Project Ledger Posting Setup

(0) Share

Report

Posted on by Rohin

4,624

Hi,

Today , my client has given me excel sheet having some Account setup that he wants to achieve with Project module after posting Project Invoice. We are using Project group with WIP setup.

Please look my client setup excel sheet:

I have setup project group/project category to achieve above setup, I am using Service Item with stocked Product policy & created Project Invoice for Project Item transactions( created by Item Requirement ). please look ledger posting in AX:

0535.AX-setup.PNG

what i am not understanding is why in my case AX credits salesOrder issue account after posting Packing slip of ItemRequirement but acc. to client this should not be done (should be in 21575- Accured Job cost). Similarly happens with Posting Purchase Invoice.

i really don't know the accounting concept . please suggest if am i wrong here?

*This post is locked for comments

I have the same question (0)

All responses (20)

Answers (6)

Verified answer

Ludwig Reinhard Microsoft Employee on at

Like (0)

Report

RE: Project Ledger Posting Setup

Hi Visvash Walia,

The underlying reason why the sales order issue account is posted is because an item requirement is linked to an internal sales order with the type item requirement. For that reason, the sales order issue posting type is used in your transaction and not the inventory issue account that would be used if you post for example an item consumption journal for your project.

Best regards,

Ludwig

Was this reply helpful? Yes No
Rohin 4,624 on at

Like (0)

Report

RE: Project Ledger Posting Setup

That's make sense Ludwig..

Like, my client want to post this entry to 21575 (Accrues Job cost) instead of salesOrder Issue account 32010 (which is attached to Item Group setup for Item) so can i put 21575 in place of 32010 account for salesOrderIssue posting ?

Was this reply helpful? Yes No
Verified answer

Ludwig Reinhard Microsoft Employee on at

Like (0)

Report

RE: Project Ledger Posting Setup

Hi Visvash Walia,

Yes, the account change should do the job - but test it first to be 100% sure that what you get is in line with your expectations.

However, you should be aware that AX does not distinguish between sales order types when it comes to posting.

That is, if you have ordinary sales order that are not linked to a project, the same sales order issue account will be used also for them ... that's just to make you aware/remind you of that.

Best regards,

Ludwig

Was this reply helpful? Yes No
Rohin 4,624 on at

Like (0)

Report

RE: Project Ledger Posting Setup

Thanks Ludwig, I understand that & thanks for aware on other side.

I need to ask few queries:

1.Can I do the same with Purchase, Inventory Receipt ( put 21575 in place of 32040) ?

2. why AX create one debit and one credit entries of Purchase Expenditure for Product after posting Project Purchase Invoice as shown in screenshot (our AX setup) attached above?

Was this reply helpful? Yes No
Verified answer

Ludwig Reinhard Microsoft Employee on at

Like (1)

Report

RE: Project Ledger Posting Setup

Hi Visvash Walia,

The postings that are generated with POs depend on the project type.

For fixed-price projects with WiP postings there are (temporary) different.

If you just use ordinary T&M projects changing the account numbers should, however, do the job.

Yet, if the POs are related to projects you should flip the accounts in the project posting form because AX posts the items first to the inventory and then takes them out to post it as expense on a project.

But - as I said - what postings are generated depends highly on the project type + item setup.

So test it before you make this change in a live environment.

Best regards,

Ludwig

Was this reply helpful? Yes No
Rohin 4,624 on at

Like (0)

Report

RE: Project Ledger Posting Setup

Thank you Ludwig . I will get back to you after working on it with some queries.

Thanks for your help

Was this reply helpful? Yes No
Rohin 4,624 on at

Like (0)

Report

RE: Project Ledger Posting Setup

Hello Ludwig,

Sorry for late reply on this thread , actually today i got Chance to work on it.I have one query :

When i post packing slip through ItemRequirement form , it will create four transactions (i am using WIP project group setup).

Transaction 1 : Posting type = Project -WIP cost-Item (Account- 12800)

Transaction 2 : Posting type = Sales Order Issue (Account-21575)

Rest of two transaction shown in below screenshot :

Transaction 3 :

Transaction 4:

Transaction 3 and transaction is simply a debit/credit into account,so my client wants to avoid these transactions.

is it possible for Ax not to generate transaction 3 &4 after posting packing slip? please suggest.

Was this reply helpful? Yes No
Verified answer

Ludwig Reinhard Microsoft Employee on at

Like (1)

Report

RE: Project Ledger Posting Setup

Hi Visvash Walia,

For projects with WIP postings you can't avoid that.

The underlying reason - from an accounting/finance perspective - is the following:

You have a two postings

1) DR: 32080 Project costs / CR: 21575 $50

This posting consumes the item costs to your project. If you have a project that uses a Profit and lost posting you will get the same transaction posted.

2) DR: 12800 WIP / CR: 32080 Project item costs $50

This second posting is caused by the balance sheet posting setup in your project group and is necessary to neutralize the project costs posted in no 1) and to shift the costs to your WIP account in the balance sheet.

You are right when you say that the posting can be 'shortened'. However, once you create the invoice, the 2nd posting will be reversed to have the costs included in your income statement. It is thus the way how AX was coded that generates those postings.

Hope this helps.

Best regards,

Ludwig

Was this reply helpful? Yes No
Rohin 4,624 on at

Like (0)

Report

RE: Project Ledger Posting Setup

thanks Ludwig for great answer, Its means we can't avoid this ..right?

Was this reply helpful? Yes No
Verified answer

Ludwig Reinhard Microsoft Employee on at

Like (0)

Report

RE: Project Ledger Posting Setup

Exactly, you can't avoid this.

Was this reply helpful? Yes No