Which is funding the project?

Hello

I'm new to PA, I come from a technical background and despite having read everything regarding funding for project billing... I can't understand the concept of funding and how it must be equal to the Revenue Budget.

Can you please give me an example of real life on some project for project funding?

For example, a project with a contract of $100,000

Usually, who finance the project? and the amount of funding how is usually determined in projects?

Kind regards

Joe

The logical hierarchy could be - customer-> right-> financing

This means your "project with a contract of $100,000" example statement is partially correct. We can say as below:

Your company has an agreement with the XXX customer for $100,000. It means agreement correspond to the customer directly and not with the project.

Your agreement accepted the sum of $100,000, which you can supply to one or more projects for this client. For example-, you have 3 projects for this client you want to pay in respect of this agreement. You need to allocate funds to these projects so that you can provision and to Bill the customer. It is not necessary to allocate all the funds in these 3 projects, you can keep some unallocated funds to anticipate a new project for this client.

Your funding can be allocated to projects or tasks. Declaration of the User Guide - "the total amount of funding must match the amount of budget receipts of current approved project in order to baseline the project successfully. Eventually, top of page tasks on projects can be financed individually. If the top of the page tasks are financed, then the same requirement to match the budget amounts to funding amounts if applies to level the top of the page of the project task. »

Tags: Oracle Applications

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