Cost, Hours and Revenue Reported to Activity

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.

Cost/Hours

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:

Estimated
Estimated values represent the approximate values of cost or hours before the planning phase of the activity is carried out. Estimates are manually entered in the Estimate tab.
Planned
Planned values represent the current budget which is valid for the activity. Planned values are retrieved from various connected objects, for example, you can use tasks or document packages to define planned values, and these values will be summarized and displayed in the Planned columns. The value in the planned columns will be updated immediately when you change, add or remove objects that report planned cost/hours to the activity. You can also retrieve planned costs and hours from other sources by selecting a relevant Planned Cost Driver for the activity.
Baseline
Baseline values represent the current approved budget which is valid for the activity. Use this column to keep track of the original approved plan, with or without approved scope changes. After a baseline has been created for a project the values entered in the Planned fields will be copied to the Baseline columns. If the planned values are changed thereafter, another baseline will have to be created for the new planned values to be reflected in the Baseline columns.
Planned Committed
Planned committed values are the sum of cost or hours from connected purchase requisitions lines, purchase order lines, shop order requisition lines and shop order lines that have not been released yet.
Committed
Committed values are the sum of remaining costs/hours reserved or ordered by the objects connected to the activity. The total Committed value is reported first when the object reaches a status which commits its values (i.e. Released status on a Purchase Order) and decreases as Used values are reported from each connected object. For a connected purchase order, the committed value will be based on the remaining quantity to be received. For a connected shop order, the committed cost of material will be based on the quantity remaining to be issued, and the committed cost of work and hours will be based on the status and progress of the operation.
Used
Used values are the sum of costs/hours that have been used, as reported from each connected object. Used cost/hours are reported from the transactions (Inventory, Purchase, Operation or Project) created by the object until these are transferred to IFS/Accounting Rules and the corresponding voucher is created. Once a transaction receives the Transferred status it will stop reporting used cost/hours and the voucher will report the Used Cost/Hours instead. Voucher rows that are created and pre-posted with the Project ID and Activity sequence will always report Used cost. The utilized hours will be displayed in the Actual Hours field.
Actual
Actual cost is the sum of costs that have actually been used and is reported from the General Ledger (through General Ledger Voucher Row). Actual hours are the hours that have been reported as used, from each object.

Revenue

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:

Estimated
Estimated revenue is a speculated approximate amount of revenue that is expected to be generated from the activity. This value is entered before the activity has been properly planned. Estimates are manually entered in the Estimate tab.
Planned
Planned revenue represents either the budgeted values from an object (e.g. Invoicing Plan or Sales Contract Lines) or values generated through cost objects (e.g. Project Transactions) which have a sales price. The value in the Planned columns will be updated immediately when you change, add or remove objects that report planned revenue to the activity.
Preliminary
Preliminary revenue is always generated from a preliminary invoice.
Posted
Posted revenue is always generated from a Hold Table Voucher.
Actual
Actual revenue is always generated from a General Ledger Voucher and will also replace the value in the posted column.

Reporting

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.

Cost/Hours

The Planned Cost Driver determines from where the Planned Cost and Planned Hours are retrieved. When the Planned Cost Driver for the activity is:

Connected Objects - The planned cost and hours of the activity are retrieved from the objects that are connected to the activity as described in the table below, excluding values from Activity Estimates.
Estimated Cost - The planned cost and hours of the activity are retrieved only from Activity Estimates. Values other than Planned are retrieved according to the table below.
Activity Resources - The planned cost and hours of the activity are retrieved only from the resources allocated to the activity. Values other than Planned are retrieved according to the table below.
Exclude Activity Resources - The planned cost and hours of the activity are retrieved from the connected objects, excluding the cost and hours from the resources.

The objects report cost/hours to the activity as follows:

Note:

All objects that report planned cost or hours will also contribute to Baseline costs and hours when a baseline is set for the project. The Baseline values are copied from the Planned values.

Object		Values Reported
Object		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
Activity Estimates	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 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.
	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).
	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)			For a rental part requirement line, the cost is taken from the Planned Cost field in Planned Cost/Hours per Cost Element window (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. The expected supplier price per unit is only used as the planned cost and is not transferred to the purchase requisition. The order quotation functionality is not supported for miscellaneous rental parts.			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: For a Manufactured Part the cost is calculated the same way it is done for Misc Demand/Shop Order. If the structure contains other forecasted parts, these will not be included in the planned value. They will have to be entered separately. The values are saved in the Project Navigator/Connections tab.
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.
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.
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.
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.
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: When a manual voucher is created that reports cost to the project. When vouchers that are created for different transactions, they replace the Used value reported from the originating transactions. For example Inventory Transactions which become MPL vouchers. When a supplier invoice is posted with a project id. When receiving and certifying a sub contract valuation.
General Ledger Voucher Row							When Hold table vouchers rows that report cost to project activities are updated to General Ledger.

Note:

All objects that report planned cost or hours will also contribute to Baseline costs and hours when a baseline is set for the project. The Baseline values are copied from the Planned values.

Revenue

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
Revenue Object	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) (Instant Invoice) (Customer 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: When a manual voucher is created that reports revenue to the project. When submitting and certifying a sales contract application for payment. When the Customer Order Invoice is posted. When the Project/Instant/Customer Invoice is posted. When the External Customer Invoice is posted.
General Ledger Voucher Row					When Hold table vouchers rows that report revenue to project activities are updated to General Ledger.

A Step by step example on how important activity fields are used:

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

Create the activity: A 01 – Specify and purchase electrical engine, Start date: 3 of July, End date: 28 of July, with number of workdays as 20.
Enter estimated values for the activity. We estimate to buy the engine components for $100,000 and use 30 hours at a cost of $3000 for the specification.

Project Cost Element Estimated Cost Estimated Hours

Material 100,000

Work 3,000
30

Sum 103,000
30

Step 2

Create and connect a document package with two documents; one drawing and one technical specification. Planned hours are 17 + 15 = 32. The cost is $100 per hour. We register the documents, but no progress is accomplished yet.