We recognize that each business has unique needs when it comes to revenue recognition. To offer flexibility, we have implemented custom revenue recognition. This feature enables you to recognise revenue for fixed fee projects based on specific criteria tailored to your business requirements. For instance, if you want to recognize revenue only based on billable hours once approved by project owners, you can customize the revenue recognition method to meet this requirement. .

You can define the conditions that should be met for the tracked time to be used for revenue recognition based on:  

1. Approval status. 

2. Billability 

3. Category 

4. Role of the person who tracks time

5. Team member who tracks time

To set this up:

• Go to Settings > Financial Management > Revenue Recognition

• Navigate to the Custom Revenue Recognition Method section to create a new method

• Click "Create New Revenue Recognition"

• Configure the hours that need to recognize revenue based on the conditions. For example, if you wish for only billable approved hours to recognize revenue, follow these steps:

  • Add a condition where "Billable is true" and "Approval status is approved"

  • You can choose to match either all conditions or just one, but in this case, all conditions must be met.

• Choose the baseline to recognize revenue against. You can choose to recognise revenue as a percentage of budgeted hour or total allocated hours

• Click Create to create the new revenue recognition method
  
  

To edit the method,

• Click on the three dots edit near the method and make changes.
  
  

Note: You can edit an existing revenue recognition method at any time. Any changes you make will automatically apply to all projects that use that method.

To delete the method,

• Click on the three dots edit near the method and delete

Note: You cannot delete a revenue recognition method that has already been used in projects (active or archived), to ensure the preservation of historical information.

Similarly, you can create additional revenue recognition methods for various business/project requirements, and these methods will automatically be added to the list of existing revenue recognition methods, which you can choose while creating a project.