This topic discusses changing the owning organization of a given project and how Costpoint can help facilitate this change. A project can have only one owning organization. This organization is used by various processes and reports within Costpoint. Changing the owning organization is a major event in the life of a project, so careful planning is needed before proceeding.
The automatic tracking of organization changes is optional in Costpoint but is highly recommended. You can use the Process Organization Changes utility to transfer balances from the old organization to the new organization in the General Ledger (G/L). This ensures that any processes that reference the G/L are correct. Additionally, the utility changes the organization of any open receivable in Accounts Receivable (A/R) history to ensure that the correct organization is used when invoices are paid.
You can turn on the automatic tracking of project owning organization changes by selecting the Track Owning Organization History check box on the Configure Project Settings screen. When this feature is turned off (the check box is cleared), you can change the owning organization on the Manage Project User Flow. Clearing the check box also disables the Org History subtask of the Manage Project User Flow, and you can save the screen without any further configuration. This decision assumes that balances will be transferred in the G/L and that the organization for any unpaid invoices in A/R history will be changed manually.
If you select the Track Owning Organization History check box, the Org History subtask is enabled on the Manage Project User Flow. When you change the owning organization and certain criteria exist (as described in the following section), the Org History subtask must be completed before you can save the screen. The configuration on the Org History subtask helps determine how the journal entries that transfer the balances from the old organization to the new organization are developed.
If you selected the Track Owning Organization History check box on the Configure Project Settings screen, the Org History subtask is enabled on the Manage Project User Flow. Note that you can create a new line on the Org History subtask only when prompted by Costpoint. This occurs when the Manage Project User Flow screen is saved and Costpoint has determined that the Org History subtask must be completed. You cannot create new lines by accessing the Org History subtask from the main screen. This allows Costpoint to check the project tables and determine when the subtask must be completed.
Since the Process Organization Changes utility was designed to facilitate the transferring of revenue, billing, or Cost of Goods Sold (COGS) balances in the G/L, a record for the project must exist in the Manage Revenue Information, Manage Project Billing Information, or Manage Cost of Goods Sold screen before the Org History subtask can be completed.
If the Allow Edit check box is cleared for the Owning Org on the main screen of the Manage Project User Flow, all lower-level projects in the project tree must have the same owning organization. Changing the owning organization at a higher level, when the revenue, billing, or COGS master records exist for a lower level, prompts the completion of the Org History subtask. In this instance, a non-editable row is inserted on the Org History subtask for all lower-level projects, even if they have a master record, because they all contain the same owning organization. Modifications to the Org History subtask can occur only at the higher level. The processed columns on the Org History subtask are changed, accordingly, for all project levels as the organization change process is completed. Note that the Journal Entry Number column is populated only for the projects where the G/L contains records that were transferred.
If the Allow Edit box is cleared, this means that a lower-level project may have a different owning organization, and each project is evaluated separately. In this instance, if a revenue, billing, or COGS record does not exist for the project with an organization change, the Org History subtask need not be completed.
If all the conditions have been met and the owning organization is changed, the following message displays when the screen is saved: "Changing the Owning Org may cause journal entries to be computed. Do you wish to continue?" Clicking No causes the owning organization to revert back to the original organization, after which you can save the screen. Clicking Yes causes the Org History subtask to open and a new line to be created.
As noted previously, the information on the Org History subtask determines how the journal entries transferring the G/L balances are developed.
If you change the organization on the Manage Project User Flow and click Yes when the "Changing the Owning Org may cause journal entries to be computed. Do you wish to continue?" message displays, the Org History subtask opens and the Previous Owning Organization and New Owning Organization columns are populated. If you do not want to continue with the organization change, click Cancel before completing the Org History subtask. This clears the subtask and reverts the owning organization back to the original organization on the main screen.
After you complete the Org History subtask, click 
to remove an unprocessed row and the owning organization will revert back to the original organization on the main screen. Only one unprocessed row can exist on the Org History subtask. Unprocessed means that either the Journal Entry Processed or the A/R History Processed column is populated with an N (No). You cannot delete a row if it has been partially or fully processed; you must finish the organization change process and the row is retained on the Org History subtask for audit purposes.
After an organization change row has been fully processed, it is retained on the Org History subtask and the project is eligible for future organization changes, which are also stored on the Org History subtask.
The columns on the Org History subtask must be populated as follows:
Previous Owning Organization — The column displays the current owning organization of the project that you want to change. Note that this column can be populated only by saving the Manage Project User Flow after the changing the Owning Org and clicking Yes when the following message displays: "Changing the Owning Org may cause journal entries to be computed. Do you wish to continue?"
New Owning Organization — This column displays the new owning organization of the project. Note that this column can be populated only by saving the Manage Project User Flow after the changing the Owning Org and clicking Yes when the following message displays: "Changing the Owning Org may cause journal entries to be computed. Do you wish to continue?"
Effective Fiscal Year — Enter, or click 
to select, a valid fiscal year when the organization change becomes effective. The effective subperiod for the organization change is the subperiod where the transfer balances journal entry is created. Even if a later subperiod is selected on the Process Organization Changes screen, the journal entry is still created in the effective subperiod and includes only balances up to and including the effective subperiod.
Effective Period — Enter, or click to select, a valid period when the organization change becomes effective.
Effective Subperiod — Enter, or click to select, a valid subperiod when the organization change becomes effective.
Retroactive — This column is related only to transferring Year-to-Date (YTD) G/L revenue. The other balances, such as billed, unbilled, and Work-In-Process (WIP), are always transferred inception-to-date.
