Earned Value Management Analysis in Standard Dynamics AX Dr. Ludwig Reinhard, Sycor.

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Presentation transcript:

Earned Value Management Analysis in Standard Dynamics AX Dr. Ludwig Reinhard, Sycor

BACKGROUND

Planned value vs. Actual cost 3 3 Source: Wikipedia

Planned value vs. Earned value 4 4 Source: Wikipedia

Earned value vs. Actual cost 5 5 Source: Wikipedia

Earned Value Analysis 6 6 Total Variance (AC-PV) Total Variance (AC-PV) Schedule Variance (EV-PV) Cost Variance (AC-EV)

Earned Value Analysis 7 7 Source: Wikipedia

EXAMPLE

Construction building 9 9

Demo Data 10

Demo Data 11 POC = Actual Hrs. / (Actual Hrs + Remaining Planned Hrs) 19,79% = [3700/( )]

Demo Data 12  Notes: POC calculation based on hour transactions only => might not be correct in projects where hours are a minor part => Either use a different setup or manually overwrite the POC  Also complex POC calculation methods do not necessarily give you the „correct“ POC => It does not matter how you calculate the POC, the important thing is that you use a consistent method

Demo Data 13 Note: Standard AX cannot calculate EV, Schedule Variance and Cost Variance out of the box => “Special” setup required to realize that in Standard AX

SETUP DYNAMICS AX

Project setup 15 Invoice Project Project type: Time & Material Usage: Invoice customer / record revenue EV Analysis Project Project type: Fixed price Usage: Record costs / calculate EV

Project setup 16 Project & subproject setup with the same project financial dimension

Project setup 17 POC calculation based on “work progress percentage”

Project setup 18 WBS setup at the sub-project (fixed price project) level

Project setup 19 WBS estimates copied to forecasts

Project setup 20 Forecasts copied to project module budget

Project setup 21 Planned value setup as milestone on-account transaction for EV calculation

DYNAMICS AX PROCESS & ANALYSIS

Process T&M “invoice project” 23 Record invoice plan as fee transactions Invoice customer

Process FP “EV Analysis sub-project” 24 Record hours & expenses (Mark project stage as finished) Run & post estimate for the period Evaluate project

25 AX2012 R3 Contoso Demo Machine Company: USMF

RESULTS

Results 27 Planned value (PV) Earned value (EV) Actual cost (AC) Cost variance

Results 28

TAKE AWAYS

Take Aways 30 Earned value can be tracked and analyzed over the lifetime of the project directly in AX & Management Reporter Clear separation of cost and revenue recognition and customer invoicing => parallel accounting (local GAAP, IFRS, …) possible

Setup – Project Accounting 31 Sales value accounts used for EV tracking & posting

Q & A

Dr. Ludwig Reinhard Speaker contact info 33

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