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Capital projects are those where you use your investment capital to acquire assets - the project is the object where the acquisition value of the asset is collected - these usually do not have any revenues.
Customer projects are projects with both costs and revenues - the project is created when you get a request from a customer well integrated with SD module.
R&D projects can be capital projects if the R&D costs can be capitalized.
Both large scale projects, such as building a factory, and small-scale projects, such as organizing a trade fair, require precise planning of the many detailed activities involved. The project manager has the job of ensuring that the project is executed efficiently, on time, and within budget - which he or she achieves by ensuring that the required resources and funds are available as and when needed.
Projects are generally part of the internal processes of a company. To be able to control all tasks in project execution, you need an organizational form that is specific to the project and which is shared by all departments involved. Before you can carry out a project in its entirety, the project goals must be precisely described and the project activities to be carried out must be structured. A clear, unambiguous project structure is the basis for successful project planning, monitoring, and control.
You structure your project per the following points of view:
- By structures, using a work breakdown structure (WBS)
- By process, using individual activities (work packages)
Externally Financed Projects
Customer Projects - In this you get Result Analysis (Difference between Cost & Revenue)
Internally Financed Projects
Overhead Cost Projects
Capital Investment Projects - It is use to create a Project as Capitalization. (AUC to Asset)
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Question:
You can define Internally financed projects to
a) Overhead cost projects
b) Capital investment projects
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Answer:
a, b
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