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The client uses production in the project ( Step 1 Project Step 2 Creation Shop order with relation to Project Activity).
If semi-finished and finisher products are produced and posted on the Inventory Account (balance account) , it is not seen as a project cost to the POC. Do you know any solution ( work around ?) How to include Project Inventory and WiP to POC calculation ?
Best answer by Thomas Peterson
View originalAs you mentioned, M1 and M40 posting types are balance sheet items and they do not increase costs of the project in terms of project accounting.
I am not sure if you can use cost account in M40 and M1 postings. I think you can create Automatic Posting Rule triggered by M40 posting (and M1 related to finished and semi-finished goods) and creating additional entries on dedicated cost account. But you should be careful in the setup - it will depend on your RMR rule - if you use project with capitalized costs, this capitalization must reverse your automated entries (i.e. you should use debit Cost credit Asset account pattern in APR). In case project costs are not capitalized, on credit side you should have cost account marked as excluded from capitalization (and from RMR calculation) to avoid affecting PnL report.
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Thanks Adam,
I used a similar solution in IFS8 using PerCosAll, I will probably do the same now.
Marek
Hi, Marek, I did not recognized you :) Do we have in version 10 M43A ... M43D postings created once in VAP PL for version 7? It would help a little bit.
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Nice to hear you Adam :)
Yes I have and I use Follow Up Material as a polish extension.
In that case I can probably use the cost account from parallel postings on cost accounts. ( In version IFS10 these rules named : M281. M282/3/4 . I will consider it.
/Marek
Hi,
In apps 10, IFS added the option on balance sheet accounts such that these accounts would be considered as a cost in the rev rec process. The intent is that inventory and WIP would values would be seen / considered as cost when running rev rec. For example assume 500 in true cost accounts, and 1000 in inventory as an asset, If you check the box on your inventory account, IFS rev rec would calculate 1500 in cost, giving a far better (more accurate) POC when using actual cost as the PO driver.
You only want certain accounts to have the box checked. For example if both sides of a PO arrival (both accounts) have the box checked then you have no real effect. +100, -100 = 0. Only check the box on the desired account(s) such as inventory and WIP.
Best regards,
Thomas
Thank you, Thomas,
I am afraid my knowledge goes outdated more and more. I hope my next assignment will be with version 10 or Cloud, as it is I am still with 7.5 Centura :)
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Hi Thomas,
Thanks a lot ! You saved me a lot of work :)
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