This chapter contains the following topics:
This section lists a prerequisite and discusses project execution and control.
Set the processing options for the Enter/Change Order (P48013) and Enter/Change Rate Schedule (P3109) programs to recalculate and update parts list and routing information for the changed work order.
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After you freeze the budget, you begin the execution and control phase of the project. During the execution stage, you complete work orders on the shop floor and collect the actual material, labor, and machine costs that you incurred in producing the project end items. Project accounting depends on whether the project has an interface with the JD Edwards EnterpriseOne Job Cost system.
You can also revalue work-in-process inventory for the actual costed items in the project. You can use the Rollup of Actual Cost to Workbench program (R31P301) to roll up the actual cost reported to the corresponding cost buckets on the workbench, based on the cost classification scheme that you set up for the project. The rollup keeps the actual cost information in the Project Workbench program (P31P001) current, which enables you to track any variances between budgeted and actual costs.
You receive and pay for the items that you purchased as components or resale items. If you use the JD Edwards EnterpriseOne Job Cost system and you use services and contracts for the project, you can take advantage of that system's integration with the JD Edwards EnterpriseOne Contract and Service Billing systems.
JD Edwards EnterpriseOne Engineer to Order also provides several reports, such as the Project Schedule report (R31P400) and the Project Cost report (R31P401) that you can use to manage project information. If you are using the JD Edwards EnterpriseOne Job Cost system with JD Edwards EnterpriseOne Engineer to Order, you can also use JD Edwards EnterpriseOne Job Cost reports to track budget information and analyze profitability.
When you issue project-specific components for a work order using the Inventory Issues program (P31113), the system reviews availability to verify that this component is not reserved for another project. If the inventory belongs to another project, you cannot issue the material, and you must specify another location with available inventory.
When you need more material for a project than you originally allocated, you can issue material from another location that has available quantity, provided that the material is not allocated to another project. When the total demand for a particular item is satisfied, the system removes the related record from the F410211.
Should you need to transfer project-specific inventory, the system calls the Project Commitment Detail Window program (P410211W), and you must select the project number and quantity for the transfer. You can transfer quantities that are hard-committed to projects only between locations in the same business unit, but not between business units.
When you complete a subassembly for a project work order, the system updates the parts list of the parent work order with the location and lot or serial number that you specified in the Work Order Completions program (P31114). This update associates the inventory directly with the parent work order and the project to which the work order belongs.
If the subassembly work order is only partially completed, the parts list line on the parent work order splits. The original component line contains the remaining quantity, and the system inserts a new line with the completion information.
In the event of an over completion, the system updates the related parts list line with the completion location and lot or serial number. The related project commitment record, however, represents only the original component quantity.
When you close a project work order without completing it, the project-specific component quantities remain committed. You can resolve this discrepancy by performing a repost. You can run the Repost Open Work Orders program (R3190) to synchronize the quantities on open manufacturing work orders with the project-specific commitment quantities in the F41021 table and the F410211 table.
You can set a processing option for the Project Workbench program to determine whether the system performs a net change. Net change updates the parts list and routing of a manufacturing work order when the order quantity, unit of measure, or dates of the work order have changed. The system calls the Net Change Processing program (R31430) to process the net change. If you set this processing option, the system processes the net change when you click Save and Close on the Project Workbench form.
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Note: The system does not process net change for service orders, equipment orders, and configured work orders. If any of the component parts for a manufacturing work order have a material status of In Warehouse, the system cannot perform the net change. |
When you change a manufacturing work order's quantity, unit of measure, or dates on the Project Workbench form, the changed work order record is stored in the Net Change Transaction table (F3115). If a parts list and routing is attached to the manufacturing work order, the system calls the Net Change Processing program to update the parts list and routing.
Net change processing:
Recalculates the component quantities on the parts list using a quantity per value.
Processes inventory commitments.
Recalculates the labor and machine hours for each routing operation using an hours per value.
Recalculates the standard and current production cost using a net change factor.
Retrieves, classifies, and rolls up cost estimates.
Adjusts financial commitments for work orders on projects that are integrated with the JD Edwards EnterpriseOne Job Cost system.
