Reopening Projects

You use the following forms, available in the Reopen Projects subfolder (in the Periodic Processing folder) to reopen projects you closed previously:

• You use the Create Reopen Projects Worksheet form to select closed projects that you want to reopen and to generate reversing entries for any revenue that was recognized on completion of the projects. The entries are added to a Reopen Projects Worksheet that you can view, edit, and post.

• The Reopen Projects Worksheet lets you edit the entries generated by the Create Reopen Projects Worksheet form. It also lets you post the worksheets.

To reopen any project, you must create and post a Reopen Project Worksheet that includes the project, even if no general ledger entries are created to reverse revenue recognition.

You can create the worksheet only for one contract at a time, but you can reopen a range of projects for the contract. The resulting worksheet lists the projects selected for reopening, and it may also include entries to reverse revenue you recognized on closing the projects, previously.

Reversing Recognized Revenue

Whether a project requires reversing entries depends on the project's accounting method:

• For projects that use a billings and costs or accrual-basis accounting method, reversals are not required. (The program recognizes revenue on a transaction basis.)

• For projects that use a completed project accounting method, all revenue recognition entries must be reversed.

Because the program can reverse only entries that have not been cleared, you must manually reverse revenue recognition entries for cleared transactions.

Project and Job Costing lets you choose whether to reverse revenue automatically. If you choose not to create reversing entries when you reopen the project, the program resets the project’s status to open, but does not create any general ledger entries.

• For projects that use a percentage complete accounting method, only the entries that resulted from closing the project are reversed. Revenue that was recognized before the contract was completed is not reversed.