Assigning Revenue and Cap WIP methods to projects
Before you begin
- Understand revenue recognition.
- Verify that revenue and cap WIP methods have been set up in Company > Project preferences.
- If using a formula or formula + WIP method, verify that the formulas exist.
- Verify that the PCC > Revenue tab has been enabled.
- Verify that you have the appropriate project security.
- From the
> Manage menu, click Project Command Center (PCC). - In the project list at the top of the window, click the relevant project .
- On the Project Info tab, click the Revenue subtab.
To assign revenue methods
- On the Revenue tab, select one of the following revenue methods for the relevant project or phase:
- Billed: Ajera creates revenue entries when you print final invoices. Use this method if you bill work during the same accounting period in which the work is performed.
- Billed + WIP (default): In addition to the entries made by the Billed calculation method, Ajera creates revenue entries for the billable amount of WIP entries. Use this method if you bill for time and material.
- Formula: Ajera creates revenue entries when you print final invoices and then adjusts the entries with your formula's calculation. Use this method if your firm wants to specify a unique way to calculate revenue. For example, when you bill in advance or after incurring costs. Go to step 2 to select a specific formula.
- Formula + WIP: Ajera creates revenue entries and any billable WIP entries when you print final invoices and then adjusts the entries with your formula's calculation. Use this method if your firm wants to specify a unique way to calculate revenue and include work-in-progress (WIP). Go to step 2 to select a specific formula.
- None: Use this method for those nonbillable project phases on which you do not intend to recognize revenue, such as business development or administrative efforts.
- Percent of contract: Ajera creates revenue entries when you print final invoices and then adjusts the entries by multiplying your revenue percent completed with the contract amount. Use this method if you use progress type billing, where the amount that you bill may not correspond with the actual percent of work completed.
- If you chose Formula or Formula + WIP above, click
to choose the actual revenue formula. - Click Save.
To assign cap WIP at contract methods (optional)
- Verify that the Cap WIP at Contract has been set up ( > Setup > Company > Preferences > Project tab).
- On the Revenue tab, select one of the following Cap WIP at Contract methods to the relevant project or phase:
- None: If you use this method, Ajera does not cap WIP at the contract amount on the General Ledger or the transaction.
- Adjustment: Note:Available when the billing type is Time and Expense.
If your revenue method writes WIP General Ledger entries, Ajera writes WIP transactions and entries to the General Ledger whenever employees enter time and expenses. Then, during billing, Ajera automatically creates a lump sum negative adjustment for any amount over the contract.
- Write-Off: If your revenue method writes WIP General Ledger entries, Ajera writes WIP transactions and entries to the General Ledger whenever employees enter.time and expenses. Then, Ajera automatically writes off all entries above the contract cap.
