You’re offline. This is a read only version of the page.
121
How can we reverse WIP on fixed price projects in project management and accounting?
In project management and accounting, Work in Progress (WIP) refers to the value of the work that has been started but not yet completed. Reversing WIP on fixed price projects can be achieved by following these steps:
> Identify the specific fixed price project in question and the WIP balance associated with it.
> Determine if the project is still in progress or if it has been completed.
> If the project is still in progress, review the work that has been completed to date and determine the percentage of completion based on the fixed price agreed upon in the contract.
> Adjust the WIP balance by recognizing the revenue and associated costs for the percentage of work completed.
> If the project has been completed, determine the actual cost of completing the project and compare it to the fixed price agreed upon in the contract.
> Adjust the WIP balance by recognizing any revenue or cost variances that may exist.
It is important to note that reversing WIP on fixed price projects requires careful analysis and accurate documentation to ensure the financial statements accurately reflect the progress and completion of the project.
In project management and accounting, Work in Progress (WIP) refers to the value of the work that has been started but not yet completed. Reversing WIP on fixed price projects can be achieved by following these steps:
> Identify the specific fixed price project in question and the WIP balance associated with it.
> Determine if the project is still in progress or if it has been completed.
> If the project is still in progress, review the work that has been completed to date and determine the percentage of completion based on the fixed price agreed upon in the contract.
> Adjust the WIP balance by recognizing the revenue and associated costs for the percentage of work completed.
> If the project has been completed, determine the actual cost of completing the project and compare it to the fixed price agreed upon in the contract.
> Adjust the WIP balance by recognizing any revenue or cost variances that may exist.
It is important to note that reversing WIP on fixed price projects requires careful analysis and accurate documentation to ensure the financial statements accurately reflect the progress and completion of the project.
It look like you have calculate the 100% manually, you need to be sure that all posted transactions are included on the estimate, that you don't have pending transactions, etc... I would ask you open support case if this doesn't work but I can see you are running AX2012 and it is out support already.
This Elimination button is not visible in fixed price projects after completing all steps,
Transactions at elimination. When the estimate project is eliminated, the WIP on-account balance account postings and the WIP sales value transactions are reversed.
Hi Kaispe,
I think you need to share more details so we can better help you but in general, there is not functionality to reverse a project transaction so if what you want is to reverse a transaction then you will need to create the same but in negative.
Regards
Mauricio
#1
André Arnaud de Cal...
291,979
Super User 2025 Season 1
#2
Martin Dráb
230,848
Most Valuable Professional
#3
nmaenpaa
101,156
Share
Report
All responses (
Answers (
