Costs, hours and revenue can be reported to an activity from a wide range of connected objects, e.g. Purchase Orders, Shop Orders, Work Orders, Sales Contracts, Document Packages, Tasks, Resources etc. (Refer About Activity Connections for a complete list of objects). As the connected object is planned and executed, values of cost, hours and revenue is reported back to the activity.
The cost and revenue values will always be reported from the connected objects in base and transaction currency. If multi-currency and/or project currency have been enabled for Budgeting and Forecasting purposes for the project, then cost and revenue will also be reported in base currency using the fixed Budgeting and Forecasting rate and/or the project currency. The values are displayed in base currency in all forms where cost and revenue are available, while the other currencies are displayed only in the Connections forms.
Note: This document explains how different objects report cost, hours or revenue to an activity, refer the tables below for detailed information about each object. For information on how connected objects retrieve progress and earned value, refer About Earned Value and Progress.
Connected objects can report cost and hours information to the activity. The type of information retrieved depends on the connected object. The information is reported using the project cost elements that are defined for the connected object. The cost/hours information can be viewed for each activity in the Project Navigator/Activity, Activity/Cost or Activity/Hours tabs. It is also possible to view cost/hours per sub project or for the whole project in the Project Navigator window. In the Project Navigator/Connections or Activity/Connections tabs it is possible to view detailed information about the connected objects.
The possible stages of cost/hours values are:
Connected objects can report revenue information to the activity. The type of information retrieved depends on the connected object. The information is reported using the project revenue elements that are defined for the connected object. The revenue information can be viewed for each activity in the Project Navigator/Activity or Activity/Revenue tabs. It is also possible to view revenue per sub project or for the whole project in the Project Navigator window. In the Project Navigator/Connections or Activity/Connections tab it is possible to view detailed information about the connected objects.
The possible stages of revenue values are:
The following tables show how the different objects report cost, hours or revenue information to the activity. Any object which reports any type of cost, hours and revenue to projects will report these values on a cost/revenue element.
The Planned Cost Driver determines from where the Planned Cost and Planned Hours are retrieved. When the Planned Cost Driver for the activity is:
The objects report cost/hours to the activity as follows:
Note:
Object | Values Reported | ||||||
Estimated | Planned | Planned Committed | Committed | Used | Actual | ||
Activity Estimates | Activity Estimate | Values are taken from the Estimated Cost or Estimated Hours field in the Activity/Estimate tab | |||||
Compatible Unit | Estimated Revision check box must be ticked. | ||||||
Tasks | Values are taken from the Planned Cost or Planned Hours field in Tasks tab. | ||||||
Activity Resources | Values are taken from the Planned Cost and Planned Hours fields in the Resource/Resource Planning tab. The values are calculated based on the cost associated with the Resource ID and are updated when planned hours are entered. | ||||||
Document Package | Values are taken from the Planned Cost and Planned Hours fields in the Document Package window. | ||||||
Change Order | Values are taken from the Planned Cost and Planned Hours fields in Change Order/Actions tab, CO Action Lines table. | ||||||
Design Object | Values are taken from the Planned Cost and Planned Hours fields on the Project tab of the Design Object window. | ||||||
Project Miscellaneous Demand | Supply Option: Purchasing | For a Purchase Part/No Part/Inventory Part/Rental
Part requirement line the cost is
taken from the Planned Cost field in
Planned Cost/Hours per Cost Element window (right mouse
button menu option
Cost Elements) and summed up to the Total Planned Cost
field. Planned Cost is retrieved in the following order: 1) Expected
Supplier Price per Unit, 2) Costing, 3) Inventory Value, 4) Estimated
Cost.
For a Purchase Part/Inventory Part requirement line the hours are taken
from the Planned Hours field in the
Planned Cost/Hours per Cost Element window (right mouse
button menu option
Cost Elements) and summed up to the Hours Planned field.
Hours of Purchase No Part requirement line will follow the same method
as above and will not be summed up. |
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Supply Option: Shop Order | The values are calculated based on part
costing, depending on the posting control setup. Cost set 1 values
should exist in part costing in order to get the project planned cost. Cost of the non-standard planned components are excluded from the
planned cost. Non-Std Planned items must be
entered separately on the Miscellaneous Demand line for both cost and
hours.
Hours are taken from the routing defined for the shop order (Shop Order/Operation tab). |
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Supply Option: PMRP and DOP | The cost and hour values are taken from connected objects (PO, SO and MTR) depending on their setup. These supply options use the full BOM (Bill of Material) for creating planned values. | ||||||
Project Miscellaneous Demand (Direct Issue from Inventory) |
When a Purchase Part requirement line is entered. | When several parts are required but only some are issued. The cost of the balance quantity will be taken as committed material. | When items are issued from standard inventory, or from project inventory (depending on the Material Allocation flag on the project). The cost is updated by the Inventory value. | ||||
Project Miscellaneous Demand (Rental Charging) |
When a rental purchase part requirement line is entered. | When rental events and rental transactions have been generated. | |||||
Forecast Demand | Purchase Part: For a Purchase Part/Inventory Part requirement line the cost is calculated the same way it is done for Misc Demand/Misc Part. Planned Cost is retrieved in the following order: 1) Expected Supplier Price per Unit, 2) Costing, 3) Inventory Value, 4) Estimated Cost and is saved in the Project Navigator/Connections tab. Manufacturing Part: |
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Compatible Unit Execution Item | Estimates from the Compatible Unit is
reported to Activity Estimate object connection.
