fin-pa

1、Best Practice Financial Processes: Project Accounting,,Project Accounting - Best Practices Objectives,,,,,,,Project AccountingObjectives,Organisation,,People,Processes,Controls,Measures,Information Systems,to record a

2、nd maintain costs and time at a project and task levelto maintain project assets & Work In Progressto bill / charge for jobs carried outto assist in planning, scheduling and controlling projectsto measure ongoing

3、 profitability and technical effectiveness of projects and enable corrective action to be taken,Bridge between financial management & project management,Establish project structure and typeCreate new projectAllocat

4、e budgetTrack actual costs and timeReview projects progressBill or capitalise costsClose project,Monthly reportingReconciliation to other modulesPhysical progressInvoices being paid,,,Key performance indicatorsPr

5、ofitability of projectVariance analysis (cost, time & materials)Achievement of technical objectives,,On-line timesheet inputEliminate rekeying of dataIntegrated systems,Empower project managersTo control informa

6、tion and take corrective action,,,,,,,A logically defined project & task numbering system is used with a project / job number that allows division and reporting by logical elements or segmentsA facility to predefin

7、e a list of project typesEstablish who owns, who controls and who monitors the project,Budget established in financial and quantitative terms as an optionBudgets by individual property and group of projectsReforeca

8、sting / multiple budget facilityMulti currency budgetingInformation from past projects available to assist with estimate of future project costs,Direct costs allocated per timesheet entry Indirect costs per timeshe

9、et/ algorithmsCollect costs in line with project milestones / phasesVarious ways of collecting costs; full cost, marginal, direct costs, direct costs and uplift, etc,,Actuals and commitments (ie PO) raised against pr

10、oject budgetMonitor against defined milestonesConfirm physical progress of projectAmend budgets for known costs overruns / savings,Project costs can be allocated to departments or billed to customers at appropriate

11、 times Charge against agreed milestones,Best Practice Features,Project Accounting - Best practice features,Establish project,Allocate budgets,Allocate costs& time,Review project progress vs costs & budget,Bi

12、ll or charge for project,System records all necessary project data Any level of project task hierarchy is permitted,System allows budgeting at the lowest or highest task level Budgeting can be on a cost time, materi

13、al or revenue basisStandard as well as value budgetsMarginal or full costing basisNotes facility to support documentation of all budget assumptions,Integrated to financial & HR systems to aid input Time coste

14、d at multiple ratesAutomatic interface with inventory / accounts payableMulti currency costsMarginal or full costing basis,Software supports standard & ad hoc reporting and variance analysisSoftware supports

15、on-line enquiry by project managementReal-time check against projects budget when raising PO'sDrill down to source features available,Integrated with billing system or internal charging system Integration with

16、fixed asset system for capital project capitalisationMulti currency billingIntegration with GL for cost recharging / allocationInterim / final invoice to move costs from Work in Progress,System Features,Project Ac

17、counting - Best practice features,Establish project,Allocate budgets,Allocate costs& time,Review project progress vs costs & budget,Bill or charge for project,Project Accounting - Critical Success Factors,Pro

18、ject team led, finance supported. Participative approach to financial project management leading to real buy-in;Comprehensive communication and training to maximise benefits of better informationStandard formats and me

19、ans of data collection / consolidation in place with manageable level of detail;Timetable in place with deadlines for inputting costs and timesheets agreed;Guidelines clearly defined and communicated;Effective communi

20、cation and feedback mechanisms in place between central group(s) and project / job managers;Approval levels and responsibilities clearly defined;Effective use of management time during the review process;Integrated sy

21、stems in place with software to support on line reporting and analysis by operating management;Strong analytical support to decision making, by both finance departments and project teams;Efficient use of IT, to ensure

22、project managers receive timely and accurate information.,These are the a summary of the key business requirements which must be met to achieve Project Accounting objectives:,Project Accounting - Issues and Trends,,,Link

23、 with work management / resource scheduling,Trends,,Link with project management tool for financial and project reporting,,,Projects often will across financial / fiscal years, this can make year end accounting complica

24、ted,Issues,The trend is towards integrated systems / bespoke solutions tailored to meet sector specific needs,Propriety project management tools (eg PMW, MS Project) have only high level financial reporting, job and proj

25、ect costing modules have no progress reporting or planning functions - no good solution currently available. The trend is to integration and data warehousing,Independent "closing" or cleardown of project detail

26、s from fiscal year close in main financial ledgers,,Project Accounting - Projects Classifications,,Projects can be broadly defined as:Capital projects such as network building;Billing projects which are customer facing

27、 projects and result in the customer being invoiced during the life of the project or at the completion of the project.,Project Accounting - Level 0 Context Diagram,,,Project,Accounting,Employee Details,Capex / budget

28、s,ProjectAccounting,Fixed Assets,Purchasing,Human Resource,General ledger,Capitalised assets,Project details,Purchase Orders(commitments),Payables,Receivables,Invoices,Work management scheduling,Works orders and tasks

29、,Supplier invoices,Customers,Time information,,,,,,,,,,,,Contract details,Invoices & project details,External suppliers (eg sub-contractors),Program reporting,Milestone definition/ targets,,Budgeting & plannin

30、g,Time recording system,Inventory,,Goods booked out,,,Surplus items,Project Accounting - Level 1 Overview,,,Standing dataRequest,Budgeting proceduresAuthorisation procedureTechnical Policy / requirementsProject Ac

31、counting Policy,Management AccountantTechnical supportBudget holderProject owmer,PA structure,Achieve information,Authorisation rulesReporting rulesTechnical standardsPA procedures / templates,Management accountant

32、Project managersFinancial accountantBudget holder,Reports,Progress reports,Financial proceduresPA proceduresManagement feedbackTechnical Feed back,Authorised project,Communication and reporting guidelinesPA proce

33、duresManagement feedbackTechnical Feed back,Management accountantTechnical StaffProject ManagersAP systemPO systemTime recording system,Technical staff/operationsProject ManagersFinancial accountant,,Project aut

34、horisation documentation,Updated project details and costs,,Time and costs,,,Closed project,,Customer invoices,,Capitalised costs,,Status guidelinesNotification proceduresFA proceduresReview proceduresConsolidate pro

35、cedureReporting guidelinesReview ProceduresReporting & authorisation proceduresBudgeting proceduresClarify proceduresArchiving procedures,Management accountantProject managers/ownerDirectorsBudget HolderBil

36、ling systemFA accountant/systemAsset management system,Project Accounting - Appendix 1 : IDEF Process Flow,The diagram below provides a key to the process diagrams used in this document.,Process / activity,Controls,,(i