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which is the best practice : Using code part A Account as Cost/Revenue Element or Creating a Dedicated code part

  • August 20, 2025
  • 2 replies
  • 61 views
H
Do Gooder (Partner)
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Hello Community,

I am currently working on the setup of cost and revenue elements in IFS and I would like to clarify the best practice between two possible approaches:

  1. Marking the "Account" dimension as basCost/Revenue Element

    • In this case, the general ledger account itself is used directly as a cost or revenue element

    •  

  2. Creating a dedicated Analytical Segment for Cost/Revenue Elemen

My question is : From your experience, what are the advantages and disadvantages of each approach in IFS?

Any guidance or lessons learned from your implementations would be highly appreciated.

Thank you!

2 replies

E
Hero (Employee)
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  • EriLNL
  • Hero (Employee)
  • August 20, 2025

I guess it depends a bit on the situation, but for me a dedicated code part for PCRE is preferred in almost all cases.

It's just that finance sometime does not want that.

Regards Erik

    T
    Superhero (Employee)
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    • Thomas Peterson
    • Superhero (Employee)
    • August 19, 2026

    Hi, 

    I have a lot of experience.   Yes, it depends. 

    However, I would say if the client is not using manufacturing - shop orders where raw 1, and raw 2, with labor and other costs that then flow into a finished good part, use the account number as the driver. 

    The main reason why IFS created the option to use a separate code part for the PCE, was due to the complexity of manufacturing cost flows and ensuring these cost flow to a consistent cost element.  With MFG, and using the accounts, we often would need to create several new accounts just so the cost flows.  Nobody likes that. 

    No manufacturing, you should be OK using the account. 

    Even if using MFG, in some rare cases, account can work for that client. Just need to persuade them that MFG cost, from a project perspective could flow to a manufacturing cost element. If they can view labor, and material and OH, simply as MFG cost from the project, account can be a good driver. Unfortunately, most clients want that cost in separate buckets from a project perspective. Then in that case, a separate code part is the better way to go. 

    The separate cost part IMO is the last option. 

    I say this as IMO code parts are valuable (we only have 10). We are always running out of code parts for larger companies. If we can use the account to drive PCE, then that’s a better option.    

    Best regards, 

    Thomas

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