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Unbilled Accrued Revenue
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Use the process below if you would like to set up and process unbilled accrued revenue in JobBag
Scenarios:
You want to recognise revenue on a job that hasn’t been invoiced to the client yet.
You have generated value on a job but haven’t billed the client at the end of the month.
You want to recognise the unbilled value as Revenue at the end of the month
Accruing revenue will recognise unbilled value on jobs as accrued revenue in the Profit & Loss and Income Analysis reports.
Unbilled Accrued Revenue Set up Process
Step 1: Create General Ledger Accounts
Navigate to Ledger menu > Chart of accounts > New/Clone
Accounts needed: Balance Sheet/Current Assets and Profit & Loss/Income accounts
Note: Cloning is the preferred option to create new GL accounts
Balance Sheet: Current Asset Account - Unbilled Accrued Revenue
Clone Work in Progress Account
Profit & Loss: Accrued Revenue Income - Unbilled Accrued Revenue Income
Clone a Billings/Income account
In this example we have gone with One income account
This step needs to be repeated for each income account
Step 2: Map New General Accounts
Map Balance Sheet/Current Asset account in GL settings and control accounts
Located in the Ledger menu > Chart of Accounts > Settings
Map the “Inhouse unbilled value (B/S)” field to the new Balance sheet account created
Step 3: Add new Kind
The kind will need to be set up first, then add the item to the kind.
Follow the kind and item settings in the screenshot below
Map to GL accounts - Unbilled Value account to the new Profit & loss account created
Step 4: Add item to the accrued Revenue Kind
Step 5: Turn on WIP and Accruals Settings
Located ledger menu > Wip and Accrual settings
Turn on Write Inhouse WIP Value to the GL as Accrued Revenue
Unbilled Accrued Revenue Monthly Process
Step 1: Create an ITEM charge
An item charge needs to be created to accrue revenue
Create the item charge on the job where Unbilled Revenue is to be accrued.
A item charge can be created in the Items tab on the job or via the costing menu > Item charges
Step 2: Open Wip and Accruals
Open WIP & Accruals and reset the job. The Item should show up as Unbilled Value and WIP Value. Leave it as WIP Value, that is the amount that will be taken up as Accrued Revenue.
Step 3: Reporting
The Inhouse WIP will get posted as Accrued Revenue and will be reflected in the Income Analysis Reports as well.
Step 4: Delete Item from the Job ( Following Month)
After rolling into the next month, make sure you reverse the Accrued Revenue items from last month. We want users to see the real value on the jobs, not the accrued value and this will necessarily change each month.
In the following month delete the item from the job.
Need more help?
Please contact support call 02 8115 8090 or email support@jobbag.com