Owning versus expenditure organizations

Two classifications, two different questions. Project and task owning — can this organization own a project or a task? Whose project is it? Project expenditure — can costs be incurred against this organization? Whose people and budget are being consumed? Why they differ, with the example that makes it obvious. The Engineering department owns a project. Consultants from the Consulting department work on it. Engineering is the owning organization. Consulting is an expenditure organization. Both classifications are needed — on different organizations. When one organization needs both. Very common — a department that owns its own projects, and whose people also work on other people's projects. Classify it both ways. That is Corporate IT in the lab, and the acceptance criteria check it. Owning organization drives project ownership, reporting by owning organization, and in some configurations the default expenditure organization. Expenditure organization drives where cost is attributed, cost reporting, and…

In this module: Module 3 · Organization Structures

1. 1What we are building
2. 2The decision you cannot undo
3. 3The organization object model
4. 4The project unit
5. 5Owning versus expenditure organizations
6. 6Running the structure design workshop
7. 7Four worked structures
8. 8Business units and the project accounting function
9. 9Creating organizations
10. 10Classifying organizations
11. 11Organization hierarchies
12. 12Creating project units
13. 13Project unit options
14. 14Reference data set assignments
15. 15Associating project units with business units
16. 16Proving the structure works
17. 17What breaks
18. 18Lab briefing: Meridian Consulting
19. 19Lab solution walkthrough