In recent times we have faced an issue in doing the period end closing based on Projects in SAP Business one. As we know that in period end closing there is no option to select the project code so the profit is not going to be divided based on projects and also the revenue and Expense Balances will not be transferred based upon project and this will end up in showing wrong project wise revenue and expense balance in the later year trial balance report. This blog explains how we handle the mentioned issue to have a flawless financial statement.
- Create a separate G/L Account code for every project in the Revenue and Expense Asset class and Mention the respective project code in Account code master
For E.g. If there are two Projects (PRJ1 and PRJ2) then we have to create two GL codes in revenue and Expense account class and map the respective project code for the respective Account Code
- Transfer the project wise balance to the newly created account code based on the project code through Journal entry. Use a common text in the ref1 field of the journal entry which will help us while generating the trial balance.
- Once we complete doing the posting start running the period end closing. So system will create two journal entries.
- Revenue and expense balances will be transferred to period end closing account code. In this Journal transaction Project code will be updated for expense and revenue g/l but the project field for period end closing g/l will be null
- The next journal transaction will transfer the value from period end closing account to the Retained earning account. Project details will not be updated for this journal entry.
- Once the period end closing was done we have to update the project code manually in both current year profit and retained earnings journal transactions. If the transaction is more then try to use data transfer workbench to update the project code. It is easy to identify he entry for updating the project code as the current year profit entry will be followed with the retained earnings journal.
- Now we can generate the trial balance based on projects where we can get the retained earnings and current year profit based on projects and also the project wise revenue and expense balance will be matching accurately.
Note: if you are doing the period end closing for the year 2015, to know the actual balance of revenue and expense for 2015 then in the trial balance selection criteria select “Expand” which will open Expand selection criteria window. Select the reference fields in ref1 header select the rule as not equal and enter the text I ask you to mention in the second point and run the trial balance. So you will get the project wise revenue and expense balance for the year 2015