Our Financial Management Process for Projects typically includes:

-total project costing
-project tracking
-financial reporting for projects
-project closure

Total project cost includes all costs of delivering the project.

The project cost tracking system.

       This will typically source data from the Project Management plan.

Invoices and fee notes - direct external costs.
Internal staff time sheets - to compute man-days and hence internal staff costs.
Purchases subsidiary ledger
Contracts - contracts with suppliers
Recharges - e.g. for shared resources
The payroll system - project staff costs.
The G/L
The fixed assets register - asset purchases, sales and write-offs.

Financial Reporting

Reporting through the Project Steering Committee

A comprehensive financial report to the Project Steering Committee is expected to detail the total actual costs against budget and forecast. The report should separately analyse project cash costs (capex and opex) and the P&L impact (costs and benefits).

The report includes:

A note of material variances, with explanation, between forecast and the Project
Forecast of outstanding and committed costs
The current use of any project contingency
The financial impact of agreed and pending/unresolved scope changes





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