Revenue recognition is an accounting procedure that officially accounts for revenue earned.
Revenue for a project can only be recognized if that project has a revenue contract assigned to it. This contract, with its sub-clauses, defines when revenue earned from the project becomes recognizable by the company.
Refer to Understanding revenue contracts and clauses for information about how the default contracts work. Note, however, that your company may be using a custom contract.
The project manager is responsible for:
You need to assign revenue contracts when you create a new project -- you can’t add the contract later.
You can, however, update the total contract value at any time, to reflect negotiated changes in the contract value.
To assign a revenue contract and the total contract value:
If you’re not sure what contracts or value to assign, talk to your company’s revenue manager or your Replicon administrator.
Typically, you’ll just apply revenue contracts as they were configured at the system level. However, you can update configurable parameters of the rule, and you can even add additional clauses to the contract, if needed.
To view or edit the contract assigned to a project, click the Revenue tab for that project.