Enter Project Information
Explanation
Use this activity to enter information for a project in IFS Financials.
If Separate GL/IL Rules is not selected, the project
data need to be defined in the All Ledgers tab. If Separate
GL/IL Rules is selected data need to be entered in both General Ledger and Internal Ledger tabs.
Prerequisites
Before detailed project information can be entered, the following must have been
completed:
- The code part function Project Accounting must have been specified for one
code part in Define Code String in IFS/Accounting
Rules.
- Information on the project group must have been entered in
Project Groups in IFS/General Ledger.
System Effects
- As a result of this activity, the project identity can be used as a code part
value when financial transactions are created.
- For projects with revenue recognition method Event Based, after updating
estimated revenue, estimated costs and POC for each event, system will
calculate
Revenue to Recognize and Cost to Recognize by applying POC to
estimates.
- If the
Apply Margin Consistently check box is selected for the projects with
revenue recognition method Event Based, estimated costs for each event will
be calculated by the system based on the estimated margin of the project and
the estimated revenue for each event.
Window
Projects,
Project
Related Window Descriptions
Projects,
Project
Procedure
Use the following procedure to enter detailed project information
when Separate GL/IL Rules is not selected:
- Open Project
window. The window contains
the tabs All Ledgers, General Ledger and Internal Ledger.
- Use the New function to enter an identity and description, unless automatic
allotment is defined for the project group.
- Use the List of Values and
enter the project group (select a project group that does not use
Separate GL/IL Rules). Default values for the project group are displayed.
- Change the date in the Valid From field, if appropriate.
You can also enter optional information for the project, e.g., the name of
the project manager.
- Capitalization Posting Method
and value for Separate GL/IL Rules will be defaulted from the
Project group. Changing these details on the project is not advised as
selecting or unselecting Separate GL/IL Rules will define if
project rules are to be defined in the All Ledgers tab or in both
General Ledger and Internal Ledger tabs.
The steps
here explain the setup for when Separate GL/IL Rules is not
selected. Only the All Ledgers tab will be available for selection in this
case.
- Save your changes. This will enable the All
Ledgers tab and default data will be copied to the sub tabs of the
All Ledgers tab.
- The All Ledgers tab
contains the sub-tabs: Project Information,
Reposting Rule,
Revenue Recognition Information, Job
Information and Project Totals.
- In Project information tab, If the project
type is Capitalize exp., if required, enter a contribution margin.
- For project types Capitalize Exp and Capitalize Rev/Exp, you can enter reposting
rules in the Reposting Rule tab. When doing so, use the New function.
Enter the Distribution Percentage and code part values to which the capitalized costs should be posted at
project completion. You are allowed to enter multiple reporting rules but
total distribution percentage for all reposting rules must be equal to 100%.
- It is optional to enter information in the Job Information tab if the project origin of the project is Job. Default data will
be fetched from the project group of the project, but it can be changed if required.
Enter the user group and the voucher type that is to be used at project
completion. Select the Close Project on Final Invoicing check box if
the job should be closed automatically after final invoicing. The automatically
created project completion vouchers of such projects will have the system
date as the invoice date irrespective of the manual changes done to the invoice
date of the final invoice. Important: it will only be allowed to set
Project Origin to Job when Capitalization Posting Method is Transaction.
- For projects with Revenue Recognition Method POC Income First or POC Revenue
First, it is required to enter information in the Revenue Recognition
Information tab. Default data for the tab can be provided based on the
selected project group. If not, enter the POC Method, Project Progress Method
and Revision Accounting Method. Select Apply 0% Margin until POC
check box and define the POC limit if 0% margin need to be applied for a
project until reaching a specified POC. (Note: Projects
having Revenue Recognition Method Event Based, will apply
zero margin based on POC of individual events).
- Select the Post Actual and Recognized Revenue Difference check
box, if you want to create additional postings for the difference between
actual and recognized revenue when creating revenue recognition voucher.
- For projects with Revenue Recognition Method Event Based, events should
be defined in the Events section in the Revenue Recognition
Information tab.
- For projects with Revenue Recognition Method POC Income First, POC Revenue
First or Event Based and where the Project Origin is Financial Project or Job, the estimated revenue
and costs can be entered in the Project Totals tab. When doing
so, use the New function. If Project Origin is Project then these values will
be fetched from IFS Project. The estimated income and margin will be automatically
calculated based on the estimated revenue and costs. The values
in the recognized revenue, costs, income and margin are based on information
generated by the revenue recognition functionality. The recognized income and
margin will be automatically calculated based on those values. The breakdown of actual cost and revenue in
IFS General Ledger is displayed in the lower part of the window. Note:
When project inventory cost need to be included in revenue recognition
calculation, balances of accounts selected to include in revenue recognition
will be updated in the Project Inventory field.
