Projects: New Revenue/Cost Recognition Rules

Epicor ERP 10
1

With 2018 comes new revenue/cost recognition rules for those who do Projects.

I’m not an accountant but I stayed at a Holiday Inn Express one time so I know that you’re supposed to match costs with your revenue. In the new revenue recognition rules, the revenue is tied to a completion of a phase. Epicor can do that using the Revenue Recognition Workbench. The part I don’t understand is that when you recognized revenue, the RWB pulls costs from ALL OPEN JOBS. If a job has no costs charged to it, it’s WIP value goes negative. (???)

Does anyone know how to control how the costs are pulled within projects (phases)?

Thanks!

Mark W.

2

Did you ever figure this out? We just started using projects at the beginning of 2019 and are experiencing the same issues.

3

I’m hoping that .400 will do this. Epicor has introduced Revenue Recognition by phase and I am assuming that he costs will be pulled by phase as well. We won’t see .400 here until July though.

Mark W.

4

What are you doing in the meantime? We just upgraded to .200 in January. We will not upgrade to .400 for a while.

5

It ain’t pretty. :roll_eyes: We do manual revenue recognition but have a BPM that zeros out the costs. Finance closes the associated job to force the costs out. They will re-open the job if there is more expected work. I know. Not pretty. :face_vomiting:

6

That is one of the options we came up with as well. You are right, it is not pretty at all. I was hoping you had some super-sexy method. Thanks for your help!

1 Like
7

The other thing that would be nice to have is a Revenue Recognition Workbench so you don’t have to recognize revenue a single project at a time. It would display the WBS recognition candidates, do a Build Project Analysis on the selected items (to set the posting date and calculate the costs), let the user review the results, then post in a batch.

I can dream, can’t I? :smirk:

8

It is sad that our dreams are about how Epicor can function better :joy:!

Just wondering:

  • Do your project jobs have related sales order(s) and do you do customer shipment entry for those?
  • Do you do partial shipments on project jobs through customer shipment entry?
  • About how many open projects do you have in WIP on average?
  • About how many open projects jobs do you have in WIP on average?

Again, thanks for the help!

9

Oh Tammie, we’re having the same dreams! :sheep: :sleeping_bed: :sheep: :sleeping_bed: :sheep:

Shipping inventory on projects is BIG on our list and so many other Project Users. The Project Owner for Projects (Patty) is well aware of this.

In the US, probably 50-70 open projects and in Europe around 70-100. Each project averages about five phases so that would be the number of jobs.