Frequency Examples for Employee Realization Reporting
If you are new to Vision, you may find it helpful to review examples of how the frequencies for the Employee Realization Reporting feature affect the employee realization calculation.
You enter the frequency on the Reporting tab in Accounting System Settings.
Invoice Frequency Example
Employee Realization Reporting Settings on the Reporting Tab in Accounting System Settings
- The Reporting Realization by Employee check box is selected.
- Frequency = Invoice.
- Calculation Method = Billing.
- The general ledger revenue account — 401.00 — is the only account entered in the Allocation Accounts grid.
Billing Invoice
In , you create a fixed fee invoice for project A. This invoice includes labor or time and no reimbursable or consultant expenses.
The invoice has $500 posted to the 401.00 account and $300 posted to the 407.00 account. Only the $500 will be allocated to employee realization because the $500 is designated as a revenue account for employee realization on the Allocation Accounts grid on the Reporting tab in Accounting System Settings; account 407.00 is not designated for employee realization in the grid.
The Employee Realization program allocates a percentage of the $500 revenue to each employee who has labor on the invoice. There are two employees with time records on the invoice. The percentage to allocate to each employee is calculated using the billing value of the employees' time on the invoice because you selected the Billing calculation method for Employee Realization Reporting.
Employee Realization
The revenue amount of $500 is allocated as realization between the two employees with time records for the invoice as follows:
| Time Records Included in the Invoice | Realization Allocated |
|---|---|
|
Time Record 1 for Mark Miller
(Billing value is $100) |
Mark's realization is $166.67
$100 / $300 = 33% 33% of $500 = $166.67
$100 is Mark's billing value for the invoice. $300 is the total billing value of all the time records for the invoice ($100+$200) $500 is the total invoice amount to allocate among employees. |
|
Time Record 3 for Karen O'Connell
(Billing value is $200) |
Karen's realization is $333.33
$200 / $300 = 67% 67% of $500 = $333.33
$200 is Karen's billing value for the invoice. $300 is the total billing value of all the time records for the invoice ($100+$200) $500 is the total invoice amount to allocate among employees. |
Any employee-specific unit transactions that are included on an invoice are not included in the total revenue amount used to calculate the percentage of revenue for each employee. Employee-specific unit revenue is allocated directly to the specific employee.
Period Frequency Example
Employee Realization Reporting Settings on the Reporting Tab in Accounting System Settings
- The Reporting Realization by Employee check box is selected.
- Frequency = Period.
- Calculation Method = Billing.
- The general ledger revenue account — 401.00 — is the only account entered in the Allocation Accounts grid.
Time Records and Invoices
- In period 08/2012, a time record for Mark Miller with a billing value of $100 is posted for project B. Billing values are used in the calculation because you selected Billing as the calculation method.
- In period 09/2012, a time record for Karen O'Connell with a billing value of $200 is posted for project B.
- In period 09/2012, you create a fixed fee invoice $500 invoice for project B that includes the two time records (Mark's from 08/2012 and Karen's from 09/2012). The invoice includes all labor and no reimbursable or consultant expenses. Because all the revenue for this invoice is posted to the 401.00 account, which is an account designated for employee realization calculations in the Allocation Accounts grid on the Reporting tab in Accounting System Settings, all $500 will be allocated among employees whose time records are included in the invoice.
Employee Realization
The following are the employee realization allocation results when you run the Employee Realization program in for project B for various periods:
| You Run the Employee Allocation Process for the Following Periods | Employee Realization Allocated |
|---|---|
| 08/2012 | No realization is allocated because no invoice and no time records were posted in period 08/2012. |
| 09/2012 | Realization is calculated because an invoice was posted and time records were posted in the 09/2012 period.
The invoice total of $500 is allocated to only Karen because her time record is the only one posted in period 09/2012. |
| 08/2012 through 09/2012 | Realization is calculated because an invoice was posted and time was posted in a period that fell within the 8/2012 to 09/2012 range.
The invoice total of $500 is allocated between Karen and Mark because both of their time records were posted within the periods that you selected when you ran the Employee Realization process. Mark's realization is $166.67 $100 / $300 = 33% 33% of $500 = $166.67 Notes: $100 is Mark's billing value for the invoice. $300 is the total billing value of all the time records for the invoice ($100+$200) $500 is the total invoice amount to allocate among employees. Karen's realization is $333.33 $200 / $300 = 67% 67% of $500 = $333.33 Notes: $200 is Karen's billing value for the invoice. $300 is the total billing value of all the time records for the invoice ($100+$200) $500 is the total invoice amount to allocate among employees. |
Any employee-specific unit transactions that are included on an invoice are not included in the total revenue amount used to calculate the percentage of revenue for each employee. Employee-specific unit revenue is allocated directly to the specific employee.