Why i don't have the real cost matched in périodical capitalization like the cost in project monitoring.

Hi, 

You need to consider how IFS GL (Project capitalization) views cost as compared to how project management views cost. 

In Project Management, assets - receiving inventory against a project. is viewed as cost.   

The GL project Capitalization moves true cost account values to the project capitalization account.  Assets such as inventory are not cost accounts (typically).  

Consider these differences when comparing project management cost and what’s found in GL project capitalization. 

Best regards, 

Thomas

Hello, 

Hi Thomas, 

Thanks for your answer, i understand.

So for my understanding, it’s means thats all my Cost/Revenue matched with an inventory account are not considering to my capitalization? and i deduce this for my calculation when i look at the project monitoring.

Thank you

Hello, @FEKTSIRY 

Yes, that’s correct understanding. 
I would add one more aspect to your consideration: time.

Project monitoring (PM) considers only current picture of the project, while GL capitalization is periodical - run at the end of specific accounting period. This means, that you can run now capitalization at the end of September, having already postings present in GL for October, PM will include October entries in actual costs presentation, and GL capitalization for September will leave them for capitalization in October. 

Hi,

in case you would like to add the value of project related stock into the Revenue Recognition you can use the checkbox on the account to do so:

Regards

Ralph

Ralph Gericke wrote:

Hi,

in case you would like to add the value of project related stock into the Revenue Recognition you can use the checkbox on the account to do so:

Regards

Ralph

Hello Ralph,

Thank you So much.

FEKTSIRY wrote:

Ralph Gericke wrote:

Hi,

in case you would like to add the value of project related stock into the Revenue Recognition you can use the checkbox on the account to do so:

Regards

Ralph

Ralph Gericke wrote:

Hi,

in case you would like to add the value of project related stock into the Revenue Recognition you can use the checkbox on the account to do so:

Regards

Ralph

Adam.Bereda wrote:

Hello, @FEKTSIRY 

Yes, that’s correct understanding. 
I would add one more aspect to your consideration: time.

Project monitoring (PM) considers only current picture of the project, while GL capitalization is periodical - run at the end of specific accounting period. This means, that you can run now capitalization at the end of September, having already postings present in GL for October, PM will include October entries in actual costs presentation, and GL capitalization for September will leave them for capitalization in October. 

Hello Adam,

Thank you very much for your help.

 

An another question, is the voucher of capitalization is automaticaly reverse in the next period?

thanks

Ralph Gericke wrote:

Hi,

in case you would like to add the value of project related stock into the Revenue Recognition you can use the checkbox on the account to do so:

Regards

Ralph

Ralph Gericke wrote:

Hi,

in case you would like to add the value of project related stock into the Revenue Recognition you can use the checkbox on the account to do so:

Regards

Ralph

Hello Adam,

Thank you very much for your help.

Hello Adam,

An another question, is the voucher of capitalization is automaticaly reverse in the next period?

thanks,