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how do you make report of planned billing ?

13 replies [Last post]
mimoune djouallah
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Dear planner

what do you use as software for making planned billing ( payement, or income)
all the software i know they treat only costs, budget but how to simulate the expected billing of the contract.

hope you share some experience with us

mimoune

Replies

mimoune djouallah
User offline. Last seen 4 weeks 3 days ago. Offline
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Posts: 388
Rodel

I real appreciate the time that you have spent to write this beautiful answer thanks really I am really grateful.

Friendly mimoune

Rodel Marasigan
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Joined: 25 Oct 2006
Posts: 1516
Hi Mimoune,

I been using P3/ P3e/P5 successfully to stimulate revenue and get a realistic cash flow. It’s just a matter of exploring all the facilities/ module of the software and how it work. Honestly it’s a great advantage and makes my work easy. Here some tips to get you going.
It is much easier on P5 which have more advance features compare to P3.
First on P5 create your WBS on an Enterprise level and create a project according to your WBS structure as example shown below.

•     PROJ X (Enterprise)
. o     Preliminaries (Project)
...      Project Management (WBS)
...      Travel & Accommodation (WBS)
...      Indirect Labour (WBS)
...      Plants & Small Tools (WBS)
...      Site Establishment (WBS)
...      Mob/ Demob (WBS)
...      Consumables (WBS)
...      Currier/ Parcel & Shipping (WBS)
...      Project Overhead (WBS)
...      Insurance/ Bank Guarantee (WBS)
...      Accruals/ Profit
...      Cost not chargeable to Client (WBS)
. o     Design (Project)
...      Earthworks (WBS)
...      Civil Works/ Buildings (WBS)
...      Structural (WBS)
...      Mechanical and Equipment (WBS)
...      Electrical (WBS)
...      Instrumentation (WBS)
...      Piping (WBS)
...      Insulation/ Painting (WBS)
. o     Procurement (Project)
...      Earthworks (WBS)
...      Civil Works/ Buildings (WBS)
...      Structural (WBS)
...      Mechanical and Equipment (WBS)
...      Electrical (WBS)
...      Instrumentation (WBS)
...      Piping (WBS)
...      Insulation/ Painting (WBS)
. o     Construction (Project)
...      Earthworks (WBS)
...      Civil Works/ Buildings (WBS)
...      Structural (WBS)
...      Mechanical and Equipment (WBS)
...      Electrical (WBS)
...      Instrumentation (WBS)
...      Piping (WBS)
...      Insulation/ Painting (WBS)
. o     Commissioning (Project)
...      Civil Works/ Buildings (WBS)
...      Structural (WBS)
...      Mechanical and Equipment (WBS)
...      Electrical (WBS)
...      Instrumentation (WBS)
...      Piping (WBS)

Note: This WBS is for illustration demonstration and reference only and not intended for actual use as it all depends on the type of Project.

You can breakdown on much more detail level and modify to suit project requirements. You also can combine two, three project and separate preliminaries or all in one project and use filter to display the proper schedule. The intension of separating into EPS structure is to make it easier to control and navigate. Open your project into EPS level and not by project when analysing cost and open only the project when proper schedule is require. If you’re using P3 follow same structure using project as EPS and subproject on Project level.

Assuming that you’re done all the activities against your WBS structure and ready for resource assignment. Define you resources according to your contractual requirement as it may vary to the type of contract. For lump sum, cost plus and reimbursable you can define your resources against labour units (hrs), material, equipments, subcontract and indirect labour. For lump sum with quantities, unit rates define your labour unit into two categories, one for “hrs” without rates and the second part is “qty” per UOM (unit of measure) with rates and rest will be the same. The beauty of P5 you can assign expenses to the activity and milestones (you cannot display it on resource assignment spreadsheet but included on the report) while in P3 you can define all of these including expensed in cost account categories. In P5 you can also define your Resource Code and role grouping which is very useful when analysing your forecast and revenue. For P3 use account code and Group Resource when run Report Cost Loading. It’s a little bit complicated on Lump sum with quantities and unit rate contract because it requires to defines all resources basically named to your scope of work and labour component at the same time.

