Adjusting Revenue Amounts Before Revenue Recognition

Use this procedure to adjust revenue amounts before revenue recognition is run. When you next recognize revenue, AC and GL journal entries are created for the revenue adjustment transaction, and ceiling and tolerance calculations are performed.

Revenue adjustments are reflected in ceiling/tolerance calculations during Revenue Calculation (BR130).

Revenue adjustment transactions will be created with a revenue amount, but with no cost amount or billable amount. Because there is no cost amount associated with these transactions, no fee will be calculated on revenue adjustments. In addition, no burdens will be created for these transactions for the same reason.

Revenue adjustments are only available to be used with transaction based revenue recognition methods. If a revenue adjustment is necessary for percent complete revenue recognition it can be done by manipulating the data on Percent Complete by Contract (BR65.1) to increase/decrease the amount of revenue being recognized. If a revenue adjustment is necessary for milestone type revenue recognition the milestone amount should be changed to reflect this entry.

The revenue amounts created on Revenue Adjustment (BR43.1) will not be recalculated by Activity Posting (AC190) nor eligible to be recalculated by Billing and Revenue Recalculation (BR190).

To adjust revenue amounts

  1. Access Revenue Adjustment (BR43.1).
  2. Use the following guidelines to enter field values:
    Control Group

    Type a description for the revenue adjustment entry. The control group will be automatically system assigned.

    Trans Date

    Type the transaction date for the revenue adjustment.

    Post Date

    Type the posting date for the revenue adjustment.

    Activity

    Type or select the posting activity for the revenue adjustment.

    Acct Cat

    Type the account category for the revenue adjustment. The account category must be a cost type.

    Amount

    Type the amount of the revenue adjustment.

    Curr

    Displays contract currency

    Company

    Type or select the company, accounting unit, account, and subaccount for the revenue adjustment.

    Desc (Description)

    Type a description for the revenue adjustment. If no description is entered in this field, the control group description will default.

    Resource Type

    Select the type of resource associated with this transaction. Valid values are:

    • A = Asset

    • E = Employee

    • P = Person

    • V = Vendor

    • Q = Equipment

    Resource Co

    Type the company associated with the resource for this transaction.

    Resource

    Type the resource code for the resource associated with this transaction.

    Billing Category

    Type the billing category for the adjustment. The billing category is a user-defined activity attribute.

    Billing Value

    Type the billing value for the adjustment. The billing value is a user-defined activity attribute.

  3. The information for the offset transaction defaults from the revenue adjustment; however, the dates and description can be overridden. Use the following guidelines to enter field values:
    Trans Date

    Type the transaction date for the offset transaction.

    Post Date

    Type the posting date for the offset transaction.

    Desc (Description)

    Type a description for the offset transaction. If no description is entered in this field, the control group description will default.

  4. Select the Add form action to create the adjustment.

Followup Tasks

Run Revenue Calculation (BR130) to create the AC and GL entries and to process the revenue adjustment.