Revenue Recognition against a Project

  • 2 September 2020
  • 2 replies
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Hi, I’m reaching out to the IFS community to see if any other IFS customers have been able to get some flexibility out of the Revenue Recognition model in Projects.

Top level summary of our process and how we recognise revenue as follows:

Revenue Recognition

  • We need to be able to raise an invoice at activity level, with a percentage being invoiced up front and the remaining for that given stage (activity) invoiced on completion – we can do this using standard functionality
  • We need to be able to gradually recognise revenue throughout the process of a stage in a given project (relating to tasks being completed throughout)
  • The presentation of recognised revenue needs to be possible both by activity and by department (at present the method of managing capacity planning in IFS is still being discussed so there is some flex on this – work centers are being looked at). We would therefore need to apportion out work done towards an activity as recognised revenue based on the department doing the work on it

Currency Valuation

  • If the project activity is invoiced then we need to take that currency rate for revenue recognised. If work is done pre-invoice then the currency rate in the short term needs to be live to the rate at that month. When the invoice is generated the currency rate for revenue recognised needs to adjust back to match off against the invoice. This means the true revenue recognised should match off against the amount invoiced when a project or activity (stage) is closed off so we do not result in a false accrual or deferral based on the currency rate changes. There is a practical example of this on the previous page

If any other IFS customers have a similar model to this and have been able to use the application in it’s standard set up it would be really useful to hear from you. At the moment we’re looking at a modification with IFS but keen to make sure that’s truly our only option!


2 replies

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Hi Andy, 
We are currently looking into a similar setup and issue, did you ever find a resolution or was a MOD your only option?

Userlevel 1
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Hi Andy, 
We are currently looking into a similar setup and issue, did you ever find a resolution or was a MOD your only option?

Sorry I didn't reply before! Mod is our only option and we’re working through that. How did you get past it? I’m keen to try and gather support for the mod we’re getting to be brought into core if possible! :)

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