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The adjustments to the CIE and BIE are recorded to indicate the difference between the new amounts and the amounts that are currently in the POC table.

Setting

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Up Loss Recognition

To set up the loss recognition feature, you must:

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1. Select Microsoft Dynamics GP > Tools > Setup > Job Cost > Job Cost Setup > Posting Options.
2. Mark the Use Job and Project Loss Recognition checkbox.
3. Mark the Automatically include all jobs and projects in a loss situation checkbox if you do not want to manually mark jobs and projects for inclusion in the loss recognition journal entry. If you select this option, any job or project that qualifies will be automatically marked for inclusion when the Loss Recognition Edit List is printed.
4. If you want to include billings in the calculation for the loss recognition journal entry, mark the Include Billings in Loss Recognition checkbox. See the example above for more information on including billings.
5. Select Save.

Setting

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Up Loss Recognition Accounts

Complete the following steps to set up accounts for the loss recognition journal entry.

1. Select Microsoft Dynamics GP > Tools > Setup > Job Cost > Account Setup > Revenue Accounts. The Revenue Recognition Account Setup window opens.
2. Select a Division, then use the Revenue and Exp Accounts button to open the Revenue and Exp Account Setup window.
3. Provide account numbers for the following:
   • Costs of Loss Recognition
     The account for the cost expense (debit amount) in loss recognition journal entries.
   • Accrued Costs\Costs in Excess
     The account for the accrued costs or Costs in Excess (credit amount) in loss recognition journal entries.
   • Billings in Excess
     The account for the Billings In Excess (credit amount) in loss recognition journal entries.
4. When you are finished, select Save.

Setting

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Up the Next Document Number

Complete the following steps to set the next document number for the loss recognition journal entry. The system will automatically assign the journal entry number based on the next document number.

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Like the edit list and posting journal, the information that appears on the audit report depends on whether billing was included in the loss recognition journal entry.

Note

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About Closed Jobs and Periods

When you open a closed job, and that job is in a loss position, the job will be included in the next loss recognition entry.

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