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Created on behalf of case - CS0081596

In IFS cloud, is there a way to record estimated costs and transfer them to cost of sales when a project is not completed?

In IFS, costs incurred are treated as capitalized until the project is completed.
(Capitalization means that the costs/revenues incurred on a project are capitalized as work in progress on the project.)

Therefore, in order to transfer to cost of sales, a completion operation must be performed each month.
However, this operation is not possible when there are many hundreds or thousands of projects.
In Japanese companies, it is normal to manage costs monthly.
In order to do this in IFS, we believe that add-on development would be necessary.

Is there a standard function to "record the estimated amount and transfer it to cost of sales" ?

Outside of Japan, would it be a problem to not transfer to cost until the project is completed?
If there is another method that IFS envisions, please let us know?

Hello,

If I understand well, Revenue Recognition is functionality to recognize calculated part of project costs and revenues in profit and loss statement during lifetime of the project. Calculation can be based on project progress (in simplest case - estimated cost and revenue figures multiplied by POC factor - percentage of project completion, but other calculation algorithms are possible as well). I think it follows accounting standard IAS15. 

It does not require project completion each month.

Is this what you are looking for?

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