Project Cost Management
Financial management for project business
Real-time financial insight and control of your projects. CBS, Budget Management, Project Costing, Earned Value (EVA), Subcontracts.
The Project Business Automation Blueprint
The Definitive Guide to a creating a comprehensive business system for project-based companies
What you will learn:
- The problem PBA solves and why it is needed
- Core elements of PBA and how they work
- How you can enhance PBA for your company
- The business case for PBA
- What PBA means for the future of Project Business
If you are in architecture, engineering and construction, ETO/contract manufacturing or professional services, you need this Blueprint.
Adeaca One PBA™ for Project Financials – See How it Works
Eliminate the need for spreadsheets and standalone project accounting software to financially manage your portfolio of projects.
- Align your financials with your operations in real time, so your financial reports always reflect the current operational plan
- Leverage the WBS to feed your CBS with the most accurate cost estimates from the updated timeline
- Automate the change order process to eliminate manual workloads
- Evaluate cost to complete with real-time work estimates from the schedule
- Report on the financial impact of schedule changes immediately
Create the optimal project estimates right from the start
The PBA Project Modeler™ offers a superior budgeting experience compared to other tools, spreadsheets and estimating apps.
With the Adeaca Project Modeler, your project estimates are created faster and with more accuracy than ever before. Gain speed and control. Enhance your sales process by creating the best project budget from the start.
- Project estimates are formulated through carefully curated cost models
- Enable your estimators and controllers to produce optimal budgets in minimal time and with minimal errors
Financial ERP for Project Industries Redefined
To effectively manage your project financials, you need a solution which sets projects center stage. ADEACA Project Business Automation™ (PBA) provides a genuine project centric business solution that eliminates the need for complimentary point solutions.
Much more than just project accounting
Effective financial management of projects requires much more than what traditional project accounting systems provide. ADEACA PBA closes the gap between what project industries need and what mainstream ERP solutions offer.
A solid accounting framework is certainly required to track actual costs and invoices, revenue recognition, accruals and budgets. However, when it comes to securing project profitability and supporting effective decision making it is much more important to project and track EAC, variances, profitability, contingencies and productivity while at the same time identifying trends and maintaining a full audit trail.
The project portfolio/program hierarchy is the enterprise wide structure which signifies organizational position of any given project. Portfolios are extensively used as reporting dimensions as well as to manage access rights and project aggregation.
To provide the necessary level of reporting granularity and to effectively manage actuals, commitments, budgets and forecasts, projects are broken down into Cost Breakdown Structures. By dividing a project into smaller and logical financial positions, controllers can easily identify variations even at the start of the project life cycle and are able to accurately reforecast to project not-yet-realized variances. Cost breakdown structures are summarized into cost code hierarchies which facilitate cross project and cross company aggregated reporting.
Project Business Automation Requirements Template
The most comprehensive business system requirements document for project-based companies.
400+ criteria you can use immediately to evaluate any ERP/business system for its Project Business capabilities.
- Create or supplement your own RFI or business requirements document
- Set parameters and evaluate vendor demonstrations around the included features
- Rethink your tools and systems strategy supported by tangible criteria
Any company in engineering and construction, ETO/contract manufacturing or professional services, exploring a new ERP, project/portfolio management, project accounting, project analytics or related system needs this template.
Repeatable Business Processes
Effective management of project financials is a complex proposition that requires a purpose-built solution that sets the project center stage - Project Business Automation. This is something mainstream ERP solutions fail to deliver which typically results in the emergence of stand-alone point solutions to compliment the ERP system.
ADEACA PBA™ is engineered to meet the sophisticated requirements of financial project management all within a single integrated solution, this means no time-lapse or data translation between the source accounting transaction and the financial management tools.
Real-Time Availability of Data
ADEACA PBA not only provides the necessary toolset, but the real-time availability of data and predefined business processes throughout the solution transforms the myriad of financial project management components into a coherent entity, auditable every step of the way and driven by corporate guidelines rather than individuals.
ADEACA PBA™ Financial Project Management: Capabilities
Cost breakdown structures
The cost breakdown structure (CBS) is the central planning structure against which all financial activities are planned and managed. The CBS is a multi-level hierarchy that allows you to define the exact level of details required to efficiently manage a given project or contract. Change orders,
All budget positions are processed within dedicated budget versions against the cost breakdown structure. Budget versions are subject to approval, capturing cost and revenue estimates as well as cash-flow projections.
You may establish project budgets using the built-in templates and formula driven estimation tools or via XML interface to external estimation tools. Changes to the original budget are processed as revisions, change orders or transfers. A full audit trail of all budget versions is of course available. Budget versions also entail estimation of deliverables, contingencies and undistributed budgets for rolling-wave planning.
The periodic budget review process is at the center of establishing up-to-date reliable project performance projections. Early detection is key to effective project cost control. By periodically evaluating Cost to Complete (CTC) and Estimate at Completion (EAC), controllers can predict and record variances before they materialize and in time to take corrective action.
The budget review process also computes updated expectations to project margins and productivity ratios against project deliverables. Project costing is period specific, and a full history of past periods is stored for future reference and trend analysis.
The time-phased data contained within the costing sheet feeds multiple critical processes including revenue recognition, Earned Value Analytics, portfolio
Project Subcontracting provides the capabilities you need for subcontract management, when the situation requires managing a fluid scope of work, especially when multiple engagements are underway simultaneously. These situations always result in a significant increase in the paperwork and subcontractor oversight required. ADEACA PBA helps you understand and control subcontracts, and provides a seamless integration between the accounting data and the delivery operations.
Tight integration with the project estimation process allows you to incorporate firm prices from subcontract RFQs into project quotes and change orders. Likewise, a subcontract change order can be converted into a client project change order by the click of a button.
Track receipt of required documentation like insurance details, certificates and waivers and block payments against non-compliant subcontracts.
Subcontracts are subject to tight change control and approval processes, this ensures that cost commitments and payments are always based on the currently approved schedule of values and that pending change orders are clearly called out, resulting in clear financial implications in your projects and rolling up into your portfolio.
Considering Microsoft Dynamics 365 Project Operations? Get the truth!
Whitepaper: Adeaca Project Business Automation vs Dynamics 365 Project Operations
As a project-based company, you may consider the new offering from Microsoft called Project Operations - formerly D365 Finance project management and accounting and Project Service Automation (PSA). But who is Project Operations for and what exactly are you getting? Find out in this whitepaper.
In this document, we explore the best types of industries and businesses that should find value in Project Operations and those that will need something more. We provide a high-level comparison between the functionality found in Dynamics 365 and Adeaca PBA, so you can decide what makes the most sense for you.
Find answers to your questions
Exploring, evaluating and selecting the right system can be overwhelming, especially for a project-based business. Let us help you through that journey. Engage with our project business experts in the way that works for you right now.
Schedule a Briefing
Get a better understanding of Project Business Automation and how it may work for your business in a brief 30-minute session designed to enable you to assess whether or not Adeaca PBA is right for you at this time.
Request a Demo
See a high-level overview of our Project Business Automation cloud solution for Microsoft Dynamics 365, how it works and learn what the benefits are for your industry.