|
Planning is done on the
Execution Item in the Compatible Unit Navigator. The Compatible Unit
must be Released to give planned cost to the activity. Execution of the
planned work is done from the Work Order. When the Work Order planning
originates from a Compatible Unit, the Report Planned Cost check
box on the Work Order is not ticked. In the Execution Item/Operations tab enter a line for an employee, craft or department, with planned hours that has a cost rate defined. In the Execution Item//Materials tab create a line for a Part and specify the quantity required. This is for parts with the supply code Invent Order and Project Inventory. In the Execution Item//Planning tab create a line for either External or Expenses cost types and specify the quantity and cost required. In the Execution Item/Tools and Facilities tab create a line for a Tool and specify quantity and hours required. For non Inventory Purchase Parts: In the Execution Item/Requisition Planning tab create a line for a non Inventory Part/No Part and specify the units required. |
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Compatible Unit Procurement Activity | Planning is done on the
Execution Item in the Compatible Unit Navigator. The Compatible Unit
must be Released to give planned cost to the activity. The procurement
process that follows is done via PMRP. In the Execution Item/Materials tab create a line for a Part and specify the quantity required. This is for parts with the supply code Project Inventory. |
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Work Order | In the
Prepare
Work Order/ Operations tab enter a line for an employee,
craft or department, with planned hours that has a cost rate defined. In the Prepare Work Order/Materials tab create a line for a Part and specify the quantity required. This is for parts with the supply code Invent Order and Project Inventory. In the Prepare Work Order/Planning tab create a line for either External or Expenses cost types and specify the quantity and cost required. In the Prepare Work Order/Tools and Facilities tab create a line for a Tool and specify quantity and hours required. For a PR: In the Prepare Work Order/Requisitions tab create a line for a Part/No Part and specify the units required. The planned values will be held by the Purchase Requisition object. Planned values will be calculated in the usual way. |
Release the Work Order. | Report hours in the
Prepare Work Order/Tools and Facilities tab. Report time on the Report In Work Order/Time Report tab. Issue material with the supply code Invent Order in the Prepare Work Order/Materials tab. On the Report In Work Order/Postings tab enter posting lines for either Expenses or External cost types.
|
Report time on the operations in
Report In Work Order/Time Report
tab. Report hours in the Prepare Work Order/Tools and Facilities tab. |
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Requirement Activity | Value is taken from the Project Delivery/Project Item Navigator /Cost tab. | Issue some standard planned items from Inventory by selecting the right mouse button menu option Issue from Inventory in Project Product/Items tab to update. | |||||
Customer Order Line | Cost and hours are retrieved from the connected objects, depending on the supply option. Sales Overhead is retrieved from the CO line. | Updated by subsequent supply orders when they are released, and by the sales overhead from the customer order. | Updated by subsequent supply orders when they are processed further. | ||||
Purchase Requisition Line Part (or No Part) | When the line is added for a Part/No Part/Rental Part and when it is released. | ||||||
Purchase Order Line Part/ No Part/ Rental Part | When the order is created for the Purchase Part/No Part/rental part and is in the Planned status. | When the order for a Purchase Part/No Part/Rental Part has been released. | When the order for a Purchase
Part/No Part has been received (upon ownership transfer). When rental events and rental transactions have been generated for the Rental part. |
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Purchase Order Change Order Part (or No Part) | The delta (in value) between the current purchase order and the active change order (includes statuses Planned, Released, Authorized) for Part/No Part/Rental Part. | ||||||
Shop Order Requisition | When a shop order requisition line is added for a part through Project Material Requirements Planning (PMRP) or Project Master Scheduling (Project MS) | ||||||
Shop Order | When the shop order is in Planned
state. Values are taken from the Planned Cost field in the Shop Order Costs/Project Cost Analysis tab. |
When the Shop Order is released.
