Can we keep a project for multiple years, what is the impact of year closure on same ?

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Hi All,

I would like to know if I can keep a project open for multiple financial years in D365 FO - Project Management and Accounting, what would be the impact of FY Closure on opne projects.

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Christoph Thaler 5,442 on at

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Hi,

Where do you have concerns regarding the year end procedure? All the transactions you do in relation to the project are posted in the books and do have a posting date.

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Ludwig Reinhard Microsoft Employee on at

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Hello Nakul waghe,

From a system perspective leaving projects open over multiple years should not be a problem.

From an accounting perspective things, might however be different because long running projects regularly make use of WIP postings that shift part of your company's costs to the Balance Sheet. As a result, your profit and tax payments are smaller as they would be if you directly post them to P&L accounts. That's something that is regulated by your local accounting regulations and I would recommend double checking with your auditors that running those projects is 'ok' from their perspective.

Best regards,

Ludwig

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Community Member on at

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Hi Christoph,

Thanks for your reply, I am thinking from accounting point of view that if I close the financial year, and then if I want to adjust any project transaction of previous year, will system allow me to do so?

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Community Member on at

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Hi Ludwig,

Thanks for your reply, it does make sense, I will have a check on this.

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