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How to release project costs to the same Fixed Asset on a monthly basis

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Posted on by Cat@Citadel 35

We have a need to release project costs to the same Fixed Asset on a monthly basis.

A suggested solution was to: On a monthly basis, could move the Project WIP into Fixed Asset at the end of the month. And reverse the elimination with a date at the beginning of the next month. As the month progresses, accumulate more costs and then upon month end, repeat the elimination and again reverse at the beginning of subsequent month.

Tested this out and month 1 was fine, could enter timesheets against the investment project, estimate the project cost and eliminate to a new asset. and also ran depreciation.

Then at start of month 2, reversed the elimination, posted more timesheets against the investment project, and posted estimate project cost.

However, when in month 2

  • if using cost to complete method Total cost - actual, get error "Elimination may not be created because the estimate of the remainder from the previous period is not zero." when trying to do an elimination
  • if using cost to complete method Set cost to complete to zero, get error "Acquisition for fixed asset BAST-0204, book C_SLSL, already exists." when trying to post the elimination

Is there any way of releasing project costs to the same Fixed Asset on a monthly basis?

  • Cat@Citadel Profile Picture
    Cat@Citadel 35 on at
    RE: How to release project costs to the same Fixed Asset on a monthly basis

    Thanks Ludwig.

    We ended up changing the process. The monthly ones will be switched to quarterly. So we'll create an asset each quarter.

  • David Bader Profile Picture
    David Bader on at
    RE: How to release project costs to the same Fixed Asset on a monthly basis

    Hi Cat@Citadel,

    I see that the Community has provided some guidance on your issue. If the information provided has been helpful I encourage you to mark the reply that helps a Yes to answering your question. This will help others in the community that have a similar issue.

    If you need further assistance please post back so the Community can provide further assistance.

    Have a great day!

  • Suggested answer
    Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at
    RE: How to release project costs to the same Fixed Asset on a monthly basis

    Hi Cat,

    About the depreciation issue: Can you test in a different demo/test system whether the 'straight line life remaining' method fixes the problem? I would expect that.

    About your subprojects: Personally, I would prefer having multiple smaller fixed assets that you can activate to the same fixed asset on a monthly basis as long as you have the allow multiple acquisitions parameter active. I think that should be possible. Please also test this in a demo environment first whether this is good for you from a 'handling' perspective.

    Best regards,

    Ludwig

  • Cat@Citadel Profile Picture
    Cat@Citadel 35 on at
    RE: How to release project costs to the same Fixed Asset on a monthly basis

    Hi Ludwig,

    Thank you. I really do appreciate your quick responses.

    Depreciation is using straight line service life

    pastedimage1583924467273v1.png

    It's for developed software, so whilst part of larger software suites, there are functions released all the time, hence the need to push through to a fixed asset monthly. The accountants assured me it's OK to do.

    Theses the vouchers for the 2 months I was testing with. Timesheets come via intercompany from the CGSA company to the project (and Fixed Asset) in the BAST company.

