Define Periods and Ledgers for Periodical Capitalization and Revenue Recognition

Explanation

This activity is used to define the periods and ledger for which periodical capitalization and revenue recognition will take place. Each new line is given a system generated serial number as an ID. Periodical capitalization is an optional process activated by Capitalization Posting Method specified on the project. Multiple records can be created for the same period if used with different ledger selections.

Prerequisites

N/A

System Effects

Periodical Capitalization and  Revenue Recognition will be processed for the defined period and ledger.

Window

Periodical Capitalization and Revenue Recognitions

Related Window Descriptions

Periodical Capitalization and Revenue Recognitions

Procedure

If there are no projects set up to use Separate GL/IL Rules, use following steps:

1. Open the Periodical Capitalization and Revenue Recognitions window.
2. Enter the accounting year and period. A new procedure can be defined for an interval of periods, i.e., you can define a procedure for each quarter by using the Until Accounting Period field. It is however required to cover an entire accounting year before you can define a procedure for the next accounting year.
3. Enter the Ledger Type All Ledgers. This is the only ledger setting you can use if the company does not have projects set up to use Separate GL/IL Rules.
4. Save the entries. Notes can be entered for each row.

If there are projects that use Separate GL/IL Rules, two additional rows can be defined for the same period with the following ledger settings:

1. Ledger Type General Ledger and Ledger ID 00.
2. Ledger Type Internal Ledger and Ledger ID for the internal ledger defined for IL Project Accounting.