Project management reference data

Project cost types

Open: Common data > Projects > Cost type

Project cost types define types of cost that can affect a project. Costs can include raw materials, labor costs and accounting expenses such as expense notes. You must assign every line in the cost structure to a cost type.

You use the Cost type function (GESPJCC) to assign individual cost types to a group defined in miscellaneous table 386 - Cost type group. This enables consolidation of the expenses on the cost structure.

Graphical overview

A cost type provides the link between a project task and the project cost structure at the budget line level:

A task is linked to a budget code (none or many tasks can be linked with one budget level (n,1)).
A task operation is linked to a budget line.

The operation resource, a work center (n,1), must be assigned to a cost type.

A product task is linked to a budget line.

A product managed as Available stock or purchased on demand (managed By order) (n,1), must be assigned to a cost type if the product is requested for a task (linked from a bill of materials, either directly or indirectly).

Optionally for manufactured products, the product "family cost" (n,1) must be assigned to a project cost type (using the Cost group link section) if the Budget automation process is to be based on the standard cost or on actual costs.

The cost type, therefore, provides the connection between the operational structure and the cost structure at the budget line level. This is critical for reconciling a project budget with a project cost, or expense.

Notes: Creating a cost type

You can associate a cost type with a saleable product. The Project management sales automation functionality will use this to generate the list of saleable products for a project based on its budget lines or based on its labor task operations.

When creating a saleable products list based on labor tasks operations, the saleable product defined on a cost type must be a service item. The service item is then included in the list of saleable products for a project if the cost type is defined on a project budget line for a chargeable budget code, or to a resource planned for an operational task.

You can assign an Accounting code to each cost type. This is essential for management of project time and expenses. When labor time is posted, the default journal contra account postings are to the "Labor expense account" (debit) and the "Payroll clearing account" (credit). These accounts are obtained from the assigned Accounting code for the project cost type assigned to a time entry record.
Analytical dimension codes are created automatically for new cost types, for dimension types flagged as Cost type in the Dimension types function (GESDIE) (Setup > Organizational structure > Dimension types), if the PCCAUTCRE - Create cost type dimension parameter (TC chapter, PJM group) is set to Always. The Create check box must be selected on the dimension types, and the conditions outlined in step 5 in the section Financial data overviews must be met.

A choice of whether or not to create the dimension code is offered if PCCAUTCRE is set to Confirmation.

An analytical dimension code is displayed in the Financials section, if created.

The Financials section details the cost type dimension codes created automatically for every dimension type marked as Cost type.

If a site is defined on the cost type record, only the analytical ledger set up as a Project management ledger on the current company is considered. The only dimension type populated will be the dimension type marked as Cost type.

If a site is not defined on the cost type record, all the dimension types marked as Cost type are populated as the company cannot be determined.

The project budget automation creation functionality uses the association between a project cost type and a cost group (Machine, Material, Labor) to automatically initialize appropriate budget lines based on the standard cost breakdown for a product. Use the Cost group link section to associate a specific cost group with a project cost type.

Project task categories

Open: Common data > Projects > Task category

Project task categories define types of tasks used in projects such as analysis, manufacturing, transportation and quality assurance. You must assign every level in the operational structure to a task category.

You use the Task category function (GESCTA) to group individual task categories into one of four logical types:

Labor - Labor-based tasks (Labor, Mixed) indicate that an operation can be linked to a task.

Material - Material-based tasks (Material, Mixed) indicate that a product can be linked to a task.

Mixed - Mixed tasks are combined Labor (operational) and Material (product requirement) tasks. They indicate that an operation or a product can be linked to a task.

Miscellaneous - Miscellaneous tasks are not associated with a specific business rule and can be used to define a milestone on a project, for example.

