Fee Billed Revenue Posting Options

As part of configuring Billing, you should consider how you want to post fee billed revenue to the general ledger.

By default, when you generate a final invoice, all fee billed revenue is posted to a single account, either a company-level default account specified on the Accounts tab of the Billing Setup form (Settings > Billing > General in the desktop application), or an override account entered for the individual project on the Misc tab of the Billing Terms form.

If the project has work breakdown structure (WBS) levels below the level at which the fee is billed, DPS does not distribute fee billed revenue to those lower levels.

Alternative Approaches

For many firms, this approach is adequate. However, DPS offers two alternatives that offer a more detailed breakdown of fee billed revenue:

• Post fee billed revenue to separate revenue accounts for labor, consultants, expenses, and units, based on the transaction detail associated with the invoice.

• Post fee billed revenue to separate revenue accounts either for revenue categories or for labor, consultants, and expenses billing categories, with the posted amounts calculated based on fee allocation information that you enter in project billing terms.

Firms that implement one of these alternatives generally do so for these reasons:

• They want to match up income with related expenses on their financial statements.

• They want improved alignment of fee income with expenses on project reports such as the Project Earnings report.

• They want a more accurate distribution of fee income to phases and tasks.

• They want more precise employee realization data.