Calculating revenue

Revenue is calculated based on the method that you specify in each contract. The balance on the contract activity is evaluated to determine whether there is a balance in the billed or unbilled account category. If a balance exists in the billed account category, then the amount is applied to the billed account category up to the balance amount. Any remaining balance is applied to the unbilled account category. If a balance exists in the unbilled account category, then the entire balance is applied to the unbilled account category.

This procedure describes how to calculate activity revenue.

Note: This procedure is required for all revenue recognition methods.

Access Revenue Calculation (BR130).
To calculate revenue, use these guidelines to specify the field values on the Activity tab:

Activity Group List, Activity Group, Activities, or Activity List

Select the activities for which you want to calculate revenue. You can select by activity group list, activity group, activity, or activity list.

Update

Select No (N) to view a report of the calculations that will be generated when you use update. If you need to make adjustments to the revenue amounts, then see the Follow-up Tasks listed at the end of this procedure. Select Yes (Y) to update activities and the General Ledger with the new revenue calculations. The default is No.

Note: Select Yes (Y) to update only after you have verified the calculation results on BR130.
To define additional options for calculating revenue, use these guidelines to specify the field values on the Other Options tab:

Through Date

Specify a date through which you can restrict revenue recognition. This date, along with the Through Date Option field, determines what transactions are included in the revenue calculation. This date is compared to either the transaction date or posting date, depending on the Through Date Option you choose.

Through Date Option

Select whether the Through Date is compared against the transaction date (T) or the GL posting date (P) to determine if transactions are included in the revenue calculation.

Transaction Date

Specify the date to use as the transaction date for the revenue calculation transactions.

This date is required if the Through Date is specified and it is not equal to the current system date.

If specified, then the transaction date is used as the effective date when determining the currency exchange rate in multiple currency situations. If this date is not specified and multiple currencies are used, then the system date is used to determine the currency exchange rate.

Posting Date

Specify the date to be used for the posting date for revenue calculation transactions. This date is required if the Through Date is entered and is not equal to the current system date.

Pass Through Account

This field is used for the Percent Complete revenue method only.

Specify or select the account and subaccount to which you want to post pass-thru revenue.

Note: Select these fields only if the revenue accounts are different from those you defined on Contract Parameters (BR10.1).
To define print option parameters, use these guidelines to specify the field values on the Output Options tab:

Summarize Report

Select Yes to report revenue calculations which include only activity totals. Select No to report revenue calculations which include General Ledger account detail in addition to the activity totals. The default setting is No.

Loss Entry

If the budget amount exceeds the contract, then you can indicate whether to include a one-time revenue loss entry in the report. The default setting is No.