As a PM I have to keep track of cost performance index for every task group. Sometimes it's very difficult to get the input to calculate cost performance indices and I have to chase the accounting people in order to get the cost charged to my project's budget. I have reported this issue to the sponsor and finance manager, but even after several weeks the situation did not improve.
What should I do next? How do you deal issues with project cost accounting? Saving Changes...
It doesn't sound like saving you extra effort is urgent enough for either the sponsor or the finance manager so you need to figure out how to make the necessary changes to reporting palatable to them.
Unfortunately, lack of alignment between financial systems reporting and work package granularity is one of the common barriers to adoption of EVM.
Are there many PMs facing this challenge - if so, can you put a cost estimate on the wasted effort which might be saved by improving the existing financial reporting?
Kiron
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1 reply by Anish Abraham
Jan 29, 2018 5:51 PM
Anish Abraham
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You are right, Kiron and thanks for your input on this.
I think other PM's are also facing similar challenges, since their cost performance are hampered by the delays and errors.
Identify it as a risk to schedule/budget that you need to waste time and money chasing these people. Or identify it as an assumption for the task "calculate cost performance indices" that the finance people will get the information to you on time
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1 reply by Anish Abraham
Jan 29, 2018 6:00 PM
Anish Abraham
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Thanks Sante, for your feedback on this.
I like the idea of identifying it as an assumption :)
It doesn't sound like saving you extra effort is urgent enough for either the sponsor or the finance manager so you need to figure out how to make the necessary changes to reporting palatable to them.
Unfortunately, lack of alignment between financial systems reporting and work package granularity is one of the common barriers to adoption of EVM.
Are there many PMs facing this challenge - if so, can you put a cost estimate on the wasted effort which might be saved by improving the existing financial reporting?
Kiron
You are right, Kiron and thanks for your input on this.
I think other PM's are also facing similar challenges, since their cost performance are hampered by the delays and errors. Saving Changes...
Identify it as a risk to schedule/budget that you need to waste time and money chasing these people. Or identify it as an assumption for the task "calculate cost performance indices" that the finance people will get the information to you on time
Thanks Sante, for your feedback on this.
I like the idea of identifying it as an assumption :) Saving Changes...
You could also add that not getting the information timely generate a risk.
Are you are saying that cost get register to your project without your prior approval? more risk
Thanks Vincent, for your input on this.
Yes, some are getting added to project budget and I have to go and chase them to correct it. Saving Changes...
Anonymous
In my past life, we never bothered with accounting details except to make sure no one is charging our project things does not belong there.
So, where do we get our AC info from? PO and time sheets or something similar - even before it is booked into the accounting system Saving Changes...
Anonymous
Anish - one more statement - keep in mind that when the info get into accounting - then it is old news - try to beat the problem but getting plugged in before it reach them
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1 reply by Anish Abraham
Jan 30, 2018 10:46 AM
Anish Abraham
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Thanks Mounir for your feedback on this.I appreciate it.
The lesson learned is that always check every item charged to the project budget. Also, need to bring the finance department in sync with the project environment.
Thanks Mounir for your feedback on this.I appreciate it.
The lesson learned is that always check every item charged to the project budget. Also, need to bring the finance department in sync with the project environment. Saving Changes...
