Preparing for period closing
Even if you do not run the closing program for Project Accounting, you should consider the order in which other processes occur toward the end of a period and how they affect subsequent processes. Each of these items is conditional, based on how you use Project Accounting and Billing and Revenue Management.
Use this table to identify timing considerations for activity-related processes that generally occur at the end of an accounting period:
| Process | Considerations |
|---|---|
| Activity allocations | Before processing activity allocations, process and post all cost and revenue transactions that affect pools or drivers.
See Allocations overview. |
| General Ledger allocations | Before processing General Ledger allocations, process and post all transactions including billing, revenue, and activity allocations that can affect General Ledger allocations.
See General Ledger Allocations User Guide. |
| Capitalization | Before capitalization occurs, process all cost transactions, including General Ledger and activity allocations, that affect the activities you are going to capitalize. |
| Billing | Before billing occurs, process and post all transactions, including allocations, that affect cost plus, pass thru, or time and materials billing. Burdens and fees that apply to billing are posted automatically when you update transactions using Activity Posting (AC190).
See Billing and Revenue Management User Guide. |
| Revenue recognition | Before revenue recognition occurs, process and post all transactions, including allocations, that affect full accrual, percent complete, completed contract, or cost plus revenue recognition. |
| Encumbrances | Process encumbrances on the last day of the period. Encumbrances are based on current activity commitments, which are dynamically updated from Lawson applications. You should process encumbrances only once per period. |
Note: You must perform multiple iterations of each process to accomplish the results you require. For example, you must process activity cost allocations before processing revenue recognition and process additional revenue allocations after processing revenue recognition.
Note: Activity-related transactions can originate in Project Accounting, Billing and Revenue Management, other Lawson applications, or non-Lawson applications. Ensure you update Activity Posting (AC190) and Accounting Unit Balance Post (AC191) as part of posting transactions to Project Accounting and Billing and Revenue Management, regardless of where the transactions originated.