About accrued loss [AX 2012]

Updated: January 31, 2012

Applies To: Microsoft Dynamics AX 2012 R3, Microsoft Dynamics AX 2012 R2, Microsoft Dynamics AX 2012 Feature Pack, Microsoft Dynamics AX 2012

For fixed-price and investment projects, you can choose to recognize losses during estimation. If you recognize losses, you must specify the category to use for accruing losses in the Project groups form.

This topic provides an overview of how and on what statement types the Accrued loss account is applied and the parameter setup that is required in the Project groups form.

Profit and loss.

License code

Configuration code

Project II

Work in process

Transaction type

Project type

Statement type

Expense

Fixed-price

Investment

Profit and loss

In the Project groups form, on the Estimate FastTab, select the Foreseeable losses check box.

The following table describes the effects of actions that you perform on the Estimate form.

Action

Effect

Post estimate

For fixed-price projects that use the completed contract revenue recognition accounting principle, if there is a foreseeable loss on the project, the account is debited with an expense transaction. For investment projects, if the total cost exceeds the maximum capitalization, the account is debited with an expense transaction for the difference as a loss.

Reverse estimate

For investment projects and fixed-price projects that use the completed contract revenue recognition accounting principle, the account is credited.

Elimination

For fixed-price projects that use the completed contract revenue recognition accounting principle, the accrued loss account is not affected because the loss is recognized during estimation.

Reverse elimination

For fixed-price projects that use the completed contract revenue recognition accounting principle, the accrued loss account is not affected because the loss is recognized during estimation and did not affect the original elimination.


Announcements: To see known issues and recent fixes, use Issue search in Microsoft Dynamics Lifecycle Services (LCS).

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