Query regarding Accrued Revenue settlement in FP Project

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Hi All,

I have one doubt regarding Accrued Revenue account in FP Project, On posting the estimates for FP Project system Debit the WIP-Invoices on account A/C and Credit - Accrued Revenue - Sales Values A/C, but the accrued revenue account doesn't get settled on closing the project.

Can someone help me with the process to settle the accrued revenue account ?

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Ludwig Reinhard Microsoft Employee on at

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Hi Nakul Waghe,

Have you eliminated your estimates before closing the project?

Best regards,

Ludwig

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Yes, I did. It just posted Dr. and Cr. entry in WIP accounts but no effect on Accrued Revenue.

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Ludwig Reinhard Microsoft Employee on at

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Hi

Have you checked LCS for an available hotfix? If you run an older system the behavior you experience might be causes by a bug.

If you are operating the latest version then please share some additional details of your project group setup and the transactions that have been recorded.

Many thanks

Ludwig

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Hi Ludwig,

Thanks for the reply, I am using latest version of D365, I have done the following configuration at Project group level:

Post Cost Hours, Post Cost Items and Post cost Expense to - P&L.

Post On-Account invoicing to - Balance.

Revenue Recognition Method - Completed Percentage.

Accrue Revenue as - No (By Default)

Transaction entries:

Cost posting entry: - Cost of Project - Expense Dr.

Offset Account A/C Cr.

Milestone Posting: - AR Dr. to

WIP-Invoiced on-account A/C Cr.

Estimation Posting: - WIP - Invoiced on-account Dr.

Accrued Revenue A/C Cr.

Elimination: Project - WIP Invoiced on-account Dr.

Project - WIP - sales value

So the finally I end up with - AR Dr. to

Accrued Revenue A/C Cr.

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Ludwig Reinhard Microsoft Employee on at

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Hi,

WIP - Invoiced on-account

is this your ledger account or the posting type?

Did you use the same WIP account multiple times?

Best regards,

Ludwig

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This is my Ledger account. The posting type is - Project-WIP Invoiced on account Dr. to Project-WIP-Sales values Cr.

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Ludwig Reinhard Microsoft Employee on at

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So, you have separate WiP accounts, right?

Can you share the vouchers that have been posted incl. the posting types used?

Best regards,

Ludwig

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Hi Ludwig,

Sharing the screenshots:

Cost Posting

On-Account Posting

Estimation Posting

Elimination Posting

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Ludwig Reinhard Microsoft Employee on at

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Hi,

From my perspective I cannot see that something is wrong here

The first posting records the costs on your project (highlighted in red)

The second posting records the receivable against the customer

The third posting records the Revenue throught the estimate posting

The last posting clears the WIP accounts.

What remains are the costs (red) and the revenue (green)

Note: The only thing that looks a bit strange is the first posting that uses the travel expense account as the offset account. In my opinion this should be an Accounts Payable summary account, i.e. a vendor account.

Everything else look ok to me.

What is it that bothers you exactly here?

Best regards,

Ludwig

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Hi Ludwig,

My query is regarding the Project accrued revenue account which is getting hit on posting estimate. How that accrued revenue account will be nullified because even after closing the project, Project statement report shows this amount as accrued revenue.

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