Introduction: Controlling Finance Projects
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.
Task 1: Create a Project
In this first task, Shubham, our Project Financial Controller, 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 is able to plan and post costs for the project, monitor the project, and finally close the project.
Overhead projects allow the settlement of costs to different G/L accounts and costs centers based on the settlement rule created.
Task 2: Capture Cost plan and Budget
In the second task, Shubham would like to add planned cost information to WBS elements.
Therefore he downloads a template to his local PC, fills in the relevant data, and uploads them back to WBS elements.
Task 3: Project Execution
Shubham, our Project Financial Controller releases the project and does a direct activity allocation.
Stefan, our General Ledger Accountant, post general journal entries. Inside data he enters the necessary WBS element.
Task 4: Monitor Projects
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".