Project accounting

A project costing is a special form of cost accounting and an instrument of project management.

Project cost accounting in the context of project management

Cost management is one of the fields with which the project management deals. For this purpose, in the context of project planning to estimate the project cost and schedule in the form of budgets. Compliance with these budgets is keep track as part of the project implementation and monitoring.

This requires the project cost accounting, which provides the necessary control information. The project cost accounting must provide timely information about the actual costs of the project and the project portfolio of the organization.

Project cost accounting in the context of cost accounting

The project cost accounting is usually done on the basis of individual work packages. For one, most cross-organizational services performed his own cost carriers are defined in terms of projects. Projects may be accompanied by internal as well as external customers. In general, they are subject to a greater expenditure of resources and are characterized by a clearly defined start and end date. In addition to them is often based on an individually targeted interest within the meaning of a single cost card.

Treatment of project cost accounting in the accounting

The treatment of established through the project cost accounting project cost accounting is different. While the accounting provisions of the German Commercial Code activation of self-generated intangible assets and prohibits the project costs, therefore, be immediately in profit or loss, the IFRS rules allow (more precisely: IAS 32) activation.

• Project Management
• Cost accounting