Multiple Revenue Account for Fixed type project

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Posted on by grajkumarmscax

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Hi,

My requirement is: I have win one project quotation with following scope of work and converted from project quotation to project with same scope of work

Hardware configuration
License cost
Software implementation

It is fixed price type project. After start the project and consumed my work

1. I have completed hardware configuration and marked the task [hardware configuration fixed] as completed. next, While posting revenue recognition, it should hit Hardware revenue account

2. Then, I have completed license configuration and marked task [license configuration] as completed. While posting revenue recognition, it should hit License revenue account

3. Then, I have completed implementation and marked task [implementation] as completed. While posting revenue recognition, it should hit implementation revenue account

I am able to track my project cost based on [hardware, license and implementation], because project ledger posting is taking from project category [so have created as category/group]

But Revenue side, Project posting [Project - accrued revenue - sales value] is taking from project group.

Even I have tried to create as sub project with another group, But system is allowing sub project group which I have attached on main project group

Would you please help me this scenario?

Thanks

Rajkumar

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Ludwig Reinhard Microsoft Employee on at

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Hi Rajkumar,

With the sales value posting you refer to the one that is created at the time you post the estimates, right?

Best regards,

Ludwig

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grajkumarmscax 720 on at

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Hi Dr.Ludwig,

Yes. at the time of posting estimates[for fixed type project].

is it doable to run estimates for different revenue accounts? such as [Hardware,License, Software implementation]

Thanks

Rajkumar

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Ludwig Reinhard Microsoft Employee on at

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Hi Rajkumar,

As you typically have only a single estimate category available, only a single ledger account can be used for posting the revenues.

There is, however, a workaround.

The workaround is selecting the calcuation percent - total calculation method.

Please see:

blogs.msdn.microsoft.com/.../estimate-calculation-methods-for-fixed-price-projects

What this parameter does is that it splits up the revenue postings into multiple lines. Even though the same ledger account is used for the posting, you can use analytical tools, such as cubes or power bi to compare the costs and accrued revenue amounts at the project category level.

Best regards,

Ludwig

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Ludwig Reinhard Microsoft Employee on at

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Hi Rajkumar,

Just wondering whether you have already been able testing this calculation method setting.

Would be great if you could keep us updated here.

Many thanks and best regards,

Ludwig

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grajkumarmscax 720 on at

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Hi Dr. Ludwig Reinhard,

Thanks for your help.

I have already tested calculation method, but this approach will not help for my requirement.

As you know , there no comparison between calculation method and revenue with multiple ledger account.

Calculation method is related to Costing[category costing for actual posted transaction [item, hours, expense]].. but i am to try to achieve for Revenue[estimates] with multiple ledger account.

if it possible, please try my scenario and share your ideas.

Thanks

Rajkumar

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Ludwig Reinhard Microsoft Employee on at

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Hi Rajkumar,

The calculation method allows a cost and revenue comparison at the category level.

I am completely with you when you say that you can't make this comparison in AX.

Yet, if you make use of the project cube or power BI you can make this comparison and if I understood everything correctly then this is what you want to achieve.

Best regards,

Ludwig

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grajkumarmscax 720 on at

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Hi Dr. Ludwig Reinhard,

I am doing case study [step by step]. i will come to you with my result.

Thanks

Rajkumar

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grajkumarmscax 720 on at

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Hi Dr. Ludwig Reinhard,
I have tested my complete scenario. but I am not achievable to my requirement.

System is doing as follow

Instead of posting it as a single revenue transaction with the estimate project category, it allocates the recognized revenue to the individual cost line[PM,QA,DEV] on the basis of the proportion of their actual cost, But financial impact is going to one ledge account

My requirement is ,

1. Whatever related PM-Cost line, it should hit rental revenue account
2. Whatever related QA-Cost line, it should hit transportation revenue account
3. Whatever related DEV-Cost line, it should hit services revenue account

4. SW, HW,...

because my project contact covered the scope [software hardware and implementation ] as single fixed price project, but i want to see my revenue based on cost line. please tell and share if you have document to achieve this

Thanks
Rajkumar

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Ludwig Reinhard Microsoft Employee on at

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Hi Rajkumar,

Thank you for your feedback.

I understand your requirement.

Yet, this cannot be achieved in the standard application without making a system modification.

What you can do is posting a product suggestion on the dynamics ideas portal here

ideas.dynamics.com/ideas Microsoft considers those ideas and might implement a system modification in the standard application. However, there is no guarantee for that, which leaves you with the necessity to make a system modification or some kind of workarounds, such as subsequent allocations either in GL or the cost accounting module.

Best regards,

Ludwig

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David Massey on at

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One point to consider is whether this is really a Fixed Price accounting project or is this really a Fixed Bid project which should be using Time and Material as it's accounting process.

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