Patricia Cervello Finance consultant

In the Projects module of D365, it is possible to transfer transactions between projects, which offers significant flexibility. However, there is a notable concern: these adjusted transactions are recorded as new transactions in the target projects for revenue recognition purposes. This presents an issue, particularly for capital projects, as it leads to the duplication of postings in the "Construction in Progress" (CIP) accounts. Specifically, postings to these accounts are made initially when they are first recorded and the project is estimated, and then again when adjustments are made to a new project. As a result, this process can result in inaccurate balances in the CIP accounts.

It would be beneficial if adjusted transactions were excluded from revenue recognition processes, particularly in the context of capital project estimations.

Within the context of project and subproject hierarchies, budget control offers the option to utilize alternative project budgets. This feature is particularly advantageous for establishing a budget at the parent project level while linking multiple subprojects to the same budget. However, a significant issue arises when transactions are adjusted from the parent project to the subproject; these transactions are counted twice in the budget, which is incorrect as they are not new transactions. To ensure accurate budget reporting, adjusted transactions should be excluded from the budget consumed amounts.