Defining your revenue recognition method

Before you setup Grant Billing, you must designate your companies revenue recognition method for Grant Management. Use this procedure to define your revenue recognition method.

  1. Access System Codes (GL01.4).
  2. Select the Grant Management System Code (GM) and click Payroll/AR to display Payroll Integration (GL01.7).
  3. Use these guidelines to specify the field values:
    Grant Billing Revenue Recognition Method

    Select a revenue recognition method that represents your organization's accounting principals.

    • Blank = Accrual or Invoicing is the default setting that supports the Generally Accepted Accounting Principals (GAAP), which recognize revenue at the time of invoicing.

    • C = Modified Accrual or Cash Application is used by city and local governments using Grant Management Multi-Funded Contracts for billing. The C revenue recognition method follows the modified accrual accounting principals defined by Government Accounting Standards Board (GASB), which recognize revenue when cash is received or applied.