Example: Prove Out a Revenue Method

For certain projects, you may find that none of the standard revenue methods is appropriate. If so, you can create your own formula for calculating revenue. Deltek recommends that you prove out each method on a few projects before assigning the method to all of your projects.

It is easier to prove out a project's revenue if the project data is posted and you can view all elements of the formula. If you select Post revenue as it is generated on the Revenue Generation form, Vision posts the Revenue Generation file immediately after you run Revenue Generation.

To prove out a revenue method, you should run Revenue Generation for the selected projects, and then:

  • Post the Revenue Generation file.
  • Run the appropriate report for the revenue method at the lowest level of work breakdown structure for the projects.
  • Review each project's revenue amount as it appears in the appropriate report location to confirm that it is consistent with your expectations.

If a project's reported revenue does not seem accurate, complete all of the following:

  • Verify that all data used by the revenue method formula has been entered and posted for the project.
  • Modify the method's formula or specify a different Revenue Type for the project.
  • Repeat the proving out process.

When you are certain that your revenue methods are accruing revenue accurately, you can assign them to all your other projects.

Example

This is how you might prove out Revenue Method W: JTD Billings + WIP @ Billing.

  1. Decide which projects to use to prove out Method W.
    • Confirm that Method W is the revenue type for each of these projects.
    • Confirm that all project data is entered and all transactions posted.
  2. Run Revenue Generation with these projects selected, and post the Revenue Generation file.
  3. Run the Office Earnings Report for the projects and note the JTD Billed amount for each.

    For more detail, you can run the AR Ledger Report instead and note the Total Billed amount. This amount will not match the JTD Billed on the Office Earnings Report if you have Enable option to update BTD for journal entries to revenue selected and you have made journal entries for the project.

  4. Run the Unbilled Detail Report at billing rates for the projects and note the Work in Progress amount for each.
    Vision's calculation of WIP @ Billing:
    • Excludes Held items. To match the WIP calculation to the amount on the Unbilled Detail Report, you must run the report without Held items.
    • May include a multiplier from billing terms specified as an add-on. The Unbilled Detail report does not show add-ons.
  5. To determine each project's revenue, add the amount in Step 3 to the amount in Step 4.
Parent Topic: Revenue Generation