Values are taken from the routing defined for the shop order (Shop
Order/Operation) When the Shop Order is released. Values are taken from the Shop Order components and Shop Order Costing (Shop Order Costs) When the Shop Order is released. Values are taken from the Shop Order routing and Shop Order Costing (Subcontracting) When the Shop Order is released. These values will be taken if General Overheads are defined in Part Cost tab. |
Updated when reporting time and when issuing material to the Shop Order. | Hours are updated when reporting time on the Shop Order. | |||
DOP Header | Reported from connected DOP orders
(SO, PO) through the DOP header. Reported from the connected DOP orders (SO, PO). |
Reported from connected DOP orders (SO, PO) through the DOP header. | When hours are reported from connected DOP orders (SO, PO) through the DOP header. | ||||
Material Requisition Line | When the part is Reserved. For parts with Supply Code Invent Order. | When the part is Issued. For parts with Supply Code Invent Order. | |||||
Project Transaction (Time Reporting) | When time is reported on an activity. | When the transactions are confirmed and the value in the Create Cost Accounting field of the Report Code is either Yes or No, Update Project Cost. | When the transactions are confirmed. | ||||
Project Transaction (Cost Reporting) | When cost is registered in the Project Cost Registration window. | ||||||
Project Inventory Transfer | Reports used cost until inventory transactions are transferred to the Hold table. | ||||||
Sub Contract Project (Sub Contract) | Planned cost is reported before
activating the revision when selecting the Report Planned Cost
check box, and is updated when selecting Update Planned Cost
menu option. The planned cost is reported automatically when the revision is activated. |
Planned committed cost is reported when call off values are entered on the sub contract. Planned call off amount is equal to the planned committed cost. | Committed cost is reported when the call off is released. | ||||
Voucher Row | When Hold table voucher rows are
created that report cost to project activities, for example:
|
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General Ledger Voucher Row | When Hold table vouchers rows that report cost to project activities are updated to General Ledger. |
Note:
Updating of revenue on objects is performed against project revenue elements. Revenue objects do not report progress. The objects report revenue to the activity as follows:
Revenue Object | Values Reported | ||||
Estimated | Planned | Preliminary | Posted | Actual | |
Activity Estimate | Retrieved from the Estimated Revenue field in the Activity/Estimate tab. | ||||
Sales Contract
Project (Sales Contract and Application for Payment) |
Retrieved from Sales Contract Line Items that have the Active revision status. The Report Planned Revenue checkbox can be used to view the previously planned revenue. | ||||
Work Order | When the Work Order Line is transferred to a Customer Order Line. | ||||
Customer Order Line Revenue |
When a Customer Order Line or Customer Order Rental Line is connected to an activity. | ||||
Customer Order Invoice Line | When a Customer Order Invoice is created. | ||||
Invoicing Plan | When the Invoicing Plan Line is created with the Sales Amount. | ||||
Project Transaction Revenue | When a Project Transaction is entered which can be invoiced and has a Sales Price. | ||||
Invoice Posting Row
(Project
Invoice) |
When the Project/Instant/Customer Invoice is saved. | ||||
External Invoice Posting Row (External Customer Invoice) | When the External Customer Invoice is loaded. | ||||
Voucher Row | When Hold table voucher rows are
created that report revenue to project activities, for example:
|
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General Ledger Voucher Row | When Hold table vouchers rows that report revenue to project activities are updated to General Ledger. |
For this example we work on a project containing only one activity called "Specify and purchase engine for winch". In order to complete this activity some engineers have to do a detailed specification of which engine to buy, and later the purchase department is involved in the communication with the selected supplier. The planned cost driver for all of the objects is Connected Objects, except for the Activity Resources object, for which the planned cost driver is Activity Resources. The progress method is Connected objects.
Step 1
Project Cost Element Estimated Cost Estimated Hours Material 100,000 Work 3,000 30
Sum 103,000 30
Step 2
Now we get the following results:
Project Cost Element Estimated Cost Planned
CostEstimated Hours Planned Hours Material 100,000 Work 3,000 3,200
30
32 Sum 103,000 3,200
30
32
Step 3
Now we get the following results:
Project Cost Element Estimated Cost Planned
CostEarned Value - Cost Scheduled Work - Cost Estimated Hours Planned Hours Earned Value - Hours Scheduled Work - Hours Material 100,000 Work 3,000 3,200
1,600
800
30
32
16
8
Sum 103,000 3,200
1,600
800
30
32 16 8
Step 4
Now we get the following results:
Project Cost Element Estimated Cost Planned Cost Earned Value -
CostScheduled Work -
CostCommitted Cost Estimated Hours Planned Hours Earned Value - Hours Scheduled Work - Hours Material 100,000 90,000 22,500 90,000 Work 3,000 3,200 3,200 800 30 32 32 8 Sum 103,000 93,200 3,200 23,300 90,000 30 32 32 8
Step 5
Now we get the following results:
Project Cost Element Estimated Cost Planned Cost Earned Value -
CostScheduled Work -
CostCommitted Cost Used Cost Actual Cost Material 100,000 90,000 45,000 90,000 Work 3,000 3,200 3,200 1,600 900 Sum 103,000 93,200 3,200 46,600 90,000 900
Project Cost Element Estimated Hours Planned Hours Earned Value - Hours Scheduled Work -
HoursUsed/Actual Hours Material Work 30 32 32 16
10 Sum 30 32 32 16
10
Step 6
Now we get the following results:
Project Cost Element Estimated Cost Planned Cost Earned
Value -
CostScheduled Work -
CostCommitted Cost Used Cost Actual Cost Material 100,000 90,000 45,000 90,000 45,000 45,000 22,500 Work 3,000 3,200 3,200 3,200 2,250 2,250 Sum 103,000 93,200 48,200 93,200 45,000 47,250 24,750
Project Cost Element Estimated Hours Planned Hours Earned Value - Hours Scheduled Work -
HoursCommitted Hours Used/Actual Hours Material Work 30 32 32 32
25 Sum 30 32 32 32
25