Revenue Generation Calculations

When you run Revenue Generation, Vision calculates your firm's job-to-date revenue on a project-by-project basis (or phase-by-phase or 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:

Calculates the job-to-date revenue for each project/phase/task according to the revenue method specified in the Project Info Center.
Updates the current period revenue for each project/phase/task by subtracting the project/phase/task's prior period job-to-date revenue from the current period's job-to-date revenue.
Determines the 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).
Creates the Revenue Generation Journal Entry file, which contains the amounts and account to be debited and credited for the newly calculated revenue information.

Relevant Transactions

Before you run Revenue Generation, you should 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 prior to running revenue recognition:

Labor (Timesheets)
Expense (Expense Reports and Repayments)
Invoices (If you do not use Vision Billing)
Billings (If you use Vision Billing)
Cash Receipts

If you have any projects whose revenue accrual is affected by percents complete, update labor and expense percents complete before you run Revenue Generation.

If you created any custom revenue types that use total project cost as part of the calculation of revenue, you must also run Overhead Allocation.

Revenue Reports

Vision provides two reports that show the results of posting revenue:

Transaction List — This report shows the effect of revenue generation on your general ledger and can be printed before posting occurs.
Revenue Generation Posting Log — This report shows the prior JTD, new incremental job-to-date, and total job-to-date revenue that will be distributed to projects when the Revenue Generation file is posted.

You should generate these reports each time you run Revenue Generation.

Revenue Categories

If you set up Revenue Generation to use revenue categories to track multiple unbilled services and uninvoiced revenue accounts, the same revenue calculations as previously described in this topic are done separately for each revenue category.

Overall Revenue Upset Limits

If you set up overall revenue upset limits for a project, which limits the maximum job-to-date revenue that can be calculated for a project, when you run Revenue Generation, any amount that exceeds the upset limit is posted to an adjustment project, phase or task.

Overall Revenue Calculation

For individual projects, you have the option to specify an additional calculation for overall revenue at the project level.

Revenue Groups

If you use revenue groups, see Revenue Groups Overview for an explanation of the Revenue Generation calculation that occurs when you use revenue groups.