Execute Revenue Recognition
Explanation
This activity is used to calculate the revenue recognition for project/(s) with the Active project status
and revenue recognition method POC Revenue First or POC Income First or Event based for the selected ledger and
period.
Prerequisites
- The periodical capitalization and revenue recognition status of the select project/(s) must have the
Capitalized status.
- Any previous revenue recognition procedures for the same ledger selection must have the Posted/Closed
status.
- The selected project/(s) must have the Active status, the revenue recognition method must have been
set to POC Income First or POC Revenue First or Event based, and the estimates must have been entered on the
Financial Project/Project Totals tab.
System Effects
- The status of the periodical capitalization and revenue recognition procedure will change from
Capitalized/ Partially Capitalized to Calculated/ Partially Calculated.
- The periodical capitalization and revenue recognition status of the project will change from
Capitalized to Calculated.
- If 0% margin rules have defined in the project and/or company, such rules will be applied for qualified
projects and 0% Margin Rule Applied from field in the Periodical Capitalization and Revenue
Recognition Project window will be updated. Note: Project specific rule will get priority over
company rule.
- If the select project/(s) is not qualified for revenue recognition, the periodical capitalization and revenue
recognition status of the project/(s) will be changed to Posted/Closed and will be updated as an Empty
Revenue Recognition.
- A history log will be automatically created for the calculation for the projects included in the calculation
with POC Method set to Project Progress. A log will not be created if a log with a date higher than the
Valid Until date already exists for the period defined for the procedure.