Issue/Symptom/Question

How does PENTA perform the revenue recognition calculation when the Revenue Recognition Calculation Method for Lump Sum Line Items is set to: Earned = (Actual/Proj)*Contract and there is no forecast cost at complete entered for the job?

Applies To

PENTA for Windows → Finance & Accounting → Processing → Revenue Recognition

PENTA for Windows → Project Management → Setup → Job Types

Resolution/Fix/Answer

When calculating earned revenue for a job where the revenue recognition rule is equal to: Earned = (Actual/Proj)*Contract, and there has not been forecast cost at complete posted for a job/cost type/costcode, PENTA will auto calculate a forecast cost at complete using the Forecast Calculation Rules that are in place for the job's type type. This is performed at a Job / Cost Type / Cost Code level, meaning a job may have forecasts posted for some Cost Types / Cost Codes, but not all. Where no forecast exists PENTA generates an on the fly forecast cost at complete amount for purposes of the revenue recognition calculation only, PENTA does not create a permanent forecast cost at complete record for these Cost Types / Cost Codes.