D365 F&O Project Cost Control Engine for Contracting

Executive Summary

Built a cost governance engine that linked each transaction to BOQ/Activity/WBS and produced daily committed vs actual visibility. Added controlled allocation for discounts, charges, VAT base, and received vs invoiced gaps with settlement risk flags.

Context

Multi-site contracting operations with mixed item types and inconsistent cost interpretation across teams. Leadership needed one operational cost language, not disconnected accounting views.

Problem

• Committed vs actual logic was not consistent across material/service/equipment items.
• Header discounts and charges were hard to allocate fairly at line level.
• VAT base logic was sensitive to sequence and timing.
• Received vs invoiced timing created unresolved ambiguity.
• Settlement closure had hidden risk without operational flags.

Approach

Role: Technical Lead ERP + BI.

1. Data capture and classification by item behavior.
2. Allocation engine for discounts/charges/VAT base.
3. Unified cost fact model at BOQ/Activity/WBS level.
4. Decision dashboards and exception monitoring layer.

Model Highlights

• Allocation steps A..D with rule traceability.
• Received-not-invoiced lifecycle tracking.
• Settlement flags for outliers and closure risk.

Dashboards

• Executive portfolio view.
• BOQ/Activity breakdown.
• Variance analysis.
• Exceptions monitor.

Impact

• Reduced reconciliation workload between Procurement and Finance.
• Daily visibility replaced delayed month-end surprises.
• Improved speed and confidence in project cost decisions.

Evidence