bottom-up budget. Modification will only increase or
decrease the budget, for extensions the contract is also changed. advance payment A way to efficiently manage your cash flow by requesting to pay
an agreed amount before the project or a specific part of the project starts.
The advance payment will be settled with the final invoice. For example, you
can select a project and request an advance payment for certain project
materials. The advance can be linked to an installment. For unit rate and
cost-plus invoices, the advance payment request is settled with the next
invoice(s). agreement type A lumpsum contract or a reimbursable contract. In a
reimbursable contract the customer agrees to pay all acceptable costs up to a
fixed fee. applied rate apportion To make a proportionate division or distribution for the earned
value. When activity Y is apportioned to activity X, the earned value method of
Y and X is the same. Y will copy X. X can have any earned value method. archived projects Projects that are stored in an archive company. The project
archive company can be used as a repository for historical project data. assemble-to-order An environment where a product or service can be assembled
after receipt of a customer's order. Abbreviation: ATO assembly order An order to assemble a product on one or more assembly lines. asset The actual pieces of property, plant, or equipment that are
uniquely utilised and used by an organization for a defined life
time. ATO See: assemble-to-order AV See: actual value available-to-promise A calculation that determines how many products are available
(to sell or consume in a project) at a certain moment in the future. award fee An amount paid to the contractor in parts or as one-time
payment based on the performance of the contractor. BAC See: budget-at-completion bank guarantee A guarantee from the bank ensuring that the liabilities of the
business partner are met. baseline (planning) The baseline is a snapshot of the active plan's scheduled
activities' start and end dates for a specific date and time. bid A statement of the price, terms of sale, and a description of
goods or services offered by a supplier or contractor to a prospective buyer.
The customer data, bid values, and payment terms are contained in the header;
the data for the actual goods or services is specified on the bid lines. A bid
is usually considered as an offer to sell, when a response is sent to a request
for quotation or proposal. billing cycle The time interval defined to generate billing statement for the
contract. billing rate The rate used to calculate the external overhead costs that are
billable to the business partner. The billing rate is used to invoice the
business partner. bill of material A listing of all subassemblies, intermediates, parts, and raw
materials that go into the parent assembly. The bill lists the quantity and
costs of each component. Synonym: BOM BOM See: bill of material bottom-up budget This budget method defines all work that must be accomplished
to complete the budget. A bottom-up budget is made for elements or activities. budget-at-completion The total budget amount of the finished project, activity, or
OBS element. Abbreviation: BAC budget cost analysis An analysis of the bottom-up budget. You can run several cost
analyses for the same budget. Each budget is stored with a combined project
code and budget cost-analysis code, so you can compare the budgets. budget cost analysis codes by project Codes by which amounts and time quantities of budget lines are
calculated for budget cost analysis. budget date The date of a budget line. This date is used for:
budgeting method The way to budget and measure expected productivity. LN distinguishes two methods in the bottom-up budget:
budget labor-rate search path A search path that determines which cost and labor sales rates
from which sessions are used in labor budget lines: labor, trade group,
project. The default labor rate that is used is defined as the level 1 labor
rate. If this is not available, level 2 is used, and if this is not available,
level 3 is used. budget line The most detailed level of a bottom-up budget. The elements or
activities in a budget can contain an unlimited number of budget lines. Each
budget line includes a quantity of a cost object, a cost component to which the
cost object is assigned, and a budget date. budget-line status The status of the budget line. The status defaults from the
element or activity to which it belongs. LN distinguishes these statuses:
budget status The budget status of an element or activity. LN distinguishes these statuses:
business sector An area of commercial endeavor. Projects can be categorized
according to the business sector to which they refer. CAGE Abbreviation of Commercial And Government
Entity. A unique identifier assigned to suppliers to various
government or defense agencies, as well as to government agencies themselves
and also various organizations. CAGE codes are used internationally as part of
the NATO Codification System (NCS), where they are sometimes called NCAGE codes. calendar file A file containing calendar information for one or more
calendars. capital project A project used for internal use in which deliverables can be
