This chapter contains the topic:
From Contract Billing Processing (G52), choose Workfile Generation
From Workfile Generation (G4822), choose Generation (P48120)
Revenue amounts are based on calculated amounts and on eligible, typically billable, costs. The first step in the revenue recognition process is to accumulate the costs that are associated with time and materials (T&M) billing lines, these costs are represented by source transactions that the system stores in the Account Ledger table (F0911). Use the costs posted in the F0911 and Account Balances (F0902) tables to calculate revenue amounts for lump sum and unit price billing lines.
Source transactions originate from multiple sources, such as the Accounts Payable, Equipment/Plant Management, and Payroll systems. You run the Workfile Generation program to accumulate the cost information from these sources.
To maintain the integrity of the original source transactions, the system creates copies of the source transactions. The copied transactions are referred to as workfile transactions and are stored in the Billing Workfile (F4812).
Workfile transactions include costs with any applicable markup, taxable amounts and other key billing information. You base the rest of the Contract Billing processes on the information stored in workfile transactions.
From Contract Billing Processing (G52), choose Workfile Generation
From Workfile Generation (G4822), choose Generation (P48120)
Accumulating costs for revenue recognition of T&M lines on a contract requires running Workfile Generation.
After the costs are accumulated in the Billing Workfile (F4812), working with workfile transactions consists of the following tasks:
Reviewing the workfile
Revising workfile transactions
Working with the workfile history
Creating workfile transactions for unit price and lump sum billing lines consists of the following tasks:
Creating or modifying a version of Contract Revenue Workfile Generation
Running Contract Revenue Workfile Generation
Depending on the subledger values in the Contract Billing Line Detail table (F5202) and the Cross-Reference Accounts table (F5212) for unit price and lump sum billing lines, the system creates either multiple workfile records (a single record for every unique value of subledger and subledger type) or a single workfile record in the Billing Workfile (F4812) for each lump sum or unit price billing line on a contract. The system create records for every period between from From Date and Thru Date.
System-calculated amounts are based on actual costs and projected final costs from the cross-referenced accounts on the lump sum billing lines. Fixed (recurring) amounts are also calculated for the lump sum revenue amount regardless of the actual costs that are incurred. Revenue amounts for the lump sum billing lines are calculated using the percent complete method of calculation. For units, the system-calculated amounts are based on the AU (actual units) ledger from the cross-referenced account on the billing line. The date range is specified in the processing options of the Workfile Generation program.
| Topic | Description |
|---|---|
| Eligible non-T&M billing lines | Lump sum, unit price, and fee lines are the only non-T&M billing line types that can be included in the revenue recognition process. The revenue workfile transactions for lump sum and unit price billing lines are created by Workfile Generation; the revenue for fee lines is calculated by Revenue Journal Generation (P48132). |
| Creating or modifying a version of Contract Revenue Workfile Generation (P52801) | This DREAM Writer is accessed from Versions List (P98300) on the DREAM Writer menu (G81). The data selection must include the contracts that will be included in the revenue recognition process.
The versions cannot be run from Versions List. |
| Running Workfile Generation (P48120) | For the non-T&M revenue workfile transactions to be created, the Contract Revenue Workfile Generation version name must be included in the Workfile Generation processing option. |
You can revise the eligibility code, hold code, and release date on these non-T&M revenue workfile transactions. You cannot delete non-T&M revenue workfile transactions.
| Eligibility Code | Journal Generation Constant | Eligibility Code Change Allowed |
|---|---|---|
| 0 - Invoicing and Revenue | 4 - Inv/Rev with Reconciliation | 3 - Non-billable |
| 2 - Revenue | 2 - Revenue
3 - Inv/Rev without Reconciliation |
3 - Non-billable |
| 3 - Non-billable | 2 - Revenue
3 - Inv/Rev without Reconciliation |
2 - Revenue |
| 3 - Non-billable | 4 - Inv/Rev with Reconciliation | 0 - Invoicing and Revenue |
Define all billable accounts in the chart of accounts
Define the system constants to identify the costs you want to accumulate
Define the following applicable Contract Billing rules:
Cost Plus Markup
Component
Enter contract billing lines
| Topic | Description |
|---|---|
| Eligibility codes | The system assigns eligibility codes to workfile transactions based on the Billable (Y/N) field in the Account Master table and the Journal Generation Control field you set up for your system constants.
For example, if the Billable (Y/N) field for a transaction is a Y and the Journal Generation Control field is set for both revenue recognition and billing, the eligibility code for the transaction is 0. An eligibility code of 0 indicates that the transaction is eligible for both revenue recognition and billing. If the same account with a Y in the Billable (Y/N) field is processed through the billing system and the Journal Generation Control field is set for billing only, the eligibility code for the transaction is 1. An eligibility code of 1 indicates that the transaction is eligible for billing only. |
| Changing source and payroll transactions | The system might need additional information from the Payroll Transaction History (F0618) or the Employee Transactions Detail (F06116) tables to process certain source transactions.
After the system creates payroll and source transaction tables, do not change or delete any of the following transaction information:
In order for the system to create workfile transactions from payroll transactions, all information must be identical in the Payroll or Employee tables and Account Ledger tables. |
| Burden transactions | The eligibility code for burden transactions must be compatible with the eligibility code for the associated workfile transaction.
Specifically, the system prevents the eligibility code for a workfile transaction from being more restrictive than the eligibility code of its burden transactions. If, for example, the burden transaction for a workfile transaction is eligible for both revenue and billing, but the workfile transaction is eligible only for billing, the system assigns the burden transaction the same eligibility code as the workfile transaction. |
See Also:
Chapter 17, "Generating the Workfile" for more information about accumulating costs,
Chapter 18, "Review the Workfile" for more information about locating and reviewing the accumulated cost and calculated revenue transactions,
Chapter 19, "Revise the Billing Workfile" for information about revising the accumulated cost and calculated revenue transactions,
Chapter 20, "Work with Workfile History" for information about reviewing the transaction audit trail and about moving the transactions to and from the active workfile.