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- Revenue Recognition
- Who it's for
- Professional services
Professional services
A services team can use Project, Hour or Day product units and choose Milestone or Usage recognition methods where its policy calls for them. Invoice lines carry quantity, price and a service period. Revenue Accountant checks the schedule method and recognized amount while Billing Operations Manager checks what was billed.
How Revenue Recognition is set up for you
Work period
Billing Operations Manager compares the hourly, daily or project line with the service dates on its invoice.
Milestone review
Revenue Accountant checks the schedule method and recognized amount against the agreement supporting the engagement.
Exception
Finance Approver follows a disputed date or amount to the plan of work and the related review decision.
A services team can use Project, Hour or Day product units and choose Milestone or Usage recognition methods where its policy calls for them. Invoice lines carry quantity, price and a service period. Revenue Accountant checks the schedule method and recognized amount while Billing Operations Manager checks what was billed.
Pilot one customer engagement, one service product and an invoice line linked to a schedule. Reconcile the contract reference, work period and billed amount. Give Finance Approver the supporting agreement and a clear explanation of the recognized and deferred amounts before extending to more engagements.
Use Active Revenue Schedules to find the engagement schedule and Open Invoices to inspect billed work. For a milestone near a reporting boundary, compare the invoice line service period with the schedule dates before the billing run advances. Billing Operations Manager checks the run total; Revenue Accountant explains any different recognition timing.
Agree which document establishes milestone completion and who can revise a service period. If a project invoice changes after a billing run was validated, assign Billing Operations Manager to recheck the run and Revenue Accountant to recheck the linked schedule. Keep any decision attached to the relevant subject.
Features to start with
Roles on the team
- Revenue Accountant
- Maintains customer revenue schedules and reviews recognized and deferred amounts.
- Billing Operations Manager
- Owns billing runs, invoice preparation and validation.
- Finance Approver
- Decides plan approvals and reviews documented billing and schedule decisions.
Set up Revenue Recognition your way.
Start free, then use Proto to change fields, steps and approvals before your team goes live.