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Hi need a good explanation on funding limit reconciliation? please help

Posted: Tue Sep 12, 2017 10:01 am
by aadish
Hi need a good explanation on funding limit reconciliation? please help

Re: Hi need a good explanation on funding limit reconciliation? please help

Posted: Tue Sep 12, 2017 8:46 pm
by nazrulq
Project Funding Limit Reconciliation is to check variance of project funding limit and the planned expenditure at a given point of time.
Project Manager has to reconcile (adjustment) the availability of fund for the work. For example, the fund is due after 15 days but PM needs the money now. He has to balance in between two.

Re: Hi need a good explanation on funding limit reconciliation? please help

Posted: Mon Sep 18, 2017 9:48 am
by maverick
FLR is one of the tool for PMs to do cost budgeting. Most Organizations have limited resources to fund their projects which affects the cash flow of the organisation. Funding is generally based on each quarter or a fiscal year. Hence it becomes important at times for the project budget to follow constraints imposed by FLR. For instance, if a project manager has outsourced part of a project and the vendor delivers the work in the first quarter but payment was planned for in the second quarter, the project manager do not have any funds to pay for the services rendered by the vendor for the first quarter. Thus, the funding limit reconciliation is used to prevent the large variation in the expenditure of the funds for the project to allow the project manager to pay the vendor. Please note that this may lead to a revised schedule or allocation of resources.

Thanks,

Sheshir