Use this screen to compute the Cost of Goods Sold (COGS) transfer journal entry. This entry transfers the Work In Process (WIP) project costs, which have been recorded per your setup, from the Balance Sheet to the Income Statement. These WIP costs are stored on the Balance Sheet until they are transferred to the Income Statement as COGS.
The timing of this process depends on the method selected in the Calculation Method field in the Cost of Goods Sold screen (Projects\Maintain\Project) for each project. Run the following processes based on that selection:
If you have selected "Billed Amount & Estimate at Completion" or "Delivery Amount & Estimate at Completion" as the calculation method, create this journal entry after posting your bills.
If you have selected an estimate-to-complete method ("Billed Amount & Estimate To Complete" or "Delivery Amount & Estimate to Complete"), you should post bills and compute the burden before creating the COGS journal entry. This ensures the WIP costs have been updated for inclusion in the COGS entry. You must run the Compute Burden Cost screen (Projects\Process\Project) again after posting the COGS entry.
Execute the Compute Burden Cost screen (Projects\Process\Project) after creating and posting the COGS journal entry to ensure that the transferred costs are properly included on project reports.
Use the fields in this block to create a new parameter ID or to retrieve a previously saved parameter ID. A parameter ID represents a set of screen selection parameters. Once you have saved a parameter ID and its related parameters, you can retrieve them using Query.
You can use the retrieved parameters to produce reports and run processes more efficiently and with greater consistency. Many users save a unique set of parameters for each different way they run a report or process. If you select a previously saved parameter ID or parameter description, the associated saved screen selection parameters will automatically display as selection defaults. You can change any of the associated selection defaults as necessary.
Enter, or use Query to select, a parameter ID of up to 15 alphanumeric characters. You should choose characters for your parameter ID that help identify the type of selections you made in the screen, such as “PERIOD” or “QUARTERLY.”
When you save your record, all the selections made in the screen are stored with the parameter ID. Later, you can retrieve the parameter using Query.
You can use the parameter to produce reports and run processes more efficiently because you can select the parameter ID with its previously defined screen selections. Once the default selections display in the screen, you can override the defaults as necessary.
Enter, or use Query to select, a parameter description of up to 30 alphanumeric characters.
Use the fields in this block to select the range of projects to include in the process. You can also select the ending subperiod for which you want to include WIP costs.
Project *
Use this drop-down box to select the range of projects that you want to include in the process. The following options are available:
All - Select this option to include all available projects. The Start and End fields are disabled for this option.
One - Select this option to include only one project. You must enter that value in the Start field. The End field is disabled for this option.
Range - Select this option to include a contiguous range of projects. You must enter the beginning value for the range in the Start field and the ending value of the range in the End field.
From Beginning - Select this option to include all the projects from the beginning of the available projects to a specific project in the range. You must enter the last value for the range in the End field. The Start field is disabled for this option.
To End - Select this option to include all the projects from a specific project to the end of all the available projects. You must enter the value from which the range should begin in the Start field. The End field is disabled for this option.
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Note: Only those projects that have a calculation method selected in the Cost of Goods Sold screen will be included in this process regardless of the selections made in this block. |
Enter, or use Lookup to select, a starting project number for the range that you want to include in the process.
If you select "One," "Range," or "To End," in the Projects Option field, you must enter a project number in this field.
If you select "All" or "From Beginning" in the Projects Option field, this field will be inactive.
Enter, or use Lookup to select, an ending project number for the range that you want to include in the process.
If you select "All," "Range," or "From Beginning" in the Projects Option field, you must enter a project number in this field.
If you select "One" or "To End" in the Projects Option field, this field will be inactive.
Ending Subperiod
This non-editable field displays the "From Beginning" option. This is because you can only run this process for one accounting period at a time.
Enter. or use Lookup to select, the ending fiscal year you want to use in the computation of the journal entry.
Period *
Enter, or use Lookup to select, the ending period you want to use in the computation of the journal entry.
Amounts incurred in periods up to and including this period are included in the journal entry.
Subpd *
Enter, or use Lookup to select, the ending subperiod you want to use in the computation of the journal entry.
Amounts incurred in subperiods up to and including this subperiod are included in the journal entry.
This non-editable field displays the ending date of the subperiod entered in the Subpd field.
Use the fields in this block to select a rate type.
Use the radio buttons in this group box to select the rate type you want to include in the journal entry. This selection should be consistent with the rate type used to post revenue. It is not used in the creation of the COGS journal entry unless the COGS calculation method is "Billed Amount & Estimate at Completion" as selected in the Cost of Goods Sold screen. This rate will be used in the computation of indirect costs.
Select this radio button to use the actual rate from the Pool Rates subtask of the Cost Pools screen (Projects\Maintain\Allocations) to calculate the indirect costs.
Be sure that you have calculated indirect rates for the period entered above.
Select this radio button to use the target rate from the Pool Rates subtask of the Cost Pools screen (Projects\Maintain\Allocations) to calculate the indirect costs.
Be sure that you have entered the indirect rates for the period entered above in the Pool Rates subtask.
* A red asterisk denotes a required field.
This process will automatically insert data into the JE_HDR (Journal Entry Header) and the JE_TRN (Journal Entry Transaction) tables.
