Periodical Capitalization with Separate GL/IL Rules

Basic Data Setup

Purpose: The purpose of this exercise is to set up basic data for periodical capitalization when running with Separate GL/IL Rules.

Define Internal Ledger with IL Project Accounting

Purpose: The purpose of this exercise is to setup an internal ledger for IL Project Accounting.

Windows:
Define Internal Ledgers

        Internal Code Parts

1. Open the window Internal Code Parts.

2. Right-click and then click Change Ledger. Select your internal ledger that you are planning to use for IL Project Accounting, and then click OK.

3. For Code Part whose code part function is Project Accounting, select the Used in IL check box.

4. Save your changes.

5. Open Define Internal Ledgers window.

6. Select the checkbox IL Project Accounting for your internal ledger.

7. Save your changes.

General exercise internal ledger Internal Ledger Basic Data and Requirements

Define Voucher Types for function group PPC (Periodical Project Capitalization)

Purpose: Purpose of this exercise is to create separate voucher types for periodical capitalization in General Ledger and Internal Ledger.

Note: To post capitalization independently in each ledger, ledger specific voucher types of function group PPC must be defined for GL and IL.

Windows:
New Voucher Type Assistant

1. Enter a new Voucher Type and Description for general ledger. (I.e. PCG - Periodical Capitalization GL).

2. In Ledger Selection, select General Ledger.

3. Field Ledger ID will automatically be filled up with 00.

4. Select Next to move to next step.

5. Add new record in Function Group section and select the value PPC from the list.

6. Select the check box Get Voucher No Series and User Groups from Existing Voucher Type.

7. Select the Voucher Type Source PPC from the list.

8. Finish the process.

Repeat the same steps and create a new voucher type for Internal Ledger. In Step 2, select Internal Ledger and choose the Internal ledger that that you defined with IL Project Accounting.

Periodical Capitalization Information

Purpose: Purpose of this exercise is to define default voucher types for periodical capitalization in GL and IL.

Windows:
Periodical Capitalization Information

1. Open the Periodical Capitalization Information window. The window is automatically populated when it is opened.
2. Select whether Periodical Capitalization should be performed only for ordinary periods or for both ordinary and year end periods.
3. Select the user group allowed to create periodical capitalization vouchers for the ordinary periods by using the List of Values.
4. If Ordinary/Year Closing is selected for periodical capitalization period type, select the user group allowed to create periodical capitalization vouchers for year end periods by using the list of values.
5. Select the default voucher type for General Ledger by using the list of values, where all the voucher types connected to the function group PPC with ledger selection General Ledger are displayed.
6. Select the default voucher type for Internal Ledger by using the list of values, where all the voucher types connected to the function group PPC with ledger selection Internal Ledger are displayed.
7. Save the changes.

Main Exercises

Create Project Group

Purpose: Purpose of this exercise is to define a Project Group with Separate GL/IL Rules.

Windows:
Project Groups

1. Open the Project Groups window.
2. Create new record and enter Project Group and Description.
3. Set Capitalization Posting Method to Periodical.
4. Select the flag Separate GL/IL Rules.
5. Save your changes.
6. In the General Ledger tab, create a new record in the Project Information sub tab.
7. Select a project type Capitalize Rev/EXP from the list.
8. Save your changes.
9. In the Internal Ledger tab, create a new record in the Project Information sub tab.
10. Select a project type Capitalize Expense from the list.
11. Save your changes.
12. Activate the project group by right-clicking in the header and selecting Activate.

Create Project

Purpose: Purpose of this exercise is to create a project with Separate GL/IL Rules.

Windows:
    Projects

1. Open the Projects window.
2. Create new record and enter Project ID and Description.
3. Select the project Project Group you created in the above exercise from the list of values.
4. Save your changes.
5. Observe that Separate GL/IL Rules is selected and the General Ledger and Internal Ledger tabs are defaulted with different Project Types.
6. Save your changes.

Enter Vouchers

Purpose: Purpose of this exercise is to report cost and revenue against the project you created above.

Windows:
    Voucher Entry

1. Create a new voucher and report costs and revenues to the project created above. Make sure you use a voucher type that is set up with ledger selection GL, Affect IL  and your internal ledger with IL Project Accounting is setup to accept accounts and code parts used in this voucher.

General exercise for voucher entry Voucher Entry

Update Voucher

Purpose: The purpose of this exercise is to update vouchers.

Windows:
Voucher Entry

1. Query for the voucher that you previously created.
2. Make sure that the voucher is in the Approved status.
3. Right-click anywhere in the voucher header, and then click Instant Update General Ledger.

Note: The updated window now shows all vouchers that are stored in the Hold Table.

4. Select your voucher, if it is not already selected, and click OK.

Note: The general ledger is now updated with your voucher. As the voucher you created above had ledger selection GL, Affect IL this process will updated to the Internal ledgers depending on the setup on internal ledgers as well.

View vouchers updated to General Ledger

Purpose: Purpose of this exercise is to view and confirm that capitalization postings are not created when a cost/revenue voucher rows are update to GL if the project is set to periodical capitalization.

Windows:
GL Voucher Details Analysis

        IL Voucher Details Analysis
 

Use below steps to view general ledger voucher details:

1. Open the GL Voucher Details Analysis window.
2. Query for your voucher created above.
3. Make sure that there are no additional postings for GP3 and GP4 are created during the voucher update.

Use below steps to view internal ledger voucher details:

1. Open the IL Voucher Details Analysis window.
2. Query for your voucher created above.
3. Make sure that there are no additional postings for GP3 and GP4 are created during the voucher update.

Execute Periodical Capitalization

Purpose: Purpose of this exercise is to execute periodical capitalization in General Ledger and Internal Ledger.

Windows:
Periodical Capitalization and Revenue Recognitions

To execute periodical capitalization in General Ledger, use below steps:

1. Open the Periodical Capitalization and Revenue Recognition 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 General Ledger.
4. Save your changes. Notes can be entered for each row.
5. Make sure there are no unupdated vouchers in hold table for this project in General Ledger.
6. Select the periodical capitalization and revenue recognition process, right-click and then click Run Periodical Capitalization.

Process will generate a voucher of function group PPC, creating capitalization entries for all projects that qualify for periodical capitalization in this period. If there are no projects that require periodical capitalization, process will be marked as an Empty Capitalization. Status of the procedure will be changed to Capitalized.

7. Select the process, right-click and then click View Voucher. Observe the capitalization postings created for your project using the default voucher type for General Ledger you specified on Periodical Capitalization Information.
8. Select the RMB option Update Ledger.

The process above will generate a periodical capitalization voucher for general ledger using the Project Type you specified in the General Ledger tab of your project.

To execute periodical capitalization in Internal Ledger, create a new periodical capitalization and revenue recognition procedure for the same period. Make sure to set ledger selection to Internal Ledger. Once executed, the procedure will create a periodical capitalization voucher for your project using the Project Type you specified in the Internal Ledger tab of your project.