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Time Material Project Invoice with Revenue Recognition

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Posted on by Jefry Then

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Hi all,

I have a time material project with sales order line linked to revenue schedule. I configure single occurrence for revenue schedule. I did packing slip but when I invoice it from project invoice proposal, It doesn't generate any voucher. When I check the sales order and project, it is said that already invoiced. Is this correct or something missing in my setup?

If I go to revenue recognition schedule, I can generate revenue recognition journal.If I check subledger journal entries not yet transferred in GL periodic, it is also empty, nothing is pending.

My packing slip voucher :

(Dr) Deferred COGS

(Cr) Inventory

My invoice didn't generate any voucher.

My revenue recognition journal :

(Dr) Deferred revenue

(Cr) Sales

(Dr) Deferred COGS

(Cr) COGS

Again, is this correct? My understanding, invoice should generate voucher where revenue and COGS is deferred and using revenue recognition journal to release deferred COGS and revenue to actual COGS and revenue. If my understanding is correct, then do you know why invoice doesn't generate voucher?

Thank you.

Jefry

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Miguel Angel Garcia on at

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Hi Jefry

You should expect a generated voucher at the time of Posting Project invoice proposal like the following:

Deferred cost and revenue accounts are taken from Project module:

In order to determinate whether the issue is on revenue recognition setup, you could post a AR sales order invoice for the same item used in the Project SO to check whether the voucher is create as expected for a SO with no link to Project.

In addition, make sure in your scenario you run into the following bug whenever the Project Sales Order has not been confirmed:

https://fix.lcs.dynamics.com/Issue/Details?kb=4565385

Kind Regards

Miguel

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Jefry Then 1,982 on at

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Hi Miguel,

Thanks for your help. When I test on a sales order without project, it is successfully generate voucher when invoice posted.

In my case, it is not revenue allocation price which is incorrect. As I shown in my first post, I could generate recognition journal, my problem is sales order with project doesn't create voucher when invoiced. If I create a sales order project without revenue schedule specified, invoice voucher is generated.

Also, when creating a sales order project with revenue schedule, I always confirm the sales order to preview the schedule.

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Miguel Angel Garcia on at

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Hi Jefry,

Since you are getting expected results in the SO invoice with no Project. My recommendation is you to log a support request to MS with the issue when posting Project Invoice proposal from Project SO. In my test I am getting expected results in both sides with a voucher created when posting Project Invoice proposal too. I had added a screenshot of that voucher from Project invoice in the previous post.

Kind Regards

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Jefry Then 1,982 on at

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Skip this post, I want to delete this post, can't find it, so I edit it.

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Jefry Then 1,982 on at

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Hi Miguel,

Thank you for your reply. This case happened in our customer environment and in my demo VM. If it works perfectly at your side then possibly something wrong with my setup. Do you mind share a screenshot of your setups and transaction? Sales order line, revenue schedule master, revenue prices master, and related possibly setup which helps?

By the way I am using PU35, I guess your version should be the same.

Thank you.

Jefry

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Rahul Mohta 21,032 on at

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sharing taccounts explaination

community.dynamics.com/.../time-and-material-project-postings-in-microsoft-dynamics-365-finance-and-operations-cost-accrual-to-balance-sheet

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Miguel Angel Garcia on at

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Hi Jefry,

See some screenshots:

PU35

Make sure default accounts are defined for Project for Deferred cost and Deferred revenue (Rev rec – Setup – Project setup – Ledger posting setup)

Project SO is created and confirmed:

Go to invoice proposa which is postedl:

Check Voucher from invoice journal:

and project ledger update:

As mentioned, you could create a support request for MS engineer to check setup in Project module and Revenue Recognition module.

Best Regards

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Jefry Then 1,982 on at

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Hi Miguel,

Much appreciated for your effort. I will open ticket for a support request.

Thank you.

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Jefry Then 1,982 on at

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Hi Miguel,

I already open a ticket for support request for this case. Support team directs me to view voucher from invoice journal and I can view voucher from there. However, if I open it from posted transactions and view voucher, nothing there. Earlier I view voucher not from invoice journal form but from posted transactions.

Thank you.

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Miguel Angel Garcia on at

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Perfect :) I hope support engineers can find the root cause in open case.

Best Regards

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