About Sub Contract Currency Handling

A sub contract can report costs to a project using a connected activity. This allows for seamless tracking and reporting of Planned, Committed, and Used costs.

If multi-currency is used on the sub contract, the contract currency is the default currency for the item. This can be changed to any currency code valid for the sub contract currency type. If a project activity is connected to the sub contract, a connection per currency code will be created in the project.

While the sub contract will report Planned, Committed, and Used costs throughout various stages of the contract, the used cost is reported by the vouchers created. When multiple currencies are involved, all calculations to reduce the committed cost when the used cost is reported are done in the transaction currency. The remaining committed cost is then converted to the base currency using the currency conversion rate valid on the system date and updated to the project activity.


Reported Cost - Multi-Currency Sub Contract to Project Activity

The example below illustrates how the sub contract reports costs to the connected project activity when multi-currency is involved.

Sub Contract

The Sub Contract, Revision and Items command or Sub Contract Revision and Items.

LineValue Contract CurrencyValue Company CurrencyItemCurrencyCurrency TypeValueValue in Contract Currency
Line 12400024000Item 1USD1 (1:8)10008000
Item 2USD1 (1:8)10008000
Item 3USD1 (1:8)10008000

Project Monitoring

View the cost progression in the Project Monitoring/Cost page.

Cost ElementPlanned CostEVPlanned Committed CostCommitted CostUsed CostProgress
S0124000     
Cost ElementPlanned CostEVPlanned Committed CostCommitted CostUsed CostProgress
S0124000 24000   
Cost ElementPlanned CostEVPlanned Committed CostCommitted CostUsed CostProgress
S0124000  24000  
Cost ElementPlanned CostEVPlanned Committed CostCommitted CostUsed CostProgress
S012400024000  24000100%


Reported Cost - Sub Contract to Project Activity

This table illustrates how costs are reported from the sub contract to the project activity at different stages.

Cost TypeEventValues ReportedCurrency TypeDate to Calculate Currency Rate
Planned CostSelect Report Planned Cost optionThe adjusted contract item value 

Item currency type

 

 

System date

 

Activate revisionThe adjusted contract item value, refreshed each time a revision is activated
Update planned costThe adjusted contract item value, refreshed each time a revision is activated
Planned Committed CostEnter call of valuesThe planned call off valuesItem currency typeCall off date
Committed CostRelease call offThe call off values of the released call offsItem currency typeSystem date
Receive applicationTotal Contract value of released call offs in transaction currency -  Cumulative Certified or Cumulative Application Received value of the maximum valuation in transaction currency
Certify valuationTotal Contract value of released call offs in transaction currency -  Cumulative Certified or Cumulative Application Received value of the maximum valuation in transaction currency
Amend committed costAmended call off values of the released call offs
Used CostReceive application for paymentBase currency values from the SCV vouchers are used.--
Certify valuationBase currency values from the SCV vouchers are used.
Actual CostUpdate GL vouchersBase currency values from the GL vouchers are used.--


Project Connection Refresh

When the Project Connection Refresh operation is performed, the cost is retrieved as described below. Cost elements will be retrieved from the posting control setup.

Cost TypeReported ValueCurrency TypeDate to Calculate Currency Rate
Planned CostIf an active revision exists use the stored base currency value 

-

 

 

-

 

If there is no active revision, but the Report Planned Cost option is enabled, use the stored base currency value
Committed CostIf no valuations exist use the released call off valuesItem currency typeSystem date
If a valuation exists:
Total Contract value of released call offs in transaction currency -  Cumulative Certified or Cumulative Application Received value of the maximum valuation in transaction currency
Used CostBase currency values from the SCV vouchers and I vouchers.--
Actual CostBase currency values from the GL vouchers are used.--