Use this function to calculate the revenue recognition for a single project on a specific date.

To process revenue recognition for multiple projects, see Revenue recognition validation.

You must have defined a Revenue recognition code in Revenue recognition rules and assigned that code to the project before being able to run this calculation.

About Revenue recognition

As a complement to the Project management (PJM) module, revenue recognition allows you to determine the method in which each project recognizes the revenue based on one of three methods:

Manual percentage entry

Percentage of costs with estimated margin at completion

Percentage of costs without estimated margin at completion

These methods, in conjunction with the project-related journal entries to the deferred revenue and cost accounts, allows the Revenue recognition function to calculate the values that should be recognized and then posted to the revenue and cost accounts.

Setup

After you have defined a Revenue recognition code in Revenue recognition rules, you can assign that code to projects in Project management. Before calculating revenue recognition for a period, you need to select the Revenue recognition checkbox in Financial snapshots. This way, you have the most up-to-date values for any of the project-related calculation such as estimated cost at completion and subsequent calculations.

Calculating and posting

When a project milestone or a performance obligation is met, you can calculate, validate, and then post the recognized amount. The Revenue recognition function is used to generate entries for a single Revenue recognition code and Project. When you want to process revenue for multiple projects, you can use the Revenue recognition validation function to process entries in a workbench format.

Prerequisites

See also Refer to documentation Implementation

Screen management

Header

Identification

Revenue recognition code (field RRCC)

Enter an existing Revenue recognition code.
Description (field DESTRA)

This field displays information from the Revenue recognition code setup and cannot be modified.
Company (field CPY)
Revenue recognition method (field RRECMET)
Status (field STA)

This field displays the status for the current revenue recognition calculation:

  • To be processed: You created the record, but it is not yet calculated.
  • Awaiting validation: You calculate the amounts.
  • Validated: You validated the amounts and they can no longer be adjusted.
  • Simulation posted: You posted the record using a simulation generation type (active or inactive).
  • Posted: The amount is posted to the general ledger.

Project/dimension

Calculation basis (field REVTYP)

This field displays information from the Revenue recognition code setup and cannot be modified.
Dimension type (field DIE)
Analytical dimension (field CODDIM)
Ledger type (field LEDTYP)
Project (field OPPNUM)
Access code (field ACS)

This field displays information from the Revenue recognition code setup and can be modified or left empty.

Tab Posting

This Columns grid displays data after you click Calculation.

You can use the Adjusted amount column to modify the calculated amounts for the following Column types:

  • Est. cost at completion
  • Percentage at completion
  • Net recognized revenue
  • Net recognized cost

When an amount is updated, the amounts in subsequent columns are updated and if the context changed, from Sales accruals to Invoices to be issued for example, the account is reinitialized accordingly.

Generation

Generation type (field GENTYP)

Select the generation type for the calculation.

Actual: This generates a journal entry integrated into the balance, so it is visible in the inquiries and printouts. The related entry status depends on the FRADGI - French fiscal regulation parameter (TC chapter, CPT group) setting for the company:

Yes: The Entry status is Final.

No: The Entry status is Temporary.

Active simulation: This generates a journal entry integrated into the balance, so it is visible in the inquiries and printouts. The related Entry status is forced to Temporary.

Inactive simulation: This generates a journal entry not integrated into the balance and not visible in inquiries and printouts. The related Entry status is forced to Temporary.

Entry status (field GENSTA)

For an actual generation, you can select Temporary or Final. For active or inactive simulations, the status is Temporary.

The default status depends on the FRADGI - French fiscal regulation parameter (TC chapter, CPT group) setting for the company:

Yes: The Entry status is Final.

No: The Entry status is Temporary.

Additional information

Entry date (field INIDAT)

When you enter the date, remember that revenue can be recognized at any time, but the relevant period end date and posting date are always used to determine the data used in the calculation.
Reversal date (field REVDAT)

This date defaults to the first day of the period following the reference date.

This date generates the reversal journal entry, which must be part of an open fiscal year or period.

Previous entry date (field PREDAT)

This date defaults to the first day of the period following the reference date. This date generations the reversal journal entry, which must be part of an open fiscal year or period.

Currency (field LEDCUR)

This value defaults from the project and cannot be modified.
Category (field OPPTYP)
Identifier (field NUM)

The identifier is automatically created when you validate the calculation. It is then assigned to the relevant financial snapshot.

Revenue posting

Entry type (field TYP)

The entry type is based on the ENTTYPEXP - Rev. rec. expense entry type parameter (TC chapter, REV group) setting.
Debit account (field DEBACC)

This account is defined in Accounting code lines function. The default accounts are used when generating revenue recognition journal entries. The accounting code lines are linked to the project type.
Credit account (field CDTACC)
Comments (field CMT)

You can enter comments any time before validation. These comments display in the Default description field in the journal entry.

Journal number (field JOUNUM)

This field displays the related journal entry number.

Expense posting

Entry type (field TYPEXP)

The entry type is based on the ENTTYPEXP - Rev. rec. expense entry type parameter (TC chapter, REV group) setting.
Debit account (field DEBACCEXP)

This account is defined in Accounting code lines function. The default accounts are used when generating revenue recognition journal entries. The accounting code lines are linked to the project type.
Credit account (field CDTACCEXP)
Comments (field CMTEXP)

You can enter comments any time before validation. These comments display in the Default description field in the journal entry.

Journal number (field JOUNUMEXP)

Tab Definition

Grid Columns

Column name (field NAMCOL)

This field displays information from the Revenue recognition code setup and cannot be modified.
Calculated amount (field ORIAMTLED)
Adjusted amount (field AMTLED)

Depending on the Column type, you can enter an adjustment to the calculated amount. After making adjustments, you need to recalculate to update the Calculated amount field.

This applies to the following Column types:

  • Est. cost at completion
  • Adjusted percentage
  • Adjust. net recognized revenue
  • Adjust. net recognized cost
Journals

Select this option to view the journal entries used to calculate the Actual revenue and Actual cost column types. A new screen opens that displays information such as the account, company, accounting date, document number, ledger debit or ledger credit, and the project and entry statuses.

WarningYou cannot drill down when the Calculation basis is Dimension for an Actual Generation type.

Text

To facilitate inquiries after revenue recognition has been posted, you can enter a comment on a line for a specific amount or on the header for the entire record. You can also add an attachment.
Formula description

If you entered a custom formula, you can view the details by selecting this option.

Specific actions

When you are satisfied with the Calculated amounts, click Validation. After validating, you can no longer make any changes or adjustments. Validating automatically generates the Identifier.

After validation, you can post the calculated revenue recognition amounts to the selected debit or credit accounts.

Before posting the revenue recognition amounts, you can cancel the validation which resets the status to Awaiting validation.

Click this action to view the generated journal entry.

Cliquez sur cette action pour afficher le cliché financier.

Error messages

The only error messages are the generic ones.

Tables used

See also Refer to documentation Implementation