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How to create Change Orders


How to create Change Orders

This article explains how to create Change Orders and how to post them into Forecast Journal.

        As we all well know, the purpose of Change Orders is  to implement some revision to the Project, resulting always either with an increase or with a decrease of the total project cost. Change Orders may apply to CONSTRUCTION, or MATERIALS,  or ENGINEERING, or to any combination of the same.

        In D-E Project Accounting, Change Orders are affecting FORECAST only.  They are booked in the Forecast Journal, affecting COST ACCOUNTS (CONSTRUCTION, MATERIALS, ENGINEERING) on the DEBIT site, and the corresponding GENERIC FORECAST ACCOUNTS on the CREDIT site. In D-E Project Accounting, there are two procedures for creating Change Orders:

         To explain the procedures of creating and booking Change Orders, provided below are two examples. The first example shows Change Order where affected Cost Account has no related gWBS Account. The second example shows a more complex case, where the affected Cost Account has related gWBS Account. Both examples are illustrated by program screens generated by the new version 5.0 of TECA, where creating Changer Order and the data transfer to Forecast Journal are greatly simplified, as compared with the original version 4.1 of TECA (supplied so far with the book). Click here if you would like to obtain this new version of TECA. Each example's screens can be viewed individually, and also as the complete set of screens when scrolling down the first screen.         


PROCEDURE #1 - Change Order where the Cost Account has no gWBS Account

This example shows new Change Order for Renting Floating 60,000t Crane, to be charged to the Cost Account C017.C -Equipment Rental. Creating this type of Change Order - that has no related gWBS Account - must be started on the Change Order Listing screen; click here. You may scroll down this first screen to review all related ones.

PROCEDURE:

NOTE: It is possible to use this Procedure also for cases when the Cost Account has related gWBS Account. However, then it is necessary to adjust the scope in the gWBS account by adding the value of the Change Order. Moreover, the care should be taken to ensure the the sum of all estimated costs of the Cost Positions is equal to the total Forecast value of the related Cost Account.


PROCEDURE #2 - Change Order created when Cost Account has its gWBS Account      

This example shows new Change Order that affects the installation of the Accommodation Platform, to be charged to the Cost Account C011.C - Installation, Accommodation Platform. Creating this type of Change Order - that has related gWBS Account - must be started on the detail screen of that gWBS Account; click here. You may scroll down this first screen to review all related ones.

There three (3) Cost Positions are affected:

PROCEDURE:


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