Project cost/revenue elements are user-definable categories that are used to break down cost and revenue for planning and follow-up purposes in projects, making IFS/Project suitable for flexible cost and revenue management. Project cost/revenue elements are defined per company and are mapped to code part values of the selected code part that will act as the base for project cost follow-up.
The project cost/revenue element concept makes it possible to group cost and revenue which are identified as Planned, Committed, Used and Actual. All objects that may report any type of cost or revenue follow this concept to report the cost or revenue to the desired category.
To obtain a framework that all types of objects can relate to, code part values can be connected to one of the user-defined project cost/revenue elements. For Example, if we have a set of accounts that are all fetching some kind of material costs, a project cost element called Material can be defined to which all these accounts are mapped. We can then use the Material project cost element to define planned costs in for example Project Miscellaneous Procurement and be able to compare the planned material costs with the actual costs that are posted to a specific account later on in the flow. The vouchers that report the actual cost will use the mappings to identify the cost element to which the cost belongs to. However there is also a need to report the planned committed and committed cost into the correct project cost element before the transactions and vouchers have actually been created. To be able to do this the accounting rules are executed as a simulation throughout the flows to determine which code parts the specific Order will most likely post it's costs to later on in the flow. This simulation is done for the whole code string and not for only the code part selected as the project cost follow-up base. With this information it is possible to report planned committed and committed costs to a specific project cost element without having to enter it manually.
Before a purchase order line is released, no committed costs are reported to the activity. When the purchase order line is released, the purchase order line should report Committed Cost according to the supplier price set on the purchase order line. Depending on the basic data for the part and the supplier, and the posting control set up for the purchasing flow, the receipt-transaction and the supplier invoice matching can be posted to different accounts. To figure out which account the receipt of this purchase order line will most likely be posted to the accounting rules for posting types M1 and M19/M20 are used to determine which cost element the committed cost should be reported to at the time of releasing the purchase order line.
In Activity Estimates: Bears the estimated cost or revenue of activity estimates.
In Activity Tasks: A single project cost element can support the planned cost for a single task.
In Project Budgeting and Forecasting: Forecast amounts on project forecasts or project budgets are recorded against project cost elements.
In Project Demand: Bears the Planned cost for Project Misc Parts and No Parts.
In Project Resource Groups and Project Resources: Project cost elements are defined on project resource groups. When assigning the project resource group to an activity, the planned cost on the activity will be reported to the project cost element defined on the project resource group.
In PDM Change Orders: User-defined cost elements can be used for planning on the PDM Change Order. A single project cost element can support the planned cost for a single action on a change order.
In Project Items: User-defined cost elements can be used for reporting costs related to the Project Items.
On Material Requisition Lines: The cost on a material requisition line is broken down using user-definable project cost elements, which has to be derived from the accounting rules set up for the possible inventory transactions that will occur at issue of material.
On Purchase Requisition Lines: Purchase Requisition Lines will report cost that is not yet externally committed cost as planned committed cost to the project activity. Bears the purchase cost of the requisition and reports this cost to the activity as planned committed cost.
On Purchase Order Lines: Purchase Order Lines will report cost to the project activity broken down by project cost element. The cost on each cost element on the PO line will be involved in the possible purchasing transactions that will occur at receipt and at invoice matching. In addition to the value of the purchase order lines, there can be additional costs like charges and overheads that can be posted on separate accounts and therefore will be reported as committed and used costs on appropriate project cost elements.
On Customer Order lines: Customer Order Lines will report committed and used cost for goods that are planned to appear as additional cost to the project activity to the correct project cost element.
On Shop Orders: The cost on a shop order is broken down using user-definable project cost elements, which are derived from the accounting rules set up for the possible shop order transactions.
On DOP Headers: The cost on a DOP Header can be broken down using project cost elements. Project-connected DOP Headers will report their costs to the correct Project Cost Element.
On Work Orders: The cost is broken down using project cost elements, which has to be derived from the accounting rules set up for the possible work order transactions that will occur at issue of material and reporting of labor time.
Sales Contract Management: Actual markups for one or many sales contracts are formulated by assigning a markup value to a project cost element. This markup value is then used in valuating sales contracts.
Sub Contract Management: Committed cost will be reported from sub contract to the proper Project Cost Element according to the posting control rules set up for the appropriate sub contract posting types.
In Project Reporting: Used cost will be reported from project transaction to the proper project cost element according to the posting control rules set up for the appropriate project transaction posting types.
In Manual Vouchers and General Ledgers: Project-connected voucher rows report their costs to the correct project cost element, derived from the account the voucher row is posted to.