Using the revenue recognition

DMF

070711 ACCOUNTING SETUP REVENUE RECOGNITION

DMF 070816 ACCOUNTING PERIODIC WORKS REVENUE RECOGNITION

DMF 070817 ACCOUNTING PERIODIC WORKS REVENUE RECOGNITION - INPUT

  • 070818 ACCOUNTING PERIODIC WORKS REVENUE RECOGNITION - VALIDATE
  • 070820 ACCOUNTING PERIODIC WORKS COST RECOGNITION - HISTORY
  • 070821 ACCOUNTING PERIODIC WORKS COST RECOGNITION - ENTRY
  • 070830 ACCOUNTING PERIODIC WORKS LINK COST TO PERIOD - EXPORT TO EXCEL
  • 070831 ACCOUNTING PERIODIC WORKS LINK COST TO PERIOD - SIMULATE
  • 070832 ACCOUNTING PERIODIC WORKS LINK COST TO PERIOD - VALIDATE
  • 070833 ACCOUNTING PERIODIC WORKS LINK PRODUCT TO PERIOD - EXPORT TO EXCEL
  • 070834 ACCOUNTING PERIODIC WORKS PRODUCT TO PERIOD - SIMULATE
  • 070835 ACCOUNTING PERIODIC WORKS LINK PRODUCT TO PERIOD - VALIDATE
  • 070837 ACCOUNTING PERIODIC WORKS REVENUE RECOGNITION - DELETE
  • 070838 ACCOUNTING PERIODIC WORKS LINK PRODUCT TO PERIOD - DELETE
  • 070839 ACCOUNTING PERIODIC WORKS LINK COST TO PERIOD - DELETE
  • 070840 ACCOUNTING PERIODIC WORKS REVENUE RECOGNITION - SIMULATE
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    Prerequisite
    1 Go to Tools > Setup > General setup > Company > Company.
    2 Under the Module to generate the products' situation section, select the type of module that enables you to generate the products status:
    • Allocation of income to the period: hides the Revenue recognition menu and displays the Allocation of income to the period menu.
    • Revenue recognition: displays the Revenue recognition menu and hides the Allocation of income to the period menu.
    3 Setting up the accounting position (see Accounting position).
    4 Setting up the Revenue Recognition methods (see Revenue recognition).
    5 Setting up sold items sub-families and sold items.

    Go to Accounting > Periodic works > Revenue recognition.

    Enter the following information:

    • Revenue recognition method: the list of revenue recognition methods.
    • Closing date: by default, the last day of the previous month is specified. If this is the last day of the month, the current date will be suggested.
    • Period: empty by default and allows you to set the period to take into account.
    • Date of previous close: by default, the last day of the month preceding the previous month is specified; if this is the last day of the month, the current date will be suggested.
    • Presentation 'Overview': enables you to display items per grouping (a line per project / phase / sub-phase / lines).
    • Presentation 'Details': a line per object line.
    • Rule to choose 'on the product': based on the revenue recognition method indicated on the sold product record sheet.
    • Rule to choose 'on the line': based on the revenue recognition method of the sub-family stored on objects lines, to determine the rule to be taken into account. During an accounting period, the sub-family of a product can change so the revenue calculation rule changes as well.

    Calculation of the revenue recognition is not in correlation with the billing or is used when various activities coexists in the company and requires to calculate multiple revenue recognition. This method does not apply a prorata.

    Field Description
    Initial budget Signed quotations before or the date of the closing date.
    Budget

    When the Budget calculated with updated sales forecast option is selected, it matches the sum of:

    • Validated orders non delivered without a billing schedule created before or the day of the closing date.
    • Non-billed deliveries created before or the day of the closing date.
    • Lines of validated but non-billed billing schedules created before or the day of the closing date.
    • Invoices created before or the day of the closing date.

    When the Budget calculated with the signed quotations option is selected, it matches the signed quotations before or the day of the closing date.
    Billed Invoices created before or the day of the closing date.
    Amount to be billed

    The amount to be billed matches the sum of:

    • Validated orders non delivered without a billing schedule created before or the day of the closing date.
    • Non-billed deliveries created before or the day of the closing date.
    • Lines of validated but non-billed billing schedules created before or the day of the closing date.
    Billing % The billing % is the remainder between the Billed and the Budget.
    Invoices to be issued

    When the Revenue calculated based on deliveries only box is checked, the Invoices to be issued is the Recognized revenue (in the case of the Recognized revenue is higher than the Billed). If not, the Invoices to be issued is equal to 0.

    When the Revenue calculated based on deliveries only box is not checked, the Invoices to be issued matches the sum of:

    • Non-billed deliveries created before or the day of the closing date.
    • Lines of non-validated and non-billed billing schedules created before or the day of the closing date.
    Deferred revenue

    When the Revenue calculated based on deliveries only box is checked, the Deferred revenue is the Recognized revenue (in the case of the Recognized revenue is higher than the Billed). If not, the Deferred revenue is equal to 0.

