Project Cost Accounting for Government-Funded and Reimbursable Projects

Hello Experts!

We have business requirements for a Government-funded project, where project costs will be assessed based on the Government's eligibility criteria and classified as reimbursable or non-reimbursable.

The objective is that reimbursable project costs are offset against the Government funding, resulting in zero net project cost when 100% reimbursement is received.

Scenarios to be Supported

• Scenario 1 – 100% Reimbursable: Full project cost is reimbursed by the Government, so the project cost is fully offset.
• Scenario 2 – 100% Non-Reimbursable: Full project cost is not reimbursed and is transferred to the appropriate OPEX/CAPEX account.
• Scenario 3 – Partially Reimbursable: The reimbursable portion remains under the project for recovery, while the