If the Retroactive column is Y (Yes), the G/L revenue balance retroactive to the beginning of the fiscal year is transferred from the old organization to the new.
Example Journal Entry (1.2 is the old org; 1.3 is the new org):
Dr. Revenue 1.2
Cr. Revenue 1.3
If the Retroactive column is N (No), the YTD G/L revenue balance is retained with the old organization. The YTD revenue balance is still recorded to the new organization, but is offset with an entry to the CONTRA-REVENUE account. Because the Post Revenue process compares the project ledger with the G/L on a YTD basis and posts the difference, the YTD revenue must exist for the new organization or duplicate revenue will be posted. Use of the non-retroactive option requires that an account be established in the Project Account Group (PAG) on the Manage Project Account Groups screen and be assigned a Function Code of CONTRA-REVENUE. Only one account per PAG can be assigned the CONTRA-REVENUE function code. The CONTRA-REVENUE account does not appear in the project ledger; it appears only in the G/L as a means to offset revenue for non-retroactive changes.
Example Journal Entry (1.2 is the old org, 1.3 is the new org):
Dr. Contra-Revenue 1.3
Cr. Revenue 1.3
Journal Entry Processed — This non-editable column is initially populated with N (No). It changes to Y (Yes) when the Process Organization Changes utility is successfully executed.
Journal Entry Number — This non-editable column is initially blank. It is populated with the journal entry number when the Process Organization Changes utility is successfully executed.
A/R History Processed — This non-editable column is initially populated with N (No). It changes to Y (Yes) when the Process Organization Changes utility is successfully executed.
Date — This non-editable column is populated with the date on which organization change was entered, modified, or processed.
Modified By — This non-editable column is populated with the user entering, modifying, or processing the organization change.
Changing the owning organization is a major event in the life of a project. You start changing the organization after all processing is completed for a given period and there are no unposted transactions. Ideally, you begin the organization change immediately after you finish processing for the period before the effective subperiod. This ensures that the journal entry transferring the balances takes place in the effective subperiod and includes the balances up to and including this subperiod.
The process begins when the organization has been changed on the Manage Project User Flow and a row added to the Org History subtask. Some processes depend on this home organization, which has been configured for a change but has not been fully implemented. For this reason, certain processes, such as Compute Revenue, Post Revenue, and Create Cost of Goods Sold Entries, cannot be executed for the project if there are any unprocessed rows on the Org History subtask. Unprocessed means that either the Journal Entry Processed column or the A/R History Processed column is populated with an N (No). The following message displays if the subperiod being processed is equal to or later than the effective subperiod: "There is an unprocessed row in the Organization History table for project XXXXX. You must first process that row." The message is not displayed if the processing subperiod is before the effective subperiod.
After the Process Organization Changes process has been completed, both columns display Y (Yes), and the revenue and COGS processes can be executed.
You must run the Process Organization Changes utility twice. The first run generates a journal entry, transferring the appropriate balances from the old organization to the new. After reviewing and posting this journal entry, run the Process Organization Changes utility again to update A/R History and change the organization for any unpaid invoices. See the following sections for more information.
After selecting the projects and subperiod, select the Create Journal Entries option in the Select Process group box to begin generating the journal entries transferring the balances from the old organization to the new organization.
The process includes each account from the project’s PAG with the following function codes:
REVENUE
ALT REVENUE
BILLED A/R
UNBILLED-GENERL
UNBILLED-RETAIN
BILLD AR-PRGRSS
PRGRSS-LIQUID
PRGRSS-UNLIQUID
WIP TRANS OUT
The balance, up to and including the effective subperiod, transfers from the old organization to the new organization. With the exception of REVENUE and ALT REVENUE, each account is a balance sheet account and, as such, their prior year's balance rolls forward into the current fiscal year. So the balance transferred for these accounts is ITD. REVENUE and ALT REVENUE accounts are income statement accounts and, as such, their prior year ending balance is netted out into retained earnings as part of the fiscal year roll forward. So the balance for these accounts is YTD.
If the project has been set up to post revenue by performing organization on the Manage Revenue Information screen, the Process Organization Changes utility does not transfer the revenue balances for these projects. Since it was decided that revenue posts to the performing organizations, a change in the owning organization does not cause the creation of a journal entry and duplication of revenue does not occur.
Note that a separate journal entry is created for each project and is inserted into the effective subperiod from the Org History subtask. These journal entries are designated with the Adjusting journal entry type. The Journal Entry Number column on the Org History subtask is populated with the appropriate number.
The transaction validations are not enforced when the journal entry is created because it is typical to have the Allow Charging check box cleared on the main screen of the Manage Project User Flow for the revenue level project.
If a project is posting revenue by performing organization but has no billing master record, the Process Organization Changes utility does not transfer the unbilled balances because revenue is transferred only for projects that post revenue by owning organization. Since there is no billing master record, any unbilled transfer must be completed with a manual journal entry.
After creating the journal entry, review and post it. If you do not post the journal entry, Costpoint displays the following message when you try to update the A/R history: "There is unposted JE number XX for the project XXXXX. You must first post this journal entry."
Additionally, if any unposted cash receipts are found for this project, the following message is displayed: "There is unposted cash receipts number XX for the project XXXXX. You must first post those cash receipts."
After all the requirements have been met, you can execute the Update A/R History option. This process changes the organization from the old organization to the new organization in the A/R history tables for invoices with a balance due.
The Process Organization Changes utility does not change the transaction history in the general ledger or project ledger. These are preserved to provide historical data and provide a clean audit trail.