How to replace settings in "recognition method" and "job usage posting" in 5.0?

Business Central/NAV User Forum
1

Hi

I have a customer that have upgraded to 5.0 and have problem with how to set the new settings in 5.0 so that they mathes the settings in the old verson.

ie “recognition method” and “job usage posting” are no more in 5.0.

what settings in 5.0 can we use instead?

Thanks for answers

2

Go to Jobs → WIP Method → and select the most appropriate value.

There is a lof of additional functionality here that you can find out about by downloading the 5.0 Jobs whitepaper. You can find that in the download section here.

I’m not an expert on Jobs, but my impression is that setting the WIP Method to “Sales Value” would be most similar to the earlier setting. When using Sales Value:

Sales Value calculates WIP as the contract value of the price of job usage. Using this method means
that the revenue and profit (or loss) of the job will be recognized when the job usage is posted and
recognized.
The WIP Sales Amount is always posted to a liability (unearned revenue) account. If the WIP Amount is
positive, the WIP amount will be registered to an asset account as accrued revenue.
The WIP is calculated using the following formula:

• WIP Amount for Sales Value Method =
Usage (Total Price) * Contract (Total Price) ÷ Schedule (Total Price) - Contract (Invoiced)

• WIP Sales Amount =
– Contract (Invoiced Price), if WIP Amount is negative
– Contract (Invoiced Price) + WIP Amount, if WIP Amount is positive

• Recognized Sales Amount = Contract (Invoiced Price) + WIP Amount
• Accrued Sales Amount = WIP Amount, if WIP amount is positive
• WIP Cost Amount = Usage (Total Cost)
• Recognized Costs = Usage (Total Cost)

3

Thanks for your answer!

I have read the white paper and it didn’t help me.

Maybe I need to explain a bit more…

I have to examples of combinations of these two settings - and I wonder if somebody know which setting I should use to get the same result in 5.0?

First one:

“recognition method” = Costs

“job usage posting” = Percentage of completion

  • maybe I should use wipmethod=percentage of completion here

The second one:

“recognition method” = Prices

“job usage posting” = Completed contract

  • Wipmethod = Completed contract was my first guess but I think that one uses cost. Here it is preferable to use prices instead.
4

The general ledger entries are much more involved in 5.0. Therefore, there is no reason you should expect the postings to be exactly the same in 5.0 For example:

4.0 Job Posting Fields

  • Wip Cost Account
  • WIP Sales Account
  • Cost Account
  • Sales Account
  • G/L Exp. Sales Acc.

5.0 Job Posting Fields

  • WIP Costs Account

  • WIP Accrued Costs Account

  • Job Costs Applied Account

  • Job Costs Adjustment Account

  • G/L Expense Acc. (Contract)

  • Job Sales Adjustment Account

  • WIP Accrued Sales Account

  • WIP Invoiced Sales Account

  • Job Sales Applied Account

  • Recognized Costs Account

  • Recognized Sales Account

Job Usage Posting only indicates when the WIP values are moved into the Sales/Costs G/L Accounts. If you are using the Completed Contract method, you don’t have a choice in 5.0; you must use WIP mthod = Completed Contract. However, as you can see from the Job Posting Groups, both Sales and Cost will be represented in your WIP accrued accounts after invoicing. When the job is completed, those values will move to the Recognized Costs and Sales accounts.

I would adjust the posting accounts and the WIP recognition method (while looking at the documentation) that creates the postings to your WIP account in the manner you expect.

I would play with the different WIP methods and g/l account setups till you get the result you expect.