Project Revenue Recognition

You recognize revenue for a project by associating the project with a contract line and then associating the contract line with a revenue plan. In recognizing revenue for rate-based contract lines, the flow of data is controlled by PeopleSoft Contracts, but the data source is PeopleSoft Project Costing. Accounting distributions are defined on the Accounting Rules page. These rules are defined by analysis type, PeopleSoft Project Costing business unit (PCBU), and PeopleSoft General Ledger business unit (GLBU).

As work is performed and costs are accumulated, PeopleSoft Project Costing stores the information in rows in the PROJ_RESOURCE table. When the particular revenue plan or event for the contract line with which this project activity is associated is ready, the resource rows associated with the designated project activities are selected and revenue is booked as part of the rate-based revenue process (the Accounting Rules Engine process [PSA_ACCTGGL]). This process also assigns the accounting distribution based on your accounting rules definitions.

You can associate projects and activities with amount-based contract lines. After running the Amount-based Revenue process (CA_LOADGL1), run the PC_CA_TO_PC PeopleSoft Application Engine process to pull revenue information from PeopleSoft Contracts to PeopleSoft Project Costing.