- Save the information.
Use the following procedure to enter detailed project information
when Separate GL/IL Rules is selected:
- Open Project
window. The window contains the
tabs All Ledgers, General Ledger and Internal Ledger.
- Use the New function to enter an identity and description, unless automatic
allotment is defined for the project group.
- Use the List of Values and
enter the project group (select a project group that has Separate
GL/IL Rules selected). Default values for the project group are displayed.
- Change the date in the Valid From field, if appropriate.
You can also enter optional information for the project, e.g., the name of
the project manager.
- Separate GL/IL Rules can only be
selected when Capitalization Posting Method is set to
Periodical. Changing these details on the project is not advised as
selecting or unselecting Separate GL/IL Rules will define if
project rules are to be defined in the All Ledgers tab or in both
General Ledger and Internal Ledger tabs.
- Save your changes. The General Ledger
and Internal Ledger tabs will get default values from the
selected project group.
- Both the General Ledger and
Internal Ledger tab contains the sub-tabs
Project Information,
Reposting Rule, Revenue Recognition Information,
Job
Information and Project Totals.
- Select the General Ledger tab.
- In the Project information tab,
if the project
type is Capitalize exp., if required, enter a contribution margin.
- For project types Capitalize Exp and Capitalize Rev/Exp, you can enter reposting
rules in the Reposting Rule tab. When doing so, use the New function.
Enter the Distribution Percentage and code part values to which the capitalized costs should be posted at
project completion. You are allowed to enter multiple reporting rules but
total distribution percentage for all reposting rules must be equal to 100%.
- For Projects with Revenue Recognition Method POC Income First or POC Revenue
First, it is required to enter information in the Revenue Recognition
Information tab. Default data for the tab can be provided based on the
selected project group. If not, enter the POC Method, Project Progress Method
and Revision Accounting Method. Select Apply 0% Margin until POC
check box and define the POC limit if 0% margin need to be applied for a
project until reaching a specified POC. (Note: Projects
having Revenue Recognition Method Event Based, will apply
zero margin based on POC of individual events).
- Select the Post Actual and Recognized Revenue Difference check
box, if you want to create additional postings for the difference between
actual and recognized revenue when creating revenue recognition voucher.
- For projects with Revenue Recognition Method Event Based, events should
be defined in the Events section in the Revenue Recognition
Information tab.
- For projects with Revenue Recognition Method POC Income First, POC Revenue
First or Event Based and where Project Origin is Financial or Job, the estimated revenue
and costs can be entered in the Project Totals tab. When doing
so, use the New function. If Project Origin is Project then these values will
be fetched from IFS Project. The estimated income and margin will be automatically
calculated based on the estimated revenue and costs. The values
in the recognized revenue, costs, income and margin are based on information
generated by the revenue recognition functionality. The recognized income and
margin will be automatically calculated based on those values. The breakdown of actual cost and revenue in
IFS General Ledger is displayed in the lower part of the window. Note:
When project inventory cost need to be included in revenue recognition
calculation, balances of accounts selected to include in revenue recognition
will be updated in the Project Inventory field.
- Save the information.
- Select the Internal Ledger tab.
- Repeat steps 9 to 14 in the sub-tabs of Internal
Ledger. The breakdown of actual cost and revenue in
IFS Internal Ledger is displayed in the lower part of the window.
It is mandatory that both General Ledger
and Internal Ledger tabs contain two complete sets of data when
operating with Separate GL/IL Rules.
Use the following procedure to define events for the project with Revenue
Recognition Method Event Based:
- Open the Project
window and
select a project with Revenue Recognition Method Event Based.
- Enter the identity of the event in the Event ID field and the
description for the event in the Description field.
- Enter the estimated revenue and estimated costs for each event in the
Estimated Revenue and Estimated Costs
fields and enter the percentage of completion for each event in the
POC field.
- Enter the expected date of completion of each activity in the
Expected Date of Completion field.
- When the event is completed, select the event, right click and then
click Complete. The date of completion and user who completed the
event will be updated.
- If any changes are needed after completing the event, right click and
then click Re-Open event.
Note 1: Estimated cost, revenue and margin is fetched from the
respective project totals.
Note 2: Total of estimated revenue of all events should be equal to estimated revenue of the project and total of
estimate cost of all events should be equal to estimated cost of the project.