Create work breakdown structure (WBS)

A work breakdown structure (WBS) is a description of the work to be done for a project.

It is a hierarchy of tasks that represents the composition of work, cost, and duration of each task.　

In Advanced project management, you can add these types of lines to a project quotation work breakdown structure:

• Project - You can add project lines to lines of type Project.
• Standard - You can add tasks to lines of type Project and Standard.
• Summary - You can add summary lines to lines of type Project. Summary lines don't have own estimate lines. Summary lines summarize the calculated values of the related detail lines.
• Detail - You can add detail lines to lines of type Summary and Detail.

You can use templates to easily add (parts of) a work breakdown structure.
A template is a predefined work breakdown structure that you can reuse in several advanced work breakdown structures.

A template can contain predefined:

• Projects
• Activities
• Estimate lines
• Calculation data
• Cost codes

The project setup and price setup are not included in a template.
You can import a template beneath the root project or a subproject.

When you import a WBS template:

• The complete WBS as defined in the template is imported.
• The start dates of the imported tasks are defined based on:
  • The start date of the task to which you import.
  • The predecessor relations of the imported tasks.
• The standard work calendar of the destination project is applied to define the end dates of the imported tasks.

After a template import, you can change the imported WBS lines.

In a project contracting environment, a quotation or bid typically starts with a tender Microsoft Excel format.

These tenders often have large work breakdown structures. So, it is time-consuming to manually enter this in Dynamics 365 for Finance and Operations.

Use the WBS bid import to easily create a work breakdown structure based on a tender.

On bid import, the Microsoft Excel tender is imported into the project quotation work breakdown in Dynamics 365 for Finance and Operations.

The import is done via an integration journal.

In a project quotation work breakdown structure, you can set prices on several levels. For example, project quotation, task, or estimate line.

The total sales value is calculated based on the quantity times the sales price.

If the project type is:

• Time and material: sales prices have a direct consequence for the project invoicing.
• Fixed price: sales prices are shown by the on-account transactions.

In construction projects, quantities are often calculated based on specific settings.

In Advanced project management, this is done with calculation groups.

Calculation groups define:

• The formulas that are used to calculate the estimate line quantities for activities in the work breakdown structure.
• Models with the default formulas for each transaction type.
• The setup that is required for progress billing: a variable that is marked as scheduled unit. For progress billing, usually, the scheduled unit variable is a percentage.
• The setup that is required for subcontracting: a variable that is marked as scheduled unit and for which the unit is defined as well.
  Reason: subcontracting uses purchase orders. On the purchase lines, a unit is required.
• A cost price (expense) or sales price (expense) for a specific scheduled unit.

You can use cost codes to budget and track cost in a project. A cost code represents a fixed activity or cost category.

You can use:

• External codes, for example, based on an external standard or list. This can be required for external reporting.
• Internal codes, for example, for reporting and analysis purposes.

A cost code is always linked to a cost code standard. To each project quotation and related projects, one cost code standard can be linked. You can do so on the project quotation work breakdown structure root node. In a project quotation and the related projects, you can only use cost codes of the linked cost code standard.

Cost code standards are, for example, provided by these organizations:

• CSI (Construction Specifications Institute).
• NAHB (National Association of Home Builders).

You can group cost codes for reporting and analysis purposes.

On the project quotation work breakdown structure, you can define the project setup:

• For the root project line - You can change the default project type and project group as retrieved from the Advanced project management parameters.
  Before you transfer the project quotation to a project, you must at least define a project contract for the root project line.
• Optionally, for other project lines - If specific project setup is required, you can override the project setup as inherited from the root project line.

A work breakdown structure (WBS) is a description of the work to be done for a project.

It is a hierarchy of tasks that represents the composition of work, cost, and duration of each task.　

For each activity in the work breakdown structure, you can define the estimated costs and revenue that are required to complete the activity.

Estimated costs and revenue

For an advanced WBS, you add estimated costs and revenue lines of these types:

• Hour: Use this type to specify the number of hours.
• Item: Use this type to specify the items and related costs.
• Fee: Use this type to add a fee to be charged when an activity is done.
• Expense: Use this type to specify any expenses that are required for an activity. For example, travel costs and hotel costs.
• On account: Use this type for fixed price projects to create invoices.
• Equipment: User this type to specify which equipment is required and how long it is required.

Each task in the work breakdown structure, with the effort (hours) filled in, automatically results in an hour line in the estimated costs and revenue.

On the Advanced project management parameters, you can select the create quotation lines from WBS check box.

As a result, if you close the Advanced WBS page, for each estimated costs and revenue line, a project quotation line is created automatically.

If the setup of the work breakdown structure or a part of it is complete, run the WBS calculation.

As a result, based on the calculation setup, this data is calculated.

• Estimate line quantities if impacted by formulas or variables.
• Totals for both cost values and sales values.
• Rates.

Before you transfer the project quotation to a project, verify the design with the customer.