Implementing Project Portfolio Management: From Organization Structure to Recognized Revenue · Module 14 · Project Billing: Contracts, Invoice and Revenue Methods
Revenue methods
Lesson 146 of 198 · 13 min
Create a revenue method and enter basic information. Set the classification — rate based, amount based, percent-based. Create a rate-based revenue method and a percent-complete revenue method. Show revenue recognized independently of invoicing, and show the unbilled and unearned position resulting from a mismatch. REVENUE RECOGNITION IS AN ACCOUNTING POLICY DECISION GOVERNED BY ACCOUNTING STANDARDS. Finance and the auditors own it. You configure what they specify. Say this plainly, and do not offer an opinion on which basis is correct. THAT LAST STEP IS THE LESSON. Deliberately configure invoicing and revenue on different bases, run both, and see the unbilled and unearned balances appear. That is Lesson 3 made visible, and it is the only way it lands. Percent-complete revenue depends on progress data from Module 10. If progress reporting is unreliable, so is revenue. That raises the stakes on Module 10 retrospectively — and it is the moment you…
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In this module: Module 14 · Project Billing: Contracts, Invoice and Revenue Methods
- 1The contract dependency
- 2Contracts, lines and projects
- 3Bill plans and revenue plansFree preview
- 4Invoice methods
- 5Revenue methods
- 6Creating a contract
- 7Associating projects and tasks
- 8Contract types and approval
- 9Proving the association works
- 10What breaks
- 11Lab: a master agreement, a fixed price, and one task that must not bill