I am seeing a group of weird transaction on the transaction list of the Project Management Revenue Recognition screen. This project has not incurred any actual material costs yet, it only has estimated mtl costs. For some reason a process has caused a Mfg-Var transaction to hit every Phase Job on this Project with the same material costs with a reference of Manual Wip to COS recognition.
None of the Phase Jobs have estimated or actual costs. No one manually recognized any costs for this project yet, so I dont know where the Material Cost dollars came from nor why they show a Mfg-Var transaction blown down to every phase job even though none of those jobs have any type of mtl costs.
Any help on this head scratcher would be appreciated!
Has any labor been applied to them? From the Posting Engine Tech Ref:
MFG-VAR: Post Labor Cost to WIP and Variance Accounts
Executed for MFG-VAR transactions. Posts Labor Cost to WIP and Variance Accounts. Debit and Credit Accounts depend on the sign of the Labor Cost amount.
In fact, there are several things that can create the MFG-VAR, and not all are materials related.
Thanks for the reply @ckrusen.
All Project Phase jobs for the same Project. One is a MFG Job with only estimated MTL cost. No other job has time or material. There is no labor on any of these jobs.
The problem isn’t necessarily the MFG-Var transaction, it is this: Why is the manual Epicor Revenue Recognition process posting the same material costs to every job on that project even though only one has any costs whatsoever on it.
The fact that the first 7 lines have the same exact systime, indicates they were all created at once. Are there any trans that “undo” those? Like if someone did something on 3/31 (which created those trans), and then “undid” them on 4/1.
Change the GroupBy from Sysdate to Job, and see if there are offsetting trans per job.
Now that I can answer. This is working by design. Until Revenue Recognition by Phase appeared in 10.2.400, the unit of recognition was the Project so the costs were spread across every open phase. I haven’t tried Rev Rec by Phase but it SHOULD now keep the Revenue and Costs together at the phase level.
These transactions coincide with a Manual recognition of a material cost transaction done in the Revenue Recognition screen for this Project. No Actual material receipt or issue transactions at the job level have been done for this project yet. We recognize a percentage of material costs when we bill the first milestone even though we have no taken on any actual material costs at he time.
Just a guess, but when Mtls are actually charged to the project, then offsetting MFG-VAR transactions will be created. Like if you don’t issu all the materials to a job, and receive it into stock. A MFG-VAR is created. Then after those missed materials are issued to the job, another MFG-VAR is created, but with an opposite sign. Again, just a guess (we don’t use Proj Mang)
Yes they do reverse. There is a setting to Rev Recon Reversal at Shipping on the Project… What I cannot figure out is why is the MFG-Var transaction hitting every Project Job that has no materials on them, and not just the one job that has all the materials.
Thanks Mark. I do not like that feature at all. But thank you for the reply. That at least tells us why its doing it. The other question I had was that the PM manually recognized $1000 in material cost today and no revenue, but the EPicor transaction MTL Cost amount was only $248. Its doing some kind of math behind the scenes but I dont know why. They wanted the $1000 to be recognized.
We, and at least one other Project user on this list, cheat when it comes to target cost recognition. We close the job. Then we reopen it to accept more costs if necessary. Not pretty, but it does the job.
The important caveat is that you have to zero out the cost columns when recognizing revenue. Like I said, ugly process.
And I don’t think one can change a project started as Project Recognition into one that’s Phase Recognition…
