Found under GL with the tab Post Unbilled Revenue, this feature provides the option to recognize unbilled revenue items at whatever frequency deemed appropriate. In opting for this procedure one can select time charges, external charges or internal charges, or any combination of the three. When executed, this procedure effects all billable charges for all clients in the period selected. In the case of external charges, cost of sales is recorded in conjunction with this procedure. Revenue recognition entries created through this procedure are reversed as part of the normal billing process.

Prior to running this procedure, we must set up an Earned but Unbilled revenue account in the general ledger, and in the GL Control Accounts under Unbilled Revenue. Additionally, we need to set up one or more Accrual accounts in the GL to record the asset side of the transaction. These accounts will be specified in individual item setup.

Detailed below are the entries that would typically be recorded for external charges when this procedure is run.

In instances involving time charges or internal charges, there is no vendor invoice entry and thus no Cost of Sales transaction.

Other aspects of the Earned but Unbilled procedure . . .

Transfers of job charges: Are not restricted to jobs belonging to the same Client, Division and Team. If this occurs, a journal entry is generating reclassifying from the original posting to the new client, division and/or team.

Deletions: Once charges are posted, they must be offset by a credit such as negative time or a negative internal charge. The charges cannot be deleted.

Effect of Estimate or Advance billing: No impact, this procedure only considers job charges.

Cost Only Invoicing: If charges have been posted under this procedure, a reversing entry will be posted debiting Earned but Unbilled and crediting Accrual Asset. If charges have not been posted, only an external charge will result in an entry being generated; debiting Cost of Sales and crediting Work in Process.

Write-offs: As in the case of Cost only Invoicing, if charges have been posted under this procedure, a reversing entry will be posted debiting Earned but Unbilled and crediting Accrual Asset. If charges have not been posted, only an external charge will result in an entry being generated; debiting Cost of Sales and crediting Work in Process.

Client Income Statements: As well as Division and Team Income Statements are impacted by the Earned but Unbilled procedure. The Income Statements are also affected by the Journal Entries, resulting from Cost only Invoicing and Write-offs of charges, which have been posted under this procedure.