Project Management on Demand™ provides perspectives from seasoned project managers. These perspectives are called ‘insights’ and typically relate to areas of project management that can cause issues for project managers.
Insights are ‘tips from the trenches’ from project management experts to help PMs proactively manage successful delivery.
- Insights help you make the right decisions to avoid issues and risks.
- Access to actionable information to navigate the complexities of project management and increase effectiveness and efficiency.
Accrual of Costs
PROJECT MONITORING AND CONTROL
You must accrue costs for work completed but not yet invoiced.
Accrue costs for work completed by a contractor or vendor that has not yet been invoiced in order to avoid variances and unexpected costs.
Confer with the Program/Project Finance lead to verify how the accrual will be managed, and by whom.
Project financials should be transparent and reviewed monthly.
Tips for accruing costs:
- Determine project costs for work that has already been completed but not invoiced or paid.
- Review the proposed accrual costs with the Program/Project finance lead to verify how the accrual will be managed (i.e., project level, program level, or another method).
- Once the final invoice has been received, work with the finance lead to ensure the accrual is processed correctly — either as a negative adjustment (for invoices lower than the amount accrued) or a positive adjustment (to accurately reflect true costs).
Ensure all project costs have been either accrued or paid in full prior to a project closing.