Impact of Activating a Contract on the Cost Center Tree

This feature allows the system user to automatically generate a cost center tree upon activating a contract, to distribute the project’s costs across the created cost center accounts.

Steps to View the Impact of Activating a Contract

1. From the sidebar menu, click on “Construction,” then go to “Projects.”
2. Click the “View” button for any project that has a contract.
3. Open the “Contracts” tab, then click the “View” button for the contract.
4. Change the contract’s status to “Active.”
5. Go to the sidebar menu, then “Accounting” → “Cost Centers” to view the generated tree.

How the System Works

When a contract is activated (its status is changed to “Active”), the system automatically generates a cost center tree for the contract, based on the cost tracking level specified on the project, relying on the contract’s item tree (main tender, sub-tenders, and work items).

Case 1: Tracking Level = Project

• The project’s parent cost center already exists (automatically created when the project was first created).
• Cost center tree:
  • [Project Title] (Folder/Parent)
    • [Project Title] #[Code] (File/Account)

Case 2: Tracking Level = Tenders

• Cost center tree:
  • [Project Title] (Folder/Parent)
    • Main Tender 1 (Folder/Parent)
      • Sub Tender 1.1 (Folder/Parent)
        • Sub Tender 1.2 (Folder/Parent)
          • Sub Tender 1.3 (File/Account)
    • Main Tender 2 (File/Account)
• Only a main or sub-tender that has work items directly beneath it is added as a cost center account (File).

Case 3: Tracking Level = Work Item

• Cost center tree:
  • [Project Title] (Folder/Parent)
    • Main Tender 1 (Folder/Parent)
      • Sub Tender 1.1 (Folder/Parent)
        • Sub Tender 1.2 (Folder/Parent)
          • Sub Tender 1.3 (Folder/Parent)
            • Work Item 1.31.1 (File/Account)
            • Work Item 1.31.2 (File/Account)
    • Main Tender 2 (Folder/Parent)
      • Work Item 2.1 (File/Account)

Notes

• If the project’s parent cost center is deleted for any reason, the system automatically creates a new one when generating the contract’s cost center tree.