Setup for Investment project accounting in Microsoft Dynamics 365 Finance and Operations

Setup for Investment project accounting in Microsoft Dynamics 365 Finance and Operations

Investment project usage in Microsoft Dynamics 365 Finance and Operations One version - part I

There are two ways of defining project postings when using INVESTMENT PROJECT

One with cost posting with WIP (cost to balance sheet)

Other one post cost directly to P&L

This definition is done in project group as shown below and impacts the way accounts and posting types being used in transactions, estimation and elimination.

Cost with WIP options accrues cost to balance sheet using WIP

This is the widely used option of using investment project so that all cost are seen in balance sheet and later moved to another project or a fixed asset.

Cost directly to P&L

This option is for specific scenarios where cost gets accumulated in one P&L account and later on eliminated to another P&L account.

Considering all other key setup for project is in place viz.

• Project groups
• Ledger posting profile
• Project category
• Investment project
• Estimate project
• Asset
• Fixed asset group
• Fixed asset
• Resources
• Etc.

Let us now create two investment projects (one which used WIP and one without)

Note: An estimate project also gets assigned to the investment project. This is used to later eliminate entire cost of the investment project to below options

• Fixed asset
• Project
• Ledger account

If using category validation then ensure categories are allowed to be used.