Overview:
