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Can investment project commitment be eliminated into a fixed asset or ledger account?

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Posted on by Siyue Chen 10

Hello,

I have a question regarding the project commitment - can it be eliminated into a FA or ledger account?

When I showed my client about the project budget balances, they said they consider received but not invoiced items as "consumed" rather than "commitment".

pastedimage1683897340485v1.png

For example, there is in total 100,000 budget assigned to a project, 45,000 has been consumed as the POs were invoiced, 55,000 are still waiting for invoices but the items have been received. Now that all resources have arrived, the client wants to capitalize this project into a fixed asset because they can start using it.

pastedimage1683897890583v2.png

However, those received but not yet invoiced items are not in WIP account, when I try to estimate and eliminate, only 45,000 value can be transferred to the fixed asset.

How can this project capitalization with committed amount be done in D365?

Many thanks.

Categories:
Administration and Setup
Financial Management
  • Siyue Chen Profile Picture
    Siyue Chen 10 on at
    RE: Can investment project commitment be eliminated into a fixed asset or ledger account?

    Hi Gaurangkumar,

    Thanks for your explanation. Hope you have a nice day.

    Best regards

  • Suggested answer
    Gaurangkumar Jani Profile Picture
    Gaurangkumar Jani 4,470 Moderator on at
    RE: Can investment project commitment be eliminated into a fixed asset or ledger account?

    HI @Siyue Chen

    This is not possible unless you consume material on product receipt of PO, otherwise on receipt of product system use Inventory module's posting type and not project module's posting type.

    You can consume it and system will consume that material in project, and you will have cost amount in Project WIP.

    Please let us know if this helps.

    Thanks,

  • Siyue Chen Profile Picture
    Siyue Chen 10 on at
    RE: Can investment project commitment be eliminated into a fixed asset or ledger account?

    Hi CA Gaurangkumar Jani,

    Thank you very much for the answer, but the client doesn't want to go with that way. I am trying to figure out a way to make the received but not invoiced amount to be calculated into project WIP.

    Best regards

  • Suggested answer
    Gaurangkumar Jani Profile Picture
    Gaurangkumar Jani 4,470 Moderator on at
    RE: Can investment project commitment be eliminated into a fixed asset or ledger account?

    Hi Siyue Chen

    System only transfer value to elimination which is posted in WIP. Unless your transaction is not posted to WIP, system can not transfer to elimination account. I would suggest to post cost to project before processing elimination to cover that cost in Elimination process.

    Please let us know if this helps.

    Thanks,

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