Ex: Excavation
I name it as it is (Excavation) using unit rate per cum for a start. Then define a labour component as other resources, a Tradesman for example and enter unit hrs with out rate so it will not generate any cost. Do the same thing on all BOQ components, Cost item such as preliminaries and use expenses for all non measurable items or one time cost. After that assign it to their appropriate activities and enter the budget quantities. Now you have all a budget cost same as your contract price and total man-hours allocated. Now the tricky part is your labour units which more than your budget man-hours because of your qty per UOM plus your hrs allocation per activity. This is where your “filter” function are very usable which you can save a layout to go back and fourth on cost and labour hrs. Resource group and roles are very useful on this area if you set it up properly. If you’re confused create two sets of programme and separate the Labour programme to your costing programme and create two users define field to store you budget hrs and actual hrs. Use users define field when updating labour programme using export/ import module of P5.

You can track and analyse this within activity module, tracking module and resource module using spreadsheet and resource profile. When you click spreadsheet on Activity module you will have a split screen into four parts Activity on the top left, Resources display on bottom left and top right will have and option to display grand chart, activity spreadsheet, network diagram or just the activity while on bottom right you can display anything that you can display on the top plus activity detail, resources and logic trace etc..
On tracking module you will have the same four split screen which is almost the same display and option on Activity module except for top left which is project display instead of activity. Resource module is the best to use where you can use the whole screen to display all the resource and same function with other module where do group & sort, filter.
This is where you need to play around on your screen and where Resource code and roles are very useful.

Say you used Resource module. Group & Sort according to WBS or resource code and roles if properly defined. Right click the right screen and select Spreadsheet field-> customise then select cost field that you want to display. You can customise the way you want it and generate your report.

If you required Cost S-Curve or Cash Flow or Histogram use the Tracking module.
Note: If you define your resources labour unit into two as I mention before be sure to filter it first on labour resource define on hrs otherwise you will have accumulated labour units from hrs and qty when displaying Spreadsheet or Graphics on labour hrs analysis.

The most meaningful report which includes expenses and other cost are available on Report Module. Click Report icon on left or Tools-> Report on your menu. Locate CT-01 Monthly Project Cash Flow or CT-02 Monthly Project Cash Flow by WBS. Click wizard icon on the right so you can modify the report according to your needs. Click next then Click Column and select column field you want to include on your report. Click Group & Sort and change it to your groupings. Click filter if you require filtering and showing only the data you need to show on the report. Click Next and click timescale to range your report. Click Time interval field and select all field you want on your report including expenses, actual, budget..etc. This will be your row data. Click next and rename your report for future use. Click next and run the report and click Preview to view the result. Close and click next -> Save. Play more around with this and you will learn/ discover a lot of thing. Like what I said keep exploring and you will be happy on the result.

Note: Define and Store your period performance every month or every cut-off so your actuals will not change every cut-off report.

Enjoy planning… and hope this will help.

