Replacing Internal Orders with Project WBS elements

[Former Member]

Hi

We are currently considering replacing internal orders with Project System WBS elements.

The excisting internal order solution does not meet our growing business requirements and as a result we are looking at introducing a project WBS element accounting solution.

We are looking at a go live date on the 01.07.09, the first day of the fiscal year. As most of our projects extend across fiscal years we would like to be able to retain whole of life project costs reporting.

Operational costs are currently settled monthly to cost centers and capital costs to assets under construction and finally assets.

My initial thoughts on one possible option is to transfer the total whole of life costs from the internal order to the relevant WBS element in period 1 of the new fiscal year, and then settle the internal orders and WBS elements. (net settlement effect = nil)

If you have embarked on a similar project I would be interested to hear how to convert from orders to wbs elements and retain whole of project life cost reporting.

Any thoughts or suggestions would be appreciated?

Thanks in advance.

Ian

[virendra_pal · Accepted solution]

you should manually repost all the costs to the WBS and settle them back to build the history for the existing orders that you want to convert

you can also choose to take the statistical option but then you will have to populate the data in Z table and link to the reports to get the history before 1/7/9

[Former Member · Accepted solution]

Virendra

Thanks you for your reply. (points awarded)

Just to confirm are you suggeting manually reposting each and all of the transactions? (potentially many transactions for each order)

I was thinking of posting a single entry. eg: Total cumulative costs for the project at 30.06.2009 = $540K.

Manual Posting in period 1:

Debit WBS element 540

Credit Internal Order 540

Settle both the internal order and WBS element in period 1.

For example. If the order settled to cost center 1178 over the life of the project, than settle both the order and WBS element to CCTR 1178 in period 1.

Net impact of settlement to the cost center is nil:

Credit of 540 from the Internal Order

Debit of 540 from the WBS.

The WBS element now has YTD costs carried forward of $540K.

Any thoughts or comments on this simplified approach?

[virendra_pal · Accepted solution]

yes there is harm in posting lumpsums

note that in doing so you will not be able to get line item details

reporting transaction can set up for LSMW - that is what we did - it is a one off exercise and we uploaded all line items to build the data

but otherwise you are fine