Download - JDE Projects Month End Course - Work Orders
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JDE Projects with Work Orders1/2 Day CourseMonth End - OWP
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Housekeeping
Emergency Exit
Timing and Breaks
Mobile Phones and Email
Facilities
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Project Month End Process
Month End Process Cycle2
1
3
Process Estimate at Completion4
Enter Claimed Quantities6
Process Revenue Accruals
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Enter Progress Earned Value Analysis
Process Profit Recognition
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Project Invoicing and Journaling
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Cost Codes
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Original Budgets and Revised Budgets
Phase Estimate to Complete11
Analyse and Post Over/Under Claims12
Enter Cost Accruals5
Inquiries and Reports13
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Account Structure - Example Where
(Does the cost belong)
What(is the cost)
Business Unit Object. . SubsidiaryCompany. . Subledger
30005 Project 6075 Purchased Materials8010 labour
WBS or Cost Code Workorder
15000 Cost Centre 8010 Labour8XXX Overhead Expenses
Not Used Can be used for additional breakdown
10000 Balance Sheet Assets, Liabilities , Equity
Analysis of accounts i.e Banks accounts
Not used
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Cost Code / SubsidiaryCost code Starting with:1xxxxxxx – Overhead Cost Codes 9xxxxxxx – Revenue Cost Codes
Direct Cost Codes:To identify programme and phase.Example: 50000110 is Ph1 eJV SU–Base Work2xxxxxxx – NSW Direct Cost3xxxxxxx – VIC Direct Cost4xxxxxxx – QLD Direct Cost5xxxxxxx – SA Direct Cost6xxxxxxx – WA Direct Cost
Cost Type: To identify what type of cost. Example: 6170 for subcontractor.
Subledger
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Cost Type Cost Type
6030
6075
6085
6120
6170
20005000
31005200
20005000
31005200
45008900
0141016
Job: Ergon Central Contract Services
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Sub Type: Work Order
W 789765
Work Order: Replace Cross Arm Pole A54, 123 Smith St,
Maryborough
Cost Code
20009110200091302000921020009310200094102000934020009330
S2299 - TAMWORTH WESTDALE
15985
Note: JDE Work Order/Subledger in JDE is a running number and we could not create to make it the same as site ID
• Every direct cost must have a work order
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Hubble – Cost Code Report
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Project Month End Process
Month End Process Cycle2
1
3
Process Estimate at Completion4
Enter Claimed Quantities6
Process Revenue Accruals
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Enter Progress Earned Value Analysis
Process Profit Recognition
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Project Invoicing and Journaling
9
Cost Codes
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Original Budgets and Revised Budgets
Phase Estimate to Complete11
Analyse and Post Over/Under Claims12
Enter Cost Accruals5
Inquiries and Reports13
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Month End Process Cycle
Revised BudgetsProcess Estimate at
Completion (EAC)
Enter Cost Accruals Enter Claimed Quantities
Project Invoicing & Journaling
Enter ProgressReview / Finalise Earned
Value Analysis (EVA)
Process Revenue Accruals
• Revenue Recognition• Manual Revenue
Accrual
Process ProfitRecognition
Phase Estimate to Complete
(ETC)Analyse & Post
Over/Under Claims
Blue = NationalRed = Regions
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Month End Process TimelineActivity Date CompletedRevised Budgets WeeklyEstimate at Completion Anytime before 30th each monthEnter Cost Accruals Day OneEnter Claimed Quantities Day OneInvoicing 15th & last day of each monthProgress Earned Value Analysis Day Two-ThreeRevenue Accruals Day FourProfit Recognition AutomaticPhase Estimate to Complete Day FiveAnalyse & Post Over/Under Claims
Day Six
Inquiries & Reports Anytime
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Project Month End Process
Month End Process Cycle2
1
3
Process Estimate at Completion4
Enter Claimed Quantities6
Process Revenue Accruals
7
Enter Progress Earned Value Analysis
Process Profit Recognition
8
Project Invoicing and Journaling
9
Cost Codes
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Original Budgets and Revised Budgets
Phase Estimate to Complete11
Analyse and Post Over/Under Claims12
Enter Cost Accruals5
Inquiries and Reports13
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Original Budgets and Revised Budgets• All original budgets are based on PO’s received from
Optus and listed in VISZ as of the 1st of May 2016.• All revised budgets are based on changes to existing PO’s,
new PO’s received and cancelled PO’s received from Optus since the 1st of May 2016.
