At this year’s Dynamics SL User Group Conference in San Diego, CA, I sat down with Misha Goloborodko and Julie Adelman to find out how Dynamics SL has empowered their organization. They shared breakthroughs in financial management, project accounting, and federal government contract compliance.
In Part I of this post, I shared the process of Revenue Recogntion in fixed price projects using Dynamics SL when you have the ability to create or update Estimate at Completion (EAC) costs. But what if you don’t have that ability? Below are some other options for fixed price projects, although you should check with your Accountant before implementing any of these. These options may or may not be appropriate for your situation.
- Determine the percentage outside the system. Then on the Revenue Recognition setup screen, enter the percent into the percent override field for the project or task. Lastly, run the standard percent completion process. This allows you to “plug” the percentage of completion to calculate your revenue.
- Manage the revenue recognition on a Time and Material or Cost Plus basis to a maximum, using the Allocator Module. The Project/Task Maximum works great if the Revenue calculated is greater than the Contract Value/EAC Revenue. If the calculated Revenue is less than the Contract Value then at the end of the project a manual JE will need to be created to recognize the remaining revenue.
- If the company works with multipliers, then the Allocator can be used to apply and reapply a multiplier to the project costs. If the multiplier is 2.0 then the Allocator applies 2 times the cost as revenue. If and when the multiplier changes, the Allocator will need to be recalculated against all project costs to change all costs to the new multiplier. At the end of the project the multiplier will need to be changed to Contract Value / Actual Cost and recalculated. This option only works if the company personnel already think in multipliers. If you have to ask, you don’t.
- The last option is my least favorite: Recognize revenue when billed.
That’s it. Be sure to read Part I to get the full solution and if you have any questions, feel free to email me.
By Don Wachtveitl
Recently I was working on an implementation where the client explained they frequently paid vendor invoices with the CFO’s credit card instead of company checks. Out of the box Microsoft Dynamics SL doesn’t have this functionality.
While performing some research on the new 1099 reporting requirements for 2012, I came across a third party application for Microsoft Dynamics SL called Voucher to Credit Card developed by Progressive Systems Solutions, which has nearly 100 enhancement utilities that enhance Dynamics SL. This product allows you to:
- Enter vendor invoices normally in Accounts Payable.
- Select and move one or more vouchers to the Credit Card vendor you wish to use to pay them.
- Have a “check” cut from a clearing account so there is no need to use a printed check.
- Make the credit card voucher automatically enter into the same clearing account, which clears the entry.
Installation and setup was a piece of cake and processing was just as easy.
Synergy has a PowerPoint slide deck available to show the functionality of this product.
Last week we announced we have begun selling, implementing, and supporting Intacct’s cloud-based Financial Management and Project Accounting software! Intacct is a preferred provider of AICPA and was named a 2010 top new product by Accounting Today in the Accounting/ERP category.
This development in no way detracts from our dedication to our Microsoft Dynamics SL clients; we will continue to sell, implement, and support on-premise Dynamics SL—a more robust project accounting and distribution system that is the appropriate solution for companies with complex accounting needs and that have in-house IT infrastructure.
What’s the Intacct advantage? With the Intacct cloud-computing (SaaS) alternative, you don’t purchase software and run it on your own servers. There’s no need to buy, license, operate, or manage the necessary hardware, software, or networking infrastructure, or worry about upgrading software. Customizations also work across upgrades. This can save companies significant capital investment.
Companies for which cloud-computing fits their business objectives will obtain these important advantages:
- Higher ROI
- Greater control without maintenance tasks
- Real-time visibility for all stakeholders
- Gain operational efficiencies
- Get out of the IT business as Intacct does backups, recovery, security, and upgrades