| Calculate Revenue Recognition
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When you select this action, the revenue recognition is calculated for all jobs in the sub-tab that are marked in the field “To Be Calculated.” Depending on the selections in the fields “Calculate Completion Percentage” and “Calculate Revenue,” the completion percentage and the amount to be recognized as revenue are calculated.
At the calculation, the value of the field “Revenue Recognition Date” in the island Calculate Revenue is copied to the field “Revenue Recognition Date” in the sub-tab for all jobs to be calculated.
If a revision code has been specified in the island Calculate Revenue, Maconomy will only perform calculations for the jobs that have an approved budget with the assigned specified revision code. If you then specify another revision code, this code will apply to the jobs that were not calculated in the first instance. This way it is easy to calculate all jobs for concurrent approval.
For jobs for which no budget exists, a revenue of zero is calculated.
Once a job has been calculated, Maconomy will automatically unmark the field “To Be Calculated” and mark the field “Approve.”
Note that you can always manually edit the calculated percentages and amounts on jobs using revenue recognition by completion percentage. However, on jobs using detailed revenue recognition, the calculated percentages and amounts can only be manually edited in the window Job Revenue Recognition Details.
The following fields are part of the Calculate Revenue Recognition wizard:
- Revision Code — In this field, you can specify a revision code. When calculating the completion percentage of a job, Maconomy will find the cost-price basis and the fixed-price basis from the most recently approved job budget with the specified revision code. If you do not specify a revision code, Maconomy will use the most recent approved revision of the job budget, irrespective of revision code.
- Revenue Recognition Date — In this field, you can specify a cut-off date for job entries to be revenue-recognized. The revenue recognition is based on job entries that have been created up to and including this date. This way it is, for example, possible to make a fixed, monthly revenue recognition without having to do this on a certain day of the month. When the action “Calculate Revenue Recognition” is selected, the date is copied to the field “Revenue Recognition Date” for the lines in the sub-tab which are calculated. By default, this field shows today’s date.
- Calculate Completion Percentage — If this field is marked, Maconomy will calculate the completion percentage when you select the action “Calculate Revenue Recognition.” If you do not mark this field, the calculation will not be performed, and you should then manually specify a completion percentage. In this case, Maconomy calculates the completion percentage compared to the amount to be revenue-recognized specified manually on the line in the sub-tab, and the fixed price.
- This field and the field “Calculate Revenue” below are marked by default. The mark should only be removed if you do not want to use a fixed percentage or a fixed amount for your calculations.
- Calculate Revenue — If this field is marked, Maconomy will calculate the amount to be recognized as revenue when you select the action “Calculate Revenue Recognition.” If you do not mark this field, the calculation is not performed, and you should manually specify an amount to be recognized. In this case, Maconomy will calculate the completion percentage compared to the amount to be recognized specified manually in the line in the sub-tab, and to the fixed price.
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| Approve Revenue Recognition
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When you select this action, the revenue recognition is approved for all jobs in the sub-tab that are marked in the field “Approve.” At approval, the date in the field “Revenue Recognition Date” is transferred to the field “Revenue Recognition Date” in the sub-tab, and the fields “Amount, Revenue Recognized” and “Percentage, Revenue Recognized” are updated with the amount and percentage recognized as revenue on the jobs in question.
Upon approval Maconomy checks if a journal of the type “Job Revenue Recognition” exists in the G/L module, and if so, adds the entries created as a result of the approval to this journal, which is then marked as ready for posting. If no such journal exists, Maconomy creates a job revenue recognition journal which is ready for posting and adds the entries to this journal. If the system parameter “User specific job revenue recognition journals” has been marked, Maconomy will maintain separate journals for each user approving revenue recognitions. This means that in the procedure described above, Maconomy checks if any existing journal created by the current user as a result of previous approvals exists, and if so, adds the entries to this journal. If no such journal exists, Maconomy creates a journal for the current user, adding the entries to this journal, even if there were revenue recognition journals created by other users.
If the job is not using detailed revenue recognition, but is revenue-recognized at job level, the journal contains entries on the account for the open billing price, and the account “WIP Account, Adjustment” in the G/L module and the activity specified in the job parameter attribute “Activity for Job Revenue Adjustment” in the job parameter type “Revenue Recognition.” The posting date for this journal will be the date from the field “Revenue Recognition Date.” If the approved job uses detailed revenue recognition, the relevant account references are derived from the activities applied to each revenue adjustment entry in question.
Once the revenue recognition for a job has been approved, Maconomy will automatically remove the mark in the field “Approve.”
The following fields are part of the Approve Revenue Recognition wizard:
- Amount — In this field, you can enter a triviality limit to apply to the revenue recognition made in this window. Any amount adjustment which is less than this triviality limit will not result in the creation of an adjustment journal at approval of the revenue recognition. The triviality limit thus allows you to leave out amount adjustments which are considered as being of too small an amount when making revenue adjustments. Note that if the job in question is set up to use detailed revenue recognition, the triviality limit specified in this field is applied to each adjustment entry, rather than the adjustment of the entire job. Revenue recognition detail levels are displayed in the window Job Revenue Recognition Details.
- Currency — In this field, you can specify the currency of the triviality limit specified in the above field in this island.
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