    Project (Investment)
    BAST-P001041
    January
    Timesheet - CGSA
    CGSA000639 (06/01/2020 - 12/01/2020)
    GLTRF-000000994 CGSA-000397 10/01/2020 No 50202-COR-SOL-ZZZ-ZZZ-QLD- Labour - Direct Labour Timesheet AUD 624.00 624.00 Project - cost Current
    GLTRF-000000994 CGSA-000397 10/01/2020 No 61111-COR-SOL-ZZZ-ZZZ-QLD- Timesheet Clearing Timesheet AUD -624.00 -624.00 Project - payroll allocation Current
    GLTRF-000000993 CGSA-000397 9/01/2020 No 50202-COR-SOL-ZZZ-ZZZ-QLD- Labour - Direct Labour Timesheet AUD 624.00 624.00 Project - cost Current
    GLTRF-000000993 CGSA-000397 9/01/2020 No 61111-COR-SOL-ZZZ-ZZZ-QLD- Timesheet Clearing Timesheet AUD -624.00 -624.00 Project - payroll allocation Current
    GLTRF-000000992 CGSA-000397 8/01/2020 No 50202-COR-SOL-ZZZ-ZZZ-QLD- Labour - Direct Labour Timesheet AUD 624.00 624.00 Project - cost Current
    GLTRF-000000992 CGSA-000397 8/01/2020 No 61111-COR-SOL-ZZZ-ZZZ-QLD- Timesheet Clearing Timesheet AUD -624.00 -624.00 Project - payroll allocation Current
    GLTRF-000000991 CGSA-000397 7/01/2020 No 50202-COR-SOL-ZZZ-ZZZ-QLD- Labour - Direct Labour Timesheet AUD 624.00 624.00 Project - cost Current
    GLTRF-000000991 CGSA-000397 7/01/2020 No 61111-COR-SOL-ZZZ-ZZZ-QLD- Timesheet Clearing Timesheet AUD -624.00 -624.00 Project - payroll allocation Current
    GLTRF-000000995 CGSA-000397 6/01/2020 No 20701- Deferred Revenue Project revenue header AUD 3,120.00 3,120.00 Project - WIP - sales value Current
    GLTRF-000000995 CGSA-000397 6/01/2020 No 40201-COR-SOL-ZZZ-ZZZ-QLD- Professional Services Project revenue header AUD -3,120.00 -3,120.00 Project - accrued revenue - sales value Current
    GLTRF-000000990 CGSA-000397 6/01/2020 No 50202-COR-SOL-ZZZ-ZZZ-QLD- Labour - Direct Labour Timesheet AUD 624.00 624.00 Project - cost Current
    GLTRF-000000990 CGSA-000397 6/01/2020 No 61111-COR-SOL-ZZZ-ZZZ-QLD- Timesheet Clearing Timesheet AUD -624.00 -624.00 Project - payroll allocation Current
    Intercompany Customer Invoice - CGSA
    INV000136 (14/01/2020)
    GLTRF-000000997 INV000136 14/01/2020 No 20119- GST Payable - Control Free text invoice AUD -312.00 -312.00 GST Current
    GLTRF-000000997 INV000136 14/01/2020 No 18101- Intercompany Receivables BAST - CGSA Free text invoice AUD 3,432.00 3,432.00 Customer balance Current
    GLTRF-000000997 INV000136 14/01/2020 No 49101-COR-SOL-ZZZ-ZZZ-QLD- Intercompany Sales BAST - CGSA Free text invoice AUD -3,120.00 -3,120.00 Intercompany revenue Current
    GLTRF-000000996 INV000136 14/01/2020 No 20701- Deferred Revenue Project revenue header AUD -3,120.00 -3,120.00 Project - WIP - sales value Current
    GLTRF-000000996 INV000136 14/01/2020 No 40201-COR-SOL-ZZZ-ZZZ-QLD- Professional Services Project revenue header AUD 3,120.00 3,120.00 Project - accrued revenue - sales value Current
    Intercompany Vendor Invoice - BAST
    INV000136 (14/01/2020)
    GLTRF-000000866 APINV-000124 14/01/2020 No 10305- GST Receivable - Control Vendor tax invoice AUD 312.00 312.00 GST Current
    GLTRF-000000866 APINV-000124 14/01/2020 No 28101- Intercompany Payables BAST - CGSA Vendor tax invoice AUD -3,432.00 -3,432.00 Vendor balance Current
    GLTRF-000000866 APINV-000124 14/01/2020 No 59501-CAD-KAP-COT-ZZZ-ZZZ-BAST-P001041 Intercompany Cost of Sales BAST - CGSA Vendor tax invoice AUD 3,120.00 3,120.00 Intercompany cost Current
    Fixed Asset - BAST
    BAST-0204 : Cat Special R&D Asset
    Project Estimate - BAST
    Post Estimate
    GLTRF-000000867 BAST-170000045 31/01/2020 No 59501-CAD-KAP-COT-ZZZ-ZZZ-BAST-P001041 Intercompany Cost of Sales BAST - CGSA AUD -3,120.00 -3,120.00 Intercompany cost Current
    GLTRF-000000867 BAST-170000045 31/01/2020 No 10501-CAD-KAP-COT-ZZZ-ZZZ-BAST-P001041- Work In Progress Projects AUD 3,120.00 3,120.00 Project - WIP cost Current
    Eliminate
    GLTRF-000000868 BAST-170000046 31/01/2020 No 10501-CAD-KAP-COT-ZZZ-ZZZ-BAST-P001041- Work In Progress Projects AUD -3,120.00 -3,120.00 Project - WIP cost Current
    GLTRF-000000868 BAST-170000046 31/01/2020 No 15304-BAST-P001041 Business process, software and product development Elimination WIP BAST-P001041 AUD 3,120.00 3,120.00 Fixed assets, debit Current
    Fixed Asset - BAST
    Depreciate
    GLTRF-000000869 FA-000000129 31/01/2020 No 15305-BAST-P001041 Business process, software and product development Accumulat AUD -0.84 -0.84 Fixed assets, credit Current
    GLTRF-000000869 FA-000000129 31/01/2020 No 71002-CAD-KAP-COT-ZZZ-ZZZ-BAST-P001041 Amortisation AUD 0.84 0.84 Ledger journal Current
    February
    Project Estimate - BAST
    Reverse elimination
    GLTRF-000000870 BAST-170000048 1/02/2020 No 10501-CAD-KAP-COT-ZZZ-ZZZ-BAST-P001041- Work In Progress Projects AUD 3,120.00 3,120.00 Project - WIP cost Current
