Recognizing revenue with the Manage menu task

Ajera estimates your company's revenue based on the revenue methods you apply to projects, phases, and activity types. Employees who are authorized to recognize revenue for your company use the Revenue Recognition task to review, edit, and commit estimated revenue.

Ajera displays actual revenue, estimated revenue, or committed revenue for projects with a revenue method of Billed, Percent of contract, Formula, Formula + WIP. No revenue amounts appear for a project with a Billed + WIP revenue method.

Before you begin

• Verify you have access to the Manage > Revenue Recognition Manage menu item.

To edit and commit revenue

1. From > Manage > Revenue Recognition.

2. Click New to create a new revenue session.
3. Enter a descriptive name for the revenue session, typically a month and year.
4. Enter a start and end date. If you do not enter a start date, Ajera displays all amounts to date for the project.
5. Enter an accounting date. This date cannot be before the start date, if you entered one.
6. Enter any notes about the revenue session.
7. Calculate Formulas Automatically option is available and is checked when at least one of the Project/Phase/Activity types uses a revenue method of Formula or Formula+WIP.

Note:

When this box is checked, Ajera automatically calculates the committed revenue and populates it in the Uncommitted Revenue Total column in the Project list. If the Project/Phase/Activity type uses a revenue method of Percent of Contract in addition to Formula or Formula+WIP, the Uncommitted Revenue Total column populates when you Save or Refresh.

8. Click Create.

The status of the revenue session initially appears as Preliminary.

At this point, no project details are yet associated with this new revenue session.

9. Click to update the progress of the Formula Status column.
10. When the Formula Status for the session is marked as DONE:

• The status of the session changes to Active.
• On the Project List, a check box appears in the Formula Calculated column to identify Projects for which Uncommitted Revenue was calculated.

11. Click the relevant project in the Project List widget. Ajera populates the Revenue Details widget with the corresponding revenue information for that project.

12. Review projects using the revenue method Percent of Contract to enter percent complete and click .
13. If needed, you can edit the following columns (highlighted in yellow): Committed Revenue and Notes.
14. Do one of the following:
    • To commit, in the Actions column, click > Commit in the Commit column. Ajera creates General Ledger entries for the revenue amounts in the Revenue Details tab. The status changes to Committed.
    • To delete a revenue session, in the Actions column, click > Delete in the Delete column. If the revenue session has previously been committed, Ajera reverses the committed General Ledger entries and changes the status to Void. You can not edit a Voided revenue session.
    • To uncommit a revenue session, click in the Actions column, click > Uncommit in the Commit column. Ajera reverses the committed General Ledger entries and changes the status to Active, meaning that you can edit the revenue details and commit them again.

Note:

If you determine that you need to edit a committed revenue session in a month previous to another committed session, you must uncommit each session prior to the session you want to edit so that Ajera can reverse the corresponding General Ledger entries. For example, you committed revenue sessions for May, June, and July. You then determine that you need to change the details for the May session. You must first uncommit June and July before you can uncommit and edit May.