About Cost, Hours and Revenue Reported to Activity

Costs, hours and revenue can be reported to an activity from a wide range of connected objects, e.g. Purchase Orders, Shop Orders, Work Orders, Sales Contracts, Document Packages, Tasks, Resources etc. (Refer About Activity Connections for a complete list of objects). As the connected object is planned and executed, values of cost, hours and revenue is reported back to the activity.

The cost and revenue values will always be reported from the connected objects in base and transaction currency. If multi-currency and/or project currency have been enabled for Budgeting and Forecasting purposes for the project, then cost and revenue will also be reported in base currency using the fixed Budgeting and Forecasting rate and/or the project currency. The values are displayed in base currency in all pages where cost and revenue are available, while the other currencies are displayed only in the Project Connections page.

Note: This document explains how different objects report cost, hours or revenue to an activity, refer the tables below for detailed information about each object. For information on how connected objects retrieve progress and earned value, refe About Earned Value and Progress.

Cost/Hours

Connected objects can report cost and hours information to the activity. The type of information retrieved depends on the connected object. The information is reported using the project cost elements that are defined for the connected object. The cost/hours information can be viewed for each activity in the Cost and Hours tabs in the Activity Monitoring page. It is also possible to view cost/hours per sub project or for the whole project in the Sub Project Monitoring and Project Monitoring pages respectively. In the Activity Monitoring page it is possible to view detailed information about the connected objects.

The possible stages of cost/hours values are:

• Estimated
  Estimated values represent the approximate values of cost or hours before the planning phase of the activity is carried out. Estimates are manually entered in the Estimates tab.
  
• Planned
  Planned values represent the current budget which is valid for the activity. Planned values are retrieved from various connected objects, for example, you can use tasks or document packages to define planned values, and these values will be summarized and displayed in the Planned columns. The values in the planned columns will be updated immediately when you change, add or remove objects that report planned cost/hours to the activity. You can also retrieve planned costs and hours from other sources by selecting a relevant Planned Cost Driver for the activity.
  
• Baseline
  Baseline values represent the current approved budget which is valid for the activity. Use this column to keep track of the original approved plan, with or without approved scope changes. After a baseline has been created for a project the values entered in the Planned fields will be copied to the Baseline columns. If the planned values are changed thereafter, another baseline will have to be created for the new planned values to be reflected in the Baseline columns.
  
• Planned Committed
  Planned committed values are the sum of cost or hours from connected purchase requisitions lines, purchase order lines, shop order requisition lines and shop order lines that have not been released yet.
  
• Committed
  Committed values are the sum of remaining costs/hours reserved or ordered by the objects connected to the activity. The total Committed value is reported first when the object reaches a status which commits its values (i.e. Released status on a Purchase Order) and decreases as Used values are reported from each connected object. For a connected purchase order, the committed value will be based on the remaining quantity to be received. For a connected shop order, the committed cost of material will be based on the quantity remaining to be issued, and the committed cost of work and hours will be based on the status and progress of the operation.
  
• Used
  Used values are the sum of costs/hours that have been used, as reported from each connected object. Used cost/hours are reported from the transactions (Inventory, Purchase, Operation or Project) created by the object until these are transferred to IFS/Accounting Rules and the corresponding voucher is created. Once a transaction receives the Transferred status it will stop reporting Used Cost/Hours and the voucher will report the Used Cost/Hours instead. Voucher rows that are created and pre-posted with the Project and Activity Sequence will always report Used cost. The utilized hours will be displayed in the Actual Hours field.
  
• Actual
  Actual cost is the sum of costs that have actually been used and is reported from the General Ledger (through General Ledger Voucher Row). Actual hours are the hours that have been reported as used, from each object.
  

Revenue

Connected objects can report revenue information to the activity. The type of information retrieved depends on the connected object. The information is reported using the project revenue elements that are defined for the connected object. The revenue information can be viewed for each activity in the Revenue tab in the Activity Monitoring page. It is also possible to view revenue per sub project or for the whole project in the Sub Project Monitoring and Project Monitoring pages respectively. In the Activity Monitoring page it is possible to view detailed information about the connected objects

The possible stages of revenue values are:

• Estimated
  Estimated revenue is a speculated approximate amount of revenue that is expected to be generated from the activity. This value is entered before the activity has been properly planned. Estimates are manually entered in the Estimates tab.
  
• Planned
  Planned revenue represents either the budgeted values from an object (e.g. Invoicing Plan or Sales Contract Lines) or values generated through cost objects (e.g. Project Transactions) which have a sales price. The value in the Planned columns will be updated immediately when you change, add or remove objects that report planned revenue to the activity.
  
• Preliminary
  Preliminary revenue is always generated from a preliminary invoice.
  
• Posted
  Posted revenue is always generated from a Hold Table Voucher.
  
