Understanding Revising Profit Recognition Information
After you generate profit recognition records, you might find that you need to make adjustments to the projected final amounts (revenue, cost, and profit) or change the percent complete on the job. Rather than trying to manipulate the factors that the system uses to calculate projected final amounts, which consists of removing the existing profit recognition records and regenerating them, you can manually adjust the projected final values, from which the system derives the profit calculation, using either the Single Job Adjustments program (P51440) or the Group Job Adjustments (P5144) program.
See Revising Profit Recognition Journal Entries.
If you select the P51440 program, you can review and update the information for one job only. If you select the P5144 program, the system displays the profit recognition information for all of the jobs that were updated for the version of the Profit Recognition Build program that you ran. The P5144 program is especially useful if you generated profit recognition records for multiple jobs within a project because you can review all of the information on one form.
Regardless of the program that you select, the system displays values from the profit recognition tables (F5144 and F5145). You can use the adjustment program to revise:
The profit recognition method.
If you want to compare the amount of profit based on cost versus revenue (or vice versa), you can change the profit recognition method. The system recalculates projected final values and the percent complete based on the method that you select.
Accrued or deferred costs.
If you want to increase actual amounts, enter the accrued cost as a positive number. If you want to decrease the actual amount, enter the deferred cost as a negative number. The system generates reversing journal entries to the accounts associated with AAI items JCAPO and JCAPC for accrued costs, and JCSMI and JCSMJ for deferred costs.
Projected final values.
If you enter (force) projected final amounts, the system recalculates the percent complete. The system updates the projected final values to the accounts associated with AAI items JCPFC (projected final cost), JCPFR (projected final revenue), and JCPFP (projected final profit) in the FA ledger.
Percent complete.
If you select the Percent Complete check box, the system changes the fields for projected final values to percent complete. The value that you enter depends on the profit recognition method. For example, if profit is based on costs, enter the percent complete in the corresponding cost field. If profit is based on revenue, enter the percent complete in the corresponding revenue field. The system recalculates and displays the projected final amounts based on the percent complete that you enter. The system updates the F% ledger with the percent complete for the account number of the job (this account does not have a cost code or cost type, only a job number).
Percent complete threshold.
If you lower the percent complete threshold, the system might revise amounts based on the value in the Deferred Method field. For example, if you recognize deferred profit in the period in which the percent complete is greater than the threshold percent, lowering the threshold might increase the amount of profit because it includes deferred amounts.
Individual accounts.
You can add or subtract amounts in the Revised Budget (JA) ledger and the Projected Final (HA) ledger accounts and view the Commitment (PA) ledger and estimate to complete values that are associated with the job.
Note: If you are using the JD Edwards EnterpriseOne Homebuilder Management system, when you run Profit Recognition Build you must enter 3 for the Summarization Level processing option to view the individual option types in the Single Job Adjustments program. After you make adjustments to the individual accounts, rerun the R15800 program.
Any revisions that you make using the job adjustment programs updates table F5144. When you are satisfied with the profit recognition information for the period, you can lock the version of the records to prevent unauthorized changes. When you lock a version, the system updates the G7ULCK (User ID Lock) field in table F5144 with the user ID. Locked versions can be unlocked only by the person who locked the job.
If you want to revise other factors that are related to estimating job profit, such as budget, actual, or commitment amounts, you must do so in the system of origin. In this case, you should delete the profit recognition version, enter the revisions, and rerun the R51800 program.