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No periodical capitalization voucher created when there is only revenue

  • 3 February 2022
  • 2 replies
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Zuha Samsudeen
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Userlevel 5
Badge +10

Hi,

I need help with a financial project with following setup

Capitalization posting method - Periodical
Project Type - Capitalize Rev/Exp
Revenue recognition method - POC Revenue First
POC Method - Actual cost 
Revision Accounting - Catch up
Post Actual and recognized revenue difference - Checked

 

The project has some Actual Revenue and Zero Actual cost. When i run the Periodical Capitilization and Renevue Recognition, there is no revenue recognition voucher was created. May i know which set up is triggering to create no voucher

 

Best regards

Zuha

 

 

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Best answer by Thomas Peterson 3 February 2022, 14:54

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2 replies

T
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Userlevel 7
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Hi, 

Per my understanding the POC method is actual cost. Assuming we have 0 actual cost, IFS will set POC to 0.   

In your example - no cost (and POC is based on actual cost) , estimated rev for the project is X, and your actual revenue is 100 what is the expected rev rec value? - . 

If we assume estimated revenue was 100, and POC = 0 (due to actual cost driver) 0 *100 is 0.  The rev rec process will generate 0 revenue.    Using the same data, change the POC method to manual and enter POC of 10 or other.  IFS will then generate rev rec entries. 

 

Best regards, 

Thomas

K
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Userlevel 2
Badge +5

hi,

@Thomas Peterson I faced the same issue than @Zuha Samsudeen and for me normally we should retrieve automatically the posting GP23/GP25 (overbilled project revenu..)

could you please tell me how can I reach this expected result?

Thanks & regards,

Kherdine

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