Check the formula in the allocation rule.  Trace can also tell you what is wrong.  You are missing something or passing a null for data that it wants in the allocation rule.

Hey @lbarker , this is the trace:
 

This is the allocation rule that I am folowing:
 

Do I have to create a project transaction in order to resolve this issue? I have now created a new project with only Revenue Budget.

So I tested out by creating Project Trxn but it updated the Actual amount under the Revenue budget into negative. Looks like Project Transaction can’t be used to resolve the issue.

Hello @Harry ,

Does your project have any Labor and Travel Expenses posted? If the Allocation Method is Allocate Transactions, then you need to have a Labor or Travel Expense transaction posted to the same project, in order to allocate transactions.

Project with unallocated Actual transactions and REVRECTM allocation method connected will produce allocation.

Also, is the same allocation method connected to the project and/or to the labor and travel tasks on the tasks tab of your project?
Laura

Hey @Laura02 ,
This is now what I had been looking for:
 

the billing rule:
I have set the sales account to be taken from project. So now how can I nullify the Asset & Liability groups? and get it added to the income / revenue group but creating AR Invoice?

Also, what if we dont have any Cost budgets setup for the projects, so I am assuming my allocation method would then have to be Allocate Budget? for all the lines in allocation rules?

I tried to experiment this, but then it again throws the same error =” transactions are not created to be allocated”

Hello Harry,

“ So now how can I nullify the Asset & Liability groups? and get it added to the income / revenue group but creating AR Invoice?”

Reverse Allocation field on Allocation Settings tab of Allocation Rules screen controls if and when the Asset and Liability will be reversed upon Billing:

“Also, what if we dont have any Cost budgets setup for the projects, so I am assuming my allocation method would then have to be Allocate Budget? for all the lines in allocation rules?”

The Allocation Method field on the Calculation Rules tab of Allocation Methods screen controls whether underlying transactions (Labor/Travel) are used to calculate allocation amount, or whether Task Budget is used to calculate allocation amounts.  Each Step ID can be different; some steps may allocate budget and some steps may allocate transactions, if needed.

Depending on the highlighted setting below, you may need to add more transactions for each test of allocating transactions. If transaction may only be allocated once (Box not checked) then you will need a new Labor/Travel expense transaction or new budget amount each time allocation is processed.

Laura

Hello @Laura02 ,

 I had applied the same rules for allocations, but when I ran the project Billing it didnt take into account the Labor & Travel billings.

Below is my Revenue budget setup: So is there anything that I have to add up under this tab related to Labor & Travel part? So that I can nullify the Asset & Liability groups?

Hello,

I think you are saying that your allocation rule is set up to reverse the allocation upon Billing, you have billed, and yet the allocation did not reverse.  Do I understand correctly?

What is the status of the invoice created by Project Billing?  Can you see the new invoice on the AR Aged Period Sensitive Report in Receivables? What is the status of the Project Transaction to reverse the Allocation?  Status of Allocation transactions can be found in Project Transactions screen.

Laura

Hi again.  Allocation rules work by taking a source transaction that belongs to a certain account group that you list in your allocation rule eg. Travel Cost and then using that source data, it can then create another journal going to Unearned Revenue Asset account and say Income Accrued Income Account.  It applies the amount and quantity that you specify in the calculation section which can be based on the source transaction amount and quantity.

It can also be set to then reverse this when an actual Invoice is created or that same Invoice is released.  You will see a project transaction with a subject of “Allocation Reversal...” on Invoice auto generated.  The date of this reversal is also set in the allocation rule and this is important.  Normally its Original Transaction which in effect is the invoice date.  Allocation date is the date the original transaction is dated but that reverses the original accrual which may be in a different period which is not good.

It has nothing to do with the revenue budget unless your allocation rule step is rather setup to be based on Budget.  Using this method, depends on the percentage completed of the budget which can be driven manually or automatically

See here

https://www.acumatica.com/blog/technical-tuesday-project-accounting-revenue-recognition/

Hopefully that explains it better for you as to how the allocation rule fires

@Harry  Do you have a partner?  Allocation rules can be tricky and several things need to be set up correctly.   For example, the allocation rule needs to be on the Task not just on Project Summary.  Here is a video for the revenue recognition piece.     

Also check out our university for videos and learning opportunities https://openuni.acumatica.com/ 

hello @Heidi Dempsey, @Laura02 & @lbarker , I would like to know if the project Transactions are required to be posted to GL in order to run the Allocation rules? I tried to create a PM Transaction that isn’t posted to GL and when I ran the allocation rule it threw the error of Transactions are not entered. Is my assumption correct?

Thanks.

Hello,

The status of your project transactions in Project Transactions screen must be RELEASED in order to allocate them.

Posting to GL is a separate process, depending on this setting in Project Preferences screen:

Laura

@Harry since your allocation method is set to Allocate Transactions, yes you need transactions for the system to process your allocation.