Project Pricing—Exercises 

Main Exercises

Register Standard Price for Report Codes

Purpose: The purpose of this exercise is to register standard prices for report codes.

Windows:
Internal Price/Standard Price

  1. Open the Internal Price window. 
  2. In the Standard Price tab, create a new record. 
  3. Enter one of your report codes.
  4. We have not yet defined any resource IDs. To do so, enter a wildcard (%) to make the row valid for all resource IDs.
  5. Enter the price and indicate for which date interval it is valid.
  6. Save the information.
  7. Repeat steps 2 through 6 until you have defined prices for all your report codes.


Register Employee Standard Cost

Purpose: The purpose of this exercise is to register a standard cost for an employee.

Windows:
Internal Price/Employee Standard Cost

  1. Open the Internal Price window. 
  2. Click the Employee Price tab and create a new record. 
  3. Enter the employee connected to your user in the Emp No field. Use the List of Values if you do not know your employee number.
  4. Enter a standard cost and date interval.
  5. Save the information.

Note: This has a higher priority than the standard price per report code.


Register Employee Alternative Cost

Purpose: The purpose of this exercise is to register an alternative cost for an employee.

Windows:
Employee Alternative Cost/Employee Alternative Cost

  1. Open the Employee Alternative Cost window. 
  2. Click the Employee Alternative Cost tab and create a new record. 
  3. Enter the employee connected to your user in the Emp No field. Use the List of Values if you do not know your employee number.
  4. Enter an alternative cost and date interval.
  5. Save the information.


Enable Actual Costing - Labor Cost

Purpose: The purpose of this exercise is to show you how to set up the system to enable actual costing to project time transactions by using the employees salary information.

Windows:
Company Details
 Agreement
Salary
 General
Work Time Info

  1. Enable actual costing by selecting the check box Use Employee Labor Cost in the Company Details window.
  2. In the Agreement window, check that there is an agreement that can be used. If not, enter one.
  3. In the Salary tab, enter the required salary information.
  4. In the Employment/Periods/
General tab, connect the employee to the agreement.
  • In the Work Time Info tab, verify that the agreement data is visualized. You should see the hours and days information.
  • In the Salary tab, verify that the hourly rate is displayed.


    • Enable Overhead Cost for Internal Price to Time Transactions

    Purpose: The purpose of this exercise is to enable the use of an overhead cost for a project time transaction.

    Windows:
    Cost Details Basic Data

    1. Open the Cost Source Indicator Definition tab window. 
    2. If not already entered, enter a new row with Cost Type = Project-Labor. Select Cost Source Indicator = Project, and Save. 
    3. Open the Cost Source tab window.
    4. Enter a Cost Source ID, e.g., 150%, and also enter the value 150 in the Overhead Rate field. Set an appropriate Valid From date. Save.
    5. Open the Cost Source Indicators tab window. In tab Project, enter a new row with your project ID and connect the cost source ID 150%. Save.
    6. Open the Posting Control Navigator window in IFS/Accounting Rules and enter posting control for posting types PRJT1-4.


    Enable the Use of a Diluted Internal Price to Time Transactions

    Note! This requires that you use IFS/Time and Attendance.

    Purpose: The purpose of this exercise is to enable the use of a diluted internal price for a project time transaction.

    Windows:
    Balance Definition
     Reconciliation Time Period
     Balance Reconciliation
     Wage Classes
     Rule Type
     Employee Schedules and Rules
     Time Registration
     Balance Reconciliation Status
     Project Transactions
     Transfer Project Cost Accounting Transactions

    1. Open the Balance Definition window and enter a time balance that will accrue time from the relevant absence and presence wage codes.
    2. Open the Reconciliation Time Period window and enter a Period that corresponds to the required dilution period (do not use Days as Period Unit).
    3. Open the Balance Reconciliation window and define the reconciliation for the time balance (Fixed Value = 0, Reconciliation Method = Manual
      Manual is chosen to simplify testing of the dilution calculation. In a real case you should probably use Automatic).
    4. Open the Wage Classes window and connect the time balance to the appropriate wage classes.
    5. Open the Rule Type window and connect the time balance to the appropriate rule types.
    6. Open the Employee Schedules and Rules window and verify that the employees you will use are linked to the correct rule types.

        Verify the calculation of a diluted internal price

    1. Define the above time balance reconciliation data for a dilution period of one week.   
    2. Open the Time Registration window and enter project hours exceeding the agreed hours for the week (e.g., > 40 hours)
    3. In the time and attendance part of the window, enter an overtime wage code and the overtime hours that will accrue to the time balance.
      It is assumed that you use the "Job hour controlled wage hours" option as the Employee Time Base for the Time Registration window.
    4. Authorize the time and attendance information.
    5. Open the Balance Reconciliation Status window and reconcile the time balance for the week.
    6. Open the Project Transactions window and verify that the Cost Accounting check box is selected for the transactions. If not, select the check box.
      Note the internal price information!
    7. Open the Transfer Project Cost Accounting Transactions dialog and create a voucher for the week.
    8. Open the Project Transactions window and verify that the internal price has been diluted.


    Define Sales Price Criteria

    Purpose: The purpose of this exercise is to define the sales price criteria to be used in the price lists.

    Windows:
    Sales Price Criteria

    1. Open the Sales Price Criteria window. 
    2. Populate the window and note that records have been set up by default for Resource ID and Report Code.
    3. Create a new record and select Billing Category for the Sales Price Criteria, select an Evaluation Order and set the record to Available and save.


    Create Sales Price List

    Purpose: The purpose of this exercise is to create a sales price list that will provide the prices for invoices.

    Windows:
    Sales Price/Standard Price

    1. Open the Sales Price window. 
    2. Create a price list in the header of the Standard Price tab and save the information.
    3. We have not yet defined any resource IDs or billing categories. Enter wildcards (%) for these columns to make the row valid for all resource IDs and billing categories.
    4. Enter sales prices in accounting currency and your project invoicing currency. 
    5. Make sure that your prices are valid during the project period.

    Connect Sales Price List

    Purpose: The purpose of this exercise is to connect your sales price list to your project.

    Windows:
    Project Details/Pricing

    1. Open the Project Details window and query for your project.
    2. Click the Pricing tab and enter your price list in the Project Sales Price field. Note: If no information exists in this tab, you need to create a new record (F5) before you can enter anything.
    3. If project currency has not been defined, enter a Currency Code used in step 4 above as the sales currency of the project.
    4. Save the information.

    Price Adjustment

    Purpose: The purpose of this exercise is to create a price adjustment for 50% overtime.

    Windows:
    Price Adjustment

    1. Open the Price Adjustment window. 
    2. Create a new record (F5). 
    3. Enter a percentage of 50% in both the Percentage Internal Price and Percentage Sales Price fields. Note: Since you are only specifying percentages, you need not enter a sales currency.
    4. Save the information.
    5. Go into Project Transactions, query a transaction and apply your price adjustment rule. Verify that internal price and sales price are adjusted according to the rule.