Initialize Unbilled Receivables

This is a step-by-step approach for initializing your unbilled receivables. You should use this list with your overall Costpoint system initialization. The effect of each step, relative to the Unbilled Receivables process only, is included in the documentation.

To initialize unbilled receivables:

1. On the Manage Project Beginning Balances screen, enter your beginning unbilled receivable balances for each project.

   These are the beginning balances that appear in your General Ledger. If you are initializing Costpoint in the middle of a fiscal year, enter the balances as they were at the start of the current year. The unbilled amounts for the current year are added when you process the current year's transactions through revenue posting.

2. On the Manage Prior Year Cost and Revenue screen, enter the prior years' project history for each project.

   Enter all costs, burdens, fees, and revenues in the Incurred columns so they can be used for project tracking. This process initializes your ITD Revenue for prior years' activity. In the Allowed columns, enter only those amounts that have been included in the revenue calculation. For example, if a T&M project does not include any burden amounts in the revenue calculation, enter none in the Allowed columns. The burden amounts in the Allowed columns, less the burdens entered in the Manage Billing History screen for prior years' billing transactions, are the source of the Prior Years Rate Variance amounts.

3. Summarize current year costs by project to the level you desire, entered via journal entry, and posted.

   Current year allowable burden amounts, as calculated by the Compute Burden Costs screen, less the burden amounts from the Manage Billing History screen for current year billing transactions, are the source for the Current Year Rate Variance amounts.

4. Calculate revenue for the current year during your regular revenue process.

   This updates your ITD Revenue for the current year's activity:

   • Compute Pool Rates

   • Post Pool Journal

   • Compute Burden Cost

   • Load Labor Rates (for Loaded Labor formulas only)

   • Post Billings (for Revenue = Billings formulas only)

   • Compute Revenue

   • Redistribute Revenue

   • Post Revenue

5. On the Manage Billing History screen, enter the billing history of each project for all years.

   This initializes the cumulative billed amounts. Costpoint subtracts burden amounts entered or posted here from the allowable burden amounts included in the revenue to calculate the current and prior years rate variances.

6. On the Manage Open Billing Detail screen, enter any unbilled transactions.

   The transactions entered here appear as Transactions Not Billed (Hours and/or Costs) until they have been included on a posted bill.

7. On the Manage Project Bill Summary screen, enter all previously billed amounts and retainages.

   You may want to summarize all bills for the prior years onto one line. This screen, which is updated automatically when you post the bill, is the source for the ITD billings, subsequent billings, and retainage amounts.

8. Run the Print Unbilled Analysis Report screen.
9. Print the Unbilled Receivable Summary Report and review the information in each column.

   Compare the two unbilled amounts (one per the ITD Revenue minus ITD Billings formula, one per the General Ledger) to ensure they are the same.

10. Print the Unbilled Receivable Detail Report and review the information in each column.

    Investigate the Miscellaneous column as required, to your desired level of detail.