Recognizing contract revenue by contract

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.

  1. Sign in as Project Accountant, Project Administrator, or Project Manager.
  2. Select Project Contracts.
  3. Select the Contracts tab and open a contract.
  4. Select Actions > Recognize Revenue.
  5. Specify this information:
    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 that are not yet 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 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 recognize revenue. 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 Revenue Journalize Approval has been selected on the project enterprise structure, this field is not displayed.

    Posting Date
    If you selected to Journalize Immediately, specify the date to use for the revenue recognition entry.
    Project
    Select a summary or posting project level to recognize revenue. When a summary project level is selected, all of the children for the summary are recognized. The default value is blank, which recognizes all posting projects and all children for the project contract level.
    Funding Source
    Optionally, select a single funding source. Funding sources are used to recognize revenue by a project funding source. When this parameter is selected, revenue is recognized as if the selected funding source is the only active funding source. A funding source that is less than 100% can be selected. When the funding source is less than 100%, the percent is used to create the invoice and the expense is marked as processed. No partial transaction is created.
    Billing Group
    Optionally, select a billing group. Revenue is recognized only for funding sources with the billing group.
  6. Click Submit.
    The Draft Recognized Amount, Recognized Amount, and Remaining Revenue Balance are displayed on the 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.