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Dynamics 365 Community / Forums / Microsoft Dynamics AX (Archived) / Accrued costs in proje...
Microsoft Dynamics AX (Archived)

Accrued costs in project accounting

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Posted on by debsal 220

we know we can accrue revenue on T&M projects in dynamics ax 2012 however we need to also accrue the related cost at the same time and have it reverse when we invoice - otherwise our financials are not accurate.  Can we do this in 2012 and if so how?

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  • David Massey Profile Picture
    David Massey on at

    In the setup posting for the project group - journalize the cost to the Balance sheet.  The costs will be moved to P/L during invoicing.  Note: if you place the costs on the Balance sheet, you cannot place the revenue on the balance sheet at the same time. If the line property is not invoiceable, the cost will be journalized to the P/L instead of the balance sheet.

  • debsal Profile Picture
    debsal 220 on at

    what we want to do is have the ability in projects like in sales order item group posting in that we can hit a deferred cost and an accrued inventory account at pack slip then reverse at invoice and post to regular inventory and COGS.  Example: Pack item requirements  - debit COGS-accrued, credit - Inventory accrued.  At invoice - Debit inventory accrued, credit inventory, debit COGS, credit COGS-accrued

  • debsal Profile Picture
    debsal 220 on at

    can you be more specific?  When we post our item requirements we are crediting accrued revenue on the income statement and debiting accrued AR on the balance sheet.  When it is invoiced it moves from accrued revenue on the income statement into revenue and moves from accrued AR to AR on the balance sheet.  Ax is doing this automatically.  The cost side of the item requirements is posting to COGS.  We still want the costs to be on the income statement because we have accrued revenue on the income statement.  But we want them to debit accrued costs and when the project is invoiced to move from accrued cogs on the income statement to Cogs on the income statement    We cannot debit the balance sheet account for the accrued costs or our net profit on the income statement is over stated by the amount of the accrued revenue.

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