About the fixed-price project posting examples [AX 2012]

Updated: November 11, 2011

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

Based on the parameters On-account invoicing, Revenue recognition accounting rule, and Matching principle in the Project groups form, transactions are posted to the General ledger in eight different ways. The posting examples in this section illustrate how transactions are posted to the General ledger with each of the eight setup combinations.

A company wins a fixed-price contract of USD 200,000 based on the following milestone invoicing plan (on account).

Action

Time

Amount

40 percent prepayment on signature

July

80,000

25 percent on first delivery

September

50,000

35 percent on final delivery

November

70,000

The work takes place from July through November, during which the costs in the following table are consumed.

Time

Amount

July

12,000

August

30,000

September

24,000

October

36,000

November

18,000

Estimates are posted each month, from July through November.

The elimination is posted in December.

Per month

Consumption cost

Degree of completion

Invoiced on-account amount

Completed percentage

Completed percentage

Completed contract

Completed contract

Cost

Revenue

Cost

Revenue

Estimate

July

12,000

10

80,000

12,000

20,000

0

0

Estimate

August

30,000

25

0

30,000

50,000

0

0

Estimate

September

24,000

20

50,000

24,000

40,000

0

0

Estimate

October

36,000

30

0

36,000

60,000

0

0

Estimate

November

18,000

15

70,000

18,000

30,000

0

0

Elimination

December

0

0

0

0

0

120,000

200,000

Total

120,000

100

200,000

120,000

200,000

120,000

200,000

Note Note

When the cost of hour, expenses, and items is posted in journals, it is generally posted directly to a Profit & loss account on fixed-price projects.

Click the links in the following table to see the various posting examples.

Topic

Revenue recognition accounting rule

Matching principle

On-account invoicing

Posting example 1 - fixed-price project

Completed percentage

Sales value

Balance

Posting example 2 - fixed-price project

Completed percentage

Sales value

Profit and loss

Posting example 3 - fixed-price project

Completed percentage

Production + profit

Balance

Posting example 4 - fixed-price project

Completed Percentage

Production + profit

Profit and loss

Posting example 5 - fixed-price project

Completed contract

Sales value

Balance

Posting example 6 - fixed-price project

Completed contract

Sales value

Profit and loss

Posting example 7 - fixed-price project

Completed contract

Production + profit

Balance

Posting example 8 - fixed-price project

Completed contract

Production + profit

Profit and loss


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