Controlling Finance Projects

Companies run projects to plan and coordinate the work, staff employees, and track project progress and costs. In this scenario, a Work Breakdown Structure (WBS) as an accounting structure is created. Planned project costs can be uploaded by the project Financial Controller.

After releasing all or part of the project, the project is executed and project-related purchasing can be performed.

In Finance, you can enter direct activity allocations or general journal entries with regard to project WBS elements. The Project Financial Controller monitors the project costs. At the end of the project, the Financial Controller completes and closes the complete project.

For many purposes, companies run projects to plan and coordinate the work, staff employees, and track project progress and costs. In this scenario, a Work Breakdown Structure (WBS) as an accounting structure is created. Planned project costs can be captured. After releasing all or part of the project, the project is executed. Time can be recorded, and project-related purchasing can be performed.

In this first task, Project Financial Controller Shubham creates an Overhead Project.

This project type is used to support the planning and monitoring of project-related costs, in this case hierarchical projects accounting structures, such as R&D projects.

Shubham can plan and post costs for the project, monitor the project, and finally close the project.

In the second task, Shubham, the Project Financial Controller, is responsible for cost planning and budgeting.

Therefore a relevant Financial Plan Data Excel is downloaded and filled out.

After uploading these data they were checked and displayed.

Project Financial Controller Shubham releases the project and does a direct activity allocation.

Stefan, the General Ledger Accountant, posts general journal entries.

Project Controller Anna, responsible for Resourcing and Procurement, defines a demand which helps to plan, trigger, and monitor procurement of non-stock materials for enterprise projects.

A demand represents a specific need for a WBS element.

Now the purchase requisition is converted into an order. When the data are copied into the purchase order, the supplier is added together with the purchasing organization.

A goods receipt for purchase order is posted.

At the end the material demand is closed. Project Controller Anna controls the demand and sets the corresponding status.

After most of the project work has been carried out by the team members, their work should also be recorded in the system using a timesheet.

A team member records his work. As no suitable task type exists, a new one based on an existing WBS element, a receiver cost center and an activity type is created. Now the work can be recorded.

Shubham wants to monitor project progress. He pays special attention to project costs and budget values.

Finally, he sets the project status to complete and closes the project.

Now, you should have an impression of "How to maintain a Financial Project".

Reviewing a Financial Project helps you to determine the right projects to work on by keeping all project stakeholders informed, enabling the review and approval of project milestones, and accelerating central project review or ranking meetings.

Using the project brief (a condensed, changeable, and integrated project plan with key information such as status, milestones, costs, and contacts), you can provide a low-level entry point and common discussion basis for decision-makers. The Project Ranking offers a common, integrated frame to collect all needed information and organize the process of central project review.

In this task, the Project Manager Anna checks the project and sets the first relevant project status.

As a milestone is also available, Anna sets the milestone status to approved.

In this task Project Manager Anna organizes a local review of the projects.

She pays special attention to the aggregated costs.

At the end she also defines a forecast-finish date for the milestone.

Tom, member of the project steering committee, wants to get an overview of the overhead project.

Inside the relevant app he opens the project view.

In a next step Tom checks the detailed status information using different apps.

After completing this lesson, you're able to:

• name the benefits of using a Project Control for Finance
• set up a new finance project
• capture cost plan and budget
• perform a direct activity allocation
• create project demand
• create a timesheet
• monitor a finance project