D365 does take this into consideration when we setup the Project Group with the check box “Provision for Foreseeable Loss = Yes” (only for FP project with Project group setup with Revenue recognition accounting rule = Completed contract ), but the way the posting are done are really odd, for a project that is:
- Project Type = Fixed-price
- Revenue recognition accounting rule = completed percentage

D365 seems to adjust the posting on the revenue account only, in order to have a margin = to the foreseeable loss (revenues + actual costs = expected negative margin), instead of recognizing revenues based on the real completion percentage and accrue costs on a dedicated “foreseeable accrued loss account” in order to have the same impact in terms of P&L.