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Implementing Project Portfolio Management: From Organization Structure to Recognized Revenue · Module 1 · The PPM Landscape

The cost-to-ledger map

Lesson 9 of 198 · 2 min · Free preview

Four traces, built one arrow at a time. Trace one. Labour. A person records time. The cost is imported as an expenditure item. Priced using a rate schedule. Burdened. Accounted via a transaction account definition. Posted to the ledger. Six hops, each with its process named — because when it stops, you will need the name. Trace two. An expense report or a supplier invoice, with the project and task coded on the transaction. Imported to costing. Accounted. Ledger. Trace three. Billing and revenue. Costed expenditure items → contract bill plan → invoice generated → approved → transferred to Receivables. And separately — revenue recognized per the revenue plan → accounted → ledger. COST AND REVENUE ARE TWO SEPARATE CHAINS THAT BOTH START AT THE EXPENDITURE ITEM. This is the insight to land. Learners consistently assume invoicing and revenue recognition are the same event. They are not. And the gap…

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In this module: Module 1 · The PPM Landscape

  1. 1Two offerings, not one productFree preview
  2. 2The Project Financial Management applications
  3. 3The Project Execution Management applications
  4. 4Running the scoping conversation
  5. 5The cost-to-ledger mapFree preview
  6. 6Offerings, functional areas and navigation
  7. 7Working on a PPM project
  8. 8Lab: scope three clients and draw the map