When running revenue recognition you may encounter the following error - Revenue recognition cannot be completed when there are approved hours in excess of contracted hours during this period
Solution 1
Go to the Engagement | Contract subtab. You'll see that there are overage hours for the current service period. Transfer these hours off the project to the overage project. If the service period is grayed out then it has already been invoiced. You need to delete that invoice to unlock the service period and allow edits.
Solution 2
Go to the Engagement | Contract subtab. Increase the number of contracted hours in the service period.