Job Revenue Recognition Details Workspace
Use this workspace when you perform detailed revenue recognition.
You can also enter revenue recognition amounts manually.
See the description of the Job Revenue Recognition workspace for general information about revenue recognition.
This workspace displays information about all jobs that have a status of Order. However, you can only make changes to those jobs for which revenue is recognized by completion percentage.
For each job, this workspace displays the total revenue recognized on the job, as well as any amounts that you have budgeted and entered for the job. Maconomy splits the amounts into columns that show totals for amountsthat are included in the fixed price of the job and amounts that are not included in the fixed price of the job.
Under Budget, Completion Percentage, you can see information about the budget that Maconomy used to calculated the completion percentage.
Detailed Revenue Recognition
With detailed revenue recognition, you group the entries on a job's budget into detail levels, each of which acts as its own basis for revenue recognition. Maconomy calculates the completion percentage and fixed price for each group and not just at the job level. This grouping also ensures that entries are posted very precisely,, because Maconomy posts entries to the dimensions of the groups.
To use detailed revenue recognition for a job, you must assign the job to a job parameter of the type Pricing Principle in which you have specified that the "fixed price" is determined by the budget of the job, rather than by the quote price of the job. In the Revenue Recognition job parameter type, you must assign the Yes value to the attribute Revenue Recognition by Completion Percentage before you define any specific revenue recognition detail levels.
To identify the values that Maconomy must use as the basis for performing detailed revenue recognition, use the two Detail By job attributes in the Revenue Recognition job parameter type. Specify one of the following values: Activity, Task, Location, Entity, Project, Purpose, Specification 1-3, and Local Specification 1-3. The values that you select for these attributes are determined based on the dimensions used in the relevant job budget. For example, if you use the Location dimension to divide the entries in a budget, you might use the dimension Location as a parameter for performing detailed revenue recognition.
Example
The following example shows how you can perform detailed revenue recognition.
Assume that you have a time and materials job. You assign the Revenue Recognition job parameter to the job, and indicate that Maconomy should calculate revenue recognition by completion percentage based on the Task detail level. You provided a task list for the job.
The "fixed price" of the job is determined by the budget of the job. The job budget looks like this:
| Task | Total Cost | Total Billing Price |
|
101 |
$40,000 |
$80,000 |
|
101 |
$20,000 |
$30,000 |
|
204 |
$80,000 |
$100,000 |
|
302 |
$10,000 |
$10,000 |
|
204 |
$50,000 |
$70,000 |
Because Maconomy is calculating detailed revenue recognition for the job based on Task, Maconomy consolidates the lines in the budget as follows in the Job Revenue Recognition Details workspace:
| Task | Total Cost | Total Billing Price |
|
101 |
$60,000 |
$110,000 |
|
204 |
$130,000 |
$170,000 |
|
302 |
$10,000 |
$10,000 |
When Maconomy calculates the revenue to be recognized by completion percentage, it considers each group to be a single unit, and calculates revenue for each group.
If you specified the values Task and Location in the two Detail By job parameter attributes, the budget might look like this:
| Task | Location | Total Cost | Total Billing Price |
|
101 |
A |
$5,000 |
$7,000 |
|
101 |
A |
$3,000 |
$4,000 |
|
101 |
B |
$7,000 |
$10,000 |
|
204 |
A |
$4,000 |
$4,000 |
|
204 |
B |
$6,000 |
$12,000 |
|
204 |
A |
$1,000 |
$1,100 |
Maconomy consolidates the lines in the budget as follows in the Job Revenue Recognition Details workspace:
| Detail Level Task/Location | Total Cost | Total Billing Price |
|
101/A |
$8,000 |
$11,000 |
|
101/B |
$7,000 |
$10,000 |
|
204/A |
$5,000 |
$5,100 |
|
204/B |
$6,000 |
$12,000 |
When Maconomy calculates the completion percentage, it calculates the amounts for each combination of the levels that are displayed on the lines in the Job Revenue Recognition Groups sub-tab. This lets you see a detailed calculation of the completion percentage of the detail levels. Also, any manual adjustments that you made to the revenue that was already recognized apply to the relevant detail levels, whereas Maconomy applies manual adjustments at the job level in the Job Revenue Recognition workspace.
Calculate and Approve Revenue Recognition Actions
Use the Calculate Revenue Recognition action to calculate a new completion percentage for each revenue recognition detail level, as well as the amount to be recognized based on the revenue recognition date specified. Use the Approve Revenue Recognition action to approve the resulting revenue recognition. When you approve the revenue recognition, Maconomy creates a Job Revenue Recognition journal for each detail level, ready for posting in the G/L module. When you post revenue adjustments, Maconomy creates one adjusting entry for each revenue recognition detail level that needs to be adjusted.