Earned Revenue Setup
Configure how earned revenue is calculated and recognized.
Overview
Earned Revenue Setup controls how revenue is recognized on projects over time. This is essential for accurate financial reporting and understanding project profitability at any point during construction.
Accessing This Setting
- Go to Settings > Earned Revenue Setup
Configuration Options
Recognition Methods
- Percentage of Completion - Based on costs incurred vs. estimated costs
- Milestone Based - Revenue recognized at defined milestones
- Billing Based - Revenue matches invoiced amounts
- Manual - Manual revenue recognition entries
Calculation Settings
- Cost basis (labor, materials, or both)
- Overhead allocation
- Profit recognition timing
- Retainage handling
Reporting Options
- WIP (Work in Progress) reporting
- Over/under billing analysis
- Revenue forecast
Using Earned Revenue
Earned revenue appears in:
- Project profitability reports
- Financial statements
- WIP reports
- Job cost analysis
Best Practices
- Choose a consistent recognition method
- Update cost estimates regularly
- Review WIP reports monthly
- Reconcile with accounting system