GL Updates for 'As Cost Incurred' Revenue on SM Work Orders

When recognizing "as cost incurred" revenue for SM work orders, the system handles the GL updates a little differently than "as billed" revenue.

The system updates the recognized revenue amount for all work completed line on an "as cost incurred" work order as follows:
  • If the work completed line is posted to a customer work order, the system uses the Work Order Deferred Rev account specified for the service center department or division (if a division is specified for the scope).
  • If the work completed line is posted to an agreement work order, the system uses the Agreement Deferred Rev account specified for the agreement service division or service center department. If no division or service center is specified for the agreement service, the system uses the department assigned to the agreement type on the agreement.
The system then posts offsetting entries as follows:
  • For T&M scopes (customer and agreement work orders) - Offsetting entries are posted to the Revenue account or Revenue WIP account (if tracking WIP for the scope's call type) based on the line's cost type/cost type category and the division assigned to the work order scope or the service center department (if no division on the scope). If no cost type is specified for the work completed line, the system uses the Revenue or Revenue WIP account for the line type category.

    For example, say you enter a work completed miscellaneous line with a subcontract cost type/cost type category for a scope that is assigned a division and a call type that is tracking WIP. In this case, the offsetting entry is posted to the Subcontract Revenue WIP account defined for the Division department.

    If you had not specified a cost type for the work completed line, the system would have updated the Other Revenue WIP account, since that is the revenue account used for miscellaneous work completed lines that don't reference a cost type

    Note: For miscellaneous lines coming from Accounts Payable that do not have a cost type specified, the system will use the material cost type category.
  • For Flat Price scopes (customer and agreement work orders) - Offsetting entries are posted to the Revenue account or Revenue WIP account (if tracking WIP for the scope's call type) based on the line's cost type/cost type category and the division assigned to the work order scope or the service center department (if no division on the scope). If no cost type is specified for the work completed line, the system uses the Revenue or Revenue WIP account for the line type category.

    For example, say you enter a work completed equipment line with an equipment cost type/cost type category for a flat price scope that has no division specified and is assigned a call type that is not tracking WIP. In this case, the system posts the offsetting entry to the Equipment Revenue account defined for the service center department.

    If you had not specified a cost type for the work completed line, the system would have updated the Equipment Revenue account because equipment work completed lines use the equipment cost type category.
    Note: For miscellaneous lines coming from Accounts Payable that do not have a cost type specified, the system will use the material cost type category
  • For Non-Billable scopes (agreement work orders only) - Offsetting entries are posted to the Revenue Account or Revenue WIP account (if tracking WIP for the scope's call type) based on the line's cost type/cost type category and the division as follows:
    • If a division is specified for the agreement service associated with the scope, it will use the department assigned to the division
    • If there is no division specified for the agreement service, then it will use the service center department
    • If there is no service center at the agreement service, then it will use the department assigned to the agreement type

      For example, say you have an agreement service that is assigned at Division. You enter a work completed labor line with a labor cost type for a non-billable scope associated with that agreement service. The work order scope is assigned a call type that is tracking WIP. In this case, when recognizing revenue, the system posts the offsetting entry to the Labor Revenue WIP account defined for the division's department.

      If you had not specified a division on the agreement service, the system would then have posted the offsetting entry to the revenue WIP account for the service center department. If you had not specified a service center at the agreement service, it would have then posted it to the revenue WIP account for the agreement type department.

    Note: For miscellaneous lines coming from Accounts Payable that do not have a cost type specified, the system will use the material cost type category.

When you bill a work order, the system moves the recognized revenue amount from the Agreement Deferred Rev account (agreement work orders) or Work Order Deferred account (customer work orders) to the Revenue GL account defined for the invoice's receivable type in AR Receivable Types. The amounts in the offset Revenue or Revenue WIP accounts are left intact.