Implementing Project Portfolio Management: From Organization Structure to Recognized Revenue · Module 11 · Burdening and Cross-Charge
Burden in the accounting
Lesson 115 of 198 · 1 min
Two treatments, chosen on the project type back in Module 7. Separate burden transactions — burden appears as its own expenditure items. Visible, analysable, more transactions. Burden included in the cost — the raw cost carries the burden. Simpler, less transparent. The accounting consequence. Separate burden transactions need their own accounting treatment and their own account mapping in Module 12. Included burden does not. The absorption question. Burden applied to projects should correspond to indirect cost actually incurred. The difference is over- or under-absorption, and Finance tracks it. Where that lands is an accounting design decision — and one to raise rather than inherit. The reporting consequence. Separate items let a project manager see what burden costs them. Included burden hides it — which some businesses prefer and some find opaque. SEPARATE TRANSACTIONS IF ANYONE WILL ANALYSE BURDEN. INCLUDED IF NOBODY WILL AND SIMPLICITY MATTERS.
The full lesson is part of the course
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