booked as fixed asset but delivery of goods to customers is not possible. In a capital
project, you are the business partner. categories A user-definable classification for projects. COGS See: cost of goods sold commitment A financial obligation that represents future costs. connection node The activity node of the activity structure to which the
external scheduling connection is established. The activities connected to the
node are used in the external scheduling package. You cannot link an activity
to an external scheduling package if the higher or lower level activity of the
selected node is used for another project. contract An agreement with the business partner that defines the terms
and conditions like deliverables, billing plan, payment terms and so on. A
contract can be linked to one or more projects. contract amount The total amount of the project contract. For a time-phased budget version, the contract amount is expressed as follows: contract amount = profit fee + management reserve + distributed budget + undistr. budget The contract amount is used to determine the invoice limit. contract deliverable A contract deliverable is a tangible or intangible item that is
produced or purchased as a result of a contract. contract fee An amount that is paid as an award or an incentive to the
contractor, based on the terms and conditions of the contract. contract phase The identification of a stage or a phase during the execution
of the contract, for example, bidding, printed, sent to customer, and so
on. control account The only type of activity that can be linked to an organization
breakdown structure. At this level functional responsibility for work and costs
can be assigned. You can detail short-span jobs in control accounts and use it
for the execution of a project. control code A common parent cost-object level, a level above the special
cost object. A control code is used for control purposes. For analysis, you can group cost objects of the same cost type under a control code. If you use a cost object to categorize a group of cost objects, it can be its own control code. You cannot have more than one control code in a tree. This is used for the frozen bottom-up budget. control data Data that is used to monitor a project. cost base assignment A cost-base assignment is the part of an overhead application
base in which the cost-types, cost components or cost objects are defined over
which overhead must be calculated. cost component A cost component is a collection of cost objects with a certain
characteristic. A cost component does not depend on the cost type, therefore,
for example, a project can be monitored from another dimension. For example,
all the costs that refer to electrical work, for example, cable and
installation work, are visible if the applicable cost objects are linked to the
cost component Electrical work. cost control The method that LN uses to control project costs. Cost control involves:
cost-control periods In this period project-related costs and revenues are booked. cost item An administrative item that represents certain expenses. The
item is not a physical product and cannot be handled logistically. cost object A type of cost carrier for the resources used in your
project. These cost objects are available:
Cost objects can be standard or specific for a project. The cost object is related to a control code for cost controlling purposes. cost of goods sold The expense a company incurs in order to manufacture, create,
or sell a product. It includes the purchase price of the raw material as well
as the expenses of turning it into a product. Abbreviation: COGS cost performance index A measure of cost efficiency on a project. The cost performance index is determined by measuring the ratio of earned value (EV) to actual costs (AC): CPI = EV / AC If the result is less than 1.0, cost is greater than budgeted. If the result is greater than 1.0, cost is less than budgeted. Example
Abbreviation: CPI See: earned value concept cost plus contract A contract based on calculation of time and material after
parts of the project are finished. Agreement on prices and labor is made before
the project starts. cost-plus contract A contract that is carried out based on cost reimbursement and
a profit percentage. cost type A way of categorizing cost objects and control codes according
to the nature of the costs that they represent. LN Project distinguishes these cost types:
cost variance Any difference between the earned value of an activity and the
actual cost of that activity. Synonym: EV - AC See: actual cost (AC) CPI credit note The correction form for a (partly) returned purchase or sales
order. The credit note states the quantity and value of the goods concerned and
the reason for the credit. DD 250 Abbreviation of DD Form 250 or Material Inspection and Receiving Report. destination warehouse The default project warehouse to which goods are sent before
they are used in the project. direct labor The number of actual hours spent on a task, or a service for
the business partner. discrete lines Bottom-up estimate lines that are not attached to any primary
structure element. distributed budget The top-down budget part that is distributed across the
activities. You can look at a distributed budget on various levels:
