Project AccountingKey Exercises
IMPORTANT |
It is extremely important
that you set up and work within your own company to maintain your
data integrity. If you work within any other company, your exercises will not
function as intended and the data of other students might be affected. Predictable exercise results require that your data
be isolated in your own company. |
Purpose: The purpose of this exercise is to show you how
to set up the basic data
required for running this functionality. Before starting to use project
accounting, some preparations must be performed in IFS Accounting Rules. For
example, the code
part function for using project accounting must be defined. Also, the code part
demands for the accounts that are used for projects are checked or modified in
IFS/Accounting Rules. Posting controls required for
creating capitalization postings must also be defined.
Windows:
Define Code String
Account
Code Part Function
- Open the Define Code String window.
- In the Internal Name field, enter Project.
- Verify that the value in the Code Used field is Yes for the code part.
- In the Code Part Function list for one code part, click Project Accounting.
Code Part Demands
- Open the Account window.
- Verify that all the code part demands for each of the accounts used for project accounting, i.e.,
cost and revenue accounts, are either Can or Mandatory.
Main Exercises
Purpose: Capitalize Revenues/Expenses projects can be used for your company's
own production of for example fixed assets or for projects for customers.
Such projects do not affect the revenue and cost accounts
during the lifetime of the project. The update routine automatically
creates reverse entries for all postings to the project's cost and revenue accounts. This
is done according to the posting control.
When the project is specified as completed,
a voucher is created including postings for capitalized revenues back to the original
accounts or to the code string specified as the project's reposting rule. Capitalized
costs are also posted back to their original accounts or to the code strings defined for
the project.
Windows:
Posting Control
Project Groups
Project
Voucher Entry
Update GL Vouchers
GL Update History
Authority Combinations
Projects Analysis
Project Analysis
GL Balance Analysis
GL Vouchers Analysis
Project Balance Report
Archived Reports
Note: In the online help files (press F1 in e.g.
Project and follow the links) there is more information on Capitalize
Revenues/Expenses projects.
Posting Control
- Open the
Posting Control window.
- Check the accounts that are specified for Posting Types GP 3, Capitalized
Project Cost, and GP 4, Capitalized Project Revenue. These accounts must have
the Can
or Mandatory code part demand for the code part used for projects.
Enter Project Group
- Open the Project Groups
window.
- Create new record and enter Project Group and Description.
- Set Capitalization Posting Method to
Transaction.
- Save your changes.
- In the All Ledgers tab, create new
record on the Project Information sub tab.
- Select project type Capitalize Rev/Exp from
the list.
- Save your changes.
- Activate the project group by right-clicking in the header and selecting Activate.
Enter Project
- Open the Project window.
- Create new record and enter Project ID and Description and Project Group.
- Make sure your Capitalization Posting Method is
set to Transaction.
- Save your changes.
- In the All Ledgers tab, select the
Project
Information sub tab.
- Verify information for the new project. Make sure
Project Type is set to Capitalize Rev/Exp.
- Save your changes.
Enter Voucherss
- Open the
Voucher Entry window.
- Enter vouchers for the project.
Update Vouchers
- Open the Update GL Vouchers window, and check the default
values.
- Click OK to begin the updating routine.
- Open the GL Update History window. Verify that all vouchers have
passed the check
in the updating routine.
Authority
- Open the Authority Combinations window.
- Check to see what authority your authority class has.
Queries
- Open the Projects Analysis window. This window
displays summarized information about one or more selected projects.
Find the revenues and costs for the
project.
- Open the Project Analysis window. This window
displays information about only one project at a time. You can use Project
list to view other selected projects. Find the revenues and costs for the project.
- Open the
GL Balance Analysis window. Verify that the sum of the
costs and revenues is zero.
Reposting Rule
- Open the
Project window, and find information about
the
project.
- Click the Reposting Rule tab. Create a reposting rule by
entering the appropriate information.
Project Completion
- Open the
Project window, and find information about
the
project.
- Right-click and then click Project Completion.
- Specify a date in the Completion Date field. A voucher of Voucher
Type P is
created and transferred to the hold table. On the voucher, the revenues and costs are
reposted on the original accounts or other accounts, if a reposting rule is specified.
Update Vouchers
- Open the Update GL Vouchers window, and check the
default values.
- Click OK to begin the updating routine.
- Open the GL Update History window. Check to see whether any vouchers
have not
passed the check.
Queries
- Open the GL Vouchers Analysis window. Check the voucher
information (Voucher Type P).
