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No periodical capitalization voucher created when there is only revenue

  • February 3, 2022
  • 2 replies
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Zuha Samsudeen
Hero (Partner)
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Hi,

I need help with a financial project with following setup

Capitalization posting method - Periodical
Project Type - Capitalize Rev/Exp
Revenue recognition method - POC Revenue First
POC Method - Actual cost 
Revision Accounting - Catch up
Post Actual and recognized revenue difference - Checked

 

The project has some Actual Revenue and Zero Actual cost. When i run the Periodical Capitilization and Renevue Recognition, there is no revenue recognition voucher was created. May i know which set up is triggering to create no voucher

 

Best regards

Zuha

 

 

Best answer by Thomas Peterson

Hi, 

Per my understanding the POC method is actual cost. Assuming we have 0 actual cost, IFS will set POC to 0.   

In your example - no cost (and POC is based on actual cost) , estimated rev for the project is X, and your actual revenue is 100 what is the expected rev rec value? - . 

If we assume estimated revenue was 100, and POC = 0 (due to actual cost driver) 0 *100 is 0.  The rev rec process will generate 0 revenue.    Using the same data, change the POC method to manual and enter POC of 10 or other.  IFS will then generate rev rec entries. 

 

Best regards, 

Thomas

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Superhero (Employee)
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  • Thomas Peterson
  • Superhero (Employee)
  • 1025 replies
  • Answer
  • February 3, 2022

Hi, 

Per my understanding the POC method is actual cost. Assuming we have 0 actual cost, IFS will set POC to 0.   

In your example - no cost (and POC is based on actual cost) , estimated rev for the project is X, and your actual revenue is 100 what is the expected rev rec value? - . 

If we assume estimated revenue was 100, and POC = 0 (due to actual cost driver) 0 *100 is 0.  The rev rec process will generate 0 revenue.    Using the same data, change the POC method to manual and enter POC of 10 or other.  IFS will then generate rev rec entries. 

 

Best regards, 

Thomas

Zuha Samsudeen
1 person likes this
  • Zuha Samsudeen
    Zuha Samsudeen
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Sidekick (Partner)
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  • Kherdine
  • Sidekick (Partner)
  • 15 replies
  • May 13, 2022

hi,

@Thomas Peterson I faced the same issue than @Zuha Samsudeen and for me normally we should retrieve automatically the posting GP23/GP25 (overbilled project revenu..)

could you please tell me how can I reach this expected result?

Thanks & regards,

Kherdine

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    CamB
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