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Hi there,

I’ve been trying to test allocations following the video on YouTube:

Set up Allocation Rules to Recognize Revenue - Acumatica Construction Edition

I used REVREC allocation rule and UNRECREV billing rule in the demo tenant. It works fine, billing reduces 21050 as shown on the video and other steps are good. 

However, when it comes to out of the box reporting it doesn’t work well. 

For example, Construction Bonding Report shows revenue recognized (earned revenue) as Earned Revenue = % Complete * Contract Amount. I guess that makes sense as it’s just multiples total % complete by the total contract amount. But it does look weird and inconsistent. 

In this example below, the system automatically recognized 25% of task revenue based on the 25%cost task completion. 

 

 

However, on the bonding report it calculates the earned revenue using total contract (not task revenue or sum of income recorded). 

 

Question, is it possible to design an allocation rule that will actually calculate recognized revenue (unbilled AR) using total cost per project and total contract revenue? Not by task. Essentially the unbilled AR number will match the earned revenue calculation $$$ on the bonding report.  

 

Thank you,

Felix

Felix, we have a revenue recognition rule that aggregates at the Account Group level. We did this in the steps on the left. Happy to share any info.

 

Also keep in mind, we have found Allocations for Revenue Recognition UNUSABLE for a few different reasons.

  1. If you exceed your cost budget it will overbook your revenue. This could happen if you simply have higher average costs than expect or you actually add cost line items.
  2. For migrated projects that you have already recognized revenue on… it will not factor those in unless you run a custom script on each project.

Acumatica has confirmed that they cannot cap revenue at 100%. The clean up takes longer than manually booking. 

 

 

Felix, we have a revenue recognition rule that aggregates at the Account Group level. We did this in the steps on the left. Happy to share any info.

 

Also keep in mind, we have found Allocations for Revenue Recognition UNUSABLE for a few different reasons.

  1. If you exceed your cost budget it will overbook your revenue. This could happen if you simply have higher average costs than expect or you actually add cost line items.
  2. For migrated projects that you have already recognized revenue on… it will not factor those in unless you run a custom script on each project.

Acumatica has confirmed that they cannot cap revenue at 100%. The clean up takes longer than manually booking. 

 

 

Hi there, thank you so much for your response and sharing your experience. Agree, it’s a big issue that we can’t keep revenue at 100%. I would still like to give it a try and test the allocation rule aggregated by account group. 

Thanks,

Felix 

Sounds good. Just so you have the info. Here’s some extra screenshots of the allocation rule that “almost” works except for the 100% cap. 

Good luck!

 

 

 

Awesome, thank you very much!

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