Revenue recognition allows you to view, search and edit the distribution of revenue for a project, business unit or entire project portfolio. This means you have the ability to determine whether revenue is recognized before (accrued) or after (deferred) project invoicing and payment.
Revenue recognition is available in Platinum and Enterprise editions.
For example, if a project spans several months and the customer makes payments at the beginning and end of the project, you can identify revenue for each month in which services are performed, instead of having two large revenue months with no revenue for the intervening months.
When the Revenue recognition add-on is enabled, it is not possible to enter revenue forecasts manually for projects in the project's Financials tab.
Locking events is a permanent and irreversible setting that prevents anyone other than the system administrator from entering and editing revenue for all projects.
Settings > Organization > Revenue recognition allows you to prevent edits and additions for closed and past months. Select the checkbox in front of Lock month and click the calendar icon to open and select a date. After saving, a pop-up window will appear to confirm that the changes are set as intended, and you can choose Yes or Cancel.
If entries for a specific month are locked in Revenue recognition, new revenue for that month will be moved to the first unlocked month based on the Date of entry.
Revenue can be further distinguished by Cost centers (also used as revenue centers). Cost centers allow you to provide more information about how income is generated by identifying the business unit, department or other responsible division.
How to enable Cost centers:
- Go to Settings > Organization > Revenue recognition
- Click the Enable cost centers checkbox, and Save
- After saving, navigate to Settings > Organization > Financials > Cost centers
- Create the cost centers by providing names, assigning unique identifiers and selecting default values
If revenue was generated prior to the setup of Revenue recognition and Cost centers, the information is displayed under Other revenue. This field contains all previously created revenue and can be moved from this field to another cost center or vice versa.
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