We have a Code Part defined as a project code part - it is been suggested to repurpose it as a ‘normal’ code part. Obviously as it has been set up and active and used (sparingly) it is not letting me change it to ‘No Function.’
I know using it as a normal code part will not be good - but would anyone be able to give me a list of limitations / issues we'll face?
Thanks,
MAtthew
Best answer by Thomas Peterson
One of the most common uses of a financial project is to assist with the fixed asset acquisition process. If / when a fixed asset acquisition process has multiple transactions, covers a date range, the financial project is probably the best way to manage that.
If all acquisitions are simple - for example a laptop, where you purchase, and done, these may be best to skip a financial project. But let's assume you're installing a large server, that will be parts, labor and other over a period of time. this is best managed via a finance project.
I had one client 50-year company birthday party; we used a financial project. You don’t capitalize those expenses, but we encapsulate the values for easy reporting (just like if we added a new cost center).
Given the code part is used, IMO leave it as is, as you can do so many things with it. If somehow, you decide to change this to a non-functional code part, you miss out on any future ability to take advantage of the project accounting. Nothing forces you to use the capitalization, and rev rec functionality. In other words, it can work like a common code part (Project) using the financial project, AND optionally, you can take advantage of the power of the project accounting. Best of both worlds - a win-win.
Regards,
Thomas
Hi,
If you have any plans to use IFS projects - that can be a pure finance project, or the more advanced project management type project, you must have a project code part with the project accounting functionality.
You can always any time, have a project code part as described with function project accounting, and simply create a pure finance project set as no cap. In that case, the project works simply like any code part value.
The problem is business change all the time. If you fail to set the code part for project as functional project accounting, you can’t change your mind later. Sure, you can burn up a second code part later if needed, but it’s best to future proof by using the project accounting function.
I would say that it’s always (maybe almost always) best to have a code part for project that has the function for project accounting. Then you have the best of both worlds where project X works like a simple code part value, and project Y has all the project accounting capabilities.
Best regards,
Thomas
Thanks for the detailed response - So if it has a Project Accounting capability - will it also function like a normal code part - or will something not work
A financial project with project type no cap, is essentially the same (in terms of function) as any other non-function code part such as cost center. You lose nothing. It may take a second or two longer to set up the financial project as compared to a cost center only because it has a few options you would not use in that case. A second or two, should not sway a decision, as we can always make set up even faster, if that is a concern.
Thanks - we just wish to use it as a normal code part as a Cost Centre going forward. The current thinking is that we will not be using Financial Projects. So we should be ok?
One of the most common uses of a financial project is to assist with the fixed asset acquisition process. If / when a fixed asset acquisition process has multiple transactions, covers a date range, the financial project is probably the best way to manage that.
If all acquisitions are simple - for example a laptop, where you purchase, and done, these may be best to skip a financial project. But let's assume you're installing a large server, that will be parts, labor and other over a period of time. this is best managed via a finance project.
I had one client 50-year company birthday party; we used a financial project. You don’t capitalize those expenses, but we encapsulate the values for easy reporting (just like if we added a new cost center).
Given the code part is used, IMO leave it as is, as you can do so many things with it. If somehow, you decide to change this to a non-functional code part, you miss out on any future ability to take advantage of the project accounting. Nothing forces you to use the capitalization, and rev rec functionality. In other words, it can work like a common code part (Project) using the financial project, AND optionally, you can take advantage of the power of the project accounting. Best of both worlds - a win-win.
Regards,
Thomas
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