Hi,
The above text seems misleading, i can give reference from MS article:
https://learn.microsoft.com/en-us/dynamics365/project-operations/revenue-recognition/rev-rec-completed-contract-method
Additional reference: https://www.linkedin.com/pulse/project-management-accounting-fixed-price-completed-contract-jawed/
Estimates can be done multiple times but for eliminate it is to be done when it is 100 % or more.
Below is extract from the article:
Eliminate the estimate project and finish the project
The final step in the estimate process is to eliminate the estimate project and end the fixed price project when the percentage of completion reaches 100 percent.
The following actions occur when you run the elimination:
- For a fixed price project with a completed contract, the WIP values clear from the balance accounts and post to the profit and loss accounts.
- For a fixed-price project with a completed percentage, the accruals are removed from the profit and loss accounts.
The estimate changes the status to Eliminated.
Note: For Multiple eliminations, there is certainly ask in case of Investment projects which MS has brought through a feature (Preview) in 10.0.49. https://learn.microsoft.com/en-us/dynamics365/project-operations/prod-pma/multiple-eliminations-investment-project
But for Fix-price, i don't see such requirement, as here revenue recognition is coming into picture due to Accounting standard requirement which provides different methods to estimates and book the accrued revenue to match the cost. And at end, do the elimination so that revenue can be booked finally.
Regards,
CA Neeraj Kumar
