The Revenue Calculation Procedure

You will find the Revenue Calculation procedure under Accounting | Project. Under the Create tab you select which projects you want to include in the Standard list. You can view one or several project(s) or project type(s) at a time and save each selection separately and then print a ledger for all projects. You can redo the calculation as long as the ledger has not been reset. Only projects with status 3 that also have the Percentage-of-completion method selected as a revenue calculation method for the project type will be shown in the list.

Recommended Work Method

The calculation is supposed to be made at the end of each month when other accounting entries that might affect the result of the project are completed. The current period is always suggested under the Create tab. The calculation is based on log records and invoices with a voucher date/invoice date within the current period.

You can select whether or not to display the budget in the list. The calculations are based on the forecast so the budget is only used for comparison purposes.

At the top of the list you will find projects with a stage of completion outside the interval 0 - 100%. The stage of completion is then marked in red to clearly indicate that it shall be checked and taken care of before the calculation is saved. Otherwise, the result might be incorrect.

In the Forecasts section, list type Standard, you will find a button with a pen symbol. If you use this button, you will see the cost and income types that exist for the current project. It is possible to update the forecast if the conditions have changed. This will affect the calculation of the stage of completion and the calculated recognized income. When the revenue calculation is saved, the forecast is updated in the Register Project procedure for the current project. However, this requires that the project is selected in the list and thereby saved.

If an income (for example advance payments) is recorded on a balance account, in spite of our recommendations, an exclamation mark will be shown after the income in the Result section. If the cursor is placed over the exclamation mark you will see a tooltip with information as well as the amount.

If you have activated the setting called Editable stage of completion in the Revenue Calculation you will see a button with a pen symbol for the stage of completion as well. You can then change the stage of completion for the calculation. If you want to undo the stage of completion that you manually entered, you can use this button to delete the value. Then the calculated value will be used instead.

Furthermore, you will see the project's stage of completion for the previous period in a separate column. If the stage of completion has been edited manually in the previous period, it will be shown in bold font. If you place the cursor over the stage of completion in bold font, you will see the calculated stage of completion in a so-called tooltip.

The calculated recognized income is shown in the section called Deduction. You will also see the CR in percent which can be compared to the CR in the forecast and budget in order to determine the reasonability.

Projects selected to the left in the list will be saved and also be included in the total at the top to the right. You can check and uncheck all projects by using the checkbox on the heading row.

When you select a project you will find information about the project at the bottom of the window such as project type, revenue calculation method, pricing, calculation basis stage of completion, and profit % (if any).

We recommend that you load and save the revenue calculation on the last of each month. Then you print the revenue calculation ledger with voucher date on the last of each month. Before you calculate the revenue for the period, you reverse the income accrual accounting for the previous month. Read more under Reversal Voucher.