document types A user-definable classification of project-related documents. DoDAAC Abbreviation of Department of Defense Activity
Address Code. A six-position code that has been awarded by the US
government to a party involved. When assigned outside the Department of
Defense, the codes are usually referred to as AACs or FEDAACs. DPAS Abbreviation of Defense Priorities and Allocation
System. DPAS is used to provide priority ratings for contracts
related to orders from the US Department of Defense. DPAS-rated orders have
higher priority than unrated orders. EAC earned value The budget amount based on the project progress for a specific
period. Abbreviation: EV See: earned value
concept earned value concept A time-phased method for measuring project performance. It
compares the amount of work that was planned with work that was actually
accomplished to determine if cost and schedule performance are as
planned. There are a number of different ways in which you can use the earned value method to determine how budget amounts are to be earned:
element The smallest part of an element structure. An element is used
to define the (structure of the) work of the project, so that you can carry it
out. element/activity budget The project budget is an element budget, which is linked to
activities in order to create a control budget. This means an element and
activity structure must be filled and that the planning can be used. element/element budget The project budget is an element budget with the budget control
on the elements. This means that an element structure must be filled but that
planning cannot be used. element budget The bottom-up budget or control budget that consists of
elements. The alternative is an activity budget. The elements can be related in
a multilevel hierarchical structure, and each element can contain cost-object
budget lines. The advantage of an element budget over an activity budget is:
element relations The way to determine the positioning of elements in comparison
to other elements. Element relations are the basis of a layered (multilevel)
element budget. The elements can also be linked to activities, a relation that
is used when you generate control data for an element/activity budget. Elements
use frequency as a tool to calculate element amounts fast and can have a
multiparent structure. element structure The multilevel, multiparent, hierarchical tree-like structure
of elements that can be the basis of a budget. element type A way to distinguish project elements. A project with a Progress Invoice invoicing method can contain two types of elements: direct and
indirect. If the progress is more than 100%, direct elements can have more than
100% progress. Indirect elements can never have more than 100% progress. equipment A type of cost object representing reusable resources that are not consumed while the
project is carried out. Equipment can be purchased (rented or hired) from a
third party for the project or internally owned. Example: machinery
and tools such as cranes or welding machines . equipment group A special equipment cost object that acts as a grouping to
other equipment cost objects. This is a useful way of grouping together similar
equipment cost objects. estimate An estimate is the result of a cost engineering process that
aims at determining the resources required to accomplish a task. An estimate is
done to calculate cost, and/or sales price. You can use multiple methods. For
example, a bottom-up or top-down structured. An estimate is also used as the
starting point for a bid to a potential customer (internal or
external). estimate at completion The forecasted total cost of a project, activity, or
organization-breakdown-structure element when the defined scope of work is
completed. To calculate the estimate at completion: actual costs + estimate to
complete Abbreviation: EAC estimate line A detailed estimate breakup. For example, if you require item A
for the estimate, you enter this item with its specifications on the estimate
line. estimate series The estimate series is used to create a unique project number.
Organizations can prefer to have separate project ranges for estimating
projects or use estimating as a phase of a project and include estimating in
the project used for execution. estimate to complete A realistic forecast appraisal of the remaining
work. Abbreviation: ETC estimate type The way in which the calculation of the estimate is performed.
An estimate type is either top down or bottom up.
estimate version A means to compare estimates. An estimate can have various
versions. Each version is stand-alone and is not derived from the previous
version. A version can, however, be copied or compared. estimating A cost engineering process used to determine an
estimate. ETC See: estimate to complete EV See: earned value EV - AC See: cost variance exchange-rate type A way to group currency exchange rates. You can assign
different currency exchange rates to different invoice-to business partners
and/or to different types of transactions (purchase, sales, and so on). expense tax An internal purchase cost that can be booked on a non-finalized
project. The transaction costs are posted separately if direct delivery occurs.
