Should project down payment value settle to AUC

[Former Member]

Dear all

i have two questions when settle the project to AUC

for example, the material cost for project A-01 in Dec is 2000 CNY

and down payment for project A-01 in Dec is 1000CNY

when i do the project settlement for Dec, the AUC value is 3000CNY

that is the total of material cost and down payment.

but i want to exclude the down payment value from AUC value when doing the settlement, how can i do?

the second question is, when i test run the settlement and check the sender,

i find the sender is 3000CNY with materil cost element for example 600900

but actually, it is not correct.

i created the cost element for down payment, but i can not see the line item.

how should i do? thanks a lot.

judy

[virendra_pal · Accepted solution]

the down payment ideally should be a financial transction and should not be a debit on the project

so ideally your material cost of 200 CNY should be transferred to AuC on settlement

if you are using the WBS to debit then I wiuld suggest that you use PREliminary settlement - add a settlement rule PRE to G/L account - the account for down payment - you will need to set up the source structure and add that in the settlement rue

This way 1000 CNY goes to G/L and the rest to AuC

[former_member835775 · Accepted solution]

Hi Virendra,

Thanks for your reply, but I would like to know how to handle this situation if a Cost element is having both expense as well as down payments. It will happen in those cases where you are paying down payment against PO and WBS is picked automatically by the system so it will book down payment against that WBS with Cost element picked from PO.

[former_member835775]

This message was moderated.