Project - Revenue recognition Cap exp/rev, using income first

Question

I believe this is a rather simple question.

We create a project with a project type Capitalze Rev/Exp.
Revenue recognition method = POC Income first.

We enter a cost for 45k so we have an actual cost in the project.

We ran the capitalization and revenue recognition for the project. THe problem is that ther revenu is the same as the cost. I was expecting to enter a margin somewhere.

The help say “POC income first”. I don’t see where do i enter my POC and even if I say that POC is 50%, what will the system will calculate in term of profit?

Thanks

RGS977 · Answer

Hello HuguesG,We’re using Capitalize Revenue with POC Income first, but I think the POC figure is calculated the same way as with Cap Rev/Exp.On the Project screen under Project Management there is a sheet called Revenue. If you enter here revenue and cost in the Planned column, the system will automatically calculateprofit and margin. This margin will be used as POC.Hope this helps.

Did you find what you're looking for? If not:

Sign up

Login to the community