• Actual
  Actual revenue is always generated from a General Ledger Voucher and will also replace the value in the posted column.

Reporting

The following tables show how the different objects report cost, hours or revenue information to the activity. Any object which reports any type of cost, hours and revenue to projects will report these values on a cost/revenue element.

Cost/Hours

The Planned Cost Driver determines from where the Planned Cost and Planned Hours are retrieved. When the Planned Cost Driver for the activity is:

• Connected Objects - The planned cost and hours of the activity are retrieved from the objects that are connected to the activity as described in the table below, excluding values from Activity Estimates.
• Estimated Cost - The planned cost and hours of the activity are retrieved only from Activity Estimates. Values other than Planned are retrieved according to the table below.
• Activity Resources - The planned cost and hours of the activity are retrieved only from the resources allocated to the activity. Values other than Planned are retrieved according to the table below.

The objects report cost/hours to the activity as follows:

Note:

• All objects that report planned cost or hours will also contribute to Baseline costs and hours when a baseline is set for the project. The Baseline values are copied from the Planned values.

When the Purchase Order for a Part/No Part has been released. The committed values will be held by the purchase order line object.

Object		Values Reported
		Estimated	Planned	Planned Committed	Committed	Used	Actual
Activity Estimates	Activity Estimate	Values are taken from the Estimated Cost or Estimated Hours field in the Activity Scope and Schedule/Estimates tab
	Compatible Unit	Estimated Revision slider switch must be enabled.
Project Tasks			Values are taken from the Planned Cost or Planned Hours field in Tasks tab.
Activity Resources			Values are taken from the Planned Cost and Planned Hours fields in the Activity Resource Planning/Planning tab. The values are calculated based on the cost associated with the Resource and are updated when planned hours are entered.
Document Package			Values are taken from the Cost and Hours fields in the Document Package page.
Change Order			Values are taken from the Planned Cost and Planned Hours fields in Change Order Actions page.
Design Object			Values are taken from the Total Planned Cost and Total Planned Hours fields on the Design Object Project Connections page.
Project Miscellaneous Demand	Supply Option: Purchasing		For a Purchase Part/No Part/Inventory Part requirement line the cost is taken from the Planned Cost field in Planned Cost/Hours per Cost Element assistant (Cost Elements option from the command menu) and summed up to the Total Planned Cost field. Planned Cost is retrieved in the following order: 1) Expected Supplier Price per Unit, 2) Costing, 3) Inventory Value, 4) Estimated Cost. For a Purchase Part/Inventory Part requirement line the hours are taken from the Planned Hours field in the Planned Cost/Hours per Cost Element assistant (Cost Elements option from the command menu) and summed up to the Hours Planned field. Hours of Purchase No Part requirement line will follow the same method as above and will not be summed up.
	Supply Option: Shop Order		The values are calculated based on part costing, depending on the posting control setup. Cost set 1 values should exist in part costing in order to get the project planned cost. Cost of the non-standard planned components are excluded from the planned cost. Non-Std Planned items must be entered separately on the Miscellaneous Demand line for both cost and hours. Hours are taken from the routing defined for the shop order in Shop Order Operations page.
	Supply Option: PMRP and DOP		The values are calculated based on part costing, depending on the posting control setup. Cost set 1 values should exist in part costing in order to get the project planned cost.These supply options use the full BOM (Bill of Material) costing for creating planned values.
Project Miscellaneous Demand (Direct Issue from Inventory)			When a miscellaneous demand for a part is entered.			When items are issued from standard inventory, or from project inventory (depending on the Material Allocation flag on the project). The cost is updated by the Inventory value.	When the voucher created upon transfer of transaction has been updated in General Ledger.
Project Miscellaneous Demand (Rental Charging)			For a rental part requirement line, the cost is taken from the Planned Cost field in Planned Cost/Hours per Cost Element assistant (Cost Elements option from the command menu) and summed up to the Total Planned Cost field. Planned cost is retrieved in the following order: 1) Expected Supplier Price per Unit, 2) Costing, 3) Inventory Value, 4) Estimated Cost. The expected supplier price per unit is only used as the planned cost and is not transferred to the purchase requisition. The order quotation functionality is not supported for miscellaneous rental parts.	When release the PR & create the PO, Planned Committed Cost will transfer to Purchase Order Line Part.	When release the PO.	When rental events and rental transactions have been generated.	When the voucher created upon transfer of transaction has been updated in General Ledger.
Forecast Demand			Purchase Part: For a Purchase Part/Inventory Part requirement line the cost is calculated the same way it is done for Misc Demand/Misc Part. Planned Cost is retrieved in the following order: 1) Expected Supplier Price per Unit 2) Costing 3) Inventory Value 4) Estimated Cost and is saved in the Activity Materials and Services page. Manufacturing Part: For a Manufactured Part the cost is calculated the same way it is done for Misc Demand/Shop Order. If the structure contains other forecasted parts, these will not be included in the planned value. They will have to be entered separately. The values are saved in the Activity Materials and Services page.
Compatible Unit Execution Item		Estimates from the Compatible Unit is reported to Activity Estimate object connection.	Planning is done on the Execution Item in the Compatible Unit Navigator. The Compatible Unit must be Released to give planned cost to the activity. Execution of the planned work is done from the Work Order. When the Work Order planning originates from a Compatible Unit, the Report Planned Cost slider switch on the Work Order is not enabled. In the Compatible Unit Navigator/Work List/Resources tab enter a line for a resource of type Person or Tool/Equipment, that has a cost rate defined. In the Compatible Unit Navigator/Work List/Materials tab create a line for a Part and specify the quantity required. This is for parts with the supply code Invent Order and Project Inventory. For non Inventory Purchase Parts: In the Compatible Unit Navigator/Work List/No Part Requisition tab create a line for a non Inventory Part/No Part and specify the units required.
Compatible Unit Procurement Activity			Planning is done on the Execution Item in the Compatible Unit Navigator. The Compatible Unit must be Released to give planned cost to the activity. The procurement process that follows is done via PMRP. In the Compatible Unit Navigator/Work List/Materials tab create a line for a Part and specify the quantity required. This is for parts with the supply code Project Inventory.
