Closing Projects
Marking a project Completed is the first step in closing the project.
The next time you recognize revenue, the revenue recognition function performs some extra steps for projects marked Completed:
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It recognizes any revenue or costs not recognized previously (from manually entered invoices or due to non-labor costs incurred on projects that use the labor hours percentage complete accounting method).
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It clears the project-related amounts from the billings and work in progress accounts.
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When you post the revenue recognition worksheet, the program asks whether you want to close the project. If you choose Yes, the program marks the project Closed.
If you do not close completed projects at that time, you can close them later by choosing the option Include Completed Projects (For Closing) when you create a subsequent revenue recognition worksheet.
A project can be completed at any time, even if you have not fully billed the customer or completely recognized the revenue for the project. (That is, total costs and billings do not need to match the estimated costs or revenue for the project to be completed.)
You can close projects for which there is outstanding retainage receivable or retainage payable. However, you will have to reopen the project if you want to post retainage documents, later.
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