Regards,
Rodel
Tomasz Wiatr
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Joined: 22 Dec 2004
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Hi Mimoune! Yes, Excel is fantastic worksheet, so I understand Your term "lovely Excel". Excel is very good! Although I see in Excel different restrictions (number of columns, number of variables in =formulas); unfortunately analitically better, legendary QuattroPro have some small "imperfections", so people love Excel :-) But I’ll buy probably QuattroPro 12 because I can have here some thousands of columns -> in Excel only ... 256 (number of days in one year only - if we export data from scheduling software). I heve Excel 97 and I love it too :-)) If You are user of P3 and P5 You MUST :-) to use Pertmaster, and in no case any other software (meybe professional and great but not comaptible with Your software)!!! Why You must to use Pertmaster?: because Pertmaster have all Your formats of P3 3.0-5.0 (in version 7.6.2 we have saving for *.XER). We have different Primavera exporting tools in Pertmaster! Pertmaster is FOR YOU! In the aspect of P3 we can create resource "income" too (like a usual resource with own name). In second phase we can export profile for Excel :-) and we can balance incomes and outcomes but it is very labour consuming method (I have used this type of options in decadence of XX century, because in some ~2 years Pertmaster was not produced - after DOS era. Earlier I was user od Pertmaster Advance for DOS - he was without Monte Carlo simluations). But thanks too NEW Pertmaster 7.X i can say LOVING MONTE CARLO SIMULATION ;-) too. Balancing (+ vs -) is not possible in P3, specially in 5.0 (version 5.0 is better in the aspect of friendliness and some NEW options but not al all unfortunately). P3 is great for "day-to-day" scheduling - it is like "bomber aircraft", but Pertmaster is "fighter for special purposes". Project cash flow is special purpose too, specially with risk analysis. If we are interested in history of wars we know that own, sole bombers without protection of fighters are not complete. I have soul of alone fighter so I prefere machine with full of arms :-) I can make almost all in Pertmaster - in not other PM SOftware is not possible! None, no other software in OWN, SOLE using is not better. Of course we can exchange data but every solution have strong and weakness balance. If You like Excel You must to use Pertmaster BECAUSE in Pertmaster we have own spreadsheet with @formulas (similar to QuattroPro and Lotus 1-2-3 in the aspect of sign @). We have here 40 formulas dedicated for scheduling and analysis!!! - it is not cometitor of Excel (Excel is good still). Pertmaster have Monte Carlo Simulation too, so You have 3 BIG REASONS to use Pertmaster, not another one (meybe good and interesting like SPP, CSPP, PPTM etc). In Pertmaster You have NPV/IRR calculation too - it is for You. I cooperate with Pertmaster but I don’t understant specialization in Monte Carlo Risk Simulation because Pertmaster have big power of planning AND complex analysis, not only RISK analysis, not only. But I am not owner of Pertmaster Company unfortunately =:] (I was not any investor too =;]). Today owner of Pertmaster Ltd is ... Primavera. Future is enigma and scheduling is not tool in this forecasting :-) it is job "black jack players", not for us, Engineers! all the best regards from Poland Tomasz from Poland, PhD. C.E. I am fanatic of Pertmaster BUT I love Primavera P3 and Excel too =:] of course. Excel is good for all purposes - it is multipurpose helicopter :-)
mimoune djouallah
User offline. Last seen 4 weeks 3 days ago. Offline
Joined: 14 Oct 2006
Posts: 388
Tomasz

Thanks really for your reply, actually I download the demo version of spider project and I was so glad to see at last a software that deal with income, and have the ability to separate budget from income witch are completely different.

But I am still searching how to use P3 or P5 to simulate revenue, and get at last a real cash flow report.

Mimoune.


Ps : back to real life, using my lovely excel, the budget presentation is next week,
Tomasz Wiatr
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Joined: 22 Dec 2004
Posts: 35
Groups: None
Hello,

In the aspect of queation of Mimoune Djouallah!

We can analyse "incomes and outcomes" in some software products. We need software with generic/hierachical resource analysis, not Excel because Excel is only "supplement" for not complete scheduling software, f.e. MS Project :-) Of course Excel/Lotus123/QuattroPro is good for all, but special purpose software for this job, because we have some algorithms.

These tools we have in UK Pertmaster, in Russian SpiderProject, in SA CS Project (In USA not exist any software for this, I suppose, US CA Super Project is not produced) and some others too - in Europe. I don’t know why in MS Project we have reports with name "cash flow" but only with costs... If this is "cash flow" I am horse =:] or even Pegasus (flying horse).

all the best regards
Tom
mimoune djouallah
User offline. Last seen 4 weeks 3 days ago. Offline
Joined: 14 Oct 2006
Posts: 388
Rodel

my email is djouallah.mimoune@gmail.com

friendly mimoune

update

actualy i received your file, it is exactly what i was searching for, although your contract is slightly different, we mainly use unit price contract, but for your case it is Cost Plus Fixed Percentage Contract. thus the calculation for revenue is quite different

thanks really

Rodel Marasigan
User offline. Last seen 11 weeks 2 days ago. Offline
Joined: 25 Oct 2006
Posts: 1516
Mimoune,

I assumed that you are using P3.1 and not P3e or PM5 where reports are available that suits to your requirement. You can show in tabular format with timescale plan, actual and forecast same as S-curve if your programme are set-up properly.

There is also some report in P3.1 that you can use such us Cumulative and Monthly Costs and cumulative cash flow under tools -> graphic report -> Resource and cost. Try those and it may help. You can also use the tabular report under cost -> loading… which is also timescale but limited data. Modify the report and select csv format so you can open it in excel and play the data around it.

Have a go and you may find what you’re looking for.

