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Project Accounting (Indirect Project)

Setups:
Set Organization Classifications
Set Organization Hierarchy
Set Implementation Options
Set Profile Options
Before this check the Department in COA and copy the same in the notepad and create
the organizations

Set Organization Classifications


Nav: Work structures---Organization---Description

Click on New

Paste the same in the Name and give the Address and give organization classification

Give the Project type class information as

Click on Yes

Give the Organization Classifications

Create one more for Advertising

Create One more Organization Classification for Construction Department

Create One more for HRMS Department

Create one more for Finance Department

Now Create the Organization Hierarchy


Nav: Workstructures---Organization---Hierarchy

Give the Name and Save

Give the Number and Date and Save

First select Query Business Group and select LE under it and click on Down Arrow

Select OU and save and click on Down Arrow

Select Organisations under OU and select Administration and click on Down Arrow

Select the Inventory under Administration

Now click on Up Arrow we can see how many Organizations are under this BG.
Now Switch to PC Responsibility and select the Implementation Options
Nav: Setup---System---Implementation Options

Give the required fields and click on Currency tab

Currency tab exchange rate as Corporate

Project Setup tab fill the fields

Staffing tab select advertising rule and give the hours

Expnd/Costing tab select the fields

Billing tab select Invoice Batch Source as Projects Invoices and save

Note: Implementation Options we will give at OU Level


Now we have to give Profile Options
Switch to System Administrator
Nav: Profile---System

Select Yes and save

Assign the profile option PA: Cross Project User View

Select yes and save

Now For PB Responsibility also assign the same profile options

Select yes and save

Select yes and save

Now assign one more profile option PA: Licensed to use project costing

Select Yes and save

For Billing also we can assign the same profile option

Select yes and save

Now we can Access the PC and PB Responsibilities


Switch to PC
Now we have to define Categories and types
Nav: Setup---Expenditure---Expenditure Categories

Give Expenditure Categories and save

Now Give the Revenue Categories


Nav: Setup---Expenditures---Revenue Categories

Create the Revenue Categories and save

Create Expenditure Types


Nav: Setup---Expenditures---Expenditures Types

Give for Labour Straight time and Overtime

For Material

For Crain Usage we have to take Usage

For Travel

Define Job
Nav: Work Structures---Job---Description

Give the Job

Define Position

Click on New

Give the Number and Position name

Give the Fields and Save

Now we have to assign the position to Employee


Nav: People---Enter and Maintain

If Already defined click on Find

Click on Assingment

Give the Position and click on Update

Click on Yes and Save

Now Assign the Employee to user

Already we have assigned

Now Define Rate Schedules for Employee and Job


Switch to PC
Nav: Setup---Expenditures---Rate Schedules

Give Organization, Schedule, Emp name and Rate and save

Give Organization, Schedule, Job Group, Job Name, Rate and Date and Save

Define Cost Multipliers


Nav: Setup---Costing---Labor---Cost Multipliers

Give the Name, Multiplier and Date and Save

Define Labor Costing Rules


Nav: Setup---Costing---Labor---Labor Costing Rules

Give the Costing Rule and click on Trans Defaults

Save it

Define Organization Labor Costing Rules


Nav: Setup---Costing---Labor---Organization Labor Costing Rules

Give the OU, Organization, Costing Rule and Job rate Schedule and Save

Now Define Resource Lists


Nav: Setup---Budget---Resource Lists

Give for Equipment and save

Give for Finance

Give Labor and Save

Give Material and Save

Define Service Type


Nav: Setup---Projects---Service Types

Give the Service Type as Internal and Save it

Define Work Type


Nav: Setup---Utilization---Work Type

Name it and Save it

Define Project Type


Nav: Setup---Projects---Project Type

Give the name, class, Service type and Work Type

Budget Option tab

Project Status tab

Save it
Now Create the template
Nav: Setup---Projects---Project Templates

Click on New

Give the Header details and save

Select Structures and click on Detail

Enable Financial Structure and click on Apply and close

Now Select Tasks and click on Detail

A window will be opened click on Find

Give the Task Name and number and date click on Create Peer Task to create same top
task

Click on Create Subtask to create a subtask for that

Save it

Now Select Currency and click on Detail

No Changes to be done so save and close

Select Key Members and click on Detail

Select the Employee Name and Role and save

Enable the Fields which are useful and disable the rest

Save and Change the Status to Approved and click on Setup Quick Entry

Give the Project Start date and Finish Date and save

Give the Trans duration date and save and close

Now Create Project


Nav: Projects

Find the Template and click on Find

Click on Copy to

Give the Project Name, Number, Dates and click on Ok.

Project will be created and status will be Unapproved so click on Open

Click on Change Status and Approve the Project and save and close

Now Your Template and Project is ready we can book the Expenditure
Before Booking the Expenditure we have to open the PA periods
Nav: Setup---System---PA Periods
Note: If we open PA Periods automatically GL Periods also will be opened as we have
enabled the option in Implementation options.

Click on Find

Set the Status as Open and Save

Click on Set Reporting Period and click on Ok

Now Check in GL Periods

Open the Period in GL Periods also

If we enable this option then it will be automatically open the period in GL also

Now we can Book the Expenditure


Nav: Expenditures---Pre Approved Batches---Enter

Give the Batch and Class and click on Expenditure, status will be working

Give the Employee Name, Organization as Advertising as we have took it in the Template
and give project number and task number and take the expenditure type as straight line
and give the quantity. And save.

