​@Thomas Peterson ​@nivslk any ideas on this one?

Hi, 

Could be an easy fix. 

Guessing that when you migrated the project values, it was migrated to a CIP (construction in progress) or other asset account. 

IFS projects / capitalization needs cost.   

Move the values from asset to cost and allow IFS to capitalize / do its thing.  

You will focus on moving the cost, but at the same time, you don’t want additional cost so you may credit cost (no project) and debit cost with a project. 

Best regards

Thomas

Hi Thomas,

Thanks, when the project values were migrated across, they were added to an asset account in our balance sheet, i have tried to move this to P&L account but IFS added 2 lines to my voucher and moved the transactions back to the asset account, do you know where i’ve gone wrong here?

Thanks

Connor

Hi, 

Connor ----   All good, I believe. 

When using transaction-based capitalization method (not periodical capitalization). a posting to expense for a capitalization type project, IFS will add posting lines to reverse the expense and move to the account specified for posting type GP3 (CIP or similar asset account). The additional lines are added at GL update.   All good.  Periodical Cap, is somewhat similar only that the additional posting lines happen due to a month end function.    IMO for testing, transaction based is best. Then later if needed due to benefits of periodical, you may need to change. But for initial testing, transaction based is best. 

Because IFS did the capitalization (moved cost to balance sheet GP3) we know how much was capitalized for that project.  All good. 

When you complete the project, IFS knows the value that was capitalized and how much value can be managed when we close out the GP3 postings and move to some other account such as a FA. All good. 

Hypothetically if values are entered into the same GP3 account “manually” or migration that process bypasses the IFS logic. IFS does not include those entries as values IFS can manage. 

Based on what you write.  Looks good.    Devil is in the details. 

Best regards, 

Thomas

Thanks Thomas, so it looks like i’m going wrong when completing the project, as this is not showing any costs when doing this, does the job need completing in the projects module first and then the financial project needs completing after this?

Hi chenderson24

To follow up.  You say values were migrated.  I’ve seen many different migrations and I’ve seen a number of creative methods.    What did you do for the migration of these values?  If you did a flavor of external voucher or manual voucher, and you hit asset account for the initial posting (for example CIP  / GP3 account) that would not work.  If you did similar but hit cost, depending on set up, that would be capitalized - moved to the GP3 account (this is the process that works). If you have done other such as table updates, then that also would not work. 

Also, check the project in question, and see the capitalization method. Two options, transaction based or periodical.  If using periodical, you must run the rev rec / periodical capitalization process.  That’s the process that would move cost values from PL accounts to balance sheet. If using periodical method, different posting types are used rather than the GP3 noted previously. If using transaction based, you don’t need another process for the capitalization (GL update does this).

It would be nice to see  the screen you are describing that shows 0 cost.   

Best suggestion… For learning how IFS works, go into test. Create a financial project - transaction based, cap rev / expense.  Create a manual voucher 4 lines. Line one hit an asset account with the financial project ID. Line 2, use expense account with project ID. Line 3 hit rev with project, line 4 hit some other account to balance - no project ID.   Copy the voucher  number, use the instant update or update GL.  In GL voucher details, search for the voucher and see the details. You will find additional posting lines.  Then do the project completion.  For this test, simply complete the project without a reposting rule, just because it’s easier. Then review the voucher created from the completion. 

Best regards, 

Thomas

Hi Thomas,

The set up was done by a previous member of staff before i joined, the balances were imported as part of the trial balance import and allocated to an asset code on the balance sheet. Our projects look to be working correctly for any new projects we have created since IFS go live, it’s the older projects that were migrated across that i’m having issues with closing. All of our projects have been set up as transaction based, not periodical. 

The screen that shows 0 costs is on the attached PDF, it’s the last screenshot showing no current capitalization costs.

Thanks for your assistance here

Hi, 

Per the above … the balances were imported as part of the trial balance import and allocated to an asset code on the balance sheet. 

That process does not work.   Rather than account X (asset account) you should have hit account Y a cost account, when loading the TB. 

You need to create a new voucher… debit cost with project ID. When I refer to project cost you need to hit an account where the account type is noted as a cost account. Asset accounts will not work.    The credit side is mostly up to your organization. Make sure that when done, the CIP account is not overstated (your TB entry + any IFS capitalization postings).  

I see this in your doc. I believe this is wrong. 

Traditionally when closing a project, IFS moves values from CIP to other such as cost or a fixed asset. That’s the reason for the reposting.   Reposting rule does not normally hit an account like a capitalized cost. That would be like moving from account CIP to CIP on completion. I’m assuming your GP3 is set for account 1252, and if so, that’s the reason why the above would be incorrect. 

Best regards

Hi Thomas,

Thanks for your reply, this is what we originally did, we did a manual voucher to move the amount from the asset code to the cost code in the P&L but this created the automatic GP3 lines and moved it back into an asset. 

I will remove the reposting rule, thanks for that advice.

Is there any way of importing fixed assets? We are going to try doing this with the cost attached and then move the value over to capitalised assets and complete the projects, do you think this will work?

Thanks