Revenue Recognition Basic Data and Requirements—Exercises

IMPORTANT
It is extremely important that you set up and work within your own company to maintain your data integrity. If you work within any other company, your exercises will not function as intended and the data of other students might be affected. Predictable exercise results require that your data is isolated in your own company.

Main Exercises

Purpose: The purpose of this lesson is to familiarize you with the basic data and requirements for the Revenue Recognition process.

Revenue Recognition Information

Windows:
Revenue Recognition Basic Data

  1. Validate that all information is complete and that Recognition Period is set to Ordinary.


Posting Control Information

Windows:
Posting Control

  1. Enter the following posting control information:
Posting Type Code Part Name Control Type Default Value
No Details
GP12 Account AC1 Any revenue account
GP13 Account AC1 Any cost account
GP14 Account AC1 Any accrued income account
GP15 Account AC1 Any accrued costs account
  1. Save.

Create Project

Windows:
Project

  1. Open the Project window.
  2. Specify the information for a new project. In the Project Type list, click Capitalize Rev/Exp. In the Revenue Recognition Method click POC Income-First.
  3. Switch to the Revenue Recognition Information tab.
  4. In the POC Method list, click Actual Costs and in the Revision Accounting list click Catch Up
  5. Save.

Create Project Balances

Windows:
Voucher Entry

  1. Open the Voucher Entry window.
  2. Enter vouchers for the project using cost accounts related to two adjoining accounting periods.

Windows:
Update GL Vouchers

  1. Open the Update GL Vouchers window, and check the default values.
  2. Click OK to start the updating routine.
  3. Open the GL Update History window. Make sure that all vouchers have passed the controls in the updating routine.

Copying forbidden: The material in this manual is protected by copyright law, and may not be copied entirely or in part, without the prior permission of Industrial & Financial Systems AB. © 2012 Industrial & Financial Systems AB