Implementing Project Portfolio Management: From Organization Structure to Recognized Revenue · Module 15 · Project Billing: Formats, Events and Processing
Billing period close and reconciliation
Lesson 160 of 198 · 14 min
Review the pre-close checklist. Confirm all costs processed, invoices generated and approved, revenue recognized. Run final accounting and close the billing period. RECONCILE: unbilled and unearned balances in Projects against the general ledger accounts. Introduce a deliberate difference and diagnose it, resolve it, re-reconcile, and build the reconciliation working paper. UNBILLED AND UNEARNED MUST RECONCILE TO THE LEDGER. They are balance sheet accounts and the auditors will test them. The common causes of a break: invoices approved but not transferred; revenue accounted in draft; period timing; and manual journals posted directly to those accounts by somebody in Finance. That last one is worth naming. Recommend restricting those accounts — it is a Financials-side control, so the client knows where the fix lives. Give them the working paper. Every project accountant wants it and few consultants provide one.
The full lesson is part of the course
The video, the complete written lesson and the module quiz are included in Implementing Project Portfolio Management: From Organization Structure to Recognized Revenue, with a certificate on completion and a fourteen-day refund window.