Project Control Parameters (tipcs0100m000)

Field Information

General

Introduction Date

The date and time that the parameters are valid. The parameters are valid up to the effective date of a more recent parameter setting.

Description

The description of the parameter set. For example, you can indicate why you changed the parameters.

Project Number Group

number group

Note: Alphanumeric project codes are not allowed.

Series for Project

If you cannot manually select a series for a PCS project code, the series in this field is used to generate the project code. The series is used, for example, if project codes need to be generated using data from an external database by means of a business object.

Customize BOM Line automatically

If this check box is selected, an item with the Customizable check box selected in the Items (tcibd0501m000) session, is customized automatically after inserting and saving the item as a component in the single-level BOM of a customized item.

Note: The project segment of the newly customized item equals the parent item's project segment.

Copy Effective Dates from Generic Item

If this check box is selected, and you customize a generic item, the effective dates and expiry dates of generic BOM lines and routing operations are copied to the PCS project of the customized item.

If this check box is cleared, and you customize a generic item, the effective dates and expiry dates of generic BOM lines and routing operations are not copied to the PCS project of the customized item. Instead, the effective dates of BOM lines and routing operations are automatically extended so that the BOM lines and routing operations are always valid on the Reference Date of the project.

Note: An extended validity period only applies to BOM lines and routing operations. The effective dates and expiry dates of other entities in a PCS project that can be date effective, such as supplying relationships and item-supplier information, do not change.

Enterprise Unit for calc.off. used from

If you create a PCS project on a sales order or service order, the value in this field indicates the default calculation office for the PCS project. The calculation office is linked to a enterprise unit, which determines the financial company on which financial transactions are posted.

Allowed values

Department

The default calculation office for the PCS project is the calculation office that is linked to the enterprise unit of the sales office or the service department. You can define a default calculation office for a specific enterprise unit in the Enterprise Units (tcemm0130m000) session.

Warehouse

The default calculation office for the PCS project is the calculation office that is linked to the enterprise unit of the warehouse. You can define a default calculation office for a specific enterprise unit in the Enterprise Units (tcemm0130m000) session.

None

The default calculation office for the PCS project is determined by the number group and the order series of the sales order or service order for which the PCS project is created. You can use the Default Project Data by Number Group (tipcs0103m000) session to define calculation offices for combinations of number group and order series.

Note: If no calculation office is specified for the enterprise unit of the sales office, service department, or warehouse in the Enterprise Units (tcemm0130m000) details session, the calculation office is determined by means of the order series.

Revenue Recognition Project Defaults

Percentage of Completion Calculation Method

With interim revenue recognition, you can calculate interim Cost of Goods Sold (COGS) and interim revenue for a PCS project. The interim COGS and revenue are based on the percentage of the work that is completed on the PCS project. In this field, you must determine how the Percentage of Completion (POC) is calculated for the PCS project.

The POC that you select in this field is used as a default value in the project details of PCS projects that are generated from a sales order line by using the Generate (Project PCS) Structure for Sales Orders (tdsls4244m000) session.

Note: To use the Revenue Recognition by Transaction Price field, a value other than None must be selected.

Allowed values

None

Revenue recognition for PCS projects is not implemented.

If you select None, the PCS / COGS financial transactions for non-closed PCS projects are created during project calculation using the Calculate Standard Costs by Project (tipcs3250m000) session. The PCS / COGS financial transactions are based on the realized revenue compared to the expected revenue for sales orders, service orders, and warehouse transfers.

Note: If you want to maintain a situation where revenue recognition for PCS projects is not implemented, as it was in former LN releases, you must select None.

Cost to date

The actual costs spent until a specific date divided by the estimated total costs at completion. For example, the total estimated costs of the project are $1980,-. The actual costs until the moment that you want to recognize revenue are $200,-. The POC is 200/1980 = 10,1%.

Hours progress

The actual hours spent until a specific date divided by the estimated total hours at completion. For example, the total estimated hours of the project are 500. The actual hours until the moment that you want to recognize revenue are 100. The POC is 100/500 = 20%.

Manually entered

A percentage that expresses an estimate of the completed work. For example, you estimate that on a specific moment, 25% of the work on your project is finished.

Post Interim COS and Revenues by Cost Component

With interim revenue recognition, you can calculate interim Cost of Goods Sold (COGS) and interim revenue for a PCS project.

The setting of this check box determines how the Post Interim COS and Revenues by Cost Component check box in the Project Details (tipcs2130m000) details session is set for PCS projects that are generated from a sales order line by using the Generate (Project PCS) Structure for Sales Orders (tdsls4244m000) session.

If this check box is selected, the interim COGS is specified by detailed cost components. You can view and maintain the detailed interim COGS in the COGS by Cost Component (tipcs3191m000) session.

