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How to configure Project Foreseeable Losses in Microsoft Dynamics AX 2012

by Muhammad Burhan
Dynamics AX consultant, Maison Consulting and Solutions
August 05 2014

The awareness of a project's losses in a preliminary stage is vital for project-based companies. When executing million dollars projects, it is imperative to arrange the finances so as to ensure projects are on track for long-term profitability and success.

For companies managing their project-based activities in Microsoft Dynamics AX 2012, the right configuration can give management visibility into any foreseeable loss. When the estimates of total project costs and revenues indicate a loss, then the provision of foreseeable loss is accounted on the project irrespective of percentage of work completion or the project accounting method followed (Percentage of work completion or completed contract).

In AX 2012, the amount of foreseeable losses provision is usually determined regardless of:

  1. Whether or not work has commenced on the project, and
  2. The percentage of work completion.

System setup and configuration for Foreseeable Losses

I am using the "USSI" Demo Company in Dynamics AX to configure Foreseeable Losses process for this article.  The steps below explain how to setup and configure the system for this process.

1. Create Accrued loss category by performing the steps below.

a. Create Category group for project accrued losses with transaction type "Expense".

Project management and accounting > Setup > Categories > Category groups
Category Groups

b. Create shared category for accrued losses and select the option "Can be used in Project".

Project ...

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About Muhammad Burhan

Presently I am working in Intergen Ltd a renowned Microsoft Gold Partner in New Zealand and Australia region as a Dynamics Consultant.

I have more than 13 years' industrial experience. I am experienced in implementing various ERP modules (Finance, Production, Supply Chain, Project Management and accounting and HRM) of Microsoft Dynamics AX 2009 & 2012 from initiation to closure.

As a Microsoft Certified Technology Specialist and PMP certified with a Masters degree in computer science, I have extensive technical skills, and the ability to work cross functionally in a time intensive environment, I eagerly await more career challenges that can be met by my enterprising attitude and organizational capabilities.

Implementation experience in the following industry sectors:

  • Construction Industry
  • Engineering and Contracting
  • Manufacturing
  • Ceramics and Porcelain Tile Manufacturing
  • Professional Services
  • Wholesale and Trading