Issues a warning if activities, such as issues and time entry transactions, have been recorded for the work order.
To perform financial analysis and determine profitability for a specific project, you must complete these tasks:
Distinguish between project accounts and general accounts.
Maintain an ETO project as a standalone cost or profit center.
Transfer account information seamlessly from project-specific accounts to general accounts.
Integrate other systems, such as JD Edwards EnterpriseOne Sales Order Management, with project-specific accounts.
If you do not use the JD Edwards EnterpriseOne Job Cost system, you can either create a business unit specifically for the project or use the project branch/plant as the default business unit. If you create a business unit for the project, reported costs are transparent only for the project as a whole. Actual costs are reported by task, but are not visible on a task detail level, based on the account number.
If you use the branch/plant as the default business unit, any transaction journal entries that you create are not project-specific. Even though you report costs in the Project Workbench program and they are, in this sense, project-specific, no project-specific account structure identifies project costs for financial analysis.
For project-specific accounting without JD Edwards EnterpriseOne Job Cost, you can define a project GL class code on the Job Cost tab of the Add/Revise Project form. The automatic accounting instructions use this GL class code to determine which accounts can be used for a specific project.
If you select the Interface to Job Cost option for the project, you use the job business unit and the associated chart of accounts as the business unit for the project. This account structure is project-specific.
When you issue material, such as a project-specific subassembly or a purchased item, you debit a project-specific work-in-process (WIP) and credit a project-specific inventory account. In the case of a subassembly, the system creates journal entries by cost type instead of summing up all costs into cost type A1 or A2. When completing top-level items for a project, you complete them to project-specific accounts, not general inventory accounts.
When the JD Edwards EnterpriseOne Sales Order Management system determines whether inventory for an item is available to be sold, it searches general inventory accounts first. To enable the JD Edwards EnterpriseOne Sales Order Management system to access inventory that is produced in a project, you can create duplicate journal entries that credit a contra account (AAI 3140) and debit the general inventory account, in addition to project inventory and project WIP accounts.
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Note: The contra account AAI 3140 must be activated for project accounting in the Project Accounting user-defined code (UDC) table (31P/AI). |
This section provides an overview of actual cost rollup to the project workbench, lists a prerequisite, and discusses how to roll up actual costs to the project workbench.
Project managers can roll up costs to the project workbench to review, at any time, the actual costs that are reported for any individual task in the project. For example, when material issues, labor, or completions are reported for a production task, the rollup collects the actual costs of these activities. A roll-up of actual costs also enables project managers to compare the estimated costs to the actual costs reported, and then analyze the cost variances, if any occur.
Use the Rollup of Actual Costs to Workbench program (R31P301) to roll up the actual cost information, which you collect for work orders throughout the production process, to these cost fields in the Project Workbench program (P31P001):
Actual material
Actual labor
Actual other
Actual special units
Actual special amounts
Because a project consists of two different types of tasks, production tasks and nonproduction tasks, the system must retrieve costs from two different sources. Costs that are associated with production tasks are tracked through manufacturing accounting. These costs are stored in the Production Cost table (F3102). Manufacturing accounting, however, is not run for nonproduction tasks. The costs that are related to those tasks are stored in the F0911 table.
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Note: Nonproduction tasks are posted to the Account Ledger with a batch type that is not a manufacturing batch type. However, to track those costs, you must complete the Subledger field with the task or work order number for which the costs are incurred. |
Based on the cost classification for cost types and the accounts that are set up in the Cost Classification program (P31P301), the system evaluates all of the tasks in the project, retrieves their costs from either the F3102 table or the F0911 table, depending on the type of task, and updates them in the actual cost fields. The information in the cost fields is stored in the F4801T table.
Set up the cost classification table that maps cost types and accounts to the cost buckets in the Project Workbench program.
Select Cost Classification (G31P31), Rollup of Actual Costs to Workbench.
This section provides an overview of project reports and alerts and discusses how to:
Run the Project Schedule Report.
Set processing options for Project Schedule Report (R31P400).
Run the Project Cost Report.
Set processing options for Project Cost Report (R31P401).
Run the Project Inventory Report.
Set processing options for Project Inventory Report (R31P402).
