Committed Cost From Contract

When the Drive committed cost values setting is on, your committed cost is then derived from Contracts.

When the switch is off, your committed cost is driven from the ERP. Regardless of the state of the switch, you can always manually enter your committed cost directly in the product or via a Microsoft Excel import.

With the setting on, all of your committed cost values initially zero out, and then pull over all of your committed cost values that exist in InEight Contract.

For example, if you have a cost item that is associated with a contract, those values are pulled over from Contract and populate the total committed cost and open/remaining committed cost columns.

The calculation is Forecast final cost = your Total committed cost; Forecast remaining cost = your Open/Remaining Committed Cost.

In a contract on the Line items tab, change your view to Progress. Take note of the WBS phase code and then view the Gross amount. The gross amount for the cost item is the exact amount for the total committed cost, which includes your line item amount, plus tax.

Total gross amount is your line item amount plus tax. That is going to be your total committed cost value. The calculation for that: Total committed cost = Line item amount + Tax (this is also called Gross amount in Contract)

If you have a cost item that is associated with multiple line items in a single contract or across multiple contracts, the total committed cost for that cost item is the gross amount for all the line items that cost item is associated with.

If the WBS element is associated to three different line items, the sum of those three gross amounts is the total committed cost value. A best practice is to associate a single cost item to a single line item.

To get your Open/Remaining Committed Cost, calculate what you still have to pay for your remaining commitments. It is your total committed costs minus what you have already paid. You track payments in contract in three different ways:

  • goods receipts

  • accruals

  • invoices

Invoices are generated in your payment forms.

The calculation is Open/Remaining Committed Cost= Total committed cost - Max(Goods receipt amount, Invoice amount) - Accrual amount.