If this check box is cleared, the interim COGS is not specified by detailed cost components. Instead, the interim COGS is posted on the cost component that is specified in the General Cost Component for Interim Postings field.

Performance aspects

The setting of this field could affect system performance and database growth. For more information, refer to Interim results by cost component.

General Cost Component for Interim Postings

The cost component on which the interim Cost of Goods Sold (COGS) is posted. You can only enter a cost component if the Post Interim COS and Revenues by Cost Component check box is cleared.

The cost component that you select in this field is used as the default cost component in the project details of PCS projects that are generated from a sales order line by using the Generate (Project PCS) Structure for Sales Orders (tdsls4244m000) session.

Post Interim COS and Revenues by Cost Component

If this check box is selected, the transaction price is used to calculate interim revenue and interim COGS results.

The first transaction price is defaulted from the net sales amount, but it can be overwritten manually. Every new calculation of the interim COGS and revenue, the transaction price is defaulted to a new generated line.

Note: If intercompany trade relationships exist, interim COGS can be used for internal billing.

Default value

No

To select this check box, a value other than None must be selected the Percentage of Completion Calculation Method field.

The check box can only be set to Yes, if the status of the selected PCS project is Free, and no interim revenue transactions have been posted.

Over Time Accounting

If this check box is selected, the actual COGS and revenues are not taken into account when calculating the interim COGS and revenues.

Default value

Check box selected

The check box can be cleared or selected, as long as the status of the selected PCS project is Free.

Include Fixed Costs in Project Valuation

If this check box is selected, fixed costs are included in the project valuation.

This parameter also impacts the standard cost of customized items as displayed in the Item - Costing (ticpr0107m000) details session. In this session, the estimated and actual standard cost for customized items can be compared.

If the Include Fixed Costs in Project Valuation check box is selected, both fixed costs and variable costs are included in the estimated and the actual costing data in the Item - Costing (ticpr0107m000) session.

If the Include Fixed Costs in Project Valuation check box is cleared, the fixed costs are not included in the costing data in the Item - Costing (ticpr0107m000) session. Reason is that if this check box is cleared, fixed costs cannot be booked, and are therefore not included in the actual costs. Because a comparison between the estimated and actual costing data is not reasonable if fixed costs are missing in the actual costs, the fixed costs are also excluded from the estimated costing data.

Material costs are always variable. Surcharges on labor costs can be either fixed or variable.

Include Fixed Costs in Budget Sales Price

If this check box is selected, fixed costs are included in the sales price of the budget.

Post Project Transactions on Current Date

If this check box is selected, the sales price, standard cost and the sales revenue are posted for non-closed projects.

Estimated Cost of Sales Limited by WIP Value

Determines how LN calculates the costs of goods sold.

If this check box is selected, estimated costs of the goods sold will never exceed the work-in-process value (per standard cost component) for the project.

Transfer between PCS Projects considered as Selling Relation

If this check box is selected, the transfer of items from one PCS project (the source project) to another PCS project (the target project) results in a revenue on the source project.

If this check box is cleared, the transfer of items from one PCS project (the source project) to another PCS project (the target project) results in a negative material cost booking on the source project. You can consider such a negative booking as a correction of the actual costs on the source project.

Settings for COGS

Post Project-related Cost of Sales Against

Determines how LN calculates the work-in-process values for projects. The parameter is used for calculating the standard costs of sales deliveries and for posting financial project transactions to LN Finance.

Allowed values

Estimated Costs

The work-in-process value and the standard costs of sales deliveries are calculated on the basis of the estimated project costs.

Actual Costs

The work-in-process value and the standard costs of sales deliveries are calculated on the basis of the actual project costs.

COS and Revenues Restricted to Financial Company of PCS Project

If this check box is selected, PCS related COGS and revenues are all posted on the financial company of the PCS project's calculation office.

If this check box is cleared, PCS related COGS and revenues are posted on the financial companies of the service department, sales office and/or warehouse.

COS Distribution based on

If the COS and Revenues Restricted to Financial Company of PCS Project check box is cleared, the general COGS is distributed among several departments instead of only on the PCS project's calculation office. You can use this field to indicate whether you want to enter the COGS distribution manually in the Project COGS Distribution (tipcs3110m000) session, or that LN calculates the COGS distribution based on the revenue of the sales order, service order, and/or warehouse order.

Allowed values

Not Applicable

The COS and Revenues Restricted to Financial Company of PCS Project check box is selected, so that PCS related COGS and revenues are all posted on the financial company of the PCS project's calculation office.

Manual

You must enter the COGS distribution manually in the Project COGS Distribution (tipcs3110m000) session.

Calculated

LN calculates the COGS distribution based on the revenue of the sales order, service order, and/or warehouse order.

Item

The cost item in this field is used to specify the general costs on the internal invoice in Invoicing (SLI) and Accounts Payable (ACP).

You can define the cost item in the Items (tcibd0501m000) session.