Revenue Recognition: Time & Materials

Revenue is recognized as work progress.

For each entry unit (typically an hour), there must be an amount to be recognized. The integrated system means that when an amount is entered and approved in the Project Management module, it is automatically posted in the General Ledger module as well. This ensures that the P&L is always up-to-date with the entries from the Project Management module.

Revenue is recognized at the time of entry to an unbilled revenue account. The solution automatically changes the open revenue (for registered postings) to an actual revenue account at the time of invoicing as illustrated in the preceding above. Write-offs at the time of invoicing can be posted to separate accounts. This provides you with flexibility in your P&L to see what the registered revenue (WIP) and actual invoiced revenue are.