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We try to understand the GP13 transactions that sometimes occur when we run the revenue recognition. In all our projects, we book the costs directly and calculate recognized revenue. From what I've read, GP13 is only used when calculating recognized costs (which we don't do).

It seems that these transactions occur when a project goes from positive to negative profit margin but I can't see any logic in the amount that the GP13 transaction gives us.

It happens that we run the revenue recognition several times after adjusting revenue/cost estimates.

 

Is this a bug or is there a good reason for these transactions?

We also only capitalize revenue and not cost.  We set up GP13 & GP15 to the same g/l account so that it’s a net zero and then basically ignore all those transactions.  It seems to be a base functionality of the Rev Rec process and that was our work around for it.  Since Cost progress (% complete) is based on used cost not the calculated recognized cost, it shouldn’t affect your Rev Rec calculation.  

 

Thanks for your input. I will use your work around as a solution for now.

 

//Magnus

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