About accrued loss
Important
This content is archived and is not being updated. For the latest documentation, see Microsoft Dynamics 365 product documentation. For the latest release plans, see Dynamics 365 and Microsoft Power Platform release plans.
Applies To: Microsoft Dynamics AX 2012 R3, Microsoft Dynamics AX 2012 R2, Microsoft Dynamics AX 2012 Feature Pack, Microsoft Dynamics AX 2012
For fixed-price and investment projects, you can choose to recognize losses during estimation. If you recognize losses, you must specify the category to use for accruing losses in the Project groups form.
This topic provides an overview of how and on what statement types the Accrued loss account is applied and the parameter setup that is required in the Project groups form.
Account type
Profit and loss.
Availability
License code |
Configuration code |
|---|---|
Project II |
Work in process |
How the account is applied
Transaction type |
Project type |
Statement type |
|---|---|---|
Expense |
Fixed-price Investment |
Profit and loss |
Parameter dependencies
In the Project groups form, on the Estimate FastTab, select the Foreseeable losses check box.
Actions and effects
The following table describes the effects of actions that you perform on the Estimate form.
Action |
Effect |
|---|---|
Post estimate |
For fixed-price projects that use the completed contract revenue recognition accounting principle, if there is a foreseeable loss on the project, the account is debited with an expense transaction. For investment projects, if the total cost exceeds the maximum capitalization, the account is debited with an expense transaction for the difference as a loss. |
Reverse estimate |
For investment projects and fixed-price projects that use the completed contract revenue recognition accounting principle, the account is credited. |
Elimination |
For fixed-price projects that use the completed contract revenue recognition accounting principle, the accrued loss account is not affected because the loss is recognized during estimation. |
Reverse elimination |
For fixed-price projects that use the completed contract revenue recognition accounting principle, the accrued loss account is not affected because the loss is recognized during estimation and did not affect the original elimination. |