Question

Project Allocation Calculation

  • 15 January 2024
  • 8 replies
  • 151 views
H
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Hello all,
I have a scenario to implement in the Project Accounting part for allocation:

We us GL WIP A/c to hold unbilled AR. Then when an AR Invoice gets generated, this WIP A/c should be nullified. So, its like, we want to recognize revenue when the work is being done, not when the bill is prepared.
Eg: if User A works 50 hours on job A.  And his billing rate/hour is $300.  Then the following calculation should be:

                                           DR         CR

WIP GL Asset Account    $15,000

Revenue                                          $15,000


Then when the Project Invoice gets billed this allocation would be reversed automatically.

 

                                                         DR         CR

WIP GL Asset Account                                 15,000

Revenue                                          15,000

 

How can i get this scenario implemented in Project Accounting?
Thanks in advance.

8 replies

Laura02
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Hello @Harry ,

I recommend that you review the WIP/Project Revenue Allocation methods that come inside the Acumatica Demo and Training tenants. These screen shots are from Acumatica-provided Sales Demo.

Next, discuss these options with your project accountants.  Then use the Clipboard to copy your favorite Allocation rules to your testing tenant, and then test Allocations process with your project accountants.  More information on how to run Allocations can be found in Acumatica Help.

Laura

Laura ~ Klear Systems, Inc. Irvine, CA. ~ Please remember to "Mark Best Answer" to help those who are facing the same problem.~
Heidi Dempsey
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@Harry  Check out this video for two ways of doing this allocation. 

 

To reverse the WIP account when you have a Progress Billing Rule, you need to enter your account group on the Project Task screen

 

H
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@Harry  Check out this video for two ways of doing this allocation. 

 

To reverse the WIP account when you have a Progress Billing Rule, you need to enter your account group on the Project Task screen

 

Where could I see the generated transactions for these? Will these be displayed in the batch number generated for Pro-forma invoice if is is enabled or how/where?

Heidi Dempsey
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@Harry  check out help-

From Help on the Project Task Screen

 

H
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Hello @Heidi Dempsey , thank you for you reference to the link:

I tried out the same steps but when I ran the project billing it created a pro-forma invoice and then an AR Invoices of the type = Credit memo. I am not able to understand after I generate the AP Bill (I assume directly by creating a Bill using Bills & Adjustments screen, currently figuring this out too), and then I ran the Allocations. The allocations ran, but when I ran project billing it, created Credit memo.

lbarker
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check the proforma as the extended line would be negative, so you either have a negative quantity or value for it to want to make a Credit note.  Something is thus wrong in your billing rule / allocation rule

H
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check the proforma as the extended line would be negative, so you either have a negative quantity or value for it to want to make a Credit note.  Something is thus wrong in your billing rule / allocation rule

Hello @lbarker  & @Heidi Dempsey ,
The Project transaction of the allocation type has been created in the positive values only, but it displays as a negative value under Revenue budget & Balances as:

 

lbarker
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The income account transaction is probably a credit that was generated by the allocation rule.  This is thus negative amount.

So in the billing rule amount calculation, use the amount *-1, and so when it processes the billing, it will not be a negative.

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