Recognize Revenue
Overview
Before
you start
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Mark as Completed any projects that you need to close.
To create a revenue recognition worksheet:
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Open Project and Job Costing > Periodic Processing > Revenue Recognition > Create Rev. Rec. Worksheet.
Click here for help on the fields that appear on the Create Rev. Rec. Worksheet form.
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Enter
header information for the worksheet.-
Accept the New entry in the Worksheet Number field to let Project and Job Costing assign the next revenue recognition sequence number to the worksheet.
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Enter a description for this revenue recognition run.
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Identify the period for which to recognize revenue using the following fields:
Depending on your choice in the Cutoff By field, the program displays a Year/Period field or a Cutoff Date field.
The program uses this field to determine which costs and charges to include when calculating percentage complete for the project or category (depending on the accounting method).
Select a year and period or a transaction cutoff date.
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In the Worksheet Date field, enter the date for the revenue recognition entries.
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If you want to change the fiscal year and period to which the entries will be posted, click the Zoom button beside the worksheet Year/Period field, then edit the posting date on the Posting Date Override form that appears. (The posting date determines the fiscal year and period to which the entries are posted .)
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Use the following fields to specify selection criteria, if you want to limit the contracts, projects, and categories for which to recognize revenue:
You can select:
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None, to include all contracts, projects, and categories in this revenue recognition run.
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Contract, Project, Category, then select specific ranges of contracts, projects, and categories.
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Account Set, to recognize revenue for all projects that use the account set that you specify in the adjacent field that appears.
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Project Type, to recognize revenue for all projects that use the project type that you specify in the adjacent field that appears.
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Accounting Method, to recognize revenue for all projects that use the accounting method that you specify in the adjacent field that appears.
Include
Contracts On Hold/Include Projects On Hold.
Include
Projects With No Costs.
This option lets you recognize revenue for fixed price projects that use the Project Percentage Complete accounting method, even if no cost transactions were posted for them during the period.
You can then specify a completion percentage right on the revenue recognition worksheet.
Include
Completed Projects (for closing).
This option lets you close projects for which there have been no recent transactions.
You would use this option, for example, if you did not close a project when posting the final revenue recognition worksheet for a completed project.
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Click Generate to create a worksheet that contains revenue recognition entries for the selected contracts, projects, and categories.
After
creating the revenue recognition worksheet
Verify the revenue recognition entries, and then post the worksheet.
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To display the worksheet, open Project and Job Costing > PJC Periodic Processing > Revenue Recognition > Revenue Recognition Worksheet, then use the Worksheet Number field to display the worksheet you created.
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To check the entries created for a project, select the project on the revenue recognition worksheet, then click the Details button.
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When you are satisfied that the entries are correct, click Post to post the worksheet.