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Hi, 

I experience an issue with the Sub Project Completion functionality. Maybe I am misunderstanding it or I am missing some settings, but I hope someone can help me clarify. 

 

So this is the scenario: 

  • We use periodical capitalization for the revenue recognition of our projects. The Project Type = Capitalize Rev/Exp and the method = POC Income First. 
  • Sometimes we carry out a preliminary assignment before we start the ‘main’ assignment. The cost and revenue of the preliminary assignment are registered in a separate Sub Project. 
  • When the preliminary assignment is completed we want to capitalize all the cost and revenue in the separate Sub Project. After that is completed, we close and complete the Sub Project with the functionality Sub Project Completion. 
  • So far so good… After a while the main assignment starts, and new costs and revenue are registered on the project. After the month is finished, we run the periodical capitalization of the project and here is the issue. What I expect is that the cost and revenue in the closed Sub Project are not considered in the capitalization and revenue recognition, because I did the Sub Project Completion. But the opposite happens: IFS also calculates with the cost and revenue in the closed Sub Project with corrections as a result.

Why is this happening and is this normal behaviour? Or am I missing something? 

Hi Ben, 

 

We have a similar situation did you manage to find an answer? 

 

Colette - Harland & Wolff

Hi @CODUGBHW 

 

I did not manage to find an answer, sorry.  

IFS does not support capitalisation/revenue recognition at subproject level, only at the total project level.

As a workaround, customers have created multiple projects linked with a common category/project group for reporting purposes. Another option is to explore the event-based revenue recognition (where events can represent sub-projects) and each event can have POC applied to it.

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