Cheers,

Rodel

PS. Have you received my email?
mimoune djouallah
User offline. Last seen 4 weeks 3 days ago. Offline
Joined: 14 Oct 2006
Posts: 388
Rodel

I really appreciate the time you spent to answer my question.

Perhaps what I write will looks strange for you, but mainly our contract are unit rate type, which mean you have a bill of quantities and for each item you a price, so the value of the contract in $ = quantity of item 1X price 1+ quantity of item 2X price 2+ ……….quantity of item nX price n

So then tendering department estimate the cost of the contract as you have well explained and add a small markup as the profit ( well it is a small margin, the local contractors are making our life a misery)

So now, I am in the planning department I don’t have access to the assumption made at the tendering level. (Please don’t ask me why ;)

What I have is the contract AKA the bill of quantities, prices of each item, technical specifications etc…. and of course the delay

So it is for me to develop the schedule, of course I begin with activities then assign resources and adjust them depending of the productivity of each task, be sure to not exceed the date line then assign expense, indirect costs, ( general overhead, office expense, head office expenses…. ) (Fortunately the tasks in infrastructure work have a long duration and they are repetitive ;)

After that I make a copy of my schedule then I unassigned all costs, assign a new cost representing the value of this activity in price then generating the forecast billing

Export that for excel add the forecast costs for the project and make a tabular report of cash flow at month basis.


Hope what I am writing make sense?
Rodel Marasigan
User offline. Last seen 11 weeks 2 days ago. Offline
Joined: 25 Oct 2006
Posts: 1516
Mimoune,

I can send you a spreadsheet that may help you but I cannot guarantee that this is the format that you are looking for. You can derive your cash flow from this spreadsheet and modify to suit your requirements. Forecast payment are based on your resources, expenses, materials, plant hire and overhead plus your margin and profit depends on your contract.

Normally a unit rate lump sum contract is reported according to your “qty completed” x “unit rate” per WBS or scope of work to back-up of your claim. The summary follows on your contract progress payment certificate format.

Cost code or cost category was normally set-up before the project start to monitor your actual cost against you budget cost and forecast cost. Sometimes it happened during the beginning or first stage of the project when the available resources to do the task are came after the project start.

I hope this help you get the clearer picture of what you need.

PS. Sample spreadsheet is on the way to your email

Regards,

Rodel
mimoune djouallah
User offline. Last seen 4 weeks 3 days ago. Offline
Joined: 14 Oct 2006
Posts: 388
thx really Rodel

i think i have to have some courses in english ;(

actually my boss is more interested to show to his boss ;) is a the a report in monthly basis of expect payement, income, billing of the projects.

sorry perhaps i am missing the big picture do you report payement as a specific cost account.

my email is djouallah_mimoune@gmail.com

mimoune

ps; Rodel i am just a very newbie in planning, be active in this forum don’t make a man smart ;)
Rodel Marasigan
User offline. Last seen 11 weeks 2 days ago. Offline
Joined: 25 Oct 2006
Posts: 1516
Hi mimoune,

Yes you can do a simple spreadsheet showing the plan, actual and forecast cost per cost category of your project on month to month basis.

If your program is resource loaded and patterned to your cost code it much easier and you can use P3 to produce the s-curve that you required. P3e have more feature on S-curve where it can you show the cumulative plan, actual and forecast cost at the same time.

If you required a sample format I can send for sample purposes only.

Regards,

Rodel
mimoune djouallah
User offline. Last seen 4 weeks 3 days ago. Offline
Joined: 14 Oct 2006
Posts: 388
Hi Rodel

Thanks Rodel for your reply, actually what I want to do is quite simple I have a simple contract in unite price, I have assigned all the necessary resources and expenses.

Now I need to report a cash flow curve representing income of the project. Of course you can always assign the price of this item as a fake expenses and generating different report.
My question is : is there another way ?

Friendly

PS: for lump sum contract I can’t even imagine what to do ?

Rodel Marasigan
User offline. Last seen 11 weeks 2 days ago. Offline
Joined: 25 Oct 2006
Posts: 1516
Hi Mimoune,

There is a lot of software available in the market but very costly such as SAP, Pronto, Paymee, etc...

Majority of this software are costing/ accounting packages and estimating packages.

They can customise depends on your requirement and online support are available including training.

Hope this will help.

Regards,

Rodel