- Standard doc topics (how to find, how to create, main tab, project structure
- Allocate overhead buttons for Amount (Overheads) distribution.
- Fill current recognition buttons: by Invoiced, by Progress, by Expenses.
- if Project is not marked as Advanced Project Planning, then old Phased revenue recognition mode will be applied (with no project structure and recognition by expenses).
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Project Structure
This tab is used to manage control project tasks, expenses, and the method of approach for recognizing revenue for each part of the project component.
Refill – Refills - Reloads all data ( tasks, estimates, and expenses ) based on linked to the selected project selected.
Allocate Overheads – Allocates expenses that were not yet distributed. Unallocated expenses are shown in yellow as a highlight. Allocation can be done by:
Planned expenses
Actual expenses
Reset allocation- remove any distribution done in the current document
Fill Current Recognition – Defines how revenue for the current period should be recognized. Options include:
By Invoices – Based on invoice documents created.
By Progress – Based on progress reports prepared.
By Expenses – Based on incurred expenses.
Code – Task or work package .
Code- Task reference number.
Project Task – - Description of the task or activity.
Estimate – -Planned values from project estimates:
Price
-Planned unit price.
Amount
- Planned total amount.
Already Recognized – - Values already recognized in past periods:
Qty
- Quantity already recognized.
Amount
- Value recognized.
%
- Percentage of task completed/recognized.
Current Recognition – - Values recognized in the current period:
Qty
- Quantity to be recognized now.
Amount
- Value recognized for this period.
Current %
- Percentage recognized in the current period.
Cumulative %
- Total percentage recognized up to now.
Expenses
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- Planned, actual, and overhead expenses:
Amount (Planned)
– - Estimated cost of the task.
Amount (Actual)
– - Actual expenses recorded.
Amount (Overheads)
– - Overhead allocation
(, the Unallocated expenses are highlighted in yellow
if pending).
Invoiced Before – Values - Values already invoiced to the customer.
Progress – - Physical or financial progress of the task.
Business Activity – - Activity type (e.g., Main Activity).
Income Item – - Revenue classification (e.g., Sales Revenue).
GL Accounts – - Accounts used for posting recognized revenue.
Transaction Content – - Used to add any Additional reference for postingrequired.
- To create and use Work type items with associated costs, enable Use Work Type Items in Sales Documents on the Administration > Settings > Sales form. Work-type items can be used in documents such as Quotations, Customer Orders, Adjustments, Credit Notes, Tax Credit Notes, Tax Invoices, and Project Estimates.
To allocate costs to specific cost objects, enable Advanced Product Costing in Administration → Settings → Production. Then define which objects can serve as cost objects: Customer Order, Project, Project Task, or Item.
If a Project is not flagged as Advanced Project Planning, the system will apply the old Phased Revenue Recognition mode, which does not support project structure and recognizes revenue based solely on expenses.
To create a Phased Revenue Recognition document-
go to Project Costing> Phased Revenue Recognition.
Create a new document, and fill in the required tabs as explained.
On the Main tab, you can enter general information such as the customer, contract, project, and other relevant data. Key fields include:
The Revenue and Costs tab allows users to list and manage items for revenue recognition in phased contracts. It includes two panes:
- Services Pane: Lists work and service items for revenue recognition. Users can specify item details, quantities, discounts, and recognition percentages.
- Work Costs Pane: Displays associated costs for listed services, with options to view costs from previous recognition phases.
This tab helps track recognized revenue and costs based on contract progress, ensuring accurate financial reporting.
The Services Pane allows adding and managing Work/Service items with details like quantity, price, discounts, VAT, and optional characteristics. Additionally, some more fields need to be filled i.e.
- Already Recognized: The Already Recognized Quantity and Already Recognized Revenue columns show the revenue and costs recognized in previous phases. You can access more details in the Costs Recognized for Previous Phases tab if necessary.
- Revenue Recognition Percent/ Current-Phase %: Specifies the percentage of total revenue to be recognized in the current phase.
- Cost Details: The Total Cost and Already Recognized Costs columns show the costs associated with the work, including previous recognitions.
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- Percentage-of-Completion: Revenue is recognized gradually as work progresses, often based on costs incurred or work completed.
- Milestone-Based: Revenue is recognized when specific milestones or deliverables are met.
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Additional Information Tab
This tab contains the following fields:
Department- The department responsible for the project or recognition process.
Responsible- The employee or person accountable for preparing and managing the recognition.
Use Exchange Rates Defined on the First Revenue Recognition Date- An option to fix and apply the same exchange rates from the first recognition date for consistency across subsequent recognitions.
Allocate Overheads
This function is used to distribute expenses that have not yet been assigned. Allocation methods include:
By Planned Expenses – Distributes overheads in proportion to the planned (estimated) expenses of each task.
For example, if the unallocated overhead is 480 and all tasks have equal planned amounts, the overhead will be divided equally among them since their proportional share is the same.
By Actual Expenses – Overheads are distributed according to the actual costs of each task. Tasks with no expenses recorded do not receive any allocation.
Overhead = (Task Actual Expense ÷ Total Actual Expenses) × Total Undistributed Overhead
CONSTRUCTION WORK- 10,000 ÷ 10,690 × 480 = 448.99
PIPE SIZE 6"- 690 ÷ 10,690 × 480 = 31.01
All other tasks get 0 because they have no actual expenses.
- Reset Allocation- Cancels previous allocations and returns expenses to an unallocated state.
Fill Current Recognition
Defines how revenue for the current period should be recognized. Options include:
- By Invoiced- Based on invoice documents created.
- By Progress- Based on progress reports prepared.
- By Expenses- Based on incurred expenses.
Advanced Project Planning
If the project is not enabled for Advanced Project Planning in the production settings, the system will use the old Phased Revenue Recognition mode, where project structure is not available and revenue is recognized only by expenses.