- Open the Project Analysis window. Find information
about the
project.
Project Balance Report
- Open the Project Balance Report window.
- Preview and/or print the report.
Report Archive in Info Service
- Open the
Archived
Reports window.
- Find the report that you ordered, and preview it.
Purpose: Capitalize Expenses projects can be used for long-term
projects that are partially invoiced on a continuous basis. Only cost transactions are
capitalized. The real costs of the project do not affect the result accounts during the
lifetime of the project. The update routine automatically creates reverse entries for cost
postings for the project in the same way as for capitalization projects.
When you post revenue for the project, a preliminary cost is estimated
based on the contribution margin ratio specified for the project.
When the project is specified as completed, a voucher is created in which the preliminary costs are
reversed to the capitalized cost.
Windows:
Posting Control
Project Groups
Project
Voucher Entry
Update GL Vouchers
GL Update History
Authority Combinations
Projects Analysis
Project Analysis
GL Balance Analysis
GL Vouchers Analysis
Project Balance Report
Archived Reports
Note: In the online help files (press F1 in e.g.
Project and follow the links) there is more information on Capitalize Expenses
projects.
Posting Control
- Open the
Posting Control window.
- Check the accounts that are specified for Posting Types GP 3, Capitalized
Project Cost, and GP 5, Calculated Project Cost. The accounts must have the Mandatory code part demand
for the code part that is used for projects.
Enter Project Group
- Open the Project Groups
window.
- Create new record and enter Project Group and Description
- Set Capitalization Posting Method to
Transaction.
- Save your changes.
- In the All Ledgers tab, create new
record on the Project Information sub tab.
- Select project type Capitalize Expenses
from the list.
- Save your changes.
- Activate the project group by right-clicking in the header and selecting Activate.
Enter Project
- Open Project window.
- Create new record and enter Project ID and Description and Project Group
- Make sure your Capitalization Posting Method is
set to Transaction.
- Save your changes.
- In the All Ledgers tab, select the
Project
Information sub tab.
- Verify the information for the new project. Make sure
Project Type is set to Capitalize Expenses.
- Enter a contribution margin as a percentage.
- Save your changes.
Enter Vouchers
- Open the
Voucher Entry window.
- Enter vouchers for the project.
Update Vouchers
- Open the Update GL Vouchers window, and check the default
values. Click OK to begin the updating routine.
- Open the GL Update History window. Verify that all vouchers have
passed the checks
in the updating routine.
Authority
- Open the Authority Combinations window.
- Check to see what authority your authority class has.
Queries
- Open the Projects Analysis window. This window
displays summarized information about one or more selected projects.
Find the revenues and costs for the
project.
- Open the Project Analysis window. This window
displays information about only one project at a time. You can use Project
list to view other selected projects. Find the revenues and costs for the project.
- Open the
GL Balance Analysis window. Find information about the project,
and compare it with the amounts displayed in the query windows that you
viewed previously.
Reposting Rule
- Open the
Project window, and find information about
the
project.
- Enter information for a reposting rule.
Project Completion
- Open the
Project window, and find information about the
project.
- Right-click and then click Project Completion. Specify a date in the Completion
Date field. A voucher of Voucher Type P is created and transferred to the hold table.
Update Vouchers
- Open the Update GL Vouchers window, and check the default
values. Click OK to begin the updating routine.
- Open the GL Update History window. Verify that all vouchers have
passed the checks
in the updating routine.
Queries
- Open the GL Vouchers Analysis window. Check the voucher
(Voucher Type P).
- Open the Project Analysis window. Find information
about the
project.
Project Balance Report
- Open the Project Balance Report window.
- Preview and/or print the report.
Report Archive in Info Service
- Open the
Archived
Reports window.
- Find the report that you ordered, and preview it.
Purpose: This project type can be used for projects
where revenue is not incurred at regular intervals compared to cost. Only
the revenue transactions are capitalized to show in the balance sheet. In order
to recognize the revenue when calculating profit and loss, revenue recognition
process should be executed. Capitalize revenue type projects recognize cost
based on actual cost.
Windows:
Posting Control
Project Groups
Project
Voucher Entry
Update GL Vouchers
GL Update History
Authority Combinations
Projects Analysis
Project Analysis
GL Balance Analysis
GL Vouchers Analysis
Project Balance Report
Archived Reports
Posting Control
- Open the
Posting Control window.
- Verify the accounts specified for Post Type GP4, Capitalized Project
Revenue. These accounts must have the Can or Mandatory code part demand for
the code part used for projects.
