Execute Revenue Recognition

Explanation

This activity is used to calculate the revenue recognition for project/(s) with the Active project status and revenue recognition method POC Revenue First or POC Income First or Event based for the selected ledger and period.

Prerequisites

• The periodical capitalization and revenue recognition status of the select project/(s) must have the Capitalized status.
• Any previous revenue recognition procedures for the same ledger-selection must have the Posted/Closed status.
• The selected project/(s) must have the Active status, the revenue recognition method must have been set to POC Income First or POC Revenue First or Event based, and the estimates must have been entered on the Project/Project Totals tab.

System Effects

• The status of the periodical capitalization and revenue recognition procedure will change from Capitalized/ PartiallyCapitalized to Calculated/ PartiallyCalculated.
• The periodical capitalization and revenue recognition status of the project will change from Capitalized to Calculated.
• If the Include Cost Excluded from Capitalization for POC check box is selected, POC will be calculated considering cost excluded from periodical capitalization. Therefore, such costs will be included when calculating Total Cost and will be excluded when calculating Adjusted Accumulated Cost. Similarly, revenue excluded from capitalization will be included when calculating Total Actual Revenue and will be excluded when calculating Adjusted Accumulated Revenue.
• If 0% margin rules have defined in the project and/or company, such rules will be applied for qualified projects and 0% Margin Rule Applied from field in the Periodical Capitalization and Revenue Recognition Project window will be updated. Note: Project specific rule will get priority over company rule.
• If the select project/(s) is not qualified for revenue recognition, the periodical capitalization and revenue recognition status of the project/(s) will be changed to Posted/Closed and will be flagged as an Empty Revenue Recognition.
• A history log will be automatically created for the calculation for the projects included in the calculation with POC Method set to Project Progress. A log will not be created if a log with a date higher than the Valid Until date already exists for the period defined for the procedure.

Window

Periodical Capitalization and Revenue Recognition Project
 

Related Window Descriptions

Periodical Capitalization and Revenue Recognition Project
 

Procedure

1. Open the Periodical Capitalization and Revenue Recognition Project window.
2. Select the project/(s) you want to calculate revenue, right-click and then click Execute Revenue Recognition. Note: It is possible to execute revenue recognition for all qualified projects at once by using header level options in the Periodical Capitalization and Revenue Recognition Project window.