• D/C Rate is 70/30 standard across the board no matter the program or phase.
Note: Forecast Works previously in SMS that have not received PO’s will be loaded in separate cost codes named “Emerging Works”
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Variations
• Variation in JDE has a different meaning to OWP:Variations are the JDE mechanism to increase / decrease Original Budget, and derive Revised Budget.These two scenarios apply to new work:1. New scope: New work is awarded by the client. Revenue and
cost variations are entered, which increases the overall project budget.
2. Within scope: Work within the original scope is ordered by the client. Revenue and cost budgets for that work are transferred from Emerging Works budgets. The overall project budget does not change.
Variations are also used where there is a decrease in scope.• OWP’s term Variation is for any variation work listed in the
RTCNote: RTC Submitted to Clients will be loaded into separate cost codes and named “SPA – Variations”.
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Project Month End Process
Month End Process Cycle2
1
3
Process Estimate at Completion4
Enter Claimed Quantities6
Process Revenue Accruals
7
Enter Progress Earned Value Analysis
Process Profit Recognition
8
Project Invoicing and Journaling
9
Cost Codes
10
Original Budgets and Revised Budgets
Phase Estimate to Complete11
Analyse and Post Over/Under Claims12
Enter Cost Accruals5
Inquiries and Reports13
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Estimate At CompletionUnderstanding Estimate At CompletionEstimate At Completion is the projected revenues and costs at the completion of the project.
Purpose of Estimate At CompletionThe purpose of Estimate at Completion is to provide a forecast of revenue and costs to understand the profitability of the project, and to highlight any deviations from budget
Relevance to Profit RecognitionProfit recognition is calculated based on the Estimated at Completion values. Incorrect values will result in either over / understatement of profit.
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Estimate At Completion
Exercise 3: Estimate at Completion without Work OrderExercise 4: Estimate at Completion with Work Order
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Project Month End Process
Month End Process Cycle2
1
3
Process Estimate at Completion4
Enter Claimed Quantities6
Process Revenue Accruals
7
Enter Progress Earned Value Analysis
Process Profit Recognition
8
Project Invoicing and Journaling
9
Cost Codes
10
Original Budgets and Revised Budgets
Phase Estimate to Complete11
Analyse and Post Over/Under Claims12
Enter Cost Accruals5
Inquiries and Reports13
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Enter Cost Accruals
Demonstration & Discussion:• Cost Accruals
Review JSI Calculate Accrual Entries Create Accruals Review & Post Accruals
• Journaling – Financials Lite
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Enter Cost Accruals
Purpose:Cost accruals are an accounting process to record expenses that have been incurred, but not yet recognised. Cost accruals are created after a review of project costs.
Practice:Exercise 7: Create Cost AccrualsExercise 8: Create Cost Accruals with Work OrderExercise 9: Post Cost AccrualsExercise 10: Review Cost Accrual Entry and Reversals
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Enter Cost Accruals
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Journal Entry – Standard
Discussion:Journal Entry program is used to add or adjust account balances in the General Ledger. Amounts are designated as a credit during journal entry by entering a minus sign before the amount.
