Working With Job Revenue Performance Obligations

The Revenue Performance Obligation (RPO) revenue recognition method is used by companies that either enter into contracts with customers to transfer goods or services or enters into contract for the transfer of nonfinancial assets unless those contracts are within the scope of other standards (for example, leases and insurance contracts). Revenue codes are assigned at the job level. Under the new Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (Topic 606). For more information, see http://www.fasb.org. In our Help files and Job Cost user guide, the acronym RPO refers to revenue codes on jobs.

For revenue to be recognized on a Performance Obligation Contract, the Original Transaction Price on the Job Revenue Codes window must be populated the same month.

Setting Up and Using Revenue Codes

• Complete the Posting Options setup.

• Create a job record.

• Add the cost codes to the job.

• Create revenue codes.

• Assign cost codes to revenue codes.

• Editing Revenue Performance Obligations

• New rules for creating change orders

• Adding Change Order Revenue Codes

• Mass Updating Revenue Code Percentages

Viewing Revenue Code Inquiry Windows

• Viewing Revenue Code Status

• Viewing Billed Position

• Viewing Revenue Recognition Summary

• Viewing Revenue Code History

Closing & Routines

• Closing a Job

• Closing a Period or Month

• Creating Job Revenue Journal Entries

Reports

These reports base the Contract Earned and Over/(Under Billed) calculations on the revenue code revisions for the selected period. The new calculations are used if the Revenue Recognition method is set to Revenue Performance Obligations in Posting Setup. See Choosing Posting Options for more information.

Dexterity Reports

• Revenue Edit List - new report that is similar to the JC POC Edit List

• Revenue Entry List - new report that is similar to the JC POC Entry List

• JC Backlog

• JC Backlog by Division

• JC Backlog Sort By

• JC Fiscal Period Costs by Division

• JC Fiscal Period Costs by PM

• JC Fiscal Period Costs by Project

• JC Job Billing

• JC Job Billing Division

• JC Job Billing PM

• JC Job Billing Project

• JC Job Schedule by Division

• JC Job Schedule Sort By

• JC Over/Under Billings

• JC Over/Under Billings by Division

• JC Over/Under Billings Sort By

• JC Profit and Loss

• JC Profit and Loss by Division

• JC Profit and Loss by PM

• JC Profit and Loss by Project

• JC Profit and Loss Summary by PM

• JC Profit and Loss Summary by Project

• JC Profit and Loss Summary by Division

• JC Job Status

• Job Schedule

• JC P & L Sort By

• JC Contracts Closed (Current Year - Contracts Closed) 

SSRS Reports

• Job RPO Profit and Loss

See also: