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Project Completion And Object Connection

  • 19 May 2020
  • 4 replies
  • 849 views
L
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Hi Guys,

 

I am facing an issue in Apps 10 where an Fixed Asset created through a Project cannot be moved, sell or scrap..etc. It gives error saying the project is completed.

The setup was as follows.

GP3 Account for Project and Acquisition Account for Object is same

Reposted to same account

 

When Project was completed, the object was moved by removing the Project code part.

In here reposting debit entry was created without Project

Eg

ACC01 - OBJ01   DR  XXX

ACC01 - PROJ01-OBJ01   CR  XXX

 

Is it wrong to use GP3 Account for Project and Acquisition Account for Object as same ?

What is the way to get rid of this flowstopper?

 

Cheers

Lahiru

 

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Best answer by Adam Bereda 19 May 2020, 15:29

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A
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Hi,

I would be reluctant to use fixed asset account as project capitalized cost account (GP3). 

I think GP3 should be set to construction in progress account (not an acquisition account, object id can be used in such posting), and then, when project is completed and capitalisation reposted at project completion (to another construction in progress/transit account), fixed assets acquisition should be managed through manual voucher or object import function. In this case asset lifecycle starts when project lifecycle ends - and completed project cannot be used in accounting any more. 

Regards, Adam
L
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Userlevel 3
Badge +8

Hi,

Thanks for the reply.

You are correct, it is not advisable to use GP3 as an acquisition account.

I found a workaround to get rid of flowstopper. This is by Re-opening the Project, then remove the Project code part in object with Move function and again completing project (this will not create further repostings).

Also, I found below solution in LCS.

55760 - How to convert a project to a Fixed Asset For the Asset

Define the Fixed Asset (FA) object and set its status to "Investment".

2- Define a project set up as Capitalize Expense.   This can be just a Finance project, or if people are going to be charging time for the object's construction/assembly you can use a project with origin of Project where you will have one or multiple activities.

3- The project should have its reposting to the FA Acquisition Account of the object created in step 1 (reposting, not pre-posting).  Also, the reposting should include the FA code part value of the object created in step 1.

4- All costs (time, PO's, etc) should be directed to an expense account initially by whatever setup you are using in Posting Control to also use the Project Code Part (project from step 2).

5- Upon GL Update, the project capitalization will reverse the expense booked in step 4 and put it on the balance sheet according to your setup of the GP3 posting control.
(This could be a construction in progress type account)

6- When all the various costs of the FA object are booked, the project is then completed.   This will generate a P voucher that will reverse the accumulated GP3 balances for the project and post them according to the reposting rules.  Upon the GL update of the P voucher, the FA object will have an Acquisition Transaction.

7- Then, the object can be activated and treated like any other FA object.

 

Cheers

Lahiru

A
Rank
Userlevel 7
Badge +16

Hi,

Thank you for marking my answer as the best one :).

Looking on the process described you have found in LCS, I have one remark (I am not sure if valid for version 10, but for version 7.5 it is...). Reposting rule defined in step 3, if used as FXA acquisition in step 6, must exclude project code part. Project valid until date is set during project completion to completion system date, if project code is part of object acquisition posting, it will block future split, scrap, sale, move and other actions on the asset. 

Regards, Adam
L
Rank
Userlevel 3
Badge +8

Hi,

The application gives an error if both Project and Object is entered in Reposting rule. As per step 3 the Reposting Rule should have the Object and acquisition account.

But in step 6 we can post costs with Project as this will only impact GP3 entry.

When competing project capitalized values will be reversed with Project and posted to acquisition account without project.

Reposting ACC01 - OBJ01    DR  XXX

GP3   ACC01 - PROJ01    CR  XXX

There fore object acquisition posting will not have Project.

I checked this and it worked without issue and I was able perform  split, scrap, sale, move etc actions without issue.

 

Thanks

Lahiru

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