Project cost accounting

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

Project cost accounting in the context of project management

Integration management	Scope management	Appointment management
Cost management	Quality management	HR management
Communication management	Risk management	Procurement management

Cost management is one of the fields that project management deals with. For this purpose, the project costs must be estimated as part of project planning and planned in the form of budgets. Compliance with these budgets must be monitored within the framework of project implementation and control .

This requires 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

Project cost accounting is usually based on individual work packages, the costs of which are planned and billed in separate project accounts based on time and subject. For one-off, mostly cross-organizational services or for expenses in complex engineering and construction projects, separate cost units are defined in the form of project accounts . Projects can 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, they often have an individually targeted interest i. S. of an individual cost statement.

Treatment of project cost accounting in accounting

The treatment of the project costs determined by the project cost accounting in the accounting is different. While there is an option to capitalize self-generated intangible assets according to the accounting regulations of the German Commercial Code (HGB) , the project costs can therefore be booked or capitalized immediately with an effect on income . According to IFRS (more precisely: IAS 32 ) the capitalization of internally generated intangible assets is mandatory as soon as the requirements are met.