Hi IFS Community,
We’ve come across a bit of a challenge on one of our projects and I’m wondering if anyone in the community has dealt with something similar.
A supplier delivered materials that didn’t meet the required specs. Unfortunately, these materials were already used in the build before the issue was picked up. The project team has since identified that this could lead to issues down the line, so they’ve raised a charge back to the supplier.
The complication is that the team recorded this charge back as revenue recognition under a contract change order. Executive management has pointed out that this may not be correct, since the supplier was not a subcontractor but a vendor we engaged through a purchase order.
Has anyone else experienced a situation like this? How did you handle it in terms of both financial posting (IFS Finance) and project setup (IFS Projects/Procurement)?
Any guidance on best practice for processing the charge back correctly in IFS would be really appreciated.
Thanks in advance for your insights.
Regards
Jos