Quick post : Split the On-account invoice transaction for Credit note

When the project invoice includes just one on-transaction, then system does not allow the user to split that single transaction during the credit note.

Single on-account transaction cannot be split during credit note 

However when the project invoice involves multiple on-account transactions from the same and / or multiple projects / sub-projects, then the user can split the credit note and just process the credit note for the desired on-account transactions.

Multiple on-account transaction on the same invoice can be split during credit note

If the invoice proposal is run again, then only the one selected for credit note appears in the 'Create invoice proposal'.

On-account transaction selected for credit note

Once the credit note is posted, the transaction status for the selected on-account transaction changes to 'Chargeable'.

Status changed to 'Chargeable'

Thanks
Sarang Kusare

Reverting the SAME project transaction which is in 'Selected for credit note' back to 'Invoiced'

I just now came to know a way of reverting the SAME project transaction which is in 'Selected for credit note' back to 'Invoiced'.

When the project transaction is invoiced, the 'Transaction status' is changed to 'Invoiced':

When you select the transaction for credit note, the 'Transaction status' is changed to 'Selected for credit note'

I was wondering how do i put this 'Transaction status' back to 'Invoiced' as i selected the transaction mistakenly for credit note.

The solution is to just run the process again and 'Deselect' the transaction, which will revert the 'Transaction status' from 'Selected for credit note' to 'Invoiced'.

When clicked 'Ok', the system reverts the 'Transaction status' from 'Selected for credit note' back to 'Invoiced'.

The reason for knowing this was, i was getting stuck while posting an estimate on a % complete fixed price project. The on-account transaction based on which system calculates the accrued revenue was in the 'Selected for credit note' state and hence system was giving the error :

"On account cannot be chosen for type project and ID". 

Had i known this process of reverting the transaction status back to 'Invoiced' i would have been successful in posting the estimate.

Kind Regards

Sarang

Calculation Method and Balancing Fee Journal

There are three calculation methods when it comes to fixed price projects, they are:

1. None
2. Markup percent total
3. Markup percent estimate line

This post is not about describing what each of the calculation method does but this post is the super summary of when does the system create the balancing fee journal and when it does not. This post is for the advanced users of revenue recognition functionality. It is assumed that the readers of this post are aware of all the three methods and how they behave. This is a small post to just present the gist in a table format with respect to the creation of balancing fee journal for all three calculation methods.

Calculation method and Balancing fee journal

System behavior is different when the: 

• dimensions are NOT present on the project and hours transactions and  
• dimensions on the project and hours transactions are different

No dimensions on the project and hours transactions

Contract value - 100,000

On account transaction

Hours forecast - 146

Hours forecast

No dimensions on the project

No dimensions on project

Contract value distributed during the estimate

Contract value distribution among cost lines

Cost posted for all the three cost lines are 1,800, 1,200 and 3,600, which is equal to 6,600. Based on the contract value distribution, the revenue recognized should be 30,000. [((1,800 / 3,600) *20,000) + ((1,200 / 3,600) *30,000)) + ((3,600 / 18,000) *50,000))]

System suggested percent complete

System suggested percent complete

Actual hours v/s Hours forecast

But system suggested percent complete is 27.40 [((Total posted hours / Total hours forecast in Qty)*100), which is (40/146)*100 = 27.40] hence the accrued revenue value would be 27,400. Hence the balancing fee journal should be approximately 2,600. Completion is based on 'Quantity' in the cost template.

When the estimate is posted, following is the voucher posted:

One voucher for accrued revenue

And the posted transactions are as below, which shows the actual 30,000 accrued revenue and the balancing fee transaction of approximately 2,600. However strange enough there is no voucher for that balancing transaction.

Balancing fee transaction 

Dimensions on the project and hours transaction are different

I repeated the above example with the same values, but this time with the dimensions on the project and hours transaction. However the 'Department' dimension  on the project is 22, and on all the three hours transactions are 23, 24 and 25 respectively.

With all the steps same as above, when the estimate was created, the system showed a percent complete of 27.40. I manually changed to 25 to see the impact on the posting.

Percent complete changed from automatic to manual

The voucher that was posted was expected to have a balancing fee transaction of 5000, with the dimensions from the project.

Balancing fee transaction

Posted transaction was as below:

Posted transactions

However in this case the voucher was posted for the balancing fee transaction.

Hopefully this post has helped you get more insight into the revenue recognition and generation of balancing fee transaction.

Kind Regards

Sarang Kusare

Quick Post – Fixed Price project eliminate button and invoice posting date

Everyday we learn, no matter what and that’s absolutely true. However more important is to retain what we have learnt today and reduce the time in re-inventing the wheel later. I just now learnt a very small thing but i still wish to put this in writing so that i remember it in future and also if it helps others, then nothing like it.

If the project  is over and the ‘Eliminate’ button does not activate, then there are two reasons for it, one is either the cost is not yet set to 0 or the contract value (On-account) is not yet invoiced. However there is one more reason why it wont be active, which i learnt today.

In my example, which is a straight line project, where the ‘Actual start date’ is 14th of Jan 2018 and ‘Actual end date’ is 13th of Feb 2018, however we are in September. When i invoiced the on-account (contract value), i did not realize that i haven’t changed the ‘Posting date’ and it was today, .i.e. 4th of September 2018.

On account invoice posting date

After that i started posting estimates. As there were only two months for which i need to run the estimates, i ran it for Jan 2018 and Feb 2018 and i was expecting the ‘Eliminate’ button to get active so that i can eliminate the project. However system did not activate the ‘Eliminate’ button. I instantly realized that system is probably looking at the invoice ‘Posting date’. Hence i continued the estimates till September 2018 and after the estimate for September 2018 was posted, system activated the ‘Eliminate’ button. Notice the ‘Invoice revenue’ also appeared in the month of September only.

Eliminate button activated after the September 2018 estimate posting

Just to prove it completely and validate it 100%, i created one more project but this time while posting the on-account invoice, i deliberately changed the posting date to 15th of Jan 2018.

On account invoice posting date

After that i posted two estimates for Jan 2018 and Feb 2018 and then instantly after the Feb 2018 estimated was posted, system activated the ‘Eliminate’ option.

Eliminate option activated after the February 2018 estimate posting

I know this is pretty small for a blog post but thought of capturing it so that it does not get lost.

Kind Regards
Sarang Kusare