How Do I Record Miscellaneous Revenue

How you record miscellaneous revenue depends on whether or not the revenue is related to a project.

Revenue that is Project-Related

Usually, the revenue in accounts numbered in the 400 range was created through a project invoice or through the revenue generation process. To recognize miscellaneous revenue that is project-related, you create an invoice.

Companies usually use a 400-level account to record miscellaneous revenue that is project-related but is not created through a project invoice. When you use DPS, this approach can cause an unbilled file reconciliation issue.

To record non-invoice, project-related revenue, select the Enable Option to Updated BTD for Journal Entries to Revenue check box on the General tab of Settings > Advanced Accounting > System.

Revenue that is Not Project-Related

To record miscellaneous revenue that is not project-related, such as dividend and interest income, rental income, or provision for income tax expense, you should use an account that is not used to calculate operating profit or loss.

Such accounts are referred to as "below the line" accounts. They are generally in the 800-900 account number range and have names such as Miscellaneous Revenue.

If, for example, your company has a Miscellaneous Revenue account numbered 811.00, you can record miscellaneous revenue that is not project-related by using either of the following procedures in Transaction Center > Transaction Entry:

• Post a cash receipt transaction to account 811.00. This posts a debit to the applicable cash account and a credit to account 811.00. You cannot enter an invoice number.
• Post a journal entry transaction. This posts a debit to the applicable cash account and a credit to account 811.00. This transaction is not shown in Bank Statement Reconciliation.