PJC to allow input of accrued revenue. A function similiar to the current PJC Cost Entry.
by: AFON S. | over a year ago | Operations Management
Votes
12
PJC to allow input of accrued revenue
by: AFON S. | over a year ago | Operations Management
Comments
Very good to have this for various industries who does project on accrued basis
this is important for WIP accounting when existing accounting methodologies can't be used for Revenue recognition.
90% of PJC users uses accrued basis and does WIP manually. In order to automate WIP reporting process, we need to assigned previously recognized revenue in PJC tables. The only way to do this via optional table and a middleware application, which we can customize. Becuase of its complexity, the development costs will be higher. Sage can help provide this option out-of-box. It almost like it was an oversight in original development not to include this, PJC WIP process was originally released based on formula and features. Its true application left to Business Partners to implement.
The ones that use Completed Contract basis can also use Accrued accounting, and we control the revenue with Contract/Project status .
The ones that use WIP menthodology out of box often not aware of the WIP process and implications. Often misuse the application as a result. While accounting methodologies makes sense in theory, in real life environment it requires more flexibility for adjustment and more options.
i.e. % completed based on cost complete is often done at Contract level. It can be extended to Phase level provided that Revenue is accrued based on % of TOTAL cost complete.
In accrual accouniting, we also need a GL revenue account for Billings at PJC Category level 3 setup.
It is also good idea to include default GL accounts at PJC Category setup.
Existing PJC account set is only good if you assign multiple cost categories to one Cost of Goods Sold account. Oterwise, Business Partner can audit your setup and correct the GL accounts with a custom developed utility which is available, as well as PJC Budget Variance reporting related inquiries can me date to mcarsan@baass.com or orders@baass.com