If a delivery is made through a project warehouse, the expense tax is included
in the valuation price or fixed transfer price (FTP). extension The specific agreements within or in addition to the initial
contract. An extension falls outside the initial contract with the sold-to
business partner. Extensions can be assigned to the bottom-up
budget. LN distinguishes four extension types:
financial result status A way to characterize the project's financial
results. LN distinguishes three different financial result statuses:
fixed-price contract A contract that is carried out for an agreed fixed price, also
called a lump sum. flow shop A type of manufacturing organization in which machines and
operators handle a standard, usually uninterrupted, material flow. A flow shop
is a mass-production shop and has a continuous manufacturing layout. fluctuation settlement An extension type. The settlement of the price fluctuations'
influence for invoicing purposes. You cannot define this extension type for Cost-Plus contracts and for contracts with Invoicing Method set to Unit Rate. general data Data that is not project specific. This data includes generic
information on business partners, countries, elements, and so on. You can
either enter this data in the Project Definition or in LN Common. general project data Data that is project specific. For example:
Enter this data in the Project Definition module. hard commitment For a project, a soft commitment becomes a hard commitment when
a purchase order is actually received and due for invoicing. holdback A percentage amount that the customer withholds from the
contract amount. This serves as a guarantee that all activities are performed,
and that contractual obligations are met. In other words the holdback amount is
paid after the project activities have been satisfactorily performed. hours-control periods LN uses hours control periods. LN uses hours control periods to:
independent multi currency This approach is required for companies that work in
high-inflation countries. installment The amount invoiced to the customer when a project completes
its corresponding element/activity or reaches a milestone or progress of
elements/activities. interim financial results The temporary financial result that you can consult while you
carry out the project and which you can transfer to the profit and loss
account. Two interim result types exist:
internal project A type of project for which no sold-to business partners are
defined and no invoicing is performed. The delivery of items does not apply. An
internal project can optionally be capitalized, the value can be sent to the Fixed Assets module in Financials. LN distinguishes two project types:
invoice type The way to calculate project invoices for a given contract
type. The invoice type determines when to issue invoices to the sold-to
business partner. LN distinguishes these invoice types:
invoicing method This method is only used for contract projects to invoice to Financials. Capital projects have no invoicing. Sales order projects use Invoicing for invoicing. labor rate for hours registration search path This search path determines which cost and labor sales rates
are used in hours registration. The search path consists of four levels, each of which you can set to one of these:
The default labor rate used, is level 1. If this level has no entry available, level 2 is used, and so on. lag Lag is the modification of a logical relationship that directs
a delay in the successor activity. Negative lag or lead allows an acceleration
of the successor activity. landed The cost amount plus surcharges. launch To copy an estimate version to a project budget. The version
estimate lines are copied to project budget lines. leading estimate type The estimate type of the structural element.
Acronym: LET leaf node The last particle of a structure. If a child is added to the
leaf node in the structure, the leaf node becomes a parent and is called a
node. LET level of effort An earned value method in which budget amounts are released in
proportion to effort. This method is appropriate for time-driven activities
where it is assumed that there is no discrepancy between work planned and work
performed. level type An estimate type category that determines which estimate lines
are used in aggregating totals. make-to-order A production environment where a product or service can be made
after receipt of a customer's order. The final product is usually a combination
of standard items and items custom-designed to meet the special needs of the
customer. Abbreviation: MTO management reserve A contingency fund for unanticipated occurrences, which reduces
the risk of scope changes. In a time-phased budget version, this is the amount
that is withheld for control purposes rather than distributed to the activity
structure or retained for profit. Management reserve is expressed as follows: management reserve = contract amount - profit fee + distributed budget + undistr. budget MAPAC Abbreviation of Military Assistance Program Address
Code. milestone An activity of zero days that usually represents a significant
event in the project. In many cases the completion of a phase of major
deliverable. Milestones can be used for the moment of invoicing and the
calculation of earned value. mixed model flow A type of flow shop in which two or more different products are
assembled with relative small changes over time and set-up times. The product
sequence can vary, for example, A-A-B-C-A-C-B-B-C-A, and so on. MTO See: make-to-order norm The number of hours required to carry out one unit of labor.
