| Project ProgressThe Project Progress module is used to measure, record, and monitor the progress
of a project. You can use Project Progress to register and control the project
data during the course of the project. The Monitoring part of the
module combines information from Project Progress to generate project monitoring reports
and financial statements. These reports are based on quantities and amounts,
and can be presented for any project level. There is a wide range of selection
criteria to ensure that the right data is received by the right people; for
example, including or excluding expected costs (commitment accounting), current
or accumulative period, and with or without final result forecasts. Budgets and
performed costs are compared with the actual data. You can view the consequence
of this comparison. You can also see the estimated cost at the end of a project
during its execution. You can track the physical progress of the project by
monitoring the progress of the elements and activities at the cost object level, for all cost types. You can perform the following tasks: - Generate physical progress master data: You can create
master-progress data for elements and activities at the cost object level. You can only generate master data if both the project and
the elements and/or the activities for that project meet the required
conditions.
- Generate physical progress by element/cost object: You can
globally change the progress for a range of elements. You can then monitor the
result in the Project Progress module. You can maintain the progress of elements if both the
project and its elements meet the required conditions.
- Generate physical progress from planning: You can copy the
progress of the activity (planning) to the activity and element progress
(production). In addition, cost objects are copied from the control
data.
- Print physical progress: You can print a form that shows
progress details for elements and activities. You can then use this form for
recording details on-site. You can enter the current progress in the work
center manually, either daily or weekly.
During project execution, you can record the actual costs. Cost
recording can be performed in Project or in Financials, or be the outcome of logistical processes
like procuring goods or services, and then transferred to Project. You can specify the
level at which the project costs are recorded. . To track the progress of the costs, you can use these
features: - Costs: You can view, compare, and maintain the costs
incurred for a project for all cost types. You can view the cost transactions
that are not yet processed to Financials. If costs are the result of actions in Financials, Manufacturing or Order Management, these
transactions are automatically created and processed. In addition, cost
transactions that are manually entered can also be maintained.
- Using commitments: To keep your project control up-to-date
you must ensure that the right costs and future costs are entered, for example,
your monthly reports. Commitments are financial obligations that
represent future costs. When costs are incurred, the commitment is replaced by
the actual cost. Commitments can be booked in two ways: manually and
automatically. This depends on the specified parameters. The commitments are
booked as soon as the purchase order is created and/or the goods receipt is
registered in Procurement. you can track soft commitments, and hard commitments. You can also print the actual costs and
commitments, and compare them.
- Cost history: You can view and maintain the history data of
project and contract costs for the different cost types.
- Cost forecast: To generate or view the cost forecast on your
project, you can use either cost objects or cost types. If you use cost
objects, you can maintain the cost forecast for all cost objects related to
elements and activities. If you use cost types, you can only maintain the cost
forecast for activities. You can use a forecasting method to predict changes to
the budget, or to predict extra costs or to predict the total project cost.
These forecasts are displayed in performance measurement and
monitoring.
You can manually register project revenues or the revenues can
be registered through project invoicing. If a project invoice is posted to
Invoicing, project revenues are available in Project. In addition, you
can maintain the forecast deviations of the revenues by element and activities
against the contract, which allows you to monitor the result in the Monitoring module. You can enter revenues in different currencies. To register revenues,
you first must record cost control periods for the project. The control period
is used for registering the revenues. You can modify the project revenues
coming from the Invoicing module. You can also enter additional revenues. You must
confirm the revenues and then process the registered revenues to the project
history and to Financials.
You can also view and maintain the history data of revenues. This includes
invoice data and posting data. You can view the financial results of the project costs,
revenues, and profits. You can view over/under billing, and over/under costs,
as well as revenues. You can also track interim financial results and IFRS WIP balances. Extension transactions You can track the progress of the project extensions.
These type of extension transactions are supported: - Fluctuation settlement: Use this extension
type to indicate the price fluctuations' influence for invoicing purposes. You
cannot define this extension type for Cost Plus projects and for projects with Invoicing Method set to Unit Rate. There are two types of fluctuation settlements: Index
fluctuation settlements and Price fluctuation settlement.
- Provisional amount: Use ths extension type
if you do not know a certain part of the project costs when you develop your
project. You can settle the differences with the provisional-amounts budget and
the actual costs at a later stage.
- Quantities-to-be-settled: Use this extension
type 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.
You can approve all the transactions related costs,
commitments, and revenues for the project. You can post confirmed transactions
to the project history, and to Financials (by using the accounts that are selected in
the Financials Integration).
You can also globally confirm costs, revenue transactions, and interim results.
Costs are transferred to Invoicing and to project history. You can also undo the confirmed
transactions.
Project Hours Using the Post Project Hours Transactions option you can log detailed or aggregated cost transactions
for People Project Hours that are being processed from People. You can
determine whether to create one cost transaction in Project for one line in
People or to create a cost transaction for each calendar day. - The Employee Company field in the Cost Transactions (tpppc2100m000) and Financial Transactions (tpppc2100m100) sessions, is used for maintaining the
hours and expenses data. This field is mandatory when an employee is linked to
the cost transaction.
Overheads You can differentiate the internal and external overheads using
the applied and billing rates. For cost-based contracts, the user must be allowed to bill
these costs to the customer. You can use the Applied rate (internal) and the
Billing rate (external) to calculate the overhead costs. - The applied rate is used to calculate the internal overhead costs for the contract/
project. These overhead costs are included to the cost on the contract/
project.
- The billing rate is used to calculate the external billable overhead costs. These
overhead costs can be invoiced to the business partner.
Overhead Cost Forecast In the Overhead Forecast (tpppc6106m000) session, the overhead cost forecast can be defined to
calculate the estimated costs at completion, percentage of completion, and
profit percentage, which helps in analyzing the interim results effectively.
Overhead cost forecasts are included when calculating the Estimated to complete
value (ETC), in the Progress Payment Requests (tppin0170m000) session.
Overhead costs are also included in these sessions: - Global Approving (tpppc4200m000)
- Print Cost Forecast by Cost Object (tpppc2416m000)
- Generate Interim Results (tpppc3250m000)
- Generate Cost Forecast by Cost Object (tpppc2216m000)
- Display Financial Analysis (tppss0701m000)
- The Cost Forecast Entry (tpppc2615m000) session is used to
maintain the cost forecast entries for the various cost types such as material, task, equipment, subcontracting, sundry costs, and overhead specified for the project.
SAB 74- Revenue Recognition Method You can modify the revenue recognition method for a project or
contract. For reporting, you can generate interim results for alternate
settings. So that the alternate scenario result can be compared to the primary
result for financial reporting according to SAB 74 (Accounting standard). The
Alternate setup is optional and can be used as a basis for additional
reporting.
Project Cost Distribution In Project, the financial transactions originating from a
financial document (for example a journal voucher) are split as cost or revenue
transactions. Now, based on the specified option in the Transaction Types (tfgld0511m000) session in Finance, either the Cost Entry Overview (tpppc2811m000) session or Cost Entry (tpppc2605m000) session is used to split the project costs.
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