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

2. BACKGROUND

3. Planned value vs. Actual cost 3 3 Source: Wikipedia

4. Planned value vs. Earned value 4 4 Source: Wikipedia

5. Earned value vs. Actual cost 5 5 Source: Wikipedia

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

7. Earned Value Analysis 7 7 Source: Wikipedia

8. EXAMPLE

9. Construction building 9 9

10. Demo Data 10

11. Demo Data 11 POC = Actual Hrs. / (Actual Hrs + Remaining Planned Hrs) 19,79% = [3700/(3700+12500+2500)]

12. 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

13. 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

14. SETUP DYNAMICS AX

15. 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

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

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

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

19. Project setup 19 WBS estimates copied to forecasts

20. Project setup 20 Forecasts copied to project module budget

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

22. DYNAMICS AX PROCESS & ANALYSIS

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

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

25. 25 AX2012 R3 Contoso Demo Machine Company: USMF

26. RESULTS

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

28. Results 28

29. TAKE AWAYS

30. 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

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

32. Q & A

33. Dr. Ludwig Reinhard Ludwig.Reinhard@sycor.de https://dynamicsax-fico.com/ Speaker contact info 33