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Dynamics 365 Community / Forums / Finance | Project Operations, Human Resources, ... / Fixed Price Project Ac...
Finance | Project Operations, Human Resources, ...
Answered

Fixed Price Project Accrued Sales Value Setup

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Posted on by CU07101257-0 130

Hi All,

Please advise the below my Fixed Price Project setup is correct as standard or not.

Can we set up "Project - accrued revenue - sales value" account is our actual Project Revenue account or any Temporary account(P&L) to accrue revenue

Is there any process available in Fixed price project to move Accrued revenue to Project revenue like TM? or only estimation process?

If we invoiced less than our actual cost spend, then "Project - accrued revenue - sales value" account will reflect more than our invoiced value during estimation process based on foretasted amount. So what will be advisable process to maintain Project revenue 

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  • Suggested answer
    Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at

    Good morning Sunil,

    It is only the estimation process that posts on the accrued revenue account for the project type and configuration that you setup.

    Invoicing does not impact your revenue in this case.

    It only affects your WIP accounts and clears them by offsetting them.

    Best regards,

    Ludwig

  • CU07101257-0 Profile Picture
    CU07101257-0 130 on at

    Thanks Ludwig.

    So for "Project - accrued revenue - sales value" we need to setup our actual revenue account ( Project Revenue)

    For Time & Material Project, we can accrue revenue in accrual account and release it to our Sales revenue account while invoicing.But in Fixed price, we cannot accrue revenue, only we can release it to actual revenue account during Estimation process.

  • AlinaC Profile Picture
    AlinaC on at

    Hi Sunil,

    Please let us know if further clarifications are required for this community post.

  • CU07101257-0 Profile Picture
    CU07101257-0 130 on at

    Yes

  • Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at

    Hello Sunil G Kurup,

    Can you provide some more details what needs additional clarification?

    Many thanks,

    Ludwig

  • AlinaC Profile Picture
    AlinaC on at

    Hi Sunil,

    Please provide more details in case you need further clarifications. Otherwise please mark this community thread as answered for tracking purposes.

  • CU07101257-0 Profile Picture
    CU07101257-0 130 on at

    Hi,

    Just want to confirm Ledger setup for  "Project - accrued revenue - sales value" need to setup our "Actual Revenue Account " ( Project Revenue) or our accrued revenue account.

    For Time & Material Project, we can accrue revenue in accrual account and release it to our Sales revenue account while invoicing.But in Fixed price, we cannot accrue revenue, only we can release it to actual revenue account during Estimation process. Is it correct?

  • Verified answer
    Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at

    Hi Sunil,

    The project accrued revenue sales value account can be an account that holds your residual revenue that you show in your P&L. Depending on the exact setup in the project group and the ledger posting profiles, there will be no other additional clearing of this account. I.e. the amounts will not be transferred to another revenue account if you are looking for something like that.

    For fixed price projects you can make a completely different setup. A standard way is accruing revenues with the estimation process but that's not the only possible setup that can be made.

    Hope that clarifies things.

    Best regards,

    Ludwig

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