Practice:Exercise 2 – Enter a General Journal
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Project Month End Process
Month End Process Cycle2
1
3
Process Estimate at Completion4
Enter Claimed Quantities6
Process Revenue Accruals
7
Enter Progress Earned Value Analysis
Process Profit Recognition
8
Project Invoicing and Journaling
9
Cost Codes
10
Original Budgets and Revised Budgets
Phase Estimate to Complete11
Analyse and Post Over/Under Claims12
Enter Cost Accruals5
Inquiries and Reports13
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Enter Claimed QuantitiesUnderstanding Enter Claimed QuantitiesEnter Claimed Quantities is the process of updating the number of units completed for billing purposes. Typically the date of entry will be determined by the contract.
One line entered per region from the Payment Claims submitted to Optus as a reversing journal each month
Break
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Project Month End Process
Month End Process Cycle2
1
3
Process Estimate at Completion4
Enter Claimed Quantities6
Process Revenue Accruals
7
Enter Progress Earned Value Analysis
Process Profit Recognition
8
Project Invoicing and Journaling
9
Cost Codes
10
Original Budgets and Revised Budgets
Phase Estimate to Complete11
Analyse and Post Over/Under Claims12
Enter Cost Accruals5
Inquiries and Reports13
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Invoicing and Journaling• All invoices are raised in National as one invoice under
420029.5020.91080050.• The invoices are then journal out to each region by cost
code and work order.• All National invoices (bank fee’s, change management
etc.) are raised under 420029.5020.91065050 and are then journal to itself to add the work order details.
• All sundry invoices raised are done directly into the region but still need to be journal out to itself so that the work order can be added.
• Every invoice should be allocated to a work order by journal entry
• This data can be reviewed via the One View G/L Inquiry
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Project Month End Process
Month End Process Cycle2
1
3
Process Estimate at Completion4
Enter Claimed Quantities6
Process Revenue Accruals
7
Enter Progress Earned Value Analysis
Process Profit Recognition
8
Project Invoicing and Journaling
9
Cost Codes
10
Original Budgets and Revised Budgets
Phase Estimate to Complete11
Analyse and Post Over/Under Claims12
Enter Cost Accruals5
Inquiries and Reports13
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Enter ProgressRegions will no longer need to enter progress for works or revenue. This should free up a significant amount of time.This will be done by National using percentage % cost completion. Example: If your site, Estimate At Completion (EAC) is $10,000. and you have incurred Actual Cost of $5,000, then your percentage cost completion is 50%. National will progress your site and revenue to 50%.
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Project Month End Process
Month End Process Cycle2
1
3
Process Estimate at Completion4
Enter Claimed Quantities6
Process Revenue Accruals
7
Enter Progress Earned Value Analysis
Process Profit Recognition
8
Project Invoicing and Journaling
9
Cost Codes
10
Original Budgets and Revised Budgets
Phase Estimate to Complete11
Analyse and Post Over/Under Claims12
Enter Cost Accruals5
Inquiries and Reports13
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Manual Revenue Accruals
Purpose:The purpose of a manual revenue accrual is to either:1. Record revenue earned but not yet invoiced
• Claimed not invoiced (Claimed)• Earned but not claimed (Underclaim)
2. Reduce revenue to reflect items not earned (Overclaim)
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Project Month End Process
Month End Process Cycle2
1
3
Process Estimate at Completion4
Enter Claimed Quantities6
Process Revenue Accruals
7
Enter Progress Earned Value Analysis
Process Profit Recognition
8
Project Invoicing and Journaling
9
Cost Codes
10
Original Budgets and Revised Budgets
Phase Estimate to Complete11
Analyse and Post Over/Under Claims12
Enter Cost Accruals5
Inquiries and Reports13
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Revenue Recognition
Understanding Revenue RecognitionRevenue recognition is a system process to recognise revenue earned but not yet invoicedA manual accrual may be required to recognise amounts invoiced but not yet earned (reducing the revenue)
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Project Month End Process
Month End Process Cycle2
1
3
Process Estimate at Completion4
Enter Claimed Quantities6
Process Revenue Accruals
7
Enter Progress Earned Value Analysis
Process Profit Recognition
8
Project Invoicing and Journaling
9
Cost Codes
10
Original Budgets and Revised Budgets
Phase Estimate to Complete11
