2. 2
• To explain the process in preparing the Budget for Upload to SAP
Objectives
• To understand the WBS combination and Cost Codes
• How to estimate project resources
3. Procedure and Guidelines
Budget Upload to SAP
3
• Project Cost Engineer checks availability of WBS in SAP for the new project on
the creation of WBS extensions.
• Project Cost Engineer provides list of WBS for requesting FM MEASURE to
Financial Planning, System and Process Analyst through email.
• Project Cost Engineer requests for labor cost center for both direct and indirect
costs to Financial Planning, System and Process Analyst through email.
• Project Cost Engineer prepares budget per WBS extension and GL account
based on Marketing bare cost.
• Cost Engineering Lead endorses Budget template to Financial Planning, System
and Process Management Head for budget upload.
4. WBS Combination and Cost Codes
4
LABOR
L1 Direct Labor
L2 Indirect Labor
L3 Engineering
MATERIALS
M1 Offshore
M2 Onshore
EQUIPMENT
E1 Equipment
SUBCON
S1 Subcon
OVERHEAD
O1 Health and Safety
O2 Materials
O3 Professional and Contracted Services
O4 Rental and Usage
O5 Utilities
O6 Bonds and Insurances
O7 Permit & Licenses
O8 Depreciation&Amortization, Repair&Maintenance
O9 Transportation&Travel, Other Field Overhead
5. Cost Codes and GL Account
Direct Cost
5
CODE COST ELEMENT GL ACCOUNT GL NAME
M1 Offshore Materials
52010551 Direct Materials
M2 Onshore Materials
52010551 Direct Materials
CODE COST ELEMENT GL ACCOUNT GL NAME
E1 Direct Equipment
52030552 D Gas & Oil
52050551 D Equipment Rental
CODE COST ELEMENT GL ACCOUNT GL NAME
S1 Sub-con
52044551 D Sub-contract Cost
52044552 D Other Contracted Services
MATERIALS
EQUIPMENT
SUB-CON
CODE COST ELEMENT GL ACCOUNT GL NAME
L1 Direct Labor
52020551 Direct Labor-Regular
52020552 Direct Labor-Overtime
52022551 D SSS/HDMF/MED/ECC Premiums
L2 Indirect Labor
52020571 Indirect Labor-Regular
52020572 Indirect Labor-Overtime
52022571 I SSS/HDMF/MED/ECC Premiums
52022586 I Allowance
L3 Engineering
52020571 Indirect Labor-Regular
52020572 Indirect Labor-Overtime
52022571 I SSS/HDMF/MED/ECC Premiums
52022586 I Allowance
LABOR
6. Cost Codes and GL Account
Indirect Cost
6
CODE COST ELEMENT GL ACCOUNT GL NAME
O7 Permit & Licenses
52083571 I Business/Mayor's Permit Expense
52083572 I Local Business tax
52086571 I Registration and Licenses Fees
52086572 I Special Permit Expense
52086573 I Environment Permit Expense
52086574 I Construction Permit Expense
52086575 I Regulatory Expense
O8 Depreciation&Amortization, Repair&Maintenance
52070571 I Dep.-Building
52070572 I Dep.-BuildinImprovements
52070573 I Dep.-Leasehold Improvements
52070574 I Dep.-Machineries & Equipment
52070575 I Dep.-Transportation Equipment
52070576 I Dep.-Furniture & Fixtures
52070577 I Dep.-Computer Equipment
52070578 I Dep.-Communication Equipment
52070579 I Dep.-Construction Tools & Small Equipment
52070580 I Amort.-Computer Software
52040571 I Repairs-Transportation Equipment
52040572 I Repairs-Furniture and Fixtures
52040573 I Repairs-Communication Equipment
52040574 I Repairs-Machineries and Equipment
52040575 I Repairs-Computer Equipment
52040576 I Repairs-Computer Software
52040577 I Repairs-Construction Tools & Small Equipment
52040578 I Preventive Maintenance Expenses
O9 Transportation&Travel, Other Field Overhead
52030571 I Transportation & Travel
52030572 I Gas & Oil
52030573 I Toll Fees
52030574 I Freight & Handling
52055571 I Representation
52055576 I Miscellaneous
52055578 I Temfacil
52042573 I Entertainment, Amusement & Recreation
52055583 I Meeting Expense