Work Order			In the Work Task/Resources/Demands section enter a line and select the demand type; Persons or Tool/Equipment. Enter a resource group and/or a resource that has a cost rate defined. The resource must be defined as a Maintenance resource. The planned values will be held by the work order object. In the Work Task/Material tab create a material requsition line for a Part and specify the quantity required. The supply code can be set to Invent Order or Project Inventory. For supply code: Inventory Order, the planned cost is taken as the Inventory value. The demand will be included in the MRP demand/supply calculation. For supply code: Project Inventory, the supplier price is taken as the planned cost for the demand as it will be procurred through the project. The demand will be included in the PMRP demand/supply calculation. The planned values will be held by the work order object. In the Prepare Work Order/Planning tab create a line for either cost type External or Expenses and specify the quantity and cost required. The planned values are held by the work order object. In the Work Task/Material tab create a line for a Part/No Part and specify the quantity required. Supplier price is taken as the planned value. The planned values will be held by the purchase requisition object.	When the purchase requsition line is added for a Part/No Part. The planned committed cost is reported by the purchase requisition line object. Note: when a Purchase Order is created from the Purchase Requsition, the reporting of planned committed cost is  inherited to the purchase order line. When the purchase order line is created for the Part/No Part and it is in Planned status.The planned committed cost is reported by the purchase order line object.	When releasing the Work Order, the work order object reports committed cost and hours for resources (Persons, Tool/Equpiment) and committed cost for External, Expenses and Material Requsition Lines with supply code Invent Order.	Report time on the operations in Work Task/Time Reports tab. When time is reported for a resource of type Person in the Work Task/Time Reports tab. Used Cost is reported by the work order object. When time is reported for a resource of type Tool/Equipment in the Work Task/Time Reports tab. Used Cost is reported by the work order object. When cost is reported reported for External and Expenses in the Work Task/Costs tab. Used Cost is reported by the work order object. When material with the supply code Invent Order is Issued in the Work Task/Materials tab. Used Cost is reported by the work order object. When the Purchase Order Line for a Part/No Part has been received. Used Cost is reported by the purchase order line object. When the Purchase Order is matched with Manual Supplier Invoice, the Used Cost is updated by the voucher created when invoice is Posted.	When time is reported for a resource of type Person in the Work Task/Time Reports tab. Used/Actual hours is reported by the work order object. When hours is reported for a resource of type Tool/Equipment in the Work Task/Time Reports tab. Used/Actual hours is reported by the work order object.
Planning Item			Value is taken from the Project Deliverables Design /Cost/Hours tab.			Issue some standard planned items from Inventory to update.
Customer Order Line			Cost and hours are retrieved from the connected objects, depending on the supply option. Sales Overhead is retrieved from the sales overhead cost calculated for part in Part Cost.		Updated by subsequent supply orders when they are released. Sales Overhead cost is retrieved from Part Cost.	Updated by subsequent supply orders when they are further processed – refer to the relevant object type in this table.
Purchase Requisition Line Part (or No Part)				When a PR line is added for a Part/No Part/Rental Part and then released.
Purchase Order Line Part/ No Part/ Rental Part				When a PO line is created for the Purchase Part/No Part/Rental Part and is in Planned status.	When the order for a Purchase Part/No Part/Rental Part has been released.	When the order for a Purchase Part/No Part has been received. When rental events and rental transactions have been generated for the Rental Part.	When the voucher created upon transfer of transaction has been updated in General Ledger.
Purchase Order Change Order Part (or No Part)				The delta (in value) between the current purchase order and the active change order (includes statuses Planned, Released, Authorized) for Part/No Part/Rental Part.			When the voucher created upon transfer of transaction has been updated in General Ledger.
Shop Order Requisition				When a shop order requisition line is added for a part through Project Material Requirements Planning (PMRP) or Project Master Scheduling (Project MS)
Shop Order				When the shop order is in Planned state. Values are taken from the Planned Cost field in the Shop Orders Project Cost Analysis page.	When the Shop Order is released. Values related to operations are taken from the routing defined for the shop order (Shop Order Operation page) When the Shop Order is released. Values related to material are taken from the Shop Order components and Shop Order Costing (Shop Order Costs page) When the Shop Order is released. Values related to Subcontracting are taken from the Shop Order routing and Shop Order Costing. When the Shop Order is released. Overhead values will be taken if General Overheads are defined in Part Cost tab.	Hours are updated when reporting time on the Shop Order. Updated when reporting time and issuing material to the Shop Order.	When the voucher created upon transfer of transaction has been updated in General Ledger.
DOP Header					Reported from connected DOP orders (SO, PO) through the DOP Header.	When hours are Reported from connected DOP orders supply (SO, PO) through the DOP header. Reported from connected DOP order supply (SO, PO) when it is further processed through the DOP Header; refer to the relevant object type in this table. Note! When Transactions have been transferred the used costs are displayed under the voucher rows connections instead of under the DOP header connection.	Reported from connected DOP orders supply (SO, PO) when it is further processed all the way when voucher created upon transfer of related transactions have been updated in General Ledger. through the DOP header; refer to the relevant object type in this table. Note! When Update GL Vouchers has been run the actual costs are displayed under the General Ledger Voucher Row connections.
Material Requisition Line					When the part is Reserved. For parts with Supply Code = Inventory Order.	When the part is Issued. For parts with Supply Code = Inventory Order.	When the voucher created upon transfer of transaction has been updated in General Ledger.
Project Transaction (Time Reporting)					When time is reported on an activity.	When the transactions are confirmed and the value in the Create Cost Accounting field of the Report Code is either Yes or No, Update Project Cost.	When the voucher created upon transfer of transaction has been updated in General Ledger.
Project Transaction (Cost Reporting)						When cost is registered in the Project Time and Cost Registration page.	When the voucher created upon transfer of transaction has been updated in General Ledger.
Project Inventory Transfer						When the quantity has been transferred from one project inventory to the present project inventory; the original project inventory decreases in cost.	When the voucher created upon transfer of transaction has been updated in General Ledger.
Sub Contract Project (Sub Contract)			Planned cost is reported before activating the revision when selecting the Report Planned Cost slider switch, and is updated when selecting Update Planned Cost menu option. The planned cost is reported automatically when the revision is activated.	Planned committed cost is reported when call off values are entered on the sub contract. Planned call off amount is equal to the planned committed cost.	Committed cost is reported when the call off is released.
Voucher Row						When voucher rows are created that report cost to a project activity. Examples:   When a manual voucher is created that reports cost to the project. When vouchers are created for different transactions, they replace the Used value reported from the originating transactions, e.g. inventory transactions that become MPL vouchers. When a supplier invoice is posted with a Project Id. When receiving and certifying a sub contract valuation.
General Ledger Voucher Row							When vouchers rows that report cost to project activities have been updated to General Ledger.