    When the Revenue calculated based on deliveries only box is not checked, the Deferred revenue calculation is not possible.
    Free maintenance Matches the percentage of free maintenance defined on the lines.
    Recognized revenue

    When the Revenue calculated based on deliveries only box is checked, the Recognized revenue matches the deliveries billed or non-billed before or the day of the closing date.

    When the Revenue calculated based on deliveries only box is not checked, the Recognized revenue matches the dfollowing calculation:

    Billed + Invoices to be issued - Deferred revenue
    Revenue to recognize

    Matches the following calculation:

    Budget - Recognized revenue
    Revenue M-1 Logged revenue retrieved based on the logging date defined in the start screen of the revenue recognition.
    Monthly production

    Matches the following calculation:

    Recognized revenue - Revenue M-1
    Field Description
    Initial budget No initial budget.
    Budget

    When the Budget calculated with updated sales forecast option is selected, it matches the sum of:

    • Validated orders non delivered without a billing schedule created before or the day of the closing date.
    • Non-billed deliveries created before or the day of the closing date.
    • Lines of validated but non-billed billing schedules created before or the day of the closing date.
    • Invoices created before or the day of the closing date.

    When the Budget calculated with the signed quotations option is selected, it matches the signed quotations and the non-signed quotations turned into orders before or the day of the closing date.
    Timesheet

    Timesheets in days (according to the time status codes selected in the set up) before or the day of the closing date.
    Billed Invoices created before or the day of the closing date.
    Amount to be billed

    The amount to be billed matches:

    Budget - Billed
    Sold days Matches the budget (in days).
    Days done

    Matches the timesheets inputted by the employee.
    Actual remaining tasks

    Matches the schedules (in days) created before or the day of the closing date.

    When the RECCA_RAF_PLG management rule is enabled, timesheets in the future and/or schedules in the future can also be taken into account.
    Theoretical remaining tasks

    Allows you to check that the schedule is up to date. The Theoretical remaining tasks matches:

    Sold days - Days done
    Difference

    Matches:

    Theoretical remaining tasks - Actual remaining tasks
    Updated forecast

    Matches:

    Days done + Actual remaining tasks
    Calculated progress %

    Matches:

    Days done / Updated forecast
    Theoretical progress %

    Matches:

    Days done / Sold days
    Forced progress %

    Matches the theoretical progress by default. It is possible to manually specify it when the user has the DMF 070817.

    When the RECCA_THEO_CALC management rule is enabled, the Forced progress % matches the Calculated progress %.
    Invoices to be issued

    Matches:

    Recognized revenue - Billed
    Deferred revenue

    Matches:

    Billed - Recognized revenue
    Recognized revenue

    Matches:

    Budget * Forced progress
    Revenue to recognize

    Matches:

    Budget - Recognized revenue
    Revenue M-1 Logged revenue retrieved based on the logging date defined in the start screen of the revenue recognition.
    Monthly production

    Matches:

    Recognized revenue - Revenue M-1
    Field Description
    Initial budget Matches the signed quotations before or the day of the closing date.
    Budget

    When the Budget calculated with updated sales forecast option is selected, it matches the sum of:

    • Validated orders non delivered without a billing schedule created before or the day of the closing date.
    • Non-billed deliveries created before or the day of the closing date.
    • Lines of validated but non-billed billing schedules created before or the day of the closing date.
    • Invoices created before or the day of the closing date.

    When the Budget calculated with the signed quotations option is selected, it matches the signed quotations and the non-signed quotations turned into orders before or the day of the closing date.
    Timsheets or Actual costs (when the Calculation of expenses with valuated time and purchases box is checked)

    Matches the sum of:

    • Timesheets valuated before or the day of the closing date.
    • Purchase invoices created before or the day of the closing date.
    • Non-billed receptions created before or the day of the closing date (only taken into account when the Calculation of expenses with valuated time and purchases box is checked).

    When the Logging of expense recognition option is checked in the revenue recognition setup, the Actual costs matches the sum of the lines of the expenses history > Recognized expenses column, inputted before or the day of the closing date.

    Note

    When the Calculation of expenses with valuated time and purchases and Logging of expense recognition boxes are checked in the revenue recognition setup, the actual costs are calculated the same way as with the Logging of expense recognition alone.
    Billed Invoices created before or the day of the closing date.
    Actual remaining tasks

    When the Valuated schedules option is selected in the revenue recognition setup, the Actual remaining tasks matches the sum of:

    • Valuated timesheets after the closing date
    • Valuated schedules after the closing date
    • Supplier orders validated and non-received before or the day of the closing date.
    • Receptions non billed (without a period, with a period before or after the closing date, with a reception date after the closing date)
    • Lines of purchase billing non-billed schedules (without a period, with a period before or after the closing date, with a reception date after the closing date)
    • Supplier invoices created after the closing date (when the Calculation of expenses with valuated time and purchase is checked in the revenue recognition setup).
    • Validated quotes before or the day of the closing date (when the Inclusion of validated quotes option is selected in the setup)

