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When a contract line item is set to fixed price cost, you'll invoice for cost cards using a milestone. You may then find that you have a deferred revenue balance due to the milestone and no straight forward way to clear it. This help document explains why this happens and how you can resolve it. Why does this happen? For fixed price time cards, Projector clears deferred revenue through the revenue recognition wizard. Cost cards have no revenue recognition wizard equivalentIn Projector, whenever you have a fixed price contract you need to invoice for it through a milestone. This creates a deferred revenue balance which must be cleared. For a time contract, you use the revenue recognition wizard to clear the deferred revenue. For a cost contract, you'll want to follow the steps on this page.
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Revenue Recognition on Fixed Price Cost Cards
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- Create a contract line item with a fixed price cost contract
- Issue a milestone invoice for the cost contract amount. This will generate a deferred revenue balance.
- Approve some cost cards on the contract. This will generate cost WIP.
- Create a blank invoice
- From the cost card review tab, include the cost cards from step three
- At this point you could actually issue the invoice to a client. But you don't want to do this. This will leave you with a deferred revenue balance.
- Select all the cost cards and perform a write up/down adjustment to equal the cost contract amount
- Go to the first tab of the invoice editor and apply the pre-payment balance created by the milestone in step two. You should consume the entire balance and end up with a zero dollar invoice.
- Issue the invoice, but don't send it to the client
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