When you run Revenue Generation, Vision calculates your firm's revenue on a project-by-project basis (or phase-by-phase, task-by-task) according to the revenue methods that you assign to each project, phase, and task.
Revenue Generation calculates a project's revenue on a job-to-date basis, in the following sequence:
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Calculates job-to-date revenue for each project/phase/task according to the revenue method specified.
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Updates current period revenue for each project/phase/task by subtracting the project, phase, and task combination's prior period job-to-date revenue from the current period's job-to-date revenue.
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Determines unbilled amounts for each project/phase/task by subtracting job-to-date billed revenue (recognized through bill processing) from job-to-date revenue (based on the revenue method selected).
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Creates the Revenue Generation Journal Entry file, which contains the amounts and account to be debited and credited for the newly calculated revenue information.
If you set up Revenue Generation to use revenue categories to track multiple unbilled revenue accounts, the same revenue calculations are done separately for each revenue category.
Revenue Generation is calculated job-to-date and will account for any change to the revenue methods in the period that Revenue Generation is run and posted.
Relevant Transactions
Before you run Revenue Generation, verify that all relevant transactions have been posted. The transactions that affect the calculation of revenue differ depending on the revenue methods that you use.
For example, you may need to post the following transactions before you run revenue recognition:
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Labor (Timesheets)
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Expense (Expense Reports and Repayments)
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Invoices (If you don’t use Vision Billing)
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Billings (If you use Vision Billing)
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Cash Receipts
If you have any projects whose revenue accrual is affected by percent completes, update labor and expense percent completes before you run Revenue Generation.
If you have any custom revenue types that use total project cost as part of the calculation of revenue, also run Overhead Allocation.
Revenue Reports
Vision provides two reports that show the results of posting revenue:
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Transaction List — This report shows the effect of revenue generation on your general ledger and can be printed before posting occurs.
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Revenue Generation Posting Log — This report shows the prior job-to-date, new incremental job-to-date, and total job-to-date revenue that will be distributed to projects when the Revenue Generation file is posted.
Generate these reports each time you run Revenue Generation.