Analyse and Post Over/Under Claims12
Enter Cost Accruals5
Inquiries and Reports13
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Phase Estimate to CompleteUnderstanding Estimate to Complete:Estimate to Complete is the difference between actual costs at the end of the reporting period, and the Estimation at Completion. JDE phases the Estimate to Complete based on the working days each month, and the dates assigned to the cost code. The phasing can be adjusted to correctly reflect when costs will be incurred or revenues recognised, which in turn is used to project cash flow. The phasing can be done at either the job or cost code level
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Project Month End Process
Month End Process Cycle2
1
3
Process Estimate at Completion4
Enter Claimed Quantities6
Process Revenue Accruals
7
Enter Progress Earned Value Analysis
Process Profit Recognition
8
Project Invoicing and Journaling
9
Cost Codes
10
Original Budgets and Revised Budgets
Phase Estimate to Complete11
Analyse and Post Over/Under Claims12
Enter Cost Accruals5
Inquiries and Reports13
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Under / Over claims Analysis
Understanding Under/ Over ClaimsThe Profit Recognition process generates either Costs in Excess, or Billings in Excess. This is further analysed to report the components:
• Under Claim: the amount claimed is less than the work performed, or other entitlement under the contract
• Over Claim: the amount claimed exceeds the work performed, or, although entitled under the contract, can’t be recognised yet
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Under / Over claims Analysis Types of Under Claim• Work Completed Not Claimed
Work completed which can be recognised as revenue however not yet claimed.• Contractual Claims
Claims for which there is contractual entitlement but not yet claimed• Insurance Claims
Claims for which there is entitlement under an insurance policy but not settled by the insurer• Variations Underclaimed
Variations recognised in accordance with the Company's revenue recognition policy but not yet claimed.
• Performance IncentiveKPI/Gain Share recognised in accordance with the Company's revenue recognition policy but not yet claimed.
• Earned Value ShortfallCosts exceed earned budget
• Materials on SiteMaterials purchased and on site, however not consumed and contractually can't be claimed
• Effects of Unbalanced BidCosts eg Mobilisation which contractually can't be claimed when incurred, but must be claimed over an extended period of time.
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Under / Over claims Analysis Types of Over Claim• Work Claimed Not Completed
Revenue claimed however can't be recognised, either under contract or based on work performed.
• Uncomp. Portion of Cont. Claim Claims for which there is contractual entitlement but the entitlement isn't realised
• Variations Over claimed Variations claimed but can't be recognised under the Company's revenue recognition policy.
• Earned Value SurplusCosts less than earned budget (see definition Earned Value).
• Contingency to Date The amount of contingency that has been claimed for which there is no corresponding expenditure
• Effect of Unbalanced Bid Costs which contractually can be claimed before being incurred, however can't be recognised under the Company's revenue recognition policy.
• Provision for Future Loss The Company's revenue recognition policy requires that if a project is in a loss position, the full loss is recognised.
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Project Month End Process
Month End Process Cycle2
1
3
Process Estimate at Completion4
Enter Claimed Quantities6
Process Revenue Accruals
7
Enter Progress Earned Value Analysis
Process Profit Recognition
8
Project Invoicing and Journaling
9
Cost Codes
10
Original Budgets and Revised Budgets
Phase Estimate to Complete11
Analyse and Post Over/Under Claims12
Enter Cost Accruals5
Inquiries and Reports13
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Reports
Discussion:• Reports
Open Order Report Purchase Order Details Inquiry Cost Analysis Enquiry – G/L One View Inquiry AP Ledger Inquiry Hubble
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Reports – Open order report 1
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Reports – Open order report 4
5
6
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Reports – Purchase Order Details Inquiry1
2
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Reports – G/L One View Inquiry1
2
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Reports – AP Ledger Inquiry1
2
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Reports – Hubble
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Reports – Hubble
Break
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