Recording project cost and revenue adjustments

Use project cost and revenue adjustments to move costs or revenue from one project item to another project item, either in the same project or to a different project. You may want to do this if you change the project structure or have allocated costs or revenue to the wrong item by mistake.

Use this to make cost and revenue adjustments in Project Accounting, as opposed to issuing invoice and credit notes in Sage 200 Financials.

If WIP is in use and enabled for the project, cost postings are made to the WIP account. Any uplift is also posted to the WIP code. The WIP value will show the full value of the cost including uplift. If WIP is not in use or not enabled for the project, the postings will go to the default nominal Expense code on the project item.

  • If Use Specified is selected on the cost item linked to the project item in the posting, the WIP account is the WIP code with the specified cost centre and department.
  • If not, then if Split postings between cost centres for balance sheet accounts is selected on the company's System Settings | Operational tab in Accounting System Manager, the WIP account is the project item WIP code and the cost centre and department from the parent project.
  • If Split postings is not selected, the WIP account comes from the project item WIP account and the cost centre and department are blank.

Note: When costs are moved between projects, the cost postings are also moved to the WIP code in the new project.

You must have:

  • Selected the Project Cost Adjustments and Project Revenue Adjustments integration settings for Project Accounting, and also for the appropriate project item types.

To enter cost and revenue adjustments

Open: Project Accounting > Enter Transactions > Enter Cost Adjustments.

Open: Project Accounting > Enter Transactions > Enter Revenue Adjustments

  1. Enter the date, and the reference and second reference if required.
  2. Add each adjustment on a new line. You can enter an adjustment for a project, project item or nominal account.
    1. If required, select the Project Code.
    2. If required, select the Project Item.
    3. If required, enter a Narrative description.

    4. Select a nominal account, cost centre and department.

      If you have selected a project item, the relevant nominal account, cost centre and department are displayed. You can amend these, if required.

    5. If required, select the transaction analysis code.

    6. Enter a Goods Value.

      You can enter a negative value to remove a cost or revenue from an item. This must be balanced with a positive entry against another project item to receive the cost or revenue.

      The total of the goods values from all the lines must balance and equal zero. If the total is not zero, you will not be able to post the transactions.

      Note: The VAT Code displayed here is for information purposes only and does not affect the VAT Return, as only the Goods value is posted to your projects.

  3. When you have finished entering the cost adjustments, you can post a journal for the transactions by clicking Save.

    A nominal journal is created for the adjustment using the nominal accounts specified.

    The reference number of the journal containing the transactions appears.

See also

Steps in this task

Set up Project Accounting to integrate with other modules