Linking CLIN to a project structure

You can link multiple contract lines (CLINs) to a project ( element structure/ activity structure). This enables you to track direct costs, compare revenues, and also estimate indirect costs (such as project management or testing) at the CLIN level. This functionality is applicable for all contract types ( Fixed Price, Time & Materials and Cost Reimbursement, see Contract types for more information).

The related costs are displayed in the Cost Transactions (tpppc2100m000) and Financial Transactions (tpppc2100m100) sessions.

Note:

You can link a specific project peg (element/activity) to only one contract line.
You cannot link a project to multiple contract lines, if the contract types are different, because a project can have only one revenue recognition option.

Example

A contract with two contract lines (CLIN1 and CLIN2) is linked to the project PRJ100. Each CLIN has an activity of the type Control Account, linked to a deliverable. However, you can only view the unit costs associated with the activities linked to the deliverable, because the other activities recording the unit costs are not linked to the CLIN. The WBS element (WBS E100) is the parent to PCA200, PCA300 and PCA PM10. The activities (WP A210, A220, A310, A320) record the unit costs that are associated with costing breaks. Since there is no link between the WBS Element or activities to the CLIN, LN cannot recognize which CLIN must be linked with the unit costs of these activities.

Therefore, for project PRJ100 with activity PCAA100, the WBS Element E100 is linked to CLIN1, effectively all the levels below E100 are also linked to CLIN1, enabling you to view all the related costs.

For the project PRJ100 with activity PCAA100, you can link specific activities to specific CLINs, in case the WBS element (WBS E100) is not considered.

Link a CLIN to an element

A CLIN can be linked to multiple deliverables and each deliverable is linked to an element, which allows you to view the unit costs for the deliverable. However, only elements for which the cost control levels are checked, in the Project Parameters (tppdm0100s000) session, are linked to a CLIN, as unit costs can be collected only for these elements.

Link a CLIN to an activity

Activities, of the type Control Account and Work Package, can only be linked to a CLIN as these activities record the actual costs of the project.

LN links all activities, not linked to a CLIN deliverable, to the related contract line. You can map the WBS of the element type activities to CLINs because, by default, Control Accounts are linked to WBS elements.

If WBS elements are not used, LN determines the CLINs applicable to a Work Package, based on the parent/child relationship between a Control Account and a Work Package.

Link an element and activity structure

A project can also be element and activity controlled. You can link an element with an element structure and then add activities, as required. If the elements are linked to an activity that is cost controlled, both the element and activity, by default, are linked to the contract line.

Note: When the element and activities relationships are not specified, only elements that are cost controlled can be linked to a CLIN.

To see the process to link a CLIN to a project structure, see How to link a CLIN to a project structure.