Allocating costs to a period

In a standard closing process, all the costs linked to a project are checked (timesheets and schedules, purchase orders, receptions and invoices) before running the revenue recognition, especially for the Progression-based method.

The aim of this module is to generate the receivable invoices and deferred expenses entries on the status date.

The process follows 4 steps:

1 Start the Allocation of expenses to the period module, via Accounting > Periodic works > Allocation of expenses to the period.
2 Specify the accounts then click on .
3 Correct the amount of receivable invoices and deferred expenses calculated by directly modifying the columns:
  • Adopted PIA
  • Selected prepaid expenses
4 Validate and generate the receivable invoices/deferred expenses entry by clicking on .
Calculation of receivable invoices or non-received invoices
  • Non-billed receptions at closing date (or billed after the closing date)
  • Receptions with periods: calculation of a receivable invoice with the prorata of the period
  • Non-billed billing tables at closing date (or billed after the closing date)
  • Validated supplier orders not received:
    • if the order has a period: receivable invoice calculated in proportion to the period
    • if the order does not have a period: receivable invoice calculated if the order date comes before the status date
Calculation of deferred expenses
  • Invoices with periods: calculation of a deferred expense with the prorata of the period

Note

It is possible to exclude non-booked invoices by checking the Exclude non-validated invoices box.

Example

You have received an amount of 20 euros on the class 6 account.

  1. Start the Allocation of expenses to the period module, via Accounting > Periodic works > Allocation of expenses to the period.
  2. Validate the receivable invoice of 20 euros suggested by the system.

Two lines are generated with the details of the closing entry and its reverse entry.

If the entries are detailed per third-party, 2 entries are generated with 3 lines each:

  • Class 6 cost account (e.g. 606400).
  • VAT account (e.g. 455660) defined in the setup of the class 6 general account (606400), in the Status section > VAT recoverable on receivable credit notes and invoices.
  • Supplier account that must have PIA control/Prepaid expenses control accounts set up in the third-party record sheet.