Unbilled Services

Your unbilled services amount is the revenue that your enterprise has earned job-to-date, less the amount that has been billed job-to-date. When you run Revenue Generation for projects whose revenue method is any method other than Method B (job-to-date billings), Deltek tracks the difference between revenue amounts and billing amounts.

The difference (unbilled services) is calculated using the following equation:

Unbilled Services = Job-To-Date Earned Revenue - Job-To-Date Total Billings

Unbilled services are also referred to as work-in-progress or unearned income.

To review job-to-date unbilled services, run the Office Earnings Report for all projects, whether or not they had activity in the current accounting period. Be sure to include the Unbilled column and use the Print Job-to-Date option.

The Total Unbilled amount matches the balance in the Unbilled Services account on the Balance Sheet (account 121.00 in the standard chart of accounts). This account holds job-to-date unbilled revenue for all projects.

The unbilled services amount increases as you recognize revenue and decreases as you post invoices. After you run Revenue Generation and post the Revenue Generation file, Deltek posts unbilled revenue for the current fiscal year to the Unbilled Revenue account (402.00 in the standard chart of accounts) on the Income Statement.

• For projects with time and materials or labor-based contracts, the unbilled services amount often represents the normal lag time from incurring the labor expense to posting invoices.
• For projects with contracts that allow billing when you have reached a project milestone, including certain lump sum contracts that are billed by phase, invoiced amounts do not represent actual effort on the job. The unbilled services amount may be unusually high, representing several weeks of work that you cannot bill until reaching the milestone.
• For projects with contracts that allow for accelerated billing in the early phases of work (prebilling ahead of the work effort) the unbilled services amount may be a negative amount, indicating that prebilling has occurred.