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11380Re: Project Capitalization

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  • pborsella
    Jan 31, 2006
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      --- In scrumdevelopment@yahoogroups.com, "aliciayanik0724"
      <aliciayanik0724@y...> wrote:
      > I'm sure this has been asked and answered before, but a quick search
      > didn't turn up enough information for me. I'm looking to understand
      > how other organizations, while using Scrum, gather the data
      > to capitalize projects (and pass an audit).

      Alicia...the first thing we had to do is agree that we needed to
      record our time purely for accounting purposes. This is an important
      and sensitive matter, because we don't want time tracking to be used
      as an indication of productivity. Next, we worked with our Finance
      department to understand which activities qualify for capital and
      which do not. So, for example, "development" would be a capital
      activity, but "project management" might not qualify.

      What does "project management" have to do with Scrum? This is the
      Finance category that we used to account for the daily Scrum. 15
      minutes a day x the number of folks on the team x multiple capital
      projects adds up! This amount of time needs to be recorded so Finance
      knows how much gets capped and how much doesn't. Remember, "project
      management" is an example of a non-capital activity...your Finance
      dept. may have others.

      So where do you record this? We don't want to interfere with the
      logging of "what's left" burndown maintenance, so we keep the Finance
      time separate from the burndown. This of course meant that we needed
      a time-tracking tool. Once you know which activities don't qualify,
      you can then ensure that the time spent on those activities get
      recorded and submitted to Finance.

      I'm trying to explain in a few paragraphs what took many hours to
      devise. You'll need to spend some time evaluating the best way to do
      what you're asking without violating Scrum principles.

      I hope this helps some...Pete
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