Policy
FIACCT 15-01_13 Project Accounting – Multi-Year/Full Cost
Effective: July 1, 1994
Revised:
Purpose
This policy provides a discussion of the multi-year and full cost capabilities using project accounting.
Policy
The departments using project accounting will be responsible for determining the length of time a project can have transactions recorded to it, and to close the project when it has ended.
It is the responsibility of the departments using the project charge transactions to record full costs to a project, to ensure the transaction is correct.
Background
When a project is established, the start and end dates are determined and entered on the project record. This allows multiple year projects to be budgeted for the life of the project and to remain open for multiple fiscal years. The detail transactions for the life of the project are maintained in an inception-to- date project ledger, which permits the reporting of detail data as long as the project is open.
The project is not closed at the end of each state fiscal year, but continues for as many years as the project takes to complete or close. The yearend processing and subsequent closing of the state’s financial records for a fiscal year does not affect projects. The project is closed when the project end date is reached and no further transactions need to be posted. The end date is set-up with the Project Master transaction, which is discussed in the Project Accounting – Project Transactions – Project Master Initial Entry and Modifications Entry Instructions section of this manual.
The recording of indirect and overhead costs is accomplished using the project charge (PX) transaction. This transaction posts these costs to the project ledger only, and does not post them to the general ledger, since the costs were not paid directly by the state. The usage of the project charge transaction allows costs such as local government or private participation to be charged to the project. Usage of the Project Charge transaction is discussed in the Project Accounting – Project Transactions – Project Charge Entry Instructions section of this manual.