Note:

• All objects that report planned cost or hours will also contribute to Baseline costs and hours when a baseline is set for the project. The Baseline values are copied from the Planned values.

Cost and hours will be as follows for different supply options in Customer orders.

Supply Code	Planned	Planned Committed	Committed	Used
Inventory Order	Planned cost is retrieved in following hierarchy: 1. Cost set 1 values from IFS Costing. 2. Inventory value of the inventory part. 3. Estimated material cost of the inventory part. If a Sales Overhead is defined in Part Cost page for the particular part, it is also included in planned cost. Cost is reported through the connected Customer Order line.		Updated when subsequent supply orders are released. Cost for the Sales Overhead is reported under Customer Order to the connected activity.	Till delivery transactions are transferred, used cost is reported under Customer Order to the connected activity. After transferring transactions, used cost is reported under respective voucher rows.
Project Inventory	For manufacturing parts, cost is retrieved from part costing where as for purchased parts as in Purchase order Direct (inventory). If a Sales Overhead is defined in Part Cost page for the particular part, it is also included in planned cost. Cost is reported under Customer Order to the connected activity.		Updated when subsequent supply orders are released. Cost for the Sales Overhead is reported under Customer Order to the connected activity.	Till delivery transactions are transferred, used cost from Sales Overhead is reported under Customer Order to the connected activity. After transferring transactions, used cost is reported under respective voucher rows.
Purchase Order Direct (inventory)	Planned cost is retrieved in the following order of priority: 1. Price from Supplier agreement. 2. From price list tab in supplier for purchase part page. 3. Price per part from supplier for purchase part. 4. Cost set 1 values from IFS Costing. 5. Inventory value of the inventory part. 6. Estimated material cost of inventory part. If a Sales Overhead is defined in Part Cost page for the particular part, it is also included in planned cost. Cost is reported under Customer Order to the connected activity.	When order is created for the Purchase Part and is in the Planned status. Cost is reported under Pur Req / Pur Order to the connected activity.	When order for a Purchase Part has been released. Cost for the Purchase Order is reported under Pur Order to the connected activity. Cost for the Sales Overhead is reported under Customer Order to the connected activity.	Till delivery transactions are transferred, used cost is reported under Customer Order to the connected activity. After transferring transactions, used cost is reported under respective voucher rows.
Int. Purchase Order Direct 1 (inventory)	Planned cost is retrieved in the following order of priority: 1. Price from Supplier agreement. 2. From price list tab in supplier for purchase part page. 3. Price per part from supplier for purchase part. 4. Cost set 1 values from IFS Costing. 5. Inventory value of the inventory part. 6. Estimated material cost of inventory part. If a Sales Overhead is defined in Part Cost page for the particular part, it is also included in planned cost. Cost is reported under Customer Order to the connected activity.	When order is created for the Purchase Part and is in the Planned status. Cost is reported under Pur Req / Pur Order to the connected activity.	When order for a Purchase Part has been released. Cost for the Purchase Order is reported under Pur Order to the connected activity. Cost for the Sales Overhead is reported under Customer Order to the connected activity.	Till delivery transactions are transferred, used cost is reported under Customer Order to the connected activity. After transferring transactions, used cost is reported under respective voucher rows.
Int. Purchase Order Direct 2 Alt 3 (inventory)	Planned cost is retrieved in following hierarchy: 1.Cost set 1 values from IFS Costing. 2. Inventory value of the inventory part. 3. Estimated material cost of inventory part. If a Sales Over Head is defined in Part Cost page for the particular part, it is also included in planned cost. Cost is reported under Customer Order to the connected activity.	When order is created for the Purchase Part and is in the Planned status. Cost is reported under Pur Req / Pur Order to the connected activity.	When order for a Purchase Part has been released. Cost for the Purchase Order is reported under Pur Order to the connected activity. Cost for the Sales Overhead is reported under Customer Order to the connected activity.	Till delivery transactions are transferred, used cost is reported under Customer Order to the connected activity. After transferring transactions, used cost is reported under respective voucher rows.
Non-Inventory	Planed cost is retrieved from Cost field in Non- Inventory Sales Part page Cost is reported under Customer Order to the connected activity.		Updated when subsequent supply orders are released.	Till delivery transactions are transferred, used cost is reported under Customer Order to the connected activity. After transferring transactions, used cost is reported under respective voucher rows.