Used in an activity budget with cost type Labor, Equipment, or Subcontracting. Number of hours = number of labor units * norm This norm is useful in situations where the unit of measure for the labor cost object is not a time unit. OBS order lead time The time required to obtain a purchased item, subcontract a
service, or rent a piece of equipment. This time includes order document
preparation, sourcing, and supplier lead time. organization breakdown structure A representation of the structure of a project organization,
this is usually depicted as a tree-like hierarchical structure. The
organization breakdown structure is used to link the responsibilities of
certain project parts, such as the allocation of a financial budget or the
realization of project activities to an OBS element. Each OBS element can be
linked to an employee. The OBS element is standard and can also be made project
specific. Synonym: OBS overhead Overhead expenses are indirect costs (for example, electricity)
that impact all manufacturing costs, except for direct labor and direct
material that change depending on production volume. LN allows you to define three types of overhead costs:
overhead allocation Overhead allocation is a process of identifying, aggregating
and assigning indirect costs to activities, for which organizations want to
separately measure costs. The outcome of the overhead allocation process are
the overhead rates. Predetermined overhead rates are assumed to be calculated
in Excel by dividing the budgeted or estimated overhead with the budgeted
activity and are used to apply overhead. overhead application base An overhead application base determines the project for which
overhead must be calculated and applied. penalty An amount paid to the business partner by the contractor, in
case the terms of the contractual agreement are not met. percentage completed An earned value method in which time-phased budget amounts are
released in proportion to the progress of the project in terms of percentage. performed The budgeted costs according to the progress at the end of the
current period. In most cases, LN calculates the performed as follows: performed = budgeted amount *
progress phase In Project,
a user-defined project subdivision. Typically, a phase consists of a number of
project activities leading to a deliverable. physical progress The progress in amounts. This is different from percentage
completion, which is the progress in time. plan Specifies the activity structure, the schedule, and the start
and end dates. You can maintain alternative plans for a single project. The
active plan is the one you actually use to track progress. planned invoice dates The date on which you intend to print an invoice and send it to
the business partner. planned value The planned budget amount for a specific period. Abbreviation: PV See: Budgeted Cost of Work Scheduled
(BCWS) planner The person or organizational unit associated with a particular
project plan. planning package A type of activity. Planning packages are identified during
planning to time phase major activities within a control account. You cannot
book costs on this activity type. posting types An indication of the entry origin or how the entry is posted to Financials. Read for entry:
transaction, revenue, order, and costs, and so on. price policy You can use the price policy to calculate the equipment, item
and subcontracting cost or the purchase price. The sundry costs cost object
does not use this policy and labor has its own price search path. primary structure The only structure, linked to the estimate version, that can be
used to calculate the estimate. This structure is used to check the top-down
constraints (if any). The primary structure is one of two structures that you
can use to sort estimate lines. Alternatively, you can use the sort structure
to sort estimate lines. prime contractor The company or the organization that originally acquires the
contract. production progress The (part of) the project or resource that is completed or
used. profit fee In a time-phased budget version, the profit retained by the
company that performs the project. The profit fee is expressed as follows: profit fee = contract amount - management reserve + distributed budget + undistr. budget program A group of related projects managed in a coordinated way to
obtain more benefits and control. progress The process by which an element or activity is completed over
the lifetime of the project. Progress can be recorded at cost type, cost
object, or at control code level. progress invoice An invoicing method based on progress for elements and
activities. The difference with unit rate is twofold. Unit rate has:
progress motivation lines A line or specification in progress-based invoicing. Motivation
lines or specifications form the basis for an installment. Motivation lines or
specifications contain all the billable amounts and quantities. progress payment requests Progress payments requests are created based on the cost
incurred by the business partner as the work progresses for a
contract. progress results The output from progress registration while a project is in
progress. You can switch interim results on or off by project or by cost object
within a project. If you switch it off, you can only report completed. project An endeavor with a specific objective to be met within the
prescribed time and financial limitation, and that has been assigned for
definition or execution. project budget The budget you work in. Control budget is the frozen budget
where progress registration, customer invoicing, cost control, and input for
project requirements planning are found. The purchase budget is also derived
from the project budget. project currency If the project is performed in another country, the project
currency is useful for monitoring. This currency can be an external currency
that is not specified as one of the home currencies. project deliverable A tangible or intangible item that is produced or purchased as
a result of a project. A project deliverable is intended to be shipped to an
internal or external customer. project status The way to characterize a project. LN distinguishes these statuses:
project type A way to characterize projects. A project can have one of these types:
project warehouse A warehouse that only stores goods that are used for projects.
