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Dynamics 365 Community / Forums / Microsoft Dynamics AX (Archived) / AX2012R2 - Creating ne...
Microsoft Dynamics AX (Archived)

AX2012R2 - Creating new fixed price Project --- where do we enter contract value

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Posted on by Community Member

We are new to AX and running 2012 R2. We thought something worked one way, but something else seems to be happening. We're hoping someone can assist.

We used the wizard to create a Project Contract.

We created a new Fixed Price Project.

Where do we put in Contract Value? We tried to enter it as an On account transaction. Then we created an invoice. The Estimates do not show it correctly because the add the 2 values together for Accrued revenue sales value.

thanks

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  • David Massey Profile Picture
    David Massey on at

    The contract value is the sum of the On-account transactions.  Please explain further what you mean by "estimates" do you show correctly.  Are you using billing rules on the contract?

  • Community Member Profile Picture
    Community Member on at

    Do we need to enter ALL milestone billings upfront and then invoice them as they come due?

  • Community Member Profile Picture
    Community Member on at

    Estimates:

    Project management and accounting

    Common

    Projects

    All Projects

    - select one

    Manage tab

    Estimates

  • Verified answer
    David Massey Profile Picture
    David Massey on at

    In a Fixed Price project, amounts invoiced and the amount recognized as revenue are not the same thing.  The On-Account transactions represent the amount of the contract whether or not they have been invoiced.  These transactions can be invoiced at any point during the management of the project.

    The amount of revenue recognized is based on the Fixed price revenue model. (Completed Contract or Percent complete).

    There are a number of parameters in the Create Estimate form (Revenue Recognition) that control the values displayed in the various grids as they give information about accepting the amount(s) to be recognized as calculated by the system or overridden to use an "observed calculation" of revenue to be recognized.

    One other thing to consider is whether you need to account for your costs and revenue using a Fixed Price model or is this the project in the form of Time and Material using progress billing, milestones, Not-to-Exceed for your accounting requirements.

  • Community Member Profile Picture
    Community Member on at

    Thanks David!

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