Recognizing contract revenue by contract group

This process is only available for project contracts with Revenue Recognition of Separate.

You cannot recognize revenue if draft invoices exist. If draft invoices exist, they must be either journalized or deleted to recognize revenue. The action to recognize revenue is not available if there are invoices in Created status. The action is not available to prevent creating incorrect entries for billed/unearned and earned/unbilled. When recognizing revenue, any contract fees and funding source allowances for the project contract are calculated and added as invoice lines.

Sign in as Project Accountant or Project Administrator.
Select Project Processes > Invoice Processes > Recognize Revenue.
Specify this information:
Contract Group

Select a customer group. A custom group is a user-defined group of contracts to run revenue recognition. For example, you can group by contract type.

Posting Date Selection Range, Through

Specify the posting beginning and through date to select the records. The posting date range is used exclusively for transaction based revenue method: revenue accrual. The expense transactions to be recognized must have a posting date that falls within the date range.

Transaction Through Date

Specify the transaction through date. If this field is blank, all the transactions for the posting date range are selected.

Selection Group

Select a selection group. Selection group is the business class group that defines the transaction detail records for invoicing. You can create groups of expenses to run revenue recognition. For example, you can create a selection group for pass thru transactions. The selection group would not include time & materials or cost plus transactions.

Funding Source Date
Specify the date used to determine valid funding sources, milestones, installments, advances, and retainers that are in effect.
- The installment or milestone must be in a To Process status.
- The installment or milestone date must be less than or equal to the funding source date.
- The funding sources must be valid for the funding source date.
Revenue Date
Specify the date for recognizing revenue. The revenue date is used for fees and event based revenue methods:
- The installment or milestone must be in a To Process status
- The installment or milestone date must be less than or equal to the revenue date.
- The project contract and funding dates must be valid for the revenue date.
- The revenue date is used for the transactions that are created as a result of running the action.
- The revenue date must be a valid date for the project, funding source, POP, etc.
Journalize Immediately

Select this check box to complete the revenue recognition. If this check box is cleared, the revenue recognition is created as a draft for verification before finalizing.
If Project Contract Invoice And Revenue Journalize Approval has been selected on the project enterprise structure, this field is not displayed.

Billing Group

Optionally, select a billing group. Revenue is recognized only for funding sources with the billing group.

Posting Date

If you selected to Journalize Immediately, specify the date to use for the revenue recognition entry.
Click Submit.
The Draft Recognized Amount, Recognized Amount, and Remaining Revenue Balance are displayed on the Project Funding Sources tab. The records that were recognized have a status of Processed on the Revenue Milestones or Revenue Installments tab. You can view the revenue details on the Revenue tab.