    GLTRF-000000870 BAST-170000048 1/02/2020 No 15304-BAST-P001041 Business process, software and product development Elimination WIP BAST-P001041 AUD -3,120.00 -3,120.00 Fixed assets, credit Current
    Timesheet - CGSA
    CGSA000640 (03/02/2020 - 09/02/2020)
    GLTRF-000000998 CGSA-000398 3/02/2020 No 20701- Deferred Revenue Project revenue header AUD 3,120.00 3,120.00 Project - WIP - sales value Current
    GLTRF-000000998 CGSA-000398 3/02/2020 No 40201-COR-SOL-ZZZ-ZZZ-QLD- Professional Services Project revenue header AUD -3,120.00 -3,120.00 Project - accrued revenue - sales value Current
    GLTRF-000000999 CGSA-000398 3/02/2020 No 50202-COR-SOL-ZZZ-ZZZ-QLD- Labour - Direct Labour Timesheet AUD 624.00 624.00 Project - cost Current
    GLTRF-000000999 CGSA-000398 3/02/2020 No 61111-COR-SOL-ZZZ-ZZZ-QLD- Timesheet Clearing Timesheet AUD -624.00 -624.00 Project - payroll allocation Current
    GLTRF-000001000 CGSA-000398 4/02/2020 No 50202-COR-SOL-ZZZ-ZZZ-QLD- Labour - Direct Labour Timesheet AUD 624.00 624.00 Project - cost Current
    GLTRF-000001000 CGSA-000398 4/02/2020 No 61111-COR-SOL-ZZZ-ZZZ-QLD- Timesheet Clearing Timesheet AUD -624.00 -624.00 Project - payroll allocation Current
    GLTRF-000001001 CGSA-000398 5/02/2020 No 50202-COR-SOL-ZZZ-ZZZ-QLD- Labour - Direct Labour Timesheet AUD 624.00 624.00 Project - cost Current
    GLTRF-000001001 CGSA-000398 5/02/2020 No 61111-COR-SOL-ZZZ-ZZZ-QLD- Timesheet Clearing Timesheet AUD -624.00 -624.00 Project - payroll allocation Current
    GLTRF-000001002 CGSA-000398 6/02/2020 No 50202-COR-SOL-ZZZ-ZZZ-QLD- Labour - Direct Labour Timesheet AUD 624.00 624.00 Project - cost Current
    GLTRF-000001002 CGSA-000398 6/02/2020 No 61111-COR-SOL-ZZZ-ZZZ-QLD- Timesheet Clearing Timesheet AUD -624.00 -624.00 Project - payroll allocation Current
    GLTRF-000001003 CGSA-000398 7/02/2020 No 50202-COR-SOL-ZZZ-ZZZ-QLD- Labour - Direct Labour Timesheet AUD 624.00 624.00 Project - cost Current
    GLTRF-000001003 CGSA-000398 7/02/2020 No 61111-COR-SOL-ZZZ-ZZZ-QLD- Timesheet Clearing Timesheet AUD -624.00 -624.00 Project - payroll allocation Current
    Intercompany Customer Invoice - CGSA
    INV000136 (11/02/2020)
    GLTRF-000001005 INV000137 11/02/2020 No 20119- GST Payable - Control Free text invoice AUD -312.00 -312.00 GST Current
    GLTRF-000001005 INV000137 11/02/2020 No 18101- Intercompany Receivables BAST - CGSA Free text invoice AUD 3,432.00 3,432.00 Customer balance Current
    GLTRF-000001005 INV000137 11/02/2020 No 49101-COR-SOL-ZZZ-ZZZ-QLD- Intercompany Sales BAST - CGSA Free text invoice AUD -3,120.00 -3,120.00 Intercompany revenue Current
    GLTRF-000001004 INV000137 11/02/2020 No 20701- Deferred Revenue Project revenue header AUD -3,120.00 -3,120.00 Project - WIP - sales value Current
    GLTRF-000001004 INV000137 11/02/2020 No 40201-COR-SOL-ZZZ-ZZZ-QLD- Professional Services Project revenue header AUD 3,120.00 3,120.00 Project - accrued revenue - sales value Current
    Intercompany Vendor Invoice - BAST
    INV000136 (11/02/2020)
    GLTRF-000000871 APINV-000126 11/02/2020 No 10305- GST Receivable - Control Vendor tax invoice AUD 312.00 312.00 GST Current
    GLTRF-000000871 APINV-000126 11/02/2020 No 28101- Intercompany Payables BAST - CGSA Vendor tax invoice AUD -3,432.00 -3,432.00 Vendor balance Current
    GLTRF-000000871 APINV-000126 11/02/2020 No 59501-CAD-KAP-COT-ZZZ-ZZZ-BAST-P001041 Intercompany Cost of Sales BAST - CGSA Vendor tax invoice AUD 3,120.00 3,120.00 Intercompany cost Current
    Project Estimate - BAST
    Post Estimate (Set cost to complete to zero)
    GLTRF-000000872 BAST-170000050 29/02/2020 No 59501-CAD-KAP-COT-ZZZ-ZZZ-BAST-P001041 Intercompany Cost of Sales BAST - CGSA AUD -3,120.00 -3,120.00 Intercompany cost Current
    GLTRF-000000872 BAST-170000050 29/02/2020 No 10501-CAD-KAP-COT-ZZZ-ZZZ-BAST-P001041- Work In Progress Projects AUD 3,120.00 3,120.00 Project - WIP cost Current
    Eliminate
    GLTRF-000000873 BAST-170000053 29/02/2020 No 10501-CAD-KAP-COT-ZZZ-ZZZ-BAST-P001041- Work In Progress Projects AUD -6,240.00 -6,240.00 Project - WIP cost Current
    GLTRF-000000873 BAST-170000053 29/02/2020 No 15304-BAST-P001041 Business process, software and product development Elimination WIP BAST-P001041 AUD 6,240.00 6,240.00 Fixed assets, debit Current
    Fixed Asset - BAST
    Depreciate
    GLTRF-000000875 FA-000000131 29/02/2020 No 15305-BAST-P001041 Business process, software and product development Accumulat AUD -52.00 -52.00 Fixed assets, credit Current
    GLTRF-000000875 FA-000000131 29/02/2020 No 71002-CAD-KAP-COT-ZZZ-ZZZ-BAST-P001041 Amortisation AUD 52.00 52.00 Ledger journal Current
    Is $52 the right amount? I was expecting something closer to $3120/120 + 1 day, ie $26~$27

