Not invoiced times and expenses

[Klaus01]

Hi Gurus,

there are a number of not invoiced time and expenses in the project management. All these will be written off; mostly they are travel expenses.

The customer doesn't look at the profit center, only on the distinct sales orders related to the project and the project itself.

All projects are fixed price projects -already finished and invoiced.

All in all: The customer wants to get rid of the unposted times and expenses with as little work as possible. Is it enought to just close the project and the changing the sales order status to "finish invoicing"?

As the expenses and times are already posted to the projects: is it possible to just finish the projects and sales orders? What will happen in the system?

Although this is a special question for a customer it is always possible the expenses invoices arrive after the project and the sales order is closed. They will be assigned to the project and written off.

What would be the correct procedure doing so?

Kind Regards,

Klaus Hoffmann

[caroline_lost · Accepted solution]

Dear Peter and Klaus,

In regards to expenses created after the sales order has been fully invoiced:

You can write off expenses for the project in the Edit Times and Expenses screen in Project Management. But this only reverses the CPEL posting by creating an offsetting second CPEL version.
However, the expenses remain on the expense account as long as they are not reversed.

In regards to unposted expenses:
If expenses did not get posted they will remain unposted even after they have been written off or the project has been closed.
When project expenses are unposted the respective CPELs (Customer Project Expense lists), the expense assignment documents, will also remain unposted.
With the unposted expense written off the unposted CPEL will be automatically written off. No Journal entry will be generated.

If the expenses are not relevant at all you could reverse them again. The cancellations will also appear as unposted source documents (provided the error due to which the documents could not be posted has not been corrected) and can be marked as not relevant in the Source documents view.

If you need to post the written off expenses to realize them as costs, post them into an open period of your choice.

Please note, if Revenue Recognition is scoped the expenses will appear as unassigned expenses on the Deferred Cost of Goods sold account.
You then need to manually realise those costs on the respective expense account (G/L Account (origin).

Regarding the finish invoicing option of the sales order item:
When a sales order item is finished for invoicing then it will not be available anymore for expense assignment. This does not have any effect on the expense items. There are no postings triggered either.

In every case, as customer projects are billable by default, expenses, written off or not, will still appear as not invoiced expenses in the Not Invoiced Time and Expense screen in Project Management.
Even once the project is closed they will be visible in the OWL Project Management - Not Invoiced Time and Expenses. But they are not accessible anymore.

I hope this helps.

Thanks and kind regards,

Caroline

[petermeid]

What happens in detail if automatic revenue recognition is NOT activated?

- Cost are posted and realized when times or expenses are recorded => impact on P&L in the period of recording

- Revenues are posted and realized when customer invoice is issued => impact on P&L in the period of issuing

- The Cost Assignment Postings do NOT post effective cost. As far as I know the JE created by that Cost Assignment Postings (Journal Enttry Type 555) debits and credits the same G/L Account (Internal Service, Expense Account, etc.). Hence it does not have any impact on legal accounting, but only on management accounting (debitting the sales order, crediting the project task).

Is all this correct?

Further question: Klaus referrs to fixed price projects. And let's assume the sales order / project is completely invoiced.

What often happens is, that during following periods (May, June, etc.) additional times and expenses are recorded although everything is already invoiced (e.g. in April). Those show up in the "Not invoiced Times and Expenses". And often they even show up in the Uposted Source Documents, e.g. as the period (e.g. April) has already been closed, etc.. Therefore 2 further questions:

- If we post those Unposted Source Documents into a later period (e.g. May, June, ..), do they impact the P&L of that period?

- What is the quickest way to get rid of the "Not Invoiced Times and Expenses". As Klaus already asked: Is it sufficient to just close the project and changing the sales order status to "finish invoicing"? Are there any JEs triggered by doing this?

Thanks for checking!

Peter

[former_member191213]

Hi Klaus ,

Hope you aware with the assignment of project task at the expense level . If anyway it missed by any chance you can assign it and the corresponding cost will move to the deffered GL's. This is the way by which you can get rid of it and Did you check that revenue recignization is enabled in the solution or not ?

Please share screen shot in case you are having any specific error while doing so.

Please confirm my answer as well if it helpful to you.

Thanks

Ashish Sharma