Reversal Accounts

This entry is part 15 of 16 in the series Focus Guide - BFA: Budgets

Project contingency accounts are frequently used to accommodate unexpected costs during a project’s life cycle. Funds are often redistributed so the net change of revenue or costs remains zero. A Budget Reversal Account can help with this redistribution.

You can designate any Account Category as a Reversal Account while making your revisions. In fact, you can change the Reversal Account several times during your session. Revenue Reversal Accounts can be used for revenue only; likewise, expense Reversal Accounts can be used for expenses only. The Reversal Account is not saved when you leave the BFA workbook.

Once you assign a Reversal Account, changes you make to another row will affect both that row and the Reversal Account row.

For example, you assigned Site Work_MTRL PERM as your Reversal Account. You then added $1000 to Demolition_MTRL PERM. $1000 will be added to Demolition_MTRL PERM, and $1000 will be subtracted from Site Wore_MTRL PERM.

To assign a Reversal Account:

  1. From the Budget ribbon, select Assign Reversal Account.
  2. From the drop-down lists, select the Cost Code and Account Category to assign as a Reversal Account.
  3. Click OK. The corresponding row will be designated as a Reversal Account. There will be no visible change to your worksheet until you make changes to other Account Categories.

 

To view, change, or remove your Reversal Account:

  1. From the Budget ribbon, select Assign Reversal Account.
  2. Notice the existing Reversal Account on the Assign Reversal Account pop-up window.

    – If you wanted to see which Account is currently the Reversal Account, click Cancel.
    – If you wanted to change the Reversal Account, select a new Cost Code and Account as your new Reversal Account.
    – If you want to remove your Reversal Account, select the Remove Reversal Account checkbox.
  3. Click OK. Your future changes to the worksheet will use the new Reversal Account or no Reversal Account, depending on your choice.

Note: The status line will reflect all changes to the worksheet, regardless of how many Reversal Accounts you used.

Note: If you try to make changes to your Reversal Account, the following warning will appear:

The Status Bar will be updated.

 

 

 

Series Navigation<< Budget TypeReviewing Prior Budgets >>