Project	No planned cost reported.	No planned committed cost reported.	No committed cost reported.	No planned cost reported.
Purchase Order Direct (non-inv)	Planned cost is retrieved in the following order of priority: 1. Price from Supplier agreement. 2. From Price List tab in Supplier for Purchase Part page. 3. Price per part from Supplier for Purchase Part page. Cost is reported under Customer Order to the connected activity.	When order is created for the No Part and is in the Planned status. Cost is reported under Pur Req / Pur Order to the connected activity.	When order for a No Part has been released. Cost for the Purchase Order is reported under Pur Order to the connected activity.	Till arrival transactions are transferred, used cost is reported under Customer Order to the connected activity. After transferring transactions, used cost is reported under respective voucher rows.
Int. Purchase Order Direct 1 (non-inv)	Planned cost is retrieved in the following order of priority: 1. Price from Supplier agreement. 2. From price list tab in Supplier for Purchase Part page. 3. Price per part from Supplier for Purchase Part page. Cost is reported under Customer Order to the connected activity.	When order is created for the No Part and is in the Planned status. Cost is reported under Pur Req / Pur Order to the connected activity.	When order for the No Part has been released. Cost for the Purchase Order is reported under Pur Order to the connected activity.	Till arrival transactions are transferred, used cost is reported under Customer Order to the connected activity. After transferring transactions, used cost is reported under respective voucher rows.
Int. Purchase Order Direct 2 Alt 2(non-inv)	Planned cost is retrieved in the following order of priority: 1. Price from Supplier agreement. 2. From Price List tab in Supplier for Purchase Part page. 3. Price per part from Supplier for Purchase Part page. Cost is reported under Customer Order to the connected activity.	When order is created for the No Part and is in the Planned status. Cost is reported under Pur Req / Pur Order to the connected activity.	When order for a No Part has been released. Cost for the Purchase Order is reported under Pur Order to the connected activity.	Till delivery transactions are transferred, used cost is reported under Customer Order to the connected activity. After transferring transactions, used cost is reported under respective voucher rows.
Shop Order	Planed cost is retrieved from Cost set 1 values of IFS Costing. If a Sales Overhead is defined in Part Cost page for the particular part, it is also included in planned cost. Cost is reported under Customer Order to the connected activity.	When the shop order is in Planned state. Values are taken from the Planned Cost field in the Shop Orders Project Cost Analysis page.	When the shop order is in released state.	Till delivery transactions are transferred, used cost from Sales Overhead is reported under Customer Order to the connected activity. After transferring transactions, used cost is reported under respective voucher rows. Used Cost incurred in shop order is reported as a typical shop order.
DOP Order	Planed cost is retrieved from Cost set 1 values of IFS Costing. If a Sales Overhead is defined in Part Cost page for the particular part, it is also included in planned cost. Cost is reported under Customer Order to the connected activity.		When the DOP order is in released state.	Till delivery transactions are transferred, used cost from Sales Overhead is reported under Customer Order to the connected activity. After transferring transactions, used cost is reported under respective voucher rows. Used Cost incurred in DOP is reported as a typical DOP.
Purchase Order Transit (inventory)	Planned cost is retrieved in the following order of priority: 1. Price from Supplier agreement. 2. From Price List tab in Supplier for Purchase Part page. 3. Price per part from Supplier for Purchase Part page. 4. Cost set 1 values from IFS Costing. 5. Inventory value of the inventory part. 6. Estimated material cost of inventory part. If a Sales Overhead is defined in Part Cost page for the particular part, it is also included in planed cost. Cost is reported under Customer Order to the connected activity.	When order is created for the Purchase Part and is in the Planned status. Cost is reported under Pur Req / Pur Order to the connected activity.	When order for a Purchase Part has been released. Cost for the Purchase Order is reported under Pur Order to the connected activity. Cost for the Sales Overhead is reported under Customer Order to the connected activity.	Till delivery transactions are transferred, used cost from Sales Overhead is reported under Customer Order to the connected activity. After transferring transactions, used cost is reported under respective voucher rows. Same as Sales Overhead, used cost from Purchase order is reported under Pur Order to the connected activity till arrival transactions are transferred. After transferring, used cost is reported under respective voucher rows.
