Transfer Deferred Revenue

Owned by Chris McFarlane (Deactivated)
Last updated: May 08, 2024 by Min Zeng
2 min read

Transferring deferred revenue from one Contract Line Item to another to accommodate the service credits and prepayments is accomplished through the “Balance Transfer” button. Simply

  • Define the amount to transfer

  • Select the destination CLI

  • Add a note for future reference

  • Click “Transfer”

Projector handles all the associated GL transactions, FX, and balance information for you.

Permissions and Settings

To Transfer a DR Balance you must have one of the the following cost center permissions Maintain Deferred Revenue or Maintain Projects and Engagements for the engagement’s cost center.

In addition there are engagement stage-based permissions for Allow Deferred Revenue Transfer to CLIs and Allow Deferred Revenue Transfer from CLIs in the selected engagement stage.

Transaction Details and Constraints

Transaction Dialog Constraints

When displaying the transfer balance dialog, Projector will ensure that the list of available “To” CLIs meet the following criteria:

  • Engagement Currencies for the “From” and “To” CLIs can be different as long as:

    • the engagement currency and the engagement GL currency on the “From” side of the transfer are the same

    • the engagement currency and the engagement GL currency on the “To” side of the transfer are the same

  • The “To” CLI is billable. Non-billable CLIs do not have deferred revenue.

Additional Business Rules

  • Transfer is not allowed within the same CLI

  • Target CLI cannot be of non-billable type

  • Target engagement client and source engagement client must share the same root (highest level parent) company

  • Transfer can happen between different billable engagement types

  • You can only transfer up to the available deferred revenue balance for a CLI.

  • Because Deferred Revenue accounts are associated with a cost center, transferring deferred revenue within the same cost center will generate GL txns that eventually cancel each other out.

  • When transferring across cost centers, as long as the Deferred Revenue account has the same account number (i.e. natural account mappings), transferring deferred revenue will generate GL txns that eventually cancel each other out.

  • When transferring across cost centers and the Deferred Revenue accounts have different account numbers, we will debit the source cost center’s account and credit the target cost center’s account.

  • The FX rate is bound on transfer (not batch close), and may leave residual balances in GL currency when deferred revenue balance in engagement currency is depleted after transfer; much like a final rev rec creates FX variance under AR. Note that for now, transfer to or from a CLI whose engagement currency is different from the GL currency is prevented.