      

    I'm thinking that maybe we could swap the sequence of posting for month 2, by doing the depreciation journal first, and then do the reverse eliminate and new elimination.. this might fix the depreciation journal. But the service life doesn't get tracked for months subsequent to month 1, so there'd still be a problem, especially as we increasing get further away from the Placed in service date.

    Is our only option to really just do sub projects (one per month) and release to individual assets each time? We'd end up having hundreds of small assets... is the way to link these via Main fixed asset? From what I understand, we'd still need to depreciate each asset individually.

    Thank you.

    Regards,

    Cat

     

     

  • Suggested answer
    Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at
    RE: How to release project costs to the same Fixed Asset on a monthly basis

    Good Morning Cat@Citadel,

    About the depreciation amount:

    Can you check what method is selected in your depreciation profile (straight line or straight line remaining).

    I would expect that you have the latter one setup.

    Another more general question:

    Why is it that your accountants want to have a monthly transfer and depreciation of a partly finished fixed asset?

    What kind of fixed asset is that?

    Do your accounting rules allow starting the depreciation of a 'half finished' fixed asset?

    Just wondering why the accounting team has this need.

    Best regards,

    Ludwig

  • Cat@Citadel Profile Picture
    Cat@Citadel 35 on at
    RE: How to release project costs to the same Fixed Asset on a monthly basis

    Thanks Ludwig for your quick response.

    From what I can gather from the finance team, there are two way they're doing this at the moment. For some, they are being done on a 3-6 month duration based on releases. For others, they are being done monthly. 

    For those monthly ones, we are trying to work out the amount of effort required doing it via a 'large' project (which has the benefit of not having to set up multiple projects, multiple WBS, and end users don't have to familiarise themselves with different project codes), vs monthly subprojects.

    I managed to get around the  "Acquisition for fixed asset BAST-0204, book C_SLSL, already exists." error by changing the Allow multiple acquisitions setting to yes in the Fixed asset parameters. However, when I was checking the generated depreciation journal, it was doing a straight line calc (which is what we want) but using the total combined acquisition costs as if that total amount was there from the first acquisition date. I'm going to check with finance exactly how they do this at the moment (I'm suspecting manually).

    Does this mean that if each of the monthly releases need to be managed with their own commencement dates for depreciation & service life, we'd need to eliminate from the project into individual assets? Which then means we should be doing monthly sub projects into individual assets? Is the best way to link/join those assets up using the Main fixed asset?

    Thanks.

  • Verified answer
    Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at
    RE: How to release project costs to the same Fixed Asset on a monthly basis

    Hi Cat@Citadel,

    Why you have to shift the costs on a monthly basis to fixed assets?

    Is the asset really completed, ready for use and depreciation?

    Rather than doing the elimination - reversal - elimination ... process on a monthly basis for a single 'large' project can't you create monthly subprojects that you eliminate on a monthly basis? This should make things much easier as you have to eliminate each subproject only once and have a better control over the costs on a monthly basis.

    Best regards,

    Ludwig

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