Project Management

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Topic

    Chris Van de Graaf
    How to determine project balance on Unbilled/Unearned...
    Topic posted May 13, 2019 by Chris Van de Graaf, tagged Project Billing & Revenue, Project Contracts, Project Management 
    122 Views, 3 Comments
    Title:
    How to determine project balance on Unbilled/Unearned (Deferred) Revenue
    Summary:
    Unbilled and Unearned (Deferred) Revenue uses different GL accounts, is there an option to determine the balance by project for these accounts
    Content:

    In EBusiness there are views which show the balances on the UBR/UER accounts by projects. PPM Cloud introduced the Billing Offset process, I think to generate accounting entries to reduce either the UBR account or UER account to zero. Are there reporting views showing the UBR/UER balance for projects or contracts?

    What happens if the project comes to a close, and the invoiced amount equals the revenue amount. Does the Billing Offset process still needs to be run?

    Thanks

    Chris

     

    Version:
    19A

    Comment

     

    • Perry Unrau

      The management of Unbilled Receivables (UBR) and Deferred Revenue (DFR) in the PPM Cloud is at the contract line level, which best represents the performance obligation in IFRS 15 / ASC 606.  In the PPM Cloud, you can see the UBR and DFR balances by contract line in the Manage Billing Offset Balances page for a user-selected accounting period.  Unfortunately, we have not yet added Project Billing Accounting Transactions as a subject area within OTBI, but you could use the Revenue Real Time and Invoices Real Time subject areas to report Inception-to-date revenue and invoice numbers, which should be the opposite side of the Unbilled Receivables and Deferred Revenue accounting entries.

      When a contract line is ready to be marked complete, users should open the Manage Billing Offset Balances page, select that contract line in the search results, click Create Accounting Transaction, turn off the Reverse this accounting transaction in the next period option, and click Save and Close.  This will create a billing offset reclassification accounting entry that will not reverse itself in the following accounting period.  Then the contract line can be closed.  Closed contract lines are not eligible for billing offset reclassification.

      Perry

       

    • Hanif Ladha

      The Management of Unbilled Receivable and Deferred Revenue; when dealing with large volume of Contracts and associated Projects i.e. a Contract has many projects and the Contract or Project has closed (Contract Line) is there an automated means of turning off the Reverse?

       

      Hanif

    • Perry Unrau

      No, there is not an automated means of turning off the Reverse this accounting transaction in the next period option.  Suggest you raise an SR and have it associated with ER 27707448.

      Perry