Cost accrual for risk analysis

This forum includes discussion about project risk analysis and risk management theory: Monte Carlo simulations, Event Chain Methodology, schedule and cost risk analysis. Please submit questions and case studies about your experience with our project risk analysis software.

Moderator: Intaver Support

Post Reply
Kathy
Posts: 14
Joined: Sat Nov 26, 2005 11:06 am
Location: London, UK

Cost accrual for risk analysis

Post by Kathy » Tue Sep 08, 2015 8:55 am

We have just started a new process and are doing some integrated cost and schedule risk analysis. Some of the results we were seeing for costs in the Cash flow view looked odd until we noticed that the cost allocation was set for the end of the activities. We had to manually go in and reset them all to Prorated which is our standard. Is there any way to set this as the default?

Intaver Support
Posts: 992
Joined: Wed Nov 09, 2005 9:55 am

Re: Cost accrual for risk analysis

Post by Intaver Support » Tue Sep 08, 2015 9:06 am

In RiskyProject you can define when costs accrue in tasks. The costs can be associated with resource usage (prorated cost accrual). You can also place cost realization at the beginning or end of the task. This might be used for alignment when the costs are realized by billing systems and it can help you manage cash flow in your project. Cost accrual is very important for integrated schedule and cost risk analysis. For example, if risks related to the cost occurred at the middle of the task and cost accrual is prorated, the risk will affect only portion of the cost, accrued after the risk occured. RIskyProject has probabilistic moment of risk property of the task, which controls when risk occurs.

The standard default settings for cost accrual is prorated, so I am not sure how this may occurred in your case. If you imported it from a third party tool, it may have overwritten the defaults. Regardless, you can set the default accrual methods for all of your projects in the Project Options -> Cost. The accrual method is set using the Default Fixed Cost/Income Accrual drop-down lists.

Image
Intaver Support Team
Intaver Institute Inc.
Home of Project Risk Management and Project Risk Analysis software RiskyProject
www.intaver.com

Post Reply