Account Assignment Elements in Project Management – Definition and Meaning
Account assignment elements are specific categories, codes, or keys (e.g., cost centers, cost types, project numbers, order numbers) used in accounting and controlling to uniquely classify and assign business transactions, especially costs and revenues. In project management, they are used to accurately record, allocate, and analyze project costs according to various criteria. They are typically relevant in financial and cost management and enable structured recording and analysis of project-related expenditures and income.
Example, best practice, and further information on the term
In a construction project, for example, relevant account assignment elements might include specific codes for different cost types (such as “Material: Concrete,” “Personnel: Bricklayer,” “External Service: Scaffolding”) and cost centers (such as “Site A,” “Administration”) to which all incurred costs are assigned. A proven best practice is to use a company-wide uniform and clearly defined system of account assignment elements (chart of accounts, cost center plan, etc.). This aligns with the principles of cost management according to PMBOK and supports agile principles of cost transparency. Uniform account assignment elements enable accurate budget monitoring, differentiated cost analysis, and transparent reporting.
