USA Project Accounting Customers

[POC-controller]

I work in a POC project accounting organization. Typically, we have one project per contract/customer. We are starting to 3D print parts on a small scale, and I was wondering if it is acceptable to create one blanket project for this that will have a mix of POs from different customers. Thanks!

 

[DrStrangeLove]

I'm unclear on what your organization does--what does POC stand for? Proof of concept? Like, are you making prototypes of objects/mechanisms for your customers?

 

[POC-controller]

We are a project based automotive tooling supplier. We utilize Percentage Of Completion accounting for our long-term contracts. The 3D printing, however, will be more of a production based system and not long term. I feel that I will have to create an additional profit center for this and recognize revenue based on invoicing. I appreciate the reply!

 

[DrStrangeLove]

OK, now I'm clear on your situation. Thanks for clarifying.

From what you describe, I agree you'd have to set up a separate profit center, if only because percentage-of-completion isn't appropriate for 3D printing batch jobs produced for a short-term order process.