Int. Purch Order Trans 1 (inventory)	Planned cost is retrieved in the following order of priority: 1. Price from Supplier agreement. 2. From Price List tab in Supplier for Purchase Part page. 3. Price per part from Supplier for Purchase Part page. 4. Cost set 1 values from IFS Costing. 5. Inventory value of the inventory part. 6. Estimated material cost of inventory part. If a Sales Overhead is defined in Part Cost page for the particular part, it is also included in planned cost. Cost is reported under Customer Order to the connected activity.	When order is created for the Purchase Part and is in the Planned status. Cost is reported under Pur Req / Pur Order to the connected activity.	When order for a Purchase Part has been released. Cost for the Purchase Order is reported under Pur Order to the connected activity. Cost for the Sales Overhead is reported under Customer Order to the connected activity.	Till delivery transactions are transferred, used cost from Sales Overhead is reported under Customer Order to the connected activity. After transferring transactions, used cost is reported under respective voucher rows. Same as Sales Overhead, used cost from Purchase order is reported under Pur Order to the connected activity till arrival transactions are transferred. After transferring, used cost is reported under respective voucher rows.
Int. Purch Order Trans 2 Alt 3(inventory)	Planned cost is retrieved in following hierarchy: 1.Cost set 1 values from IFS Costing. 2. Inventory value of the inventory part. 3. Estimated material cost of inventory part. If a Sales Overhead is defined in Part Cost page for the particular part, it is also included in planned cost. Cost is reported under Customer Order to the connected activity.	When order is created for the Purchase Part and is in the Planned status. Cost is reported under Pur Req / Pur Order to the connected activity.	When order for the Purchase Part has been released. Cost for the Purchase Order is reported under Pur Req/Pur Order to the connected activity. Cost for the Sales Overhead is reported under Customer Order to the connected activity.	Till delivery transactions are transferred, used cost from Sales Overhead is reported under Customer Order to the connected activity. After transferring transactions, used cost is reported under respective voucher rows. Same as Sales Overhead, used cost from Purchase order is reported under Pur Order to the connected activity till delivery transactions are transferred. After transferring, used cost is reported under respective voucher rows.
Purchase Order Transit (non-inv)	Planned cost is retrieved in the following order of priority: 1. Price from Supplier agreement. 2. From price list tab in Supplier for Purchase Part page. 3. Price per part from Supplier for Purchase Part page. Cost is reported under Customer Order to the connected activity.	When order is created for the No Part and is in the Planned status. Cost is reported under Pur Req / Pur Order to the connected activity.	When order for a No Part has been released. Cost for the Purchase Order is reported under Pur Order to the connected activity.	Till arrival transactions are transferred, used cost is reported under Pur Order to the connected activity. After transferring transactions, used cost is reported under respective voucher rows.
Int. Purch Order Trans 1 (non-inv)	Planned cost is retrieved in the following order of priority: 1. Price from Supplier agreement. 2. From Price List tab in Supplier for Purchase Part page. 3. Price per part from Supplier for Purchase Part page. Cost is reported under Customer Order to the connected activity.	When order is created for the No Part and is in the Planned status. Cost is reported under Pur Req / Pur Order to the connected activity.	When order for a No Part has been released. Cost for the Purchase Order is reported under Pur Order to the connected activity.	Till arrival transactions are transferred, used cost is reported under Pur Order to the connected activity. After transferring transactions, used cost is reported under respective voucher rows.
Int. Purch Order Trans 2 Alt 2 (non-inv)	Planned cost is retrieved in the following order of priority: 1. Price from Supplier agreement. 2. From Price List tab in Supplier for Purchase Part page. 3. Price per part from Supplier for Purchase Part page. Cost is reported under Customer Order to the connected activity.	When order is created for the No Part and is in the Planned status. Cost is reported under Pur Req / Pur Order to the connected activity.	When order for a No Part has been released. Cost for the Purchase Order is reported under Pur Order to the connected activity.	Till arrival transactions are transferred, used cost is reported under Pur Order to the connected activity. After transferring transactions, used cost is reported under respective voucher rows.
Not Decided (Inv)	Planed cost is retrieved in following hierarchy: 1.Cost set 1 values from IFS Costing. 2. Inventory value of the inventory part. 3. Estimated material cost of inventory part. If a Sales Overhead is defined in Part Cost page for the particular part, it is also included in planned cost. Cost is reported under Customer Order to the connected activity.		Updated when subsequent supply orders are released. Cost for the Sales Overhead is reported under Customer Order to the connected activity.	N/A
Not Decided (Non-Inv)	Planned cost is retrieved from Cost field in Non- Inventory Sales Part page. Cost is reported under Customer Order to the connected activity.		Updated when subsequent supply orders are released.	N/A