In contradiction to a normal warehouse goods are administrated for a project
and its details. The goods in the default project warehouse represent inventory
value. The inventory value of a project warehouse is not part of the project
costs. When the goods are transferred to the project, they add to the project
costs. A project warehouse can be used by one or more projects. project WIP warehouse A warehouse at which logistical transactions occur, but on
which no integrations are logged. In project terms, it is as good as a project
site in financial terms. In Warehousing, the warehouse type must be Project and the Project WIP Warehouse field must be selected. provisional amount An extension type that you must use if you are not sure of a
certain part of the project costs when you develop your project. Settle the
differences with the provisional-amounts budget and the actual costs at a later
stage.: Example You are building a house with a standard kitchen costing $ 10,000, which is the provisional amount. When the house is almost finished, the customer determines on a more expensive kitchen, which brings the actual costs to $ 12,000. The customer is invoiced for the extra costs of $ 2,000. purchase budget A budget which defines a particular demand on a more detailed
level than defined in the bottom-up budget. You can also use this to purchase
cost objects with a manual order system. purchase budget lines A set of budget lines selected from the project budget to buy
certain cost objects that are needed to carry out a project. purchase contract An agreement with a supplier for the supply of goods or
services. purchase price The price at which you buy cost objects expressed in the
currency in which you bought them. PV See: planned value quantities-to-be-settled An extension type, which enables you to invoice the difference
between the budgeted quantity and the actual quantity for a range of cost
objects. Use this type when you are unsure of the quantities that you will
spend in the project. reference activity The smallest unit of work that is required to carry out
maintenance. requirements list The relation that a project has to sales-order lines or
sales-quotation lines. The requirement list is created in Project and triggers the
supply chain of order processes. requirements planning A LN package that plans the orders and transfers them to other LN packages to fulfill
the project requirements. In the planning you can generate:
resource-limited scheduling A scheduling method in which you cannot overload your
resources. This method is prone to project delay. responsibility A liability on an individual or groups to perform assigned
actions. retainage revenue code A way to categorize invoiced amounts of the same invoice type
in order to analyze revenue history. revenue recognition For a given contract, revenue recognition is the process that
leads to the calculation (and subsequent posting to the General Ledger) of the
total revenue that is estimated to have been earned, on the basis of the
progress of the contract. routing operation A routing line that specifies the work center, the duration,
and setup times of a Manufacturing task. sales-order project A type of project for which the invoicing and the delivery of
goods is carried out in the Sales Control module of Order Management. A sales order project is mostly used for product-based
projects and is generated from sales orders. sales rate The price or rate of cost objects, elements or activities, at
which you sell, that are used for your project. schedule performance index A measure of schedule efficiency on a project. The schedule performance index is determined by measuring the ratio of earned value (EV) to planned value (PV): SPI = EV / PV If the result is less than 1.0, the project is behind schedule. If the result is greater than 1.0, the project is ahead of schedule. Example
Abbreviation: SPI See: earned value concept schedule variance The schedule variance (SV) is the difference between the
scheduled performance of an activity and the actual completion of the
activity. Synonym: SV = Earned Value (EV) – Planned Value
(PV) scope change Any change to the project scope. A scope change almost always
requires an adjustment to the project cost or schedule. A scope change results
in more or in less work to be invoiced. search key An alternative form of a description used for convenience
during searching. Typically, it is an abbreviation, an acronym, or a mnemonic
alternative to a full description. soft commitment For a project, when a purchase order is approved and due for
receipt, it is called a soft commitment. sort structure A structure that you can use to sort the estimate lines if the
amount of estimate lines requires sorting. SPI standard cost The cost object's standard cost. start and end date percentage An earned value method in which percentages are assigned to the
start and end of the activities. In other words, at the start of the activity,
it is assumed that a particular percentage of the project is completed.
