If actual cost selected instead of estimated cost in PCS Parameter, does it mean Hours Accounting must be utilized to capture operation cost? Currently, we are using estimated cost and do not utilize Hours Accounting. Could it be also switched from estimated to actual cost? Thank you.

I am afraid its a one-way street. Once you defined Estimated Cost as the "Work-in-process Valuation against" value. If you have project transactions then the system wont let you change this value..
I dont think the setting of this value has got anything to do with how you capture operation cost.
The help file goes like this ..
This parameter determines how the system calculates the work-in-process values for projects. The parameter is used for calculating the cost prices of sales deliveries and for posting financial project transactions to the BAAN Finance package. You can select from:
Estimated Costs The work-in-process value and the cost prices of sales deliveries are calculated on the basis of the estimated project costs.
Actual Costs The work-in-process value and the cost prices of sales deliveries are calculated on the basis of the actual project costs.

So if i am not mistaken, this parameter has nothing to do with hours accounting usage...

sk

Thanks again, SK. If hours accounting is not utilized & actual cost is selected in the PCS parameter, how the operation cost is posted into BAAN Finance? Thank you.

Given your current scenario(costing based on estimates) nothing prohibits you from using hours accounting. You select or set the Costing(WIP Valuation against parameter) based on your business and not based on weather you want to use hours accounting or not. Thats what i meant by my last post..

sk