Terminology/Processes/Steps for Closeout/Examples
- Budget
- PO Commitment
- Actual Cost
- Processes affecting each
- Steps for close out
- Examples/Tips and Reminders
Starting a project and closing a project follow the same steps. When you start a project you initiate a budget, establish PO's and pay your bills. During Financial Closeout you first ensure there are no more open invoices, then you reduce remaining dollars committed on PO's to zero which returns the committed dollars to your budget, and finally, you "true up" your budget which is the process of returning the money to the funding source(s).
Below, an abstract view of what the relationship between Budget, PO Commitment and Actual Costs look like...
Scenario - you have established a budget - Here is an example of what commitments look like in eBuilder:
Below, an abstract view of closing a PO and "trued up" the budget. Below, we see there is a remaining balance on a PO for $10k. We can also see that there was an additional amount of $20k in the budget that was never used (committed or "exhausted" as a result of internal charges for example). (Please note: this example assumes you have issued the final invoice for the PO and it has cleared). Remember, sending a "final invoice" flag or, reducing a PO to zero does not actually close the PO. You must request a PO be closed.
Tips to avoid any issues with financial closeout:
Finally, when you begin financial closeout you must initiate a PMU Status update and select “Active-Financial close out…”. Do not use the status “Complete” until all close-out functions have been completed.