 

Revenue

Updating of revenue on objects is performed against project revenue elements. Revenue objects do not report progress. The objects report revenue to the activity as follows:

Revenue Object	Values Reported
	Estimated	Planned	Preliminary	Posted	Actual
Activity Estimate	Retrieved from the Estimated Revenue field in the Activity Scope and Schedule/Estimates tab.
Sales Contract Project (Sales Contract and Application for Payment)		Retrieved from Sales Contract Line Items that have the Active revision status. The Report Planned Revenue slider switch can be used to view the previously planned revenue.
Work Order		When the Work Order Line is transferred to a Customer Order Line.
Customer Order Line Revenue		When a Customer Order Line or Customer Order Rental Line is connected to an activity.
Customer Order Invoice Line			When a Customer Order Invoice is created.
Invoicing Plan		When the Invoicing Plan Line is created with the Sales Amount.
Project Transaction Revenue		When a Project Transaction is entered which can be invoiced and has a Sales Price.
Invoice Posting Row (Project Invoice) (Instant Invoice) (Customer Invoice)			When the Project/Instant/Customer Invoice is saved.
External Invoice Posting Row (External Customer Invoice)			When the External Customer Invoice is loaded.
Voucher Row				When Hold table voucher rows are created that report revenue to project activities, for example: When a manual voucher is created that reports revenue to the project. When submitting and certifying a sales contract application for payment. When the Customer Order Invoice is posted. When the Project/Instant/Customer Invoice is posted. When the External Customer Invoice is posted.
General Ledger Voucher Row					When Hold table vouchers rows that report revenue to project activities are updated to General Ledger.

 

A Step by step example on how important activity fields are used:

For this example we work on a project containing only one activity called "Specify and purchase engine for winch". In order to complete this activity some engineers have to do a detailed specification of which engine to buy, and later the purchase department is involved in the communication with the selected supplier. The planned cost driver for all of the objects is Connected Objects, except for the Activity Resources object, for which the planned cost driver is Activity Resources. The progress method is Connected objects.

Step 1

• Create the activity: A 01 – Specify and purchase electrical engine, Start date: 3 of July, End date: 28 of July, with number of workdays as 20.
• Enter estimated values for the activity. We estimate to buy the engine components for $100,000 and use 30 hours at a cost of $3000 for the specification.

Project Cost Element	Estimated Cost	Estimated Hours
Material	100,000
Work	3,000	30
Sum	103,000	30

Step 2

• Create and connect a document package with two documents; one drawing and one technical specification. Planned hours are 17 + 15 = 32. The cost is $100 per hour. We register the documents, but no progress is accomplished yet.

