TOPIC: PMBOK Cost Management Q1

PMBOK 5th ed, page#199 says "Each control account is assigned a unique code or account number(s) that links directly to the performing organization’s accounting system".

please help me to understand why the control account connect to performing organization’s accounting system.

Thx
Amit

A Control Account is a management checkpoint for evaluating project performance based on schedule, cost and scope. Essentially, the EVM measurements are performed at this point.

Since EVM needs information about the actual and budgeted monetary values, integration with company's accounting system is required.

Hope this clarifies.

I agree with Ashwin, but I can see how that phrase in the PMBOK could be somewhat confusing. It seems to imply that you are using software that has a direct electronic tie between the WBS and the accounting software. This is not necessarily the case!

The control accounts are merely the level of your WBS at which you choose to track costs and perform your EVM calculations. For sizable projects it would be prohibitively time consuming and expensive to try to track everything at the work package level (which is the bottom/most detailed level of your WBS).

Since the control accounts are where you are calculating EVM and other financials, of course they are "linked" to the accounting system. Just keep in mind that the link is not necessarily an automatic electronic transfer of data.