52042573 I Bank Charges
52055580 I Bidding Expenses
52055590 I Other O and M Expenses-Intercompany
CODE COST ELEMENT GL ACCOUNT GL NAME
O1 Health and Safety
52055573 I Health & Safety
52055572 I Seminars & Trainings
O2 Materials
52010571 I Indirect Materials
52010572 I Bunkhouse Supplies
52010573 I Reproduction
52010574 I Office Supplies
52010575 I Non Inventoriable Material
52010590 I Materials-Intercompany
O3 Professional and Contracted Services
52042571 I Consultancy
52044572 I Other Contracted Services-Professional
52042573 I Legal Fee
52042590 I Contracted Services-Professional Fees-Interco
52044571 I Security Services
52044572 I Other Contracted Services
52044590 I Other Contracted Services-Intercompany
O4 Rental and Usage
52050571 I Equipment Rental
52050573 I Office/Stockyard/Staffhouse Rental
52050590 I Rent-Intercompany
52055577 I Equipment Usage
O5 Utilities
52051571 I Electricity
52051572 I Telephone, Cable and Internet Charges
52051573 I Water Consumption
52051590 I Utilities-Intercompany
O6 Bonds and Insurances
52052571 I Insurance-Transportation Equipment
52052572 I Insurance-Surety Bond
52052573 I Insurance-Building
52052574 I Insurance-Machineries and Equipment
52052575 I Insurance-Performance Bond
52052576 I Insurance-Others
52052590 I Insurance-Intercompany
16. 3
Insert text
REFERENCE DOCUMENTS SOURCE CUT-OFF DATE PERIOD COVERED DEADLINE
REVENUE REPORT Accomplishment Report
Project
Engineer/Supervisor
25th of the mo.
26th of prev mo. to
25th of current mo.
26th of the mo.
COST REPORT Recorded Cost and Accruals 28th of the mo.
RECORDED COST SAP extracted cost Project Accountant 27th of the mo.
start to 27th of the
mo.
27th of the mo.
ACCRUALS
Equipment
Equipment Utilization Report Logistics 20th of the mo.
21st of prev mo. to
20th of current mo.
26th of the mo.
Materials Pre-printed Warehouse
Transaction form
Logistics 25th of the mo.
26th of prev mo. to
25th of current mo.
26th of the mo.
Labor
Payroll Register HR Coordinator
25th of the mo. 26th of prev mo. to
25th of current mo.
26th of the mo.
Engineering cost distribution HO Accounting 24th of the mo.
25th of prev mo. to
24th of current mo.
26th of the mo.
Subcontractor
Accomplishment Report Site Supervisor 25th of the mo.
26th of prev mo. to
25th of current mo.
26th of the mo.
Field Overhead Contract Order, Billing,
Receipt, Invoice
Project Engineer/
Project Admin
25th of the mo.
26th of prev mo. to
25th of current mo.
26th of the mo.
Petty Cash Voucher Project Accountant 25th of the mo.
26th of prev mo. to
25th of current mo.
26th of the mo.
17. 17
Revenue and Cost Recognition Guidelines
• Revenue shall be based on actual progress/accomplishment. Computation shall
vary per contract type. No revenue shall be declared upon PO creation, even
though it is stated in the contract that PO creation is billable accomplishment.
• Cost recognition shall be based on actual costs in SAP with accruals. Material
costs shall be recognized upon issuance/installation, not upon PO creation.
• Liquidated Damages shall be considered revenue reduction and shall not be
treated as cost.
• Revenues for Variation Orders shall be declared upon approval of V.O. only.
Costs incurred related to the V.O., however, are declared on the time they are
incurred.
• For EPC contracts that are re-measurable, the Planner, Quantity Surveying
Engineer and PCE shall reconcile and update the contract amount based on the
remeasured quantity.
• Projects with issued Certificate of Final Completion (or equivalent) but with
ongoing punch list should not declare 100% Revenue.
