Hi Folks,
I have a customer who wants to recognize the revenue for T&M projects, as soon as they incurred the cost. Capitalization method is the transaction based.
But as far as I know, IFS will not recognized the revenue until we create the project invoice or the Periodical Capitalization and Revenue Recognition job is executed.
Is it possible to recognized the revenue without executing the Periodical Capitalization and Revenue Recognition month end activity?
-Sadeepa-
Hi,
You an do this via reporting. The IFS Rev Rec process is a month end process, it’s not intended to be run daily.
Doing this via a report should be rather easy. Get the margin rate from the project estimate and calculate recognized revenue based on the cost. This is just analysis / internal reporting.
I see this as an operational; reporting / analysis function rather than an IFS Rev Rec function.
Other options can exist, but the main concept is - It’s probably a bad idea to consider a daily IFS rev rec process using the current periodical cap / rev rec process. Consider other options. I can probably think of a few but not knowing the client / business / number of projects / volume of transactions, and other it would be inappropriate to detail the various options. A concern would be blindly suggesting X where X would be really bad for that business but X can certainly work for for some other business.
The suggestion is consider all of the IFS tools available, rather than looking at “Rev Rec” as the sole provider of that solution. Reporting is probably the easiest.
Hope this helps,
Best regards,
Thomas
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