JD Edwards EnterpriseOne Engineer to Order provides several batch programs that enable you to manage project information during the execution and control phase of the project. They provide status and exception information. For tasks that are identified as alert-sensitive on the project workbench, the system sends alerts to the individuals who are assigned to those tasks. Each task can identify three responsible people, including the manager, the supervisor, and the person who is assigned to the task. You can set up each report to send an alert to any combination of the responsible people for each task.
JD Edwards EnterpriseOne Engineer to Order provides these reports:
Project Schedule Report (R31P400)
Project Cost Report (R31P401)
Project Inventory Report (R31P402)
Select Project Reports (G31P14), Project Schedule Report.
Use the Project Schedule report to print planned and actual start and end dates. Based on the F4801 table, you can print the information for the tasks of one project or multiple projects.
If tasks have attached purchase orders or subcontracts, information for these orders is included in the report as well. For example, you can include promised and receipt dates, quantity ordered, and quantity received.
For tasks that are identified as alert-sensitive, the system can send a schedule exception message when the actual end date is later than the planned end date by the number of days that you specify in the processing options. If the tasks have attached purchase orders or subcontracts, the system sends the alert message when the receipt date is later than the promised date by the specified number of days.
The report also compares completed work order quantities and received purchase order quantities with the order quantity. When the completed or received quantity is less than the order quantity by the threshold value that you specified in the processing options, and the order is closed or canceled, the system can send a quantity exception message. Exception messages appear on the report even if you decide not to send alert messages.
These processing options control default processing for the Project Schedule report.
These processing options control to whom the system sends an alert and the circumstances under which the system sends an alert when you run this report.
Specify whether the system sends a project alert to the manager who is associated with a task. Values are:
Blank: Do not send.
1: Send.
Specify whether the system sends a project alert to the supervisor who is associated with a task. Values are:
Blank: Do not send.
1: Send.
Specify whether the system sends a project alert to the address book number that is specified in the Assigned To field for a task. Values are:
Blank: Do not send.
1: Send.
Specify the distribution list for the project alert and select the organization structure type.
Specify the number of days after the planned end date or promised date that orders can still be received or completed. If the threshold for late receipt or completion is exceeded, the system sends a schedule exception message for work orders to the responsible parties for work orders, and a schedule exception message for purchase orders to the appropriate personnel.
Specify the allowable percentage of shortage for a work order or purchase order. If the threshold is exceeded, the system sends an exception message to the person responsible for the task. For the work order and purchase order, an exception message for the quantity is sent to the responsible parties.
These processing options specify the status at which a work order or a purchase order line is considered closed.
Specify the status that is used to close a Work Order. If you leave this processing option blank, the system uses status code 99.
Specify the next status of the order after the system closes or fully receives the detail line. If you leave this processing option blank, the system assigns a status code of 999 to closed or fully received detail lines.
Select Project Reports (G31P14), Project Cost Report.
Use the Project Cost report (R31P401) to print a list of tasks and display these cost amounts:
WIP amount.
Planned and estimated material, labor, other and special costs.
Actual costs to date.
Committed amounts from parts lists and purchase orders.
Based on the F4801 table, you can print the information for the task of one project or multiple projects.
The system calculates the WIP amount by subtracting the sum of all unaccounted completed and unaccounted scrapped amounts in the F3102 table. If the result equals zero, no exception exists, and the system does not print the WIP amount. If the WIP amount is greater than zero, the report indicates that not all of the activities for the completed amount have been reported. If the value is less than zero, the exception report states that an overcompletion exists.
The system retrieves the estimated, planned, and actual amounts for the report from the corresponding cost field in the F4801 table. The system calculates the committed amount from the open commitment amounts in the F3111 table and the F43199 table.
When the total actual cost-to-date exceeds the total budgeted cost by the percentage that you specified in the processing options, the system creates a budget exception message for alert-sensitive tasks. If a task has a related purchase order or subcontract, and the amount received exceeds the extended cost by the percentage that you specified in the processing options, the system sends an over-payment exception message.
The exception messages appear on the report even if you decide not to send alert messages.
These processing options control default processing for the Project Cost Report.
