Revenue Method B
Revenue Method B sets job-to-date revenue equal to job-to-date billings.
When Revenue Generation is not enabled on the Revenue tab in , the Revenue Type on the Accounting tab of the Projects hub defaults to B for projects whose Charge Type is Regular. In these situations, the billing procedure generates the revenue. Each time invoices are posted, Deltek debits Accounts Receivable and credits Revenue.
When you enable Revenue Generation, you can leave the Revenue Type as the default (Method B) for projects/phases/tasks whose revenue equals billings, that is, projects/phases/tasks which are billed monthly and whose invoices are posted in the accounting period when their expenses are incurred.
If you assign method B to a project whose revenue is not equal to billings, Revenue Generation makes adjusting entries to Unbilled Services and Unbilled Revenue for the difference between billings and revenue, which forces revenue to equal billings. If you do not want Revenue Generation to adjust a project's revenue so that it equals Job-to-Date Billings, you can specify a different revenue method for the project.
Revenue Generation can only be used with projects whose Charge Type is Regular. It cannot be used with Overhead or Promotional projects. If the project has phases or tasks, Deltek asks you to assign a revenue method to each phase and task.
Example
When Revenue Generation is enabled, Deltek enters Revenue Method B in Revenue Method field on the Budget & Revenue tab of the Projects hub for all projects whose charge type is regular.
When you post an invoice for a project with revenue method B, but do not run Revenue Generation, Deltek reclassifies amounts on the Balance Sheet, but does not recognize revenue. It debits the appropriate Accounts Receivable account(s) on the Balance Sheet and credits the revenue account(s) specified on the invoice. The net effect on the Income Statement is zero.
These transactions appear on the General Ledger Account Analysis, with the label Invoice Postings:
| Debit | Credit | |
|---|---|---|
| Accounts Receivable (111.00) | 100.00 | |
| Billed Revenue (401.00) | 100.00 | |
| Unbilled Revenue (402.00) | 100.00 | |
| Unbilled Services (121.00) | 100.00 |
To recognize revenue while using revenue method B, you must run Revenue Generation.
After running Revenue Generation and posting the RevGen journal entry and invoice data entry files, print the General Ledger Account Analysis again. You will see these journal entries:
| Debit | Credit | |
|---|---|---|
| Unbilled Services Receivable (121.00) | 100.00 | |
| Unbilled Revenue (402.00) | 100.00 |
Deltek increases the project's current, year-to-date, and job-to-date billings by the total amount on the invoice.