About accrued revenue [AX 2012]

Updated: December 7, 2011

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 projects and Time and material projects, revenue can be accrued only if the project is assigned to a project group for which accruals are enabled. Furthermore, you must enable accruals in the line property setting for the transaction. To enable accruals, select the Accrue revenue check box in the Line properties form for the specified line property.

For Time and material projects, this makes sure that project revenue and related costs are recognized in the same accounting period. For accrued revenue that is related to both expenses and hours, the revenue amount is posted as a debit to the WIP - sales value account on the balance sheet and posted as credit to the Accrued revenue - sales value account on the profit and loss statement.

During the course of a Fixed-price project, you can accrue revenue as project costs accumulate by using the Microsoft Dynamics AX estimate system. When you complete a Fixed-price project, the accrued revenue amounts are reversed and the actual project revenue is recognized.

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