FINANCE INTEGRATION WITH PROJECTS – (COST COMPONENTS)


Post Integration Transactions to Finance Transactions (tfgld4201m000)

The Integration Transactions being defined for Cost and Commitments Accounts in the session Maintain Cost and Commitments Accounts by Cost Type (tpprc2122m000) is not picking up the Cost Component which is defined in the session Maintain Costs (tpppc2131m000) for all the Cost Types.

These Cost Components are Integrated with the Dimension In Finance as Cost Codes for Financial Control based on Cost Components
Here one could see despite booking Cost Components Key Element in the Integration Options I am not able to create integration to the First Dimension of Cost Components.
I have tried all options like only Cost Components
With a combination of Project (General) in Integration Option 1 and Cost Components in Integration Option II
With a combination of Project (PROJECT) in Option I and Cost Components in Option II
With a combination of Element in Option I and Cost Components in Option II
Since Financial Analysis is being done based on Cost Components I am unable to show the result in Finance based on the Dimension which I have defined.

This report is very critical and I would like to know why the Cost Components being defined in the booking of Labor, Material Equipment & Subcontracting is not identified and posted into Finance, the option being available for Integration in Finance.

We use cost components (TP) only for the majority of our TP integration into finance, so I'm sure we'll be able to come up with an answer for you. Lets just check through the basics:

Have you confirmed your costs?
Have you run process transactions?
Have you set up the relevent ledger accounts in Baan finance integration (we've set ours up for 'cost components by cost type)?
Have you set up all relevent transaction types by transaction origin rules in integration i.e.
WIP Cost (Project)
WIP Cost (Finance)
Commitment Entry (Order)
Commitment Entry
Commitment Reverse Entry ?

hi houstoce,

the setup for the cost and committment accounts is thru tpprc2122m000( maintain cost and commitment accounts by Cost Type and not by tpprc2124m000 ( maintain cost and commitments accounts by CostComponent. As i book my accounts based on the cost types.
Everything else i have set up correctly.

since the costs are booked for all cost types in session tpppc2131m000( Maintain Costs) and attached with the relevant Cost Component along with the relevant Elements and Activities i am afraid why its not picking up the Cost Component.

We are using baan4c4 with service pack 7
is it due to any bugs??????no idea?????

thanks for the reply and sorrys for not responding as i was not able to login.


regards
sajit

Hi sajit

We are also running IVc4 with SP 7 with no problems so I don't think it's a bug. Some more questions:

Have you set up the rules for :

transaction origin: Project
financial transaction: WIP Cost (Project)

in tfgld4126m000

This is what we use for hours accounting integration.
Our setup for tfgld4121m000 is as follows:
The debit leg uses integration option 1 as: Cost component (TP)
method : by ranges - with the relevent cost component ranges input under the relations tab.

The credit leg uses integration option 1 as: Trade group of the employee that is being booked to direct the recoveries to the correct cost centre (DIM 2 on our system.) again with the relevent trade group ranges under the relations tab.

A similar scenario applies to :
transaction origin : Project
financial transaction : Commitment entry

but with tfgld4126m000 pointing to different integration elements in tfgld4121m000, as both legs are balance sheet account entries.

Hope this helps.

BTW Are you getting any error messages after you have posted and then run tfgld4432m000 ? :confused:

Hi Houstoce,

yes when my ledger accounts has the dimension being defined as mandatory for the relevant dimension the integration log shows [cannot define dimension for 'Dimension 1' ,mandatory link ledger account to dimension].

and if the setup in the ledger (COA) is made as optional for the relevant dimension type the integration transaction is posted to the ledger but not to the relevant dimension
I am also attaching the screen shots.

this Cost Component in projects is attached to all the Cost types(Labor,Material,Equipment,Subcontracting&Sundry costs)as a default when its defined in the master data and again changed to the relevant Cost Components meant for the line of cost being present in the Maintain Costs( tpppc2131m000).

hope i am clear and not confusing

everything else is set up as per requirements in the Transaction types by transaction origin(tfgld4126m000)

best regards

sajit

Hi sanjit

Have you checked the cricket score in Bloemfontein?
SA wins by 9 wickets.

:p


Shot in the dark - is the transaction types by transaction origin session tfgld4126m000 set to project transaction 'yes' ?

BTW is both the debit and credit legs failing or just the one leg. I didn't pick up your screen shots last time... Could you maybe send the screen shots of the relevent tfgld4126m000 screen and well as the applicable tfgld4121m000 integration elements ?

