Revenue Recognition and Advanced Analytics

⏱️ 4 minute read

Advanced Analytics offers four (4) distinct fields for reporting on Revenue Recognition.  These fields can be used independently or as part of a custom formula based on your reporting needs.  

This article covers:

• Revenue Recognition Field Definitions
• Using Revenue Recognition Fields in Formulas

Revenue Recognition Field Definitions

Advanced Analytics enables reporting on your recognized project revenue.  The following fields are available within the Advanced Analytics data model:

Using Revenue Recognition Fields in Formulas

Your reporting needs determine which fields to use in Advanced Analytics formulas. You can choose to report on full recognized revenue values for all months or to report on full recognized values from past locked months, the full revenue to be recognized in future months and the portion of the current locked month's revenue that is being recognized through the current date.

Full Revenue Recognition Values (Current month is locked or unlocked)

Report on full revenue values for all months. It assumes the project's Fixed Price budget and returns the full, recognized revenue value for the current month.

Project Actual Revenue Recognized to Date

• The total revenue recognized in past, locked months.
• The full recognized value from the current, locked month.

Project Forecast Revenue to be Recognized

• The total revenue recognized in future open months.
• The full value to be recognized in the current, unlocked month.

Sample formula:

[Total Project Actual Revenue Recognized to Date] + [Total Project Forecast Revenue to be Recognized]

Partial Current Month Values (Current month is locked)

Report on full revenue values for past and future months and the current, month's partial value. This option assumes the project's Fixed Price budget and provides flexibility in reporting by showing the portion of the current month's locked value based on actual revenue from time registrations as of the current date. 

Project Actual Locked Revenue Recognition

• The total revenue recognized in past, locked months.
• The portion of the current locked month's revenue to be recognized.

Project Forecast Revenue to be Recognized

• The total revenue to be recognized from future open months.

Sample formula:

[Total Project Actual Locked Revenue Recognition] + [Total Project Forecast Revenue to be Recognized]

The current locked month's partial value is used in the calculation, not the full month's value. The current month can be validated by looking at the Manual Revenue Recognition and Monthly Billable Time lines from the project's Revenue Recognition page and the Actual Billable Value of Service value from the Financials Overview. 

To validate the current month's partial value

1. Open the project's Revenue Recognition page.
2. Scroll down to Manual revenue recognition and note the value listed for the current month.
3. Scroll down to Monthly Billable Time and note the value shown for the current month. 
   
4. Divide Manual revenue recognition by Monthly Billable Time.
5. Note the percentage.
6. Open the project's Financials > Overview.
7. Expand Details.
8. Scroll down to Actuals and note the value shown for Actual Billable Value of Service for the current month. 
   
9. Multiply Actual Billable Value of Service by the percentage found in Step 4. 

10. If the current month is locked, Project Actual Locked Revenue Recognition displays the partial value.

    

11. If the current month is unlocked, Project Actual Open Revenue Recognition displays the partial value.

Calculations

Revenue Recognition

• Manual revenue recognition | May 2025: 3,000
• Monthly Billable Time | May 2025: 6,000
• 3,000 / 6,000 = 0.50

Financials Overview

• Actual Billable Value of Service | May 2025: 1,200
• 1,200 * .50 = 600

Once the current calendar month has passed, the partial value updates and the full, actual locked revenue value will display for the field.