These processing options control when and under what circumstances the system sends an alert when you print this report. You can also specify whether the system includes the WIP amount when it calculates budget exceptions.
Specify the source for the budgeted cost on the report. If you leave this processing option blank, the system uses the estimated cost as a source. Values are:
1: Estimated cost
2: Planned cost
Specify whether the system sends a project alert to the manager who is associated with a task. Values are:
Blank: Do not send.
1: Send.
Specify whether the system sends a project alert to the supervisor who is associated with a task. Values are:
Blank: Do not send.
1: Send.
Specify whether the system sends a project alert to the address book number that is specified in the Assigned To field for a task. Values are:
Blank: Do not send.
1: Send.
Specify a distribution list for sending the project alert, and select an organization structure for the distribution list.
Specify the enabled variance percentage between budgeted and actual costs. If the threshold is exceeded, the system sends a budget exception message to the responsible parties.
Specify the enabled percentage of over-receipts relative to the cost of the purchase order. If the percentage threshold is exceeded, the system sends an overpayment exception message to the responsible parties.
Specify whether the WIP amount should be included in the actual cost when the system calculates the budget exception. Values are:
Blank: Do not include.
1: Include.
Select Project Reports (G31P14), Project Inventory Report.
Use the Project Inventory report to print the parts lists for tasks, if any are available. Based on the F4801 table and the F31P01 table, you can print the information for the tasks of one project or multiple projects. For each component on the parts list, the system calculates and prints the open quantity, that is, the order quantity minus the issue quantity up to the order quantity. For each component the system searches the F41021 table to determine the available quantity.
When a task is alert-sensitive, the available quantity is negative by the threshold value that you specified in the processing options, and the open quantity is greater than zero, the system can send an exception message regarding item availability.
The exception messages appear on the report even if you decide not to send alert messages.
These processing options control default processing for the Project Inventory report.
These processing options control when and under what circumstances the system sends an alert when you print this report.
Specify whether the system sends a project alert to the manager who is associated with a task. Values are:
Blank: Do not send.
1: Send.
Specify whether the system sends a project alert to the supervisor who is associated with a task. Values are:
Blank: Do not send.
1: Send.
Specify whether the system sends a project alert to the address book number that is specified in the Assigned To field for a task. Values are:
Blank: Do not send.
1: Send.
Specify a distribution list for sending the project alert.
Specify the threshold for negative availability. If the threshold is exceeded, the system sends a message to the responsible parties, alerting them to the condition.
This section provides an overview of the project close process and discusses how to:
Run the Project Close Analyzer program.
Set processing options for Project Close Analyzer (R31P403).
As the project approaches its scheduled completion date, you must review the project information to identify activities that still need to be performed for the project. Ensure that all manufacturing and purchasing activities have been either completed or canceled, and that all products that must be delivered to the customer have been shipped.
If the project has an interface with the JD Edwards EnterpriseOne Job Cost system, you can use Job Cost reports and batch programs to create financial reports for analysis and profit recognition.
To close a project formally, you use the Close Project option on the Form menu of the Project Workbench form. Choosing the Close Project option automatically starts the Project Close Analyzer program (R31P403), which determines whether the system has all of the information that it needs to close the project. After you close the project, the project status changes to Closed. You can verify this information on the Project Status of the Add/Revise Project program (P31P011).
Select Project Reports (G31P14), Project Close Analyzer.
Use the Project Close Analyzer program (R31P403) to analyze the work breakdown structure (WBS) to determine whether a project can be closed. The system also calls this program when you attempt to close the project from the Project Workbench form. You can run this batch program for only one project at a time. When the program finishes running, it returns a value that indicates whether the project can be closed.
The program reviews every task to determine whether any of these issues exist:
Manufacturing work orders have not been canceled or closed.
Parts lists have open inventory commitments.
Purchase orders are still open.
If any of these issues exist for any task in the project, you must resolve the issues before you can close the project.
These processing options control default processing for the Project Close Analyzer program.
These processing options control default values that the program uses to determine whether you can close a project.
Enter the status at which the system considers sales order lines closed. If you leave this processing option blank, the system uses a status of 999.
Enter the status at which the system considers purchase order lines closed. If you leave this processing option blank, the system uses a status of 999.