Deferred Revenue Page
- Chris McFarlane (Deactivated)
Deferred revenue is created when a client has paid for work that has not yet been completed. When the work is invoiced (T&M/NTE) or revenue recognition run (FP), the deferred revenue is consumed. Deferred revenue can also be transferred from one contract to another; this is most likely for prepayment and service credit scenarios.
At a Glance
The deferred revenue (DR) landing page includes a information about the contract type & time contract terms, recognized revenue amount, and deferred revenue amount. In addition, a tabular history of adjustments to deferred revenue for the contract line item (CLI) are provided.
A full history of deferred revenue activity is available in tabular form, including navigable hyperlinks when a transfer history item refers to another CLI.
Deferred revenue balances greater than zero can be transferred from one CLI to another with the Transfer Balance button.
Sources of Deferred Revenue
As noted above, Deferred revenue is created when work has been paid for, but not yet completed. With that, if follows that deferred revenue increases when prepaid milestones are achieved and invoiced, and decreased when revenue recognition is run or billable work is invoiced. The following is a list of revenue adjustments that impact deferred revenue:
Deferred Revenue Opening Balance (DROB) - a special case to reflect the amount of revenue that has been worked, but not yet invoiced
Deferred Revenue Transfer - G/L transaction that moves DR from one CLI to another without milestones and invoices
For Reporting Only (FRO) Time - a special case time import for reporting only
Invoice - issuing a standard client invoice consumed deferred revenue
Milestone Invoice - issuing a prepayment invoice increases deferred revenue
Revenue Recognition - recognizing revenue consumes deferred revenue
Deferred Revenue History Table
Column | Description |
|---|---|
Date | The date that the adjustment took place |
Adjustment Type | The type of adjustment associated with history item (e.g. DROB, Transfer, FRO Time, Invoice.. ) |
Original CLI | The contract line item that deferred revenue was transferred from. If the CLI displayed is not the CLI currently being viewed, clicking the link will open the original CLI in a new browser tab. |
New CLI | The contract line item that deferred revenue was transferred to.. If the CLI displayed is not the CLI currently being viewed, clicking the link will open the new CLI in a new browser tab. |
Change (currency) | Amount of change to the deferred revenue value for the CLI being viewed. This value is in the engagement currency of the CLI being viewed. |
Balance (currency) | Final amount of deferred revenue remaining for the CLI being viewed. This value is in the engagement currency of the CLI being viewed |