Issue/Symptom/Question

Does the Over Under Billing calculation include any open retention balances or not in the calculation?

Applies To

Penta for Windows

Finance & Accounting>Processing>Revenue Recognition

Project Management>Inquiries>Project Review & Forecast Entry

Resolution/Fix/Answer

When calculating the Over Under Billings for a given Job, PENTA uses the Revenue Recognition Calculation Method based on the type of Contract Lines set up on the Job to determine the Earned Revenue amount as of a point in time.

Once the Earned Revenue amount has been calculated, PENTA then compares that amount to the amount of total billings on the Job. This includes any open retention balances. PENTA then determines whether the Job is Over or Under Billed and then automatically creates the accounting entries to reflect that for that Job.