Cheers for now.
:)

hi boss,

yes congrats for SA winning the test your boys played professionally and our boys lack in consistency except for the little master Sachin...you like his play!!!
:D


BTW without setting project transaction as "yes" in tfgld4126m000 i will not be getting any integration from Projects
i m not getting the debit line alone wherein i m getting the credit postings.

for eg: my debit is Cost of operations-Labour attached to the relevant Cost component in tpppc 2131m000 with my dimension defined as same (Cost Components)]
credit goes to Accrued Payroll and attached to other Dimension type in this case the individual Employee ( this dimension is updated)

for material

debit is Cost of Operation -Material attached to relevant Cost component in tpppc2111m000 with my dimension(cost Components)
credit goes to Inventory -attached with no dimension.


for equipment

again debit is CoO-Equipment attached to the relevant in the above tpppc2151m000 with my dimension (cost components)
credit goes to Transport Operating Account attached to other Dimension Plant and Equipment which is getting updated
and so on for
SubContracting and Sundry Costs

:(

i m attaching the screen shots in zip format:mad: no space

till then

sajit

Hi
I know this may be a silly question but, have you set up dimension ranges by ledger accounts. tfgld0109m000 on the finance side? I had similar problems with integrations and the same message until the dimension ranges/ledger accounts were set up.
Cheers,
BB

hi,

That setup is indeed done while defining the ledger accounts and making the dimension mandatory or Optional.

We are just waiting for the baan Global support which is yet to be received.

And I am not finding any setup being not defined for this Integration

:( till then

any other faults from my mappings pl. do discuss

Hi sajit and BB

I discarded the idea that something was wrong with the chart of accounts dimension ranges settings since we're not getting a 'dimension not allowed' error; but maybe it's worth a go to check if dimension ranges have been set up in tfgld0109s000, maintain dimension ranges by ledger account, which is under tfgld0108m000 ???

If this still doesn't help, maybe you could attach a screenshot of the entries under the 'Relations' tab for us to look at. Your mappings so far seem fine to me.

BTW: Sachin is unquestionably the best batsmen around at the moment. :)

hi houstoce & BB

yes i m sending the screen shots of relations of dimensions and i could see the field physical length is 20 in that session and i m wondering probably this could be the reason for the non committal of that transaction to that dimension

have a look at the screen also

till then?????????

Am I right in assuming that you write off your project costs to the income statement as soon as they are incurred, and that you don't hold any of the costs in some form of WIP accounts?

I am attaching a copy of our mapping of the debit entry for WIP Cost (Project). We are running single-finance multi-logistic here; the dimension code represents which logistic company's balance sheets WIP is affected. You will see that even though the example i have attached is not in a range, we still do our mapping by ranges. Why don't you give this a try and see if it works. Delete your by element mapping first, and then insert a cost component (TP) only mapping by ranges for selected cost components.

I saw ur attachment and in that u ve used ur cost components as a range for ur dimenision.

in my case i want to control my cost based on the cost components which again i ve maintained in dimension for each and every cost component
my relation is one to one for better cost control in projects and for financial analysis.

BTW as u said we dont require any WIP as our business is not Capital intensive and hence we directly book the cost for the cost component and the credit goes to accrued payroll if its labor cost type
inventory for material
transport operating a/c for internal equipments
accrued accounts payable for subcontracting
and for sundry the relevant debit and credit

also tell me do u use financial results for project monitoring
and if yes how to go about in the b-object Financial results

and also please tell me is there any provision for hold backs in projects when the client always pays only 90% of the invoice
or is it a manual adjustment in finance for the difference in the amnout

in our case for every billing which we make the client(customer) retains 10% as retention money and pays us 90%, any clues as how to account for the balance 10% is there any ways :confused:

i could see in the helps that projects takes care of any hold back amount also but the functionality i m unable to traceout

Yes we do use financial interim results because although we have projects that are typically of long duration, we are required to report our progressive billing sales and cost of sales in our monthly income statement to our parent. In our setup, the invoicing debits debtors and credits a balance sheet account (WIP revenues) We then use interim results (which we have customised to include a field for cost components) to move the sale from the balance sheet to the income statement when required. At the same time another interim result shifts the associated WIP to cost of sales. Once these entries reach integration they are integrated based on our customised entry for cost components. Naturally once the project closes, the interim results are reversed out and the trues sales and cost of sales figures are reported. If the interim results have been taken accurately, no effect will be shown in the fiscal period that the project is closed. As to whether interim results are reflected in project monitoring - this decision can be made by settnig the PPC parameter - we have ours set to 'do not include'.

When we have a retention value on a project, we set up the project with two customers (who are actually the same customer)
The one customer's financial customer group shows it as an ordinary debtor, the other's as a retention debtor. We then create 2 installments, one for each debtor. The result is that although the full invoice value is invoice by TP, the one value appears on the Debtors ageing analysis whilst the other is kept as a retention debtor. This way the project can be closed timeously without losing sight and record of the retention value still owed by your client.

Sorry we have still not solved your original problem, look like we'll haev to wait for Baan support - please let me know the outcome either way.

thats a good idea of having another customer for retention purposes and keep his open entries till the completion of the project.

but we are not following installment invoicing but progressive invoicing wherein the progress is arrived at for invoicing going here and changing is of no use bcoz for that installment it will always show a backlog

do u have your mail id coz this site is not opening half the time

my mail id is sajitkrishnan@hotmail.com

let me try this also till then