WIP Costs in Cost-Plus Projects: Generated Transactions
When you allocate projects, the system creates allocation transactions based on the settings of the allocation rules associated with the project tasks. Depending on the settings of the allocation rules and project tasks, the system also can create reversing allocation transactions. These transactions are described in the following sections.
Allocation Transactions Generated on Allocation of a Project
When a project is allocated, the system generates a batch of the allocation transactions shown in the table below. The system assigns the Allocation for <Project ID> description to the generated batch.
The system uses the following accounts as the source accounts in the batch it creates:
- The debit account, which is specified in the Account Origin box on the Allocation Settings tab (Debit Transaction section) of the Allocation Rules (PM207500) form
- The credit account, which is specified in the Account Origin box on the Allocation Settings tab (Credit Transaction section) of the Allocation Rules form
| Debit Account | Credit Account | Source of Account | Orig. Doc Type | Amount |
|---|---|---|---|---|
| Debit account | Credit account | Allocation rule | Allocation | Amount |
You can review the created allocation transactions on the Project Transaction Details (PM401000) form. In the Selection area of this form, you select the project in the Project box. In the table, you can find the allocation transactions by the Allocation type in the Orig. Doc. Type column. You can also select Show only Allocation Transactions check box in the Summary area of the form to review only allocation transactions in the table.
Reversing Allocation Transactions Generated on Billing of a Cost-Plus Project
When a cost-plus project is billed with a time and material billing rule, the system generates a batch of reversing allocation transactions shown in the table below, which prevents the allocation transactions used for billing from affecting the project balance. Reversing transactions copy original allocation transactions and reverse the sign of the amount.
The system assigns one of the following descriptions to the reversing batch, depending on when the reversing batch is created according to the option selected in the Reverse Allocation box on the Allocation Settings tab (Transaction Reversal section) of the Allocation Rules (PM207500) form:
- Allocation Reversal on AR Invoice Release: The batch is created with the Released status on the release of the corresponding accounts receivable document based on the On AR Invoice Release option of the allocation rule.
- Allocation Reversal on AR Invoice Generation: The batch is created on the creation of
the corresponding accounts receivable document based on the On AR Invoice Generation
option of the allocation rule.
If the accounts receivable document is created with the Balanced status, the reversing batch is also created with the Balanced status. The reversing batch is automatically released or deleted when the corresponding accounts receivable document is released or deleted, respectively.
| Debit Account | Credit Account | Source of Account | Orig. Doc Type | Amount |
|---|---|---|---|---|
| Debit account | Credit account | Allocation transaction | Allocation Reversal | –(Amount) |
You can review the created allocation transactions on the Project Transaction Details (PM401000) form. In the Selection area of this form, you select the project in the Project box. In the table, you can find the allocation transactions, which have the Allocation Reversal type in the Orig. Doc. Type column. You can also select Show Only Allocation Transactions check box in the Summary area of the form to review in the table only the allocation transactions of the project.