Allocating Employee Realization

You can use Employee Realization in Billing to manually allocate employee realization.

The Employee Realization Reporting feature allows you to measure the realization and profitability of employees who work on a project. Realization is the monetary amount of billed and unbilled revenue attributed to an employee. This feature automates the allocation of posted labor and units-related revenue to specific employees who work on a project. Revenue that is associated with time records and employee-specific units is used for employee realization.

The Employee Realization menu item displays on the Billing menu only if you turned on the Reporting Realization byEmployee feature on the Reporting tab in Settings > Advanced Accounting > System. When you turn on this feature, you also select a frequency (Invoice or Period) that affects how employee realization is calculated and whether or not the realization is allocated automatically or manually. When you select the invoice frequency, employee realization is calculated when you create invoices in Interactive Billing or Batch Billing, and you do not need to run Employee Realization on the Billing menu.

Warning:

DPS recommends that you use either the invoice frequency or the period frequency to calculate employee realization for a project. Use one approach or the other, but not both. Allocating employee realization for one project in both Interactive Billing/Batch Billing and Employee Realization during the life of a project can result in inaccurate, unexpected realization amounts. This is because one calculation method uses the time records billed against the invoice and the other uses the time records in a specific period.

Employee Realization Allocation

The Employee Realization Allocation dialog box in Billing > Interactive Billing and in Billing > Employee Realization has the same columns of information. However, the realization amounts are calculated differently:

• In Billing > Interactive Billing (Invoice frequency):

  Realization is calculated for the invoice that you are creating in Interactive Billing. The calculation includes employee-specific time and units billed against the invoice. The calculation uses only the invoice amounts that are associated with the revenue allocation general ledger accounts that are set up for the employee realization calculation in Employee Realization Reporting configuration.

• In Billing > Employee Realization (Period frequency):

  Invoices and timesheets are included in the realization calculation based on the projects and range of periods that you select on the Employee Realization Allocation form that initially displays in Billing > Employee Realization. You also choose whether or not to include labor adjustments and Interactive Billing modifications in the calculation. The calculation includes employee-specific time and units. The calculation uses only amounts that are associated with the revenue allocation general ledger accounts that are set up for the employee realization calculation in Employee Realization Reporting configuration.

Multiple Companies

If you have multiple companies in DPS, only the realization for the active company is calculated when you run Employee Realization.