Consequently, time-phased budget amounts are released based on these
percentages. steps A step in a project procedure. An activity that corresponds
with a session of the Project package. Example: the
activity generate control data is performed using the Generate Control Data (tpptc1230m000) session. structural element A generic term for a project estimate structure element that
can have a number of structure types, such as a project element, activity, cost
type, an organization breakdown structure element, or an element of a reporting
structure. A primary structure element is part of the primary structure that is
linked to the estimate version. subcontracting A type of cost object representing services purchased from a
third party for use in a project. sufferance tax A tax or levy that is payable to a local or municipal authority
to compensate for a disruption caused for the duration of a project. For
example, a compensation for removing a sidewalk or part of a street to install
the water pipes or sewer while constructing a high-rise apartment building. sundry costs Indirect cost and costs that do not belong to other cost types
are booked as sundry costs, for example, insurance costs or expenses by
employees such as meals and hotel costs. surcharge A means of defining indirect project costs. Typically,
surcharges are used to cover general overhead costs, including storage,
handling, and maintenance costs, management overheads, and so on. Surcharges
are calculated as a percentage of direct costs and are posted to a sundry-cost
object. Surcharges can be calculated based on costs, budgets and revenues. SV = Earned Value (EV) – Planned Value (PV) See: schedule variance task A specific task. You can use labor codes to control the costs
of a labor code or of a group of labor codes. templates for projects A user-friendly way to define a project. third party A person or organization with an indirect or non-contractual
interest in a project, for example, a government body or regulatory agency. time-limited scheduling A planning that implies that you cannot delay the project past
its current finish date, even if this means overloading your resource. time-phased budget A type of budget that is phased and spread out over a period of
time. In LN there are
various ways to plan the activities and look at the earned value. The earned value concept determines how the budget amounts
are released and how the planned value is calculated. top-down budget A budget method that distributes the expected project amount
across the project structure from top to bottom. This budget method is used to time-phase the available budget amount across activities. Top-down budgeting supports different earned value methods. top-down budget version A version is made to be able to track changes in the course of
a project budget. More than one version can be defined for a top-down budget to
support a long-term project. One version of the top-down budget will be actual.
A version can be closed, which means that no changes can be made to the version
data. top element The highest element in the multilevel hierarchy of an element
structure. The top element is used in the project definition to link the
element structure to the project. trade group A group of resources with common skills that can be used for a
particular labor cost object. If you cannot yet make detailed assignments for
employees, you can use trade groups for scheduling. transaction date The date on which the planned order was last changed. undistributed budget The project-budget part that is not yet distributed across the
elements. You can look at an undistributed budget on various levels:
unit of measure The unit of measure for the cost object. This unit can affect
how budget line quantities are calculated. unit rate An invoicing method based on the progress and element or
activity sales rate per unit. Invoices are booked against the contract amount
with installments. User Defined A filtering status that determines whether sales or cost line
amounts are used in the calculation of the estimate totals, and whether the
line is included in the scope of the estimate. VAC (Variance at Completion) The cost variance at completion of the project. The variance is
calculated using the formula: Variance at Completion (VAC) = Budget At Completion (BAC) - Estimate At Completion (EAC) WBS WBS element A type of activity. Usually used to break down the project
scope into smaller pieces. You can define work for a work-break-down structure
element. You can aggregate the costs from control accounts or work packages.
You cannot book costs on this activity type. WKA A Dutch law which dictates that a contractor is liable to pay
for a subcontractor's taxes and social security contributions. work authorization status A formal authorization procedure to begin work on a specific
activity. The process helps ensure that the authorized work is done at the
right time and in proper sequence. Work authorization status can have these values:
work breakdown structure The top layer of the activity structure. The WBS can consist of
a hierarchy of activities of the WBS element type. Abbreviation: WBS workflow The development stage of a business process, which is used to
determine if the business process can be modified. work package A type of activity. You can detail short-span jobs in work
packages and use it for the execution of a project.
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