Rate and Pool Management – Impacts to Project Ledger and General Ledger Steve Fruitman, Partner, Kinetek Consulting John Schintzel, Partner, Kinetek Consulting GC-225
Deltek Insight 2012: Rate and Pool Management -Impacts to the Project Ledger and General Ledger
Apr 16, 2017
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Rate and Pool Management – Impacts to Project Ledger and General Ledger
Steve Fruitman, Partner, Kinetek ConsultingJohn Schintzel, Partner, Kinetek ConsultingGC-225
Agenda
Understanding the basic pool architectureImpact to General Ledger and Project Ledger
Statement of Indirect Expenses General Ledger Impact Project Ledger Impact
Debit to Credit Allocation comparison General Ledger Impact
Project Application versus General Ledger AllocationProject Application versus Statement of Indirects (Actual and Target using variances)Checklist of Pool Processing StepsToolkits
Costs to AllocateAccount/Org. Combinations
Basic Cost Pool Architecture
Allocation BaseAccount/Org. Combinations
Base Account Allocation Account Cost/Receivable Variance Account
% Apply to Project &
Allocate to Acct/Org
=
4 ©2012 Deltek, Inc. All Rights Reserved
Actuals – Computed by Costpoint Targets – Entered and Used for Revenue and Project Reporting Provisional – Entered an Used for Billings Cost of Money (FCCM) – Entered and Used for Revenue, Billings
and Project Reporting
Pools have several rates that affect the Ledgers
Keep in mind, that the system can be configured for Current Period or Year to Date Rates
Basic Pool Tiering
5
Pool tiering, straight forward, but complex.
Cost pool flows to higher sequence pools or if a final pool will apply to a project cost objective
Application: Uses a rate on the Project Ledger, does not post to the Project. Used to burden cost for Reporting, revenue, billing, and Inventory computations
Allocation: Posts to the General Ledger.
For Final Pools: There is NO project posting to the General Ledger (just allocation accounts/orgs), the projects are burdened with an application on the Project Ledger (PROJ_SUM, PROJ_BURD_SUM) and the billing computations.
TypeAccount/
Org Project Apply/AllocFinal Pools X Apply/AllocIntermediate Pools X AllocService Centers X X Alloc
Project Transfer X X AllocMulti-Job X X Alloc
Posts
Application versus AllocationProject Ledger and General Ledger
6
Gen’l and Project Ledger Impacts from Pools
A reas of the S ystem that P ools A ffec t
A llocation JournalsV ariance Pos tingsF inanc ia l P resentation
F inanc ia l
PRO J_SUMPRO J_BURD_SUMPSR
P rojec t C os t
C ost T ypeLoaded Labor +C os t (eg: G& A )B urden F ee Ov erridesB urden Cost Ceilings
R evenue
C os t T ypeLoaded Labor +C os t (eg: G& A )B urden F ee Ov erridesB urden Cost Ceilings
B il lings
Rev/B ill Update w ith EAC/ETCE AC/ETC Reports
E A C /E T C C alcs C om parisons to Financials
B udgets
P ools
Gen’l Ledger Project Ledger
Best way to control the pool process AND the keep the ledgers in synch…do it correctly!
Follow a standard and consistent process to validate General Ledger and Project Ledger Impacts
Understand the dependencies your company requires Check the input data with reports or scripts (get ahead of it) Reconcile, Reconcile, Reconcile…
Build Recon steps early in the process, mid period Develop a process that ties out the pool and the full process, including
variances Make it repeatable, straight forward, and effective (Project sub ledger
allocation/applications must tie to the General Ledger!)
Keeping It Sane!
Run Cost Pool Toolkits
Verify/Update Org_Acct linkages
Update FS Summary Bals utility
Create Pool Links
Build the Rate Application Run pool utilities
Trial Balance Compare to S.I.E. cost and base
Compare top level PSR to S.I.E.
Sum of all Debit Allocation accts/orgs for pool should zero out with Credit Allocation.
“Reversing Pools” cost ties to the source pools Credit Allocation Account/Org balance
“Reversing Pool” should net zero
Sample Pool Process Checklist
Cost Pool Toolkits
Check Pool Acct/Org SetupsDisplay Invalid Pools
Best to run in the current Period/sub-period, and correctFix Invalid Pools
Be careful, this inserts a row into the PROJ_BURD_SUM which can be overwritten with subsequent Compute Burden processes in the same period or sub-period
Use a script or Cognos report to check for missing acct/org links from Pool Base. Can do same with Pool Cost.
