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Dear Community,
If we record project with 100% invoice then why is this pick the earning in excess of billing account in distribution of revenue recognition instead of pick the one single account of project billing like below example..
Project Value is = 100,000
Project billed = 100%
Work in process is = 70,000
Recording revenue of 100% project value.
Distribution:
Cost of good sold = Debit = 70,000
Work in process = Credit = 70,000
Project revenue = Credit = 100,000
Project Billing = Debit = 60,000
Earning in excess of billing = Debit = 40,000
Basically we want to know that why earning in excess of billing is getting debit?? instead of project billing should be debit with the value of 100,000 according to us.
Thanks in Advance.
Hi Jozy,
It would be difficult for me to back into this without being able to review your whole setup on your project and budgets and knowing what transactions and or fees have been posted or billed and for what amounts.
In general, in Microsoft Dynamics GP we calculate EIEB and BIEE at an individual cost category or fee level as opposed to at the project or contract level.
Here is an example of what I mean. Let’s say you have a project that has 2 cost categories with the following information:
CC1: Billed amount $1000, Revenue recognized $1500
CC2: Billed amount $750, Revenue recognized $500
Looking at the project as a whole we have billed $1,750 and recognized $2,000 in revenue so we are in an Earnings in Excess of Billings (EIEB) situation.
We evaluate billings and revenue for each cost category or fee individually. This means that these same cost categories would have different results for our distributions. For CC1 we are in an EIEB situation by $500. And for CC2 we are in a BIEE situation by $250. If you review the distributions in your Revenue Recognition distribution window you will see both account types and accounts being posted to. This means a debit to EIEB for $500 and a credit to BIEE for $250.
Hopefully this information provides some clarity around what you are seeing in regards to EIEB and BIEE and helps you back into the numbers.
In order to truly back into this more it may be best to open a support case so we can gather more specifics on your setup and get the full background behind what all has been processed on the Project to this point.
Thanks,
Isaac Olson
Microsoft Support
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