Enter Project Group
- Open the Project Groups
window.
- Create a new record and enter Project Group and Description.
- Set Capitalization Posting Method to
Transaction.
- Save your changes.
- In the All Ledgers tab, create a new
record in the Project Information sub tab.
- Select project type Capitalize Revenue from
the list.
- Save your changes.
- Activate the project group by right-clicking in
the header and selecting Activate.
Enter Project
- Open the Project window.
- Create a new record and enter Project ID and Description and Project Group.
- Make sure your Capitalization Posting Method is
set to Transaction.
- Save your changes.
- In the All Ledgers tab, select the
Project
Information sub tab.
- Verify the information for the new project. Make sure
Project Type is set to Capitalize Revenue.
- Save your changes.
Enter Vouchers
- Open the
Voucher Entry window.
- Enter vouchers for the project.
Update Vouchers
- Open the Update GL Vouchers window, and check the default
values.
- Click OK to begin the updating routine.
- Open the GL Update History window. Verify that all vouchers have
passed the check
in the updating routine.
Authority
- Open the Authority Combinations window.
- Check to see what authority your authority class has.
Queries
- Open the Projects Analysis window. This window
displays summarized information about one or more selected projects.
Find the revenues and costs for the
project.
- Open the Project Analysis window. This window
displays information about only one project at a time. You can use Project
list to view other selected projects. Find the revenues and costs for the project.
- Open the
GL Balance Analysis window. Find information about the project,
and compare it with the amounts displayed in the analysis windows that you
viewed previously.
Project Completion
- Open the
Project window, and find information about the
project.
- Right-click and then click Project Completion.
- Specify a date in the Completion
Date field. A voucher of Voucher Type P is created and transferred to the hold table.
Update Vouchers
- Open the Update GL Vouchers window, and check the default
values.
- Click OK to begin the updating routine.
- Open the GL Update History window.
Verify to see whether any vouchers has not passed the check.
Queries
- Open the GL Vouchers Analysis window. Check the voucher
information (Voucher Type P).
- Open the Project Analysis window. Find information
about the
project.
Project Balance Report
- Open the Project Balance Report window.
- Preview and/or print the report.
Report Archive in Info Service
- Open the
Archived
Reports window.
- Find the report that you ordered, and preview it.
Purpose: No-capitalization projects are the simplest
form of project
accounting. Costs and revenues for this type of project are not capitalized.
However, project accounting
is updated, meaning that you can use the queries and reports for project
accounting. Costs and revenues directly influence the company's results.
Windows:
Project Groups
Projects
Projects Analysis
Voucher Entry
Update GL Vouchers
GL Update History
Authority Combinations
Projects Analysis
Project Balance Report
Note: The online help files (particularly the help file
for the
Project window) contain further information on no
capitalization
projects. To view the help file for a particular window, open the window, and
press F1.
Enter Project Groups
- Open the Project Groups
window.
- Create new record and enter Project Group and Description.
- Set Capitalization Posting Method to
Transaction.
- Save your changes.
- In the All Ledgers tab, create a new
record on the Project Information sub tab.
- Select project type No Capitalization from
the list.
- Save your changes.
- Activate project group by right-clicking in
the header and selecting Activate.
Specify Project
- Open the Project window.
- Create new record and enter Project ID and Description and Project Group.
- Make sure your Capitalization Posting Method is
set to Transaction.
- Save your changes.
- In the All Ledgers tab, select the
Project
Information sub tab.
- Verify the information for the new project. Make sure
Project Type is set to No Capitalization.
- Save your changes.
Enter Vouchers
- Open the
Voucher Entry window.
- Enter vouchers for the project.
Update Vouchers
- Open the Update GL Vouchers window, and check the default
values.
- Click OK to start the updating routine.
- Open the GL Update History window. Make sure that all vouchers have
passed the controls in the updating routine.
Authority
- Open the Authority Combinations window.
- Verify the authority of your authority class.
Queries
- Open the Projects Analysis window. You can use this
window to see a
summary of multiple projects that you have selected.
Find the revenues and costs
for the
project.
- Open the Project Analysis window. This window shows information
for one project at a time. You can select other projects from the Project
list. Find revenues and costs for the project that you set up for this
exercise.
Project Completion
- Open the
Project window, right-click and then click Project
Completion.
- The status of
the project changes to Completed, and a completion date is set for the project. No voucher is
created.
Project Balance Report
- Open the Project Balance Report window.
- Preview and/or print the report.