REAL-TIME FINANCIAL INSIGHT
FULL PROJECT LIFE CYCLE SUPPORT
A project’s lifecycle typically spans several reporting periods. Additionally, complex cost structures, frequent scope changes and an array of different contract types and billing rules are all critical elements for the project controller to manage. To do this effectively a unique set of tools is required to support critical processes, starting with the initial estimation through budget and change management to periodic budget reviews, revenue recognition, and monthly billing cycles.
ADEACA ONE enables the project-centric enterprise to effectively manage the complex financial dimensions of its customer-facing business, all within the core ERP financial application. Increased visibility, fully auditable transaction trails and real-time data enables stakeholders to make timely and informed decisions with confidence, ultimately resulting in increased project profitability and efficiency.
ADEACA ONE 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.
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 ONE 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.