Project Cost Reporting and Multi-Currency Handling in Sub Contract Management

A sub contract can report cost to a project using a connected activity. It can report planned, planned committed, committed and used cost.

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

While the sub contract will report planned, planned committed and committed cost 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 base currency, using the currency conversion rate valid to the system date, and updated to the project activity.

The example below is about how the sub contract report cost to the connected project activity, when multi-currency is involved.

Default currency type: 1
Company currency: SEK
Sub contract item currency: USD
Contract currency: SEK

The Sub Contract/Items/Lines/Items tab:

Line Value Contract Currency Value Company Currency Item Currency Currency Type Value Value in Contract Currency
Line 1 24000 24000 Item 1 USD 1 (1:8) 1000 8000
Item 2 USD 1 (1:8) 1000 8000
Item 3 USD 1 (1:8) 1000 8000

The Project Activity/Cost tab,

After Activating the Revision:

Cost Element Planned Cost EV Planned Committed Cost Committed Cost Used Cost Progress
S01 24000          

After Entering a Call Off:

Cost Element Planned Cost EV Planned Committed Cost Committed Cost Used Cost Progress
S01 24000   24000      

After Releasing a Call Off:

Cost Element Planned Cost EV Planned Committed Cost Committed Cost Used Cost Progress
S01 24000     24000    

After Receiving an Application or Certifying the Valuation(100%):

Cost Element Planned Cost EV Planned Committed Cost Committed Cost Used Cost Progress
S01 24000 24000     24000 100%

Report Cost from Sub Contract to Project Activity

Cost Type Event Values Reported Currency Type Date to Calculate Currency Rate
Planned Cost Select Report Planned Cost check box The adjusted contract item value  

Item currency type

 

 

System date

 

Activate revision The adjusted contract item value, refreshed each time a revision is activated
Update planned cost The adjusted contract item value, refreshed each time a revision is activated
Planned Committed Cost Enter call of values The planned call off values Item currency type Call off date
Committed Cost Release call off The call off values of the released call offs Item currency type System date
Receive application Total Contract value of released call offs in transaction currency -  Cumulative Certified or Cumulative Application Received value of the maximum valuation in transaction currency
Certify valuation Total 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 cost Amended call off values of the released call offs
Used Cost Receive application for payment Base currency values from the SCV vouchers are used. - -
Certify valuation Base currency values from the SCV vouchers are used.
Actual Cost Update GL vouchers Base currency values from the GL vouchers are used. - -

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

Cost Type Reported Value Currency Type Date to Calculate Currency Rate
Planned Cost If an active revision exists use the stored base currency value  

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If there is no active revision, but the Report Planned Cost check box is selected, use the stored base currency value
Committed Cost If no valuations exist use the released call off values Item currency type System 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 Cost Base currency values from the SCV vouchers and I vouchers. - -
Actual Cost Base currency values from the GL vouchers are used. - -