Revenue Generation

Because DPS is an accrual-based system, you can use the revenue generation process to recognize project revenue as it is earned (rather than when payment is received) and match it to expenses as they are incurred (rather than when expenses are paid).

To get an accurate view of a project's financial status, it is important to match revenues with amounts spent. If you don't use the revenue generation process, DPS recognizes revenue as it is billed.

When you run revenue generation:

  • You can choose a standard revenue method or define your own methods to calculate job-to-date (JTD) revenue for each of your projects. If you select the most appropriate revenue method for each project based on the project's contract type, you can improve the accuracy of your reports and financial statements.
  • A project’s job-to-date revenue is calculated as the sum of the revenue that is calculated at the project’s lowest work breakdown structure (WBS) level. For example, if a project has phases and tasks, the project's revenue is calculated as the sum of the revenue that is calculated for each of its tasks.
  • Each project's unbilled services revenue is posted to the project, and you do not need to create separate journal entry transactions.
  • Each project's data is updated and used to generate financial statements.

You can run revenue generation only for projects whose charge type is regular. You cannot use it with overhead or promotional projects. You set the charge type for a project on the Accounting tab in the Projects hub (desktop).

Setting Up Revenue Generation

When you set up the revenue generation feature, you choose whether or not to:

  • Use revenue categories to track multiple unbilled services and uninvoiced revenue accounts.
  • Use revenue groups to recognize revenue at the group or contract level multiple projects in a contract or group.
  • Set up overall revenue upset limits that restrict the job-to-date revenue that is recognized for a project.
  • Set up an overall revenue calculation at the project level to calculate job-to-date revenue.

Alternative: Consultant Accruals

If your company's vendor or consultant expenses are significant, consider using consultant accruals. Revenue generation calculates accrued revenue, and consultant accruals calculates accrued expense to match that revenue. The consultant accruals feature also provides you with consultant-related reports.

Timing

Because the revenue generation process calculates revenue on a job-to-date basis, you can run it whenever you want (multiple times during the same accounting period, if necessary). To keep your project reports accurate and up-to-date, you should run revenue generation at least once a month or at the end of each accounting period.

To see current period revenue, run revenue generation and then subtract the prior job-to-date revenue from the new job-to-date revenue.

Multiple Companies

If you use multiple companies, you enable and set up revenue generation options individually for each company in your enterprise. For each company, you evaluate DPS's revenue methods, upset limit, revenue group, and revenue categories features and determine whether and how to set them up to most suitably recognize, track, and report project revenue for that company. You also run the revenue generation process separately for each company.

See the Concepts help for information on how job-to-date revenue is calculated when you have an overall revenue calculation for a project, and the project's phases or tasks belong to different companies.

Multiple Currencies

If you use multiple currencies, all the phases or tasks for a project must have the same currency.

Related Topics:

  • Revenue Generation Setup Checklist
    You may find it helpful to review a list of the general steps that you complete to set up revenue generation.
  • Revenue Generation Checklist
    Usually, you run revenue generation immediately before you generate the financial reports for a given accounting period.
  • Revenue Categories
    When you enable the revenue generation feature, you have the option to track one or multiple unbilled services, uninvoiced revenue, and fee billed revenue accounts using revenue categories.
  • Overall Revenue Upset Limits
    You can set up an overall upset limit that applies a maximum limit on the job-to-date (JTD) revenue that can be recognized for a project when you run revenue generation.
  • Overall Revenue Calculation for a Project
    For individual projects, you can set up an additional overall revenue calculation at the project level.
  • Running Revenue Generation
    Run revenue generation a minimum of once per accounting period.
  • Revenue Generation Reporting
    Use revenue generation reports to view all of the revenue methods that are defined in your database and the data from revenue generation transactions.
  • Fields and Options
    Use the Revenue Generation form and related dialog boxes to run the revenue generation process.
  • Learn More About...
    Review a checklist for setting up the revenue generation process, learn about the RevGen file for revenue-related journal entries, and see the answers to frequently asked questions about revenue generation.
Parent Topic: Accounting