#1 Pool issue-Base did not get created from Base Creation
This is effective and will save hours of analysis
Reconciliation Approaches
Alternate Financial StatementsCognos ReportsPool Cost Create & Pool Base Creation ScreensOrganizational Cost SummaryProject Status ReportTick and Tie with a Calculator (OK, we all do it when all else fails)
Pool Reconciliation to Gen’l and Project Ledger-w/variances!!!
Pool ReconciliationAll values entered as YTD
CostFrom SIE From TB extract CRD balance DBT balance Calculated
Pool Number Cost GL cost
Credit allocation balance
Debit allocation
Balance Cost Variance Rec VarianceComputed
TargetPSR at Target -
Co. WidePSR at Actual - Co.
Wide100 10,417,485.98 10,417,485.98 (10,417,485.98) 10,417,485.98 1,034,744.84 (1,034,744.84) 11,452,230.82 11,454,803.71 10,419,858.18 105 2,867,980.34 2,867,980.34 (2,867,980.34) 2,867,980.34 (65,822.68) 65,822.68 2,802,157.66 2,802,157.66 2,867,980.34 110 1,168,234.19 1,168,234.19 (1,168,234.19) 1,168,234.19 92,686.04 (92,686.04) 1,260,920.23 1,260,920.23 1,168,234.19 200 812,000.00 812,000.00 (812,000.00) 812,000.00 interm/SC interm/SC interm/SC interm/SC 812,000.00 250 268,412.86 268,412.86 (268,412.86) 268,412.86 interm/SC interm/SC interm/SC interm/SC 268,412.86 500 16,459,226.81 16,459,226.81 (16,459,226.81) 16,459,226.81 (327,790.78) 327,790.78 16,131,436.03 16,131,436.03 16,459,226.81 700 22,289,951.52 22,289,951.52 (22,289,951.52) 22,289,951.52 469,760.46 (469,760.46) 22,759,711.98 22,759,712.09 22,289,951.56
TOTALS 54,283,291.70 54,283,291.70 (54,283,291.70) 54,283,291.70 (11,329,065.81) 11,329,065.81 42,954,225.89 42,954,225.89 54,283,291.70
Base Differences
Pool Number Base per SIE GL costdifference in
base Actual Rate SIE to Trial Bal
SIE Cost to Credit
Allocation
Debit Allocation to
Pool CostCalc Target to PSR
at TargetPool Cost to PSR
at Actual100 35,788,221.32 35,788,221.32 - 29.11% - - - 2,572.89- (2,372.20) 105 28,021,576.57 28,021,576.57 - 10.23% - - - - - 110 8,406,134.89 8,406,134.89 - 13.90% - - - - - 200 100.00 100.00 interm/SC interm/SC - - - interm/SC - 250 100.00 100.00 interm/SC interm/SC - - - interm/SC - 500 28,054,671.36 28,054,671.36 - 58.67% - - - - - 700 151,731,413.17 151,731,413.17 - 14.69% - - - 0.11- (0.04)
TOTALS 252,002,217.30 252,002,217.30 - - - - (2,573.00) (2,372.24)
© Kinetek Consulting, LLC
From TB extract Project Ledger
14 ©2012 Deltek, Inc. All Rights Reserved
Project Account Group (PAG) ChangesBAL Function CodeNon-Project Required AccountsVariance Specific Impacts:
Project Classification Revenue Formula Unallowable Function Codes
Impacts that will affect General Ledger and Project Ledger
15 ©2012 Deltek, Inc. All Rights Reserved
Questions
16 ©2012 Deltek, Inc. All Rights Reserved
We hope this was your best session of the conference!Yes-you were the best groupYes-we can provide assistance both after this session and at the Kinetek Consulting boothYes-we are passionate about pools, rates, material burden, and things that make others run for the hills!We are John Schintzel and Steve FruitmanCome see all that we have to offer at the Kinetek Consulting booth, #29, in the Main Exhibit hall (Ryman)
Thank you for joining us!!!
Thank You!
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