Recognised Revenue

Revenue Recognition is an accounting principle whereby you calculate Revenue per month based on how much of the project value has been earned, or how much work has been completed. CMap's Revenue Recognition tool allows you to recognise the revenue for each Project at Month Close. This article will outline the different calculations CMap can perform to automatically calculate the revenue that should be recognised on a Project each month.

1. From your Dashboard, head to the Projects tab. Click Project and select the Project No-Title to go to the Project Details page.

2. Click the Revenue Scheduling tab and you will see a table like this:

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3. Now you are ready to select the appropriate option for Recognising Revenue for Fees and Additionals. Click into the Historic Option drop-down menus and select one of the three options:

Historic Options Description
Percent Complete This uses the Percent Complete of the project (captured when the month is closed), to determine the amount of Revenue that can be recognised.
Invoiced This uses the value of Invoicing for previous months to determine the value that can be recognised.
Manual This uses the values entered into the Revenue Scheduling Tool to determine the amount of Revenue that can be recognised. These values will be locked once the month is closed.
Time based WIP

Note: This is only applicable for Resourced Time & Materials projects.

This uses the value of the Time chosen to recognise in the period. Time entries are manually selected using the Time to Recognize link on the Budget v Actuals tab.

If this project has revenue recognised in closed months, a pop-up box will appear. You should confirm whether you would like to update the saved values using the new historic option, or retain the values that have been saved to date.

Hey presto! Hopefully you now know how to select how you would like to Recognise Revenue for projects. Once you have set the Historic Options for your all projects, you are ready to close the month.  

Want to learn more... here's an article on Month Close. 

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