Solved

Project actual expense not updating with correct amount

  • 13 July 2022
  • 4 replies
  • 227 views

Userlevel 2
Badge

Anyone come across this before…

When creating a purchase order for a project it updates the commitments as expected, when the PO is receipted in, it updates the actual expense as expected. However when you create the AP bill which has a different amount than the original PO (the vendor has discounted the invoice), the actual amount on the project remains unchanged.

Example 

  1. PO raised for £100 linked to Project1 and Task 1
  2. Commitments on the Cost budget tab and the commitments tab on Project1 are updated with £100 (as expected)
  3. The stock is receipted in (the vendor has not sent an invoice at this point), on Project1 on the cost budget tab and on the summary at the top the actual expense is updated with the £100 from the PO (as expected).
  4. The vendor now has sent the invoice with a 10% discount and the AP bill is created from the purchase receipt and the discount is added so the AP bill total = £90. When the AP bill is released it does not correct the amount on Project1. Project1 expense = £100 but should be £90

Any ideas if there is a setting that controls the update to the project? or what others are doing in this scenario?

 

icon

Best answer by gauravsharma96 14 July 2022, 09:50

View original

4 replies

Badge +18

Hello, I expect the difference is being caused by how purchase price variance and/or discounts post.  For example, difference in price on a bill versus the PO should post to PPV, Purchase Price Variance.  Optionally, the difference could be posted to a discount account in your case, and the Discount account may not have a project account group attached in the Chart of Accounts.

My suggestion is to start by looking at the GL batch produced by your AP Bill to see exactly what the debits and credits are, to what accounts.  Identify to what account the 10% discount/PPV posted and see whether it has an Account Group populated on the Chart of Accounts. If the account identified does not have an account group, then it’s not identified as being a project-related posting and cannot update your projects.

Userlevel 2
Badge

Hello, I expect the difference is being caused by how purchase price variance and/or discounts post.  For example, difference in price on a bill versus the PO should post to PPV, Purchase Price Variance.  Optionally, the difference could be posted to a discount account in your case, and the Discount account may not have a project account group attached in the Chart of Accounts.

My suggestion is to start by looking at the GL batch produced by your AP Bill to see exactly what the debits and credits are, to what accounts.  Identify to what account the 10% discount/PPV posted and see whether it has an Account Group populated on the Chart of Accounts. If the account identified does not have an account group, then it’s not identified as being a project-related posting and cannot update your projects.

 

Thanks for the suggestion Laura, have done that now and added the GL account to the account group and tested with same result, a ticket has been raised with Acumatica support will post solution once we have it. 

Badge +18

One more thought. Are your AP Bills are limited to one project per bill? If there is a document discount and more than one project per bill, I’m not sure Acumatica can figure out and post the split discount or split the PPV.

 

Userlevel 2
Badge

Thanks for the help Acumatica support have confirmed it is not possible will look into alternative solutions for the customer:

 

“I have checked this further and found no other workaround for the scenario mentioned.

- The cost entries are generated on release of PO receipt and IN receipt and not at the time of AP bill release

- AP bill release hits only Inventory purchase accrual account and not actual expense account linked to the non stock item

- Hence, only alternate option to enable use of actual cost is to avoid creating PO receipt”

Reply


About Acumatica ERP system
Acumatica Cloud ERP provides the best business management solution for transforming your company to thrive in the new digital economy. Built on a future-proof platform with open architecture for rapid integrations, scalability, and ease of use, Acumatica delivers unparalleled value to small and midmarket organizations. Connected Business. Delivered.
© 2008 — 2024  Acumatica, Inc. All rights reserved