Question

POC Current Period

  • 23 April 2024
  • 2 replies
  • 24 views

Userlevel 5
Badge +7

Hello

To test Manual POC, 5% was inputted and revenue recognition was rerun. It now shows 5% in the POC Current Period column of the Revenue Recognition Project Log. I am unsure though which amounts underly this 5% (ie. which amounts in the revenue recognition project log is involved to calculate this 5%?).

 

Additionally, I see 14,988.747 of Calculated  Revenue Recognized Accumulated but I cannot figure out how that was calculated.

 

I would appreciate it if someone could advise. I am trying to understand how the 5% and 14,988.747 are being calculated and which amounts are being used for such numbers.

 

I have attached an Excel output file for this. Any help would be much appreciated.

 

 

 

 

 


2 replies

Userlevel 7
Badge +16

Hello, 
If your Revenue Recognitoin Method is POC, Income first, then formula to calculated Recognized Revenue is:
Actual Cost + POC * (Estimated Revenue - Estimated Costs)

In Excel attached using columns id:

L+P*(G-H)

Userlevel 5
Badge +7

Hello, 
If your Revenue Recognitoin Method is POC, Income first, then formula to calculated Recognized Revenue is:
Actual Cost + POC * (Estimated Revenue - Estimated Costs)

In Excel attached using columns id:

L+P*(G-H)

Thank you Adam, much appreciated!

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