Revenue recognition

Review project revenue entries against contracts and open periods. The contract names a revenue method. A revenue entry connects one project and contract to a period, with recognized revenue for that period, cumulative recognized revenue, invoiced amount and possible deferred or excess billing values. The period holds its dates, cadence and open, locked or closed status. Controller has a record to review before accounting is posted.

• Identify the project. Confirm the customer, contract and project belong to the same engagement.
• Check the source. Compare dated source records with the period and amount under review.
• Keep the decision. Record the person, status and reason at each approval or exception.

Agree which contract method applies to each engagement and who supplies progress or cost estimates. Review exceptions before the period is locked. A reversal needs a trace to the original period and journal entry; the team should not overwrite an approved history when the estimate changes.

At month end, Controller inspects a provisional entry for a project with work completed but less billed. Compare the recognized amount to contract value, cost progress where relevant, WIP and invoices. The approver and approval date identify the decision. A related journal entry records the accounting posting. When the amount differs from the customer’s expectation, follow the linked source and decision records with the responsible person. A dated approval or status change should explain the next action. Keep corrections visible to the next person in the cycle, and confirm the project and customer match before the invoice leaves the team.

Use the contract method and an open period to review provisional recognized revenue for the project. The entry keeps the amount for the period and to date, invoiced amount, deferred revenue and any progress estimates used by the method. Controller compares those figures with WIP and the posted invoice history before approval. A linked journal entry carries the posting result. Locking and closing the period follow approval and posting; a correction keeps the earlier decision visible through a reversal.

• rev rec Provisional Entries — rev rec Provisional Entries shows the project, contract, period and recognized amount awaiting Controller review.
• Invoice Status Board — Follow the invoice status from draft through sent after the team checks its source and approval.

Start with project terms, then follow invoice preparation and period close. The data model shows the record links used at each handoff.