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EBTTII
I have an issue with accruing cash flow in project for what I believe would
be a fixed cost.
I am managing a construction project with oversight of several
subcontractors. Work is generally bid-out as “lump sum†proposals and is
invoiced monthly. Therefore, in most cases, Fixed Cost should remain a fixed
amount for total cost.
I have set options so that I can enter actual values in the task usage view
actual cost fields.
My desire is to set fixed cost accrual to prorated, a timescale to monthly,
and update actual cost to the invoice values as I receive invoices. My
problem is that when I update the task percent complete, it will not always
match the amount invoiced at that time.
I may have taken delivery of materials that are not yet constructed, so I
might have reported sixty percent invoiced with fifty percent complete. The
way Project handles this is by increasing my total Cost by ten percent. I
want total cost to remain constant and the remaining field to show the
difference.
As an example:
I have a subcontract worth $100,000 to be completed over four months. The
work is half completed and two months of the four have passed, but due to
materials delivered on-site, I have been invoiced $30,000 each month. The
subcontractor expects to finish on time and on budget (and because the
contract is lump sum, on budget has been guaranteed). To report to my
corporate steering committee I need to accurately show what has been invoice,
the estimated future cash flow, and the construction percentage completed.
Fixed Cost = $100,000
Fixed Cost Accrual = prorated
Duration = 4 months
(Options for actual cost is manual)
I enter the following
Task = 50% complete
Month 1 actual cost = $30,000
Month 2 actual cost = $30,000
(Let future months 3 and 4 adjust as defined by prorating)
What I get is:
Fixed Cost = $100,000
Total Cost = $110,000
Actual Cost = $60,000
Remaining = $50,000
What I want is:
Fixed Cost = $100,000
Total Cost = $100,000
Actual Cost = $60,000
Remaining = $40,000
Month 1 actual cost = $30,000 (I enter this value)
Month 2 actual cost = $30,000 (I enter this value)
(Let future months 3 and 4 adjust as defined by prorating)
Month 3 prorated cost = $20,000 (Project adjusts this value)
Month 4 prorated cost = $20,000 (Project adjusts this value)
be a fixed cost.
I am managing a construction project with oversight of several
subcontractors. Work is generally bid-out as “lump sum†proposals and is
invoiced monthly. Therefore, in most cases, Fixed Cost should remain a fixed
amount for total cost.
I have set options so that I can enter actual values in the task usage view
actual cost fields.
My desire is to set fixed cost accrual to prorated, a timescale to monthly,
and update actual cost to the invoice values as I receive invoices. My
problem is that when I update the task percent complete, it will not always
match the amount invoiced at that time.
I may have taken delivery of materials that are not yet constructed, so I
might have reported sixty percent invoiced with fifty percent complete. The
way Project handles this is by increasing my total Cost by ten percent. I
want total cost to remain constant and the remaining field to show the
difference.
As an example:
I have a subcontract worth $100,000 to be completed over four months. The
work is half completed and two months of the four have passed, but due to
materials delivered on-site, I have been invoiced $30,000 each month. The
subcontractor expects to finish on time and on budget (and because the
contract is lump sum, on budget has been guaranteed). To report to my
corporate steering committee I need to accurately show what has been invoice,
the estimated future cash flow, and the construction percentage completed.
Fixed Cost = $100,000
Fixed Cost Accrual = prorated
Duration = 4 months
(Options for actual cost is manual)
I enter the following
Task = 50% complete
Month 1 actual cost = $30,000
Month 2 actual cost = $30,000
(Let future months 3 and 4 adjust as defined by prorating)
What I get is:
Fixed Cost = $100,000
Total Cost = $110,000
Actual Cost = $60,000
Remaining = $50,000
What I want is:
Fixed Cost = $100,000
Total Cost = $100,000
Actual Cost = $60,000
Remaining = $40,000
Month 1 actual cost = $30,000 (I enter this value)
Month 2 actual cost = $30,000 (I enter this value)
(Let future months 3 and 4 adjust as defined by prorating)
Month 3 prorated cost = $20,000 (Project adjusts this value)
Month 4 prorated cost = $20,000 (Project adjusts this value)