Hello DarshiG,

after finally completing(building) the fixed asset on a project I directly add new object in fixed asset modul and balance via manual voucher entry the project values (credit) against fixed asset account with object ID (debit).

This procedure will update FA and balance the view of project in GL to zero.

Hope this will help you.

BR Florian

Hi,

Another possibility is using a reposting rule (that will post the initially acrrued project cost to the entered posting string when the project is closed) with a FA Ledger account and FA Object number. 

Regards

Ralph

Hello Ralph,

interesting idea.

Are you talking about “Automatic Posting Rule” ?

How could this rule be setup?

Looking forward for your answer.

BR Florian

Hi Florian,

i am not talking about an automatic posting rule. I am referring to a function in IFS Project.

If you setup a project you can choose between the ‘Capitalization Posting Method’:

Transaction: Capitalization postings will be created when a voucher row is updated to the general ledger and they will be included in the same voucher as original cost or revenue.
Periodical: Capitalization postings will not be created when updating a voucher row to the general ledger. Instead capitalization will be handled as a periodical process. When this method is selected the following functionalities will be available for a project:

and the Project Type:

Capitalize Rev/Exp: The costs and revenues of the project are capitalized and a cost reposting rule can be entered. 
Capitalize Expenses: The costs of the project are capitalized and a cost reposting rule can be entered. When revenue is entered, an estimated cost corresponding to the current contribution margin ratio is posted to a preliminary cost account. 
Capitalize Revenue: The revenue of the project is capitalized. Only practical in combination with POC Income First revenue recognition method. As no cost is capitalized, a cost reposting rule cannot be entered. 
No Capitalization: Costs and revenues affect the project accounting directly. As no cost is capitalized, a cost reposting rule cannot be entered. 
Project as Code Part: The project is used as a standard no function code part and does not update the project accounting. As no cost is capitalized, a cost reposting rule cannot be entered. This project type should be avoided in normal instances. 
 

I assume that the Project Cost for the develeopment of the Fixed Assets are monthly reconsiled as an assets  (WIP). So you might most probably use Project Type Capitalize Rev/Exp or Capitalize Expenses. For both types is it possible to add cost reposting rules like this:

 Here is an example based on Transaction based activation of costs. 

1. Cost posting is made against the project.
2. Posting type GP2 reverses the cost posting and posts the amount to an asset account.
3. Project is closed
4. 
   4. a) (No Reposting rule) GP2 asset posting is reversed cost counter account is the original cost account from (1.)
   4. b) (Reposting rule) GP asset posting is reversed but the amout is posted to the account setup in the reposting rule.

I hope this explanation helps you a little more.

Regards

Ralph

Thank you all.

Hi Florian,

i am not talking about an automatic posting rule. I am referring to a function in IFS Project.

If you setup a project you can choose between the ‘Capitalization Posting Method’:

Transaction: Capitalization postings will be created when a voucher row is updated to the general ledger and they will be included in the same voucher as original cost or revenue.
Periodical: Capitalization postings will not be created when updating a voucher row to the general ledger. Instead capitalization will be handled as a periodical process. When this method is selected the following functionalities will be available for a project:

and the Project Type:

Capitalize Rev/Exp: The costs and revenues of the project are capitalized and a cost reposting rule can be entered. 
Capitalize Expenses: The costs of the project are capitalized and a cost reposting rule can be entered. When revenue is entered, an estimated cost corresponding to the current contribution margin ratio is posted to a preliminary cost account. 
Capitalize Revenue: The revenue of the project is capitalized. Only practical in combination with POC Income First revenue recognition method. As no cost is capitalized, a cost reposting rule cannot be entered. 
No Capitalization: Costs and revenues affect the project accounting directly. As no cost is capitalized, a cost reposting rule cannot be entered. 
Project as Code Part: The project is used as a standard no function code part and does not update the project accounting. As no cost is capitalized, a cost reposting rule cannot be entered. This project type should be avoided in normal instances. 
 

I assume that the Project Cost for the develeopment of the Fixed Assets are monthly reconsiled as an assets  (WIP). So you might most probably use Project Type Capitalize Rev/Exp or Capitalize Expenses. For both types is it possible to add cost reposting rules like this:

 Here is an example based on Transaction based activation of costs. 

1. Cost posting is made against the project.
2. Posting type GP2 reverses the cost posting and posts the amount to an asset account.
3. Project is closed
4. 
   4. a) (No Reposting rule) GP2 asset posting is reversed cost counter account is the original cost account from (1.)
   4. b) (Reposting rule) GP asset posting is reversed but the amout is posted to the account setup in the reposting rule.

I hope this explanation helps you a little more.

Regards

Ralph

Hello Ralph

Working perfectly, nice explanation.

We change our internal process and save time now, thank you very much.

BR Florian