Now Click on Submit

Now click on Release

Status will be Released

Now to generate debit line and credit line we have to do Autoaccounting


Copy the Expenditure Types to Account Segment and same copy to Notepad and
Departments also copy to Notepad

Copy with the Values as it is

Add the Expenditure Types from Notepad to Account Segment and Save

Now Define Rules


Create Rules for Company
Nav: Setup---Autoaccounting---Rules

Give the Company Value and Source must be constant and save it

Create Lookup Set for Department


Nav: Setup---Autoaccounting---Lookup Sets

Copy from the Notepad and save

Now Create Rules for the Department

Give the Rule Name and Source as Parameter and Value as Organisation and source as
lookup and assign the department lookup here and save

Now Create the Dr. Lookup set for Account Segment

Give the Accounts from the Notepad

Now Create Dr. Account Rule

Give the Rule Name, Source as Parameter and Value as Expenditure Type and source as
Lookup and assign the lookup here and save

Now Create the Rule For Location

Now Assign this to Assign Rules

Give the Name as Cost account and click on Find and Enable All Labor and Assign the
Rules which we created and save

Now Create the Clearing Account


Add the Liability Account in Account Segment

Add it in Lookup sets and Save

Now Create Rule for this Cr. Rule for Account

Give the Rule Name, Source as constant and give the Value for that and save

Now Assign that Cr. Rule to Assign Rules

Give the Name as Cost Clearing and click on Find and enable All Labor and assign the
Cr. Account Rule and Save

Now We have to Run the Program PRC: DISTRIBUTE LABOUR COST to calculate the
cost and generate the debit line
Give the Parameters as Expenditure Batch, Project Number and Employee name and
click on Ok.

Click on Submit and No

Status must be Normal click on View Output

We can find the Report as below

Check in Expenditure Inquiry Window


Nav: Expenditures---Expenditure Inquiry---Project

Give the Project Number and name and Click on Find

We can find the calculated amount

And for which organization it has calculated and click on item Details

Select Cost Distribution Lines and click on Ok

We can see the debit Line Generated and the amount

To generate the Credit line we have to run another program as PRC: GENERATE COST
ACCOUNTING EVENTS and there are no parameters for this, click on Submit and No.

Click on View Output

We can see the amount generated

Now Switch to Expenditure Inquiry window and we can see the credit line

Give the Project Number and Name and click on Find

Click on Item Details and click on Ok

Status will be Accepted and Credit line has to be generated

Go to System Options and enable Interface Labor Costs

Enable Interface Labor Costs

Run the Program PRC: CREATE ACCOUNTING to transfer to GL and parameters are

Click on Submit and No

Now Run the Program Validate Application Accounting Definition

Calculation of Overtime
We have to set Cost Multiplier
Nav: Setup---Costing---Labor---Cost Multiplier

Give the Cost Calculation as 2 as it is Overtime and save

Assign it to labor Costing Rule

Query your Labor Costing Rule and assign the OT

Save it

Now Book the Expenditure for Overtime

Give the Batch Name and click on Expenditures

Give the Employee name and Organization and task number and project number and
expenditure type as 40 as Straight Time and 4 as overtime quantity and save

Click on Submit

Click on Release

Now to calculate Cost, run the program Prc: Distribute Labor Costs
Give the parameters

Click on Submit and No

Click on View Output

See the output

Check it in Expenditure Inquiry Window

Give the Project Name, Number and click on Find

We can see the cost generated, click on Item details

We can See the Debit line generated

Now Run Another Program Prc: Generate Cost Accounting Events

We can See the Calculated amount

Now Check In Expenditure Inquiry window

Give the Project name, Number and Click on Find

Click on Item Details

We Can see Credit line has been generated

Run One More Program Prc: Update Project Summary Amounts for a Single Project

Click on Submit and No

Click on View Output

It will show the Balances

Click on PSI Window we can see the balances

Give the Project Number and Name and click on Find

It will show the same balances

Now Run Prc: Create Accounting


Parameters are

Click on Submit and No

Calculation of Usages
Crate one Dr. Usage a/c

Now create one usage clearing a/c in COA

Add this in Lookup sets

Create the Cr. Usage clearing rule

Now Assign the Dr. Usage to Usage cost

Now Assign the Cr. Rule Usage Clearing

Now Set the Rate Schedules for Non- Labor


Nav: Setup---Expenditures---Rate Schedules

Select the Expenditure Type and give the rate

Now Define Non-Labor Resources

Give Name and click on Cost Rates

Give the Rate and save

Create one more for 200 MT

Give the Rate and save

Create one more for 300 MT

Give the Rate and save

Now Switch to Implementation Options and enable the option for usages

Now book the Expenditure

For Usages we have to take class as Usages

Give the project number, expenditure type and quantity and save

Click on Submit

Click on Release

Run the program Prc: Distribute usage and Misc. costs


Give the Expenditure batch and Project number

Click on View Output

We can see the output

Check in Expenditure Inquiry

Give the Project Name and Number and click on Find

We can see the amount

Now Run one more program to generate credit line


Prc: Generate Cost Accounting Events

Click on View Accounting

We can see the output

Switch to Expenditure Inquiry window we can see the generated credit line

To check the amounts at summary level we have run the program


Prc: Update Project Summary Amounts for a Single Project
Parameters are

Click on View Output

We can see the Balances at summary level

Run One More program to transfer to GL


Prc: Create Accounting
Parameters are