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[Ben Morgan]

Hi All,

Within D365FO, we’re seeing an issue where our accrued revenue and WIP accounts will potentially become inaccurate due to project transactions that never get billed.  For example, we accrue revenue for T&M type projects.  This means that for every transaction, revenue is added to the accrued revenue/WIP accounts.  When those transactions are invoiced, equivalent revenue is removed from the accrual and becomes actual invoiced revenue, and this is all fine.  The problem comes in if we ‘write off’ transactions and make them nonbillable.  Because these projects accrue revenue, the revenue accrues even when transactions are adjusted to nonbillable.  However, the accrued amount will never be reversed out because it will never be invoiced.  This means our accrued revenue will be inaccurate.  Has anyone here come up with any solutions to this gap?

#FinanceandOperations #ProjectAccounting #Finance

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Ben Morgan
M3 Engineering & Technology Corp
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