Now we get the following results:

Project Cost Element	Estimated Cost	Planned Cost	Estimated Hours	Planned Hours
Material	100,000
Work	3,000	3,200	30	32
Sum	103,000	3,200	30	32

Step 3

• One of our clever engineers have now started on both documents, and according to the milestones selected on the document package lines we have a progress of 50%. By reporting the progress we will get a value in the Earned Value column which indicates the work performed for this activity. Earned Value is equal to the progress of document package lines multiplied with the respective planned costs/hours.
• The Scheduled Work column indicates how much of the work that should have been performed if we do the same amount of work every day. We have now reached the 10 of July which means that we have spent one quarter (5 out of 20 days) of the scheduled days.
• If the engine for winch has a structure in IFS/Project Delivery, the part costs will show in Planned Material.

Now we get the following results:

Project Cost Element	Estimated Cost	Planned Cost	Earned Value - Cost	Scheduled Work - Cost	Estimated Hours	Planned Hours	Earned Value - Hours	Scheduled Work - Hours
Material	100,000
Work	3,000	3,200	1,600	800	30	32	16	8
Sum	103,000	3,200	1,600	800	30	32	16	8

Step 4

• The specifications are now getting reasonably detailed to get a more exact price offer from the suppliers. On the 10th of July we also create a purchase order, and luckily the supplier seems to be able to sell us the equipment for $90,000 (10 pcs each at $9000). When the purchase order is created the Planned Committed cost will be updated and when it is released we’ll get the order value entered as Committed Material. When we release the order we have made an obligation to pay, and therefore the Committed column will have a value. We confirm the purchase order.
• Meanwhile the document package is completed, i.e. Progress for Work cost element is 100%.The overall Calculated Hours Progress will now be 100% as well. The Earned Value Hours will also indicate that the work is completed. The overall Calculated Cost Progress will be 3.4%, (The formula is Total EV cost/ Total Planned cost: 3,200/ 93,200) since only the document package has any progress at this time.

Now we get the following results:

Project Cost Element	Estimated Cost	Planned Cost	Earned Value - Cost	Scheduled Work - Cost	Committed Cost	Estimated Hours	Planned Hours	Earned Value - Hours	Scheduled Work - Hours
Material	100,000	90,000		22,500	90,000
Work	3,000	3,200	3,200	800		30	32	32	8
Sum	103,000	93,200	3,200	23,300	90,000	30	32	32	8

Step 5

• At the end of the week everyone reports their time in IFS/Project Reporting, and we will now get actual hours for the work done in the activity. We get the work cost for this reported through the project cost element defined for the Resource Group. This work costs $90 per hour. In total 10 hours are reported on this activity by two persons.
• The elapsed time of the activity is now 10 days which influences the values in the Scheduled Work column.

Now we get the following results:

Project Cost Element	Estimated Cost	Planned Cost	Earned Value - Cost	Scheduled Work - Cost	Committed Cost	Used Cost	Actual Cost
Material	100,000	90,000		45,000	90,000
Work	3,000	3,200	3,200	1,600		900
Sum	103,000	93,200	3,200	46,600	90,000	900

Project Cost Element	Estimated Hours	Planned Hours	Earned Value - Hours	Scheduled Work - Hours	Used/Actual Hours
Material
Work	30	32	32	16	10
Sum	30	32	32	16	10

Step 6

• We have now passed the end date of the activity, but the purchase is not yet completed. We have received half of the parts into Arrival. Therefore the Progress for the Purchase Order will be 50%. The Earned Value for the Purchase Order will be (50%90,000)*45,000. The Calculated Cost Progress for the activity will be 51.7% (Formula: Total Earned Value Cost/ Total Planned Cost: 48,200/ 93,200).
• As we have passed the end date the values in Scheduled Work is equal to the values in Planned.
• We have transferred half the values of the inventory transactions to General Ledger, i.e. 22,500. We have also transferred the project reporting transactions. The actual values are fetched from the General Ledger vouchers, and are displayed in the Actual column. The value here will be 50% of the Used Material cost + the Used work cost.
• The actual number of hours reported is only 25.

Now we get the following results:

Project Cost Element	Estimated Cost	Planned Cost	Earned Value - Cost	Scheduled Work - Cost	Committed Cost	Used Cost	Actual Cost
Material	100,000	90,000	45,000	90,000	45,000	45,000	22,500
Work	3,000	3,200	3,200	3,200		2,250	2,250
Sum	103,000	93,200	48,200	93,200	45,000	47,250	24,750

Project Cost Element	Estimated Hours	Planned Hours	Earned Value - Hours	Scheduled Work - Hours	Committed Hours	Used/Actual Hours
Material
Work	30	32	32	32		25
Sum	30	32	32	32		25