Hello,
We are trying to set up a Fixed-Price project and manage it through its WBS over its complete life-cycle in D365 FinOps "Project Management and Accounting" using PMI's EVM methodology.
In our case, project's sales price has not a 1:1 relationship with hours/items/expenses, so we don't use these transactions "sales price" to define the project's sales price. My first doubt is:
- What transaction type should I use to define the project's sales price?
Once defined the project's WBS with all its forecasted costs and sales price, I transfer the WBS to O_Forecast and I want to have the project budget's P&L with the estimated sales price, costs and expected margin. To do so, I've used the "Fee transaction" to define the sales price in the O_Forecast model, but I don't fully understand what are the difference between "Fee" and "On-Account" transactions to define the sales prices and the accounting implications.
If rather than using "Fee" I use "On-Account" transactions to define the project's sales price, I've been unable to get the budget P&L: the system only shows the forecasted costs but not the forecasted revenues (that in this cases equals the project's sales price).
The second doubt I've got is about how to use the WBS, the forecast models and estimates to manage the project using PMI's EVM methodology.
EVM methodology defines basically three inputs to every WBS's Leaf node for managing the project's progress and budget:
AC (Actual Costs): this is obtained automatically by D365 with all the transactions posted against the tasks of the WBS
EV (Earned Value or Progress): this is with respect the project's baseline. In D365 it can be set "manually" at project level but not at task level; although I don't know if there are other ways for setting it.
ETC (Estimate to Complete): estimation of the Project Manager of the remaining costs (hours/items/expenses) up to the end of the project, independently of the project's baseline.
- My doubt is how can I define the EV/ETC of each Leaf Node (using Forecasts and/or Estimates?) for managing the Fixed-Price project over its complete life-cycle.
Thanks a lot for your help!