Project overviews

Open: Setup > Usage > Reports > SQL query tool

Open: Common data > Projects > Financial overview structure

Open: Common data > Projects > Financial overview queries

Important

Project management uses financial views to dynamically obtain and display financial data associated with a project. Project management financial overviews are produced by the interpretation of a report specification. You use the Financial overview structure function (GESPJS) to define or customize the structure of a report (the list of columns to be displayed) and the Financial overview queries function (GESPJQ) to link structured query language (SQL) queries to specific columns in it. You then use the Financial overview action in the Project management function (GESPJM), or the Financial overview function (PJMFINOV0) to use your customized report structures to evaluate and track, in real time, the actual financial status of a project relative to its budget. Refer to the Financial overview structure function (GESPJS) documentation and Financial overview queries function (GESPJQ) documentation which describes the preparation of a report structure in detail. Tips and tricks for using these functions are included.

The ability to evaluate and track, in real time, the actual financial status of a project relative to its budgets is critical. Project management provides easy access to dynamic overview data associated with a project.

Project financial overview data is controlled using miscellaneous table 388 - Financial view. This table enables data tracking on selected financial views such as expenses and revenue.

The financial overview data associated with a project is obtained and displayed using customized report structures for the financial views activated in miscellaneous table 388 - Financial view. You use two control functions to define or customize your report structures to suit your organization, your processes or your users:

You use the Financial report structure function (GESPJS) to define the structure of a report. This is the list of columns to be displayed.
You use the Financial overview queries function (GESPJQ) to define the content of a report. This is the content of each column and subcolumn.

You then use the Financial overview action in the Project management function (GESPJM), or the Financial overview function (PJMFINOV0) to evaluate and track, in real time, the actual financial status of a project relative to its budget. The resulting Financial overview reflects the defined report specification and applied structured query language (SQL) queries.

Project management includes standard, or master structures and structured query language (SQL) queries for both expense (view 10) and revenue (view 20) views. You can modify a master or create new report structures or queries for the report structures to suit your organization, your processes or your users. You are advised, however, to get a basic understanding of how your system works before changing a master format.

Use the SQL query tool function (GESALQ) to view the master SQL queries provided, and to modify or add new queries to be included in a financial overview, or in financial reports based on a financial overview structure. The master queries are prefixed PJM.

Sage advises that you save a copy of a master report structure or a master SQL query before modifying it.

You can only customize the content of Free column 1 - 5 and Free column 6 - 10.

Free column 1 to Free column 5 are used for expenses. These provide the facility for you to define up to 5 columns for tracking expenses.

Note that Project management only uses two free columns as standard. These are used for tracking commitments and actuals.

Free column 6 to Free column 10 can be used for additional reports.

Project management uses columns 6 - 9 to track revenue such as orders or invoices linked to the project.

All other columns defined in the Financial overview structure function (GESPJS) are managed by the system to calculate the budget remaining, provisional cost price and margins.

Sage advises that you only modify the column titles.

Create new SQL queries from the master SQL queries instead of starting a new query from scratch.

Using the SQL query tool function (GESALQ), copy a master SQL query to create a new SQL query.
Using the SQL query tool function (GESALQ), modify the new (copied) SQL query.
Define the new query in the Financial overview queries function (GESPJQ).
Attach the new query to the structure using the Financial overview structure function (GESPJS).

Labor time categories

Open: Common data > Projects > Time category

Labor time categories classify labor time into both project-related categories such as standard working time, overtime, and travel time, and non-project-related categories such as for administrative work, annual leave, and sick leave. Each type of payroll time that will be reported can belong to a time category.

You use the Time category function (GESPJTC) to define individual time categories, with each category being assigned a rate "multiplier". The Rate multiplier is applied to the labor rates defined for a time entry record to calculate the appropriate cost of the labor time. For example, "1" is for a category equal to standard working time, whereas a category paid at "double time" is "2".

The generated journal amounts from the time entry postings will be calculated using the following formulas:

Time spent x Project labor rate x Rate multiplier
Time spent x Employee labor rate x Rate multiplier

This function replaces miscellaneous table 640 - Time category on projects.