Balance adjustments

Specify balance adjustments to migrate legacy balances. To update adjustments to LTD balances, project contract totals, and project funding source totals, run the Update Contract LTD Balances action. The balances are used to calculate invoice and revenue maximums.

LTD balances are invoiced and recognized balances for transactions that are finance code block-based expenses. These balances are not automatically updated when historical milestones and installments are created or when they are processed. Customers that are migrating from legacy systems should add legacy billed and revenue amounts as balance adjustments.

The balance adjustments and the LTD balance can be created without the finance code block for legacy invoiced amounts and revenue amounts. If any dimension of the code block is added, then the usual required rules are used. For example, if Account and To Account Entity are selected, then the other dimensions are required according to FEG setup.

Note: If the project contract contains milestones or installments, you can migrate the contract using the balance adjustments or the historical milestones, do not use both. If you use both options, the project contract and project funding source totals are updated. If legacy milestone amounts are included in both adjustment balances and historical milestone records, they are counted twice.

This list shows the circumstances for which balance adjustments are used:

  • Customers that go live mid-project and must update balances for project contract billing and revenue. Balances include total balances on the Main tab, posting project balances, and life to date balances by any part of the finance structure.
  • Customers that migrate from Lawson Enterprise Applications and make adjustments to the project contract billed and revenue balances.
  • Ongoing use for adjustments that were made to receivables. For example, write-offs that are not posted or included in billing and revenue balances.
  • When reconciling revenue recognition.