This chapter contains the topic:
Business processes and financial standards outline when you can recognize revenue for the amounts you bill to customers. Per accounting standards, you cannot recognize revenue for billed amounts associated with the billing amount until the performance obligation to the customer is satisfied.
When working in the JD Edwards World Job Cost system specifically, the system enables you to manage and report on performance obligations at the project, job, subledger or revenue performance obligation level for any job. A revenue performance obligation (RPO) is a record that consists of a set of accounts used to track costs and revenue associated with specific tasks within a job.
Project managers can identify multiple revenue performance obligations within a single job, associate a range of accounts with a revenue performance obligation, update related percent complete, and make revenue and cost adjustments to the revenue performance obligations (similar to single job adjustments). You can accurately recognize revenue for multiple revenue performance obligations on a single job by using the Profit Recognition process.
The following list outlines the steps of the Profit Recognition process when working with RPOs and provides links to relevant information:
Enter a job.
Create cost code structures under a job.
Define RPO AAIs to identify cost and revenue account ranges.
Chapter 48, "Define Revenue Performance Obligation AAIs (Update A9.3)"
Set up an RPO and associate accounts to the RPO.
Chapter 10, "Enter Revenue Performance Obligations (Update A9.3)"
Update percent complete for an RPO.
Generate Profit Recognition Data for an RPO.
Create profit recognition journal entries at RPO level.
Chapter 34, "Work with Profit Recognition Journal Entries (Update A9.3)"
Report on the profit recognition of revenue performance obligations.
Chapter 35, "Reviewing Profit Recognition Status (Update A9.3)"