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Recently my client encountered problem in Project Accounting. When she run the Revenue Recognition at the end of the month, the system automatically reverse the previous month Project Fee.
Background for this Project:
Project Type = Fixed Price and Accounting Method = Cost to Cost. This Project is supposed to be a three years project. There are no budget value entered but have entered the actual expenses for this project.
What they intended to is to recognise as 100% every month for the actual expenses for this project.
Correct me if I am wrong.
I suspect the error may arrive by the way she specific her Project Fee ID (Project Fee A) – under Fee ID she stated as an e.g. $100,000 and in Frequency field she select schedule.
She will modified the Project Fee schedule to enter the 2nd month $100,000 and so the 3rd month.
Every month she will runs the billing and Revenue Recognition for this project, so far so good without any problem for 2nd and 3rd month.
Problem started in the 4th month where there was an increase in the Project Fee. She went to create a new Project Fee ID (Project Fee B) for $150,000 and create as schedule like what she use to do for the first (Project Fee A).
Problem started when she run the Revenue Recognition for the 4th month – the system will reverse the 3rd month (-$100,000) on the first (Project Fee A) and record the 4th month as $150,000 for the 2nd (Project Fee B).
I hope someone in the community can highlight and advise me the cause of this reversal in (Project Fee A).
Truly appreciate your advice and help in this issue and thanking you in advance.
Best Regards
slc
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