Project Costing Based on Material Issuance (Consumption-Based Costing) — Cloud Customer Connect
You're almost there! Please answer a few more questions for access to the Applications content. Complete registration
Interested in joining? Complete your registration by providing Areas of Interest here. Register

Project Costing Based on Material Issuance (Consumption-Based Costing)

in Project Management 5 comments

Hi All,

Greetings of the day…!

We have a business requirement related to Project Costing for a Construction-based business where materials like cement bags are procured and stored, and only the materials issued to the project are to be considered as project costs.

Actual process in Projects:

  1. A Project is created → PJC_1
  2. A Purchase Requisition (PR) is raised against the project → PRC_1 for $500✅ Cost reflected in Project as Purchase Requisition Committed Cost = $500
  3. A Purchase Order (PO) is created from the PR for $500✅ Cost moved to PO Committed Cost = $500❌ PR Committed Cost = $0
  4. Material is received against the PO for $500✅ Committed Costs cleared✅ Receipt & Cost Accounting processed✅ Cost imported to Project →
Tagged:

Howdy, Stranger!

Log In

To view full details, sign in.

Register

Don't have an account? Click here to get started!