Cost accrual

This is a system setting which enables AMT to accrue the cost for work order settlements which are classified as work in progress (WIP). Normally, the cost reported for work order settlements is that which has actually been costed to the work order settlement to date.

If a work order settlement is flagged as work in progress, and its cost to date is less than that of the strategy task to which is linked, AMT will accrue additional cost to the work order settlement based on a percentage

Example

• WO1234 for 1000.00.CC.0 Engine cost to date = $5000 (WIP).
• Strategy task estimated cost is $150,000.
• Accrual% = 100% (that is, accrue up to 100% of the strategy task’s estimated value). Therefore WO1234 will be showing $150,000 in all reports until such time as either the WIP value is > $150,000 or the work order is closed (that is, no longer WIP).

The extent of the accrual can be customised (that is, will the work order settlement be accrued to 100% of the strategy task’s cost or only 80%?)

Ask your AMT Administrator whether Cost Accrual Logic has been enabled, and if so, what parameters have been implemented to govern the calculation.