    When the Remaining project tasks option is selected in the revenue recognition setup, the Actual remaining tasks matches the sum of:

    • Valuated timesheets after the closing date
    • The remaining tasks of the valuated project with the employee linked to this task
    • Supplier orders validated and non-received before or the day of the closing date.
    • Receptions non billed (without a period, with a period before or after the closing date, with a reception date after the closing date)
    • Lines of purchase billing non-billed schedules (without a period, with a period before or after the closing date, with a reception date after the closing date)
    • Supplier invoices created after the closing date and without period(when the Calculation of expenses with valuated time and purchase is checked in the revenue recognition setup).
    • Validated quotes before or the day of the closing date (when the Inclusion of validated quotes option is selected in the setup)

    When the Logging of expense recognition option is checked in the revenue recognition setup, the Actual remaining tasks matches the sum of the lines of the expenses history > Expenses to recognize column, inputted before or the day of the closing date.

    Note

    When the Calculation of expenses with valuated time and purchases and Logging of expense recognition boxes are checked in the revenue recognition setup, the Actual remaining tasks is calculated the same way as with the Logging of expense recognition alone.
    Updated forecast

    Matches:

    Timesheets + Actual remaining tasks

    Note

    When the Calculation of expenses with valuated time and purchases box is checked in the setup, the Actual costs replaces the Timesheets in the calculation.
    Calculated progress %

    Matches:

    Timesheets / Updated forecast

    Note

    When the Calculation of expenses with valuated time and purchases box is checked in the setup, the Actual costs replaces the Timesheets in the calculation.
    Forced progress %

    Matches the theoretical progress by default. It is possible to manually specify it when the user has the DMF 070817.
    Invoices to be issued

    When the Recognized revenue is higher or equal to the Billed, the Invoices to be issued matches:

    Recognized revenue - Billed
    Deferred revenue

    When the Recognized revenue is lower than the Billed, the Deferred revenue matches:

    Billed - Recognized revenue
    Recognized revenue

    Matches:

    Budget * Forced progress
    Revenue to recognize

    Matches:

    Budget - Recognized revenue
    Revenue M-1 Logged revenue retrieved based on the logging date defined in the start screen of the revenue recognition.
    Monthly production

    Matches:

    Recognized revenue - Revenue M-1

    Calculation of the revenue recognition is not in correlation with the billing or is used when various activities coexists in the company and requires to calculate multiple revenue recognition.

    Field Description
    Initial budget Matches the signed quotations before or the day of the closing date.
    Budget

    When the Budget calculated with updated sales forecast option is selected, it matches the sum of:

    • Validated orders non delivered without a billing schedule created before or the day of the closing date.
    • Non-billed deliveries created before or the day of the closing date.
    • Lines of validated but non-billed billing schedules created before or the day of the closing date.
    • Invoices created before or the day of the closing date.

    When the Budget calculated with the signed quotations option is selected, it matches the signed quotations and the non-signed quotations turned into orders before or the day of the closing date.
    Billed Invoices created before or the day of the closing date.
    Suggested invoices to be issued

    When the Revenue calculated based on deliveries only box is checked, the Suggested invoices to be issued matches:

    Recognized revenue - Billed (when the Recognized revenue is higher than Billed)

    When the Revenue calculated based on deliveries only box is not checked, the Suggested invoices to be issued matches:

    Non-billed deliveries created before or the day of the closing date + Lines of billing schedules validated and non-billed before or the day of the closing date.
    Selected invoices to be issued Matches the Suggested invoices to be issued by default (the input of the Selected invoices to be issued is possible when the user has the DMF 070817).
    Suggested deferred revenue

    When the Revenue calculated based on deliveries only box is checked, the Suggested deferred revenue matches:

    Billed - Recognized revenue (when the Recognized revenue is lower than the Billed)

    When the Revenue calculated based on deliveries only box is not checked, the Recognized revenue matches the lines of the invoices in proportion to the period regarding the closing date.
    Selected deferred revenue Matches the Suggested deferred revenue by default (the input of the Suggested deferred revenue is possible when the user has the DMF 070817).
    Recognized revenue

    When the Revenue calculated based on deliveries only box is checked, the Recognized revenue matches the billed or not billed deliveries (when the date specified in the Delivered on is before or the date of the closing date) in proportion to the period of the lines regarding the closing date.

    When the Revenue calculated based on deliveries only box is not checked, the Recognized revenue matches:

    Billed + Selected invoices to be issued - Selected deferred revenue
    Revenue M-1 Logged revenue retrieved based on the logging date defined in the start screen of the revenue recognition.
    Monthly production

    Matches the following calculation:

    Recognized revenue - Revenue M-1