The Month-End Process for Project Business


Standardize your month-end process for comparable and trustworthy KPIs

Adeaca PBA provides structure and format to the month-end process, so companies know the status of their projects at every step of the way and accurately recognize revenue.

The Month-End Process in a Generation 3 Project Business System


As part of Adeaca PBA, the month-end process includes unique capabilities that go beyond other solutions on the market.

Generation 1 and 2 systems today do not integrate their project financials and operations, and as a result, companies struggle to complete month-end reporting. Many forego it altogether, missing out on crucial business performance metrics and making regulatory reporting extremely difficult.

Due to the true integration of a generation 3 system, the month-end process in Adeaca PBA enables project-driven companies to continually evaluate project productivity, schedule, and cost performance indexes, and compare trends to previous month-end results.

Built-In Processes for Month-End


Most project-driven companies struggle to complete month-end reporting, including financial and operational KPIs. As a result, many forego it altogether, missing out on crucial business performance metrics and making regulatory reporting extremely difficult.

Adeaca PBA has built-in processes for the month-end procedure, automating much of the work involved. This includes:

  • Automated reforecasting (EAC)
  • Operational and financial risk reviews
  • Operational financial checklists
  • Formal approval of work breakdown structure change sets
  • Billing & revenue recognition

Compare Trends to Previous Month-End Results

By having real-time tracking of costs and commitments, companies have complete control and visibility into the status of all projects.

Adeaca PBA’s month-end process not only creates a repeatable business process but yields reliable and comparable performance KPIs. This allows controllers to see if the project is on schedule and on budget, and to evaluate revenue monthly for trend reporting.

Track

Track

The month-end process provides real-time tracking of costs and commitments, so companies have control and visibility into the status of all projects.

Evaluate

Evaluate

The month-end process in Adeaca PBA enables companies to continually evaluate project productivity, schedule, and cost performance indexes.

Compare

Compare

Adeaca PBA has built-in processes for the month-end procedure, automating much of the work involved so companies can compare trends to previous month-end results.

How the Cost Breakdown Structure and Budget Management Works

Revenue recognition

Revenue recognition

Projects configured with completed percentage revenue recognition can base accrued revenue on estimate at completion as defined in the costing sheet.

Both the costing sheet and the revenue recognition process are configured to align with your company’s financial periods so that EAC and revenue recognition are processed and committed on a monthly cadence.

Costing sheet with EVA metrics

The base EVA configuration is done against the cost breakdown structure (CBS). The configuration includes a definition of the CBS level at which earned value is computed and which EVA principles are used to drive earned value computations. Supported EVA principles include:

  • Estimate at Completion
  • Completed work
  • Deliverables
  • Production units
  • Physical inspection
cost breakdown structure
Budget management

Budget management in the cost breakdown structure

Budget management in the cost breakdown structure captures cost, revenue, and deliverables budget. The deliverables, or quantity budget, is an additional progress indicator outside of how much of your budget you’ve consumed. A quantity budget can represent a percentage of completion, number of units you’ve completed up until a certain point, or any kind of measurable quantity against the project.

There’s also a distribution key that shows you how many hours are going to be delivered over a specific time frame. In addition, it’s also time phased, meaning it tells you how much it’s going to cost per month. That data then feeds into earned value analysis, cash flow, and anything else that needs time-phased information.

Full audit trail of all budget versions

All budget positions are processed within dedicated budget versions against the CBS. Budget versions are subject to approval, capturing cost and revenue estimates as well as cash-flow projections.

You can establish project budgets using the Project Modeler, built-in templates, or via XML interface to external estimation tools. Changes to the original budget are processed as revisions, change orders, or transfers.

Budget versions also entail estimation of deliverables, contingencies, and undistributed budgets for rolling-wave planning.

Budget versions
Project costs trend

See project cost trends

Projects configured with completed percentage revenue recognition can base accrued revenue on estimate at completion as defined in the costing sheet.

Both the costing sheet and the revenue recognition process are typically configured to align with the financial periods so that EAC and revenue recognition are processed at a monthly cadence.

How the Month-End Process brings value to your organization

project cost control

Better Cost Control

With processes that include reforecasting (EAC), financial risk reviews, financial to-do checklists, and billing and revenue recognition, the month-end process allows you to continually evaluate project productivity, schedule, and cost performance indexes.

project risk readiness

Enhanced Risk Readiness

The month-end process in Adeaca PBA allows you to set up mandatory risk reviews and checklists to complete before a project is closed off for the month.

project delivery

Improved Delivery

The month-end process in a generation 3 project business solution enables you to know what’s going on with your projects, and how your business is doing overall in real time. It ensures your projects are delivered on time and on budget.

Download the Feature Brief: The Month-End Process

Cost Breakdown Structure Feature Brief

Download the Month-End Process Feature Brief to learn more and discover what it can do for your company.

What you will learn:

  • What are the month-end capabilities in Adeaca PBA and its purpose
  • How does it work
  • Problems the month-end process in Adeaca PBA solves
  • Use cases for the month-end process in Adeaca PBA
  • How the month-end process in Adeaca PBA will benefit your company

If you need a way to recognize revenue and yield reliable and comparable performance KPIs that you can track on a monthly basis, the Month-End Process in Adeaca PBA is the answer.

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