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Project Accounting revenue recognition showing negative % of comp.

How can I get more details from the revenue recognition entry screen to prove how the calculations are done? One project is showing a negative rev.earned but the accountant says that is wrong

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Microsoft Dynamics GP

Hi Deanne,

The following Article explains how Microsoft Dynamics GP calculates Revenue Recognition based on your Accounting Method selected on the Project.

Information about the accounting methods and revenue recognition process in Microsoft Dynamics GP Project Accounting

Below I have also listed some reasons why the ‘To Recognize’ field can have a negative value. Here are some things for you to check:

1. Is the Actual Cost value in the Revenue Recognition Entry per Budget Item window for the cost category correct? You can verify this by looking in Budget Detail Entry (Cards | Project | Project | Budget| expansion on Cost Category ID) at the Actuals. You can drill back on the link to get to Transaction Inquiry and review the actual transactions to make sure there is not an issue with the Cutoff Date being used for the RR transaction so that it is not including everything you expect.

2. Another reason that it would show as negative to be recognized, is if revenue recognition had been done before for this project, and then negative cost transactions were posted after that. Now when you run RR the percentage of completion would not be as much as before so it would back out some of that revenue. Take a look at the previous RR transaction for this project and see what the Actual Cost was then compared to now.

3. Along those same lines, if revenue on a previous RR transaction was changed (increased), then the system will try to back it out the next time. For example if the system determines the revenue to recognize should be $100. And a user changed it to be $150 and posted the RR transaction. Then if you created a new RR transaction the amount To Recognize would come in as -$50 since it was "over recognized" on the previous transaction.

4. The other thing to look at is your Periodic Records for the budgets. If you are using the last day of the month as your Cutoff Date we look to the Periodic Budget Master table (PA01304) to determine the cost values. If this table is incorrect, then it can lead to incorrect RR numbers. You can review these values in the Project Periodic Budget (Cards | Project | Project | Budget | click the graph icon by Qty). If you find the actual values are incorrect, then make a backup and run Periodic Reconcile for the customer involved. To do this use MDGP | Tools | Utilities | Project | PA Reconcile Periodic. Once that is done, then create your RR transaction again.

I hope this helps! If the numbers are still not making sense for you after reviewing the above information in detail, we can help you dig into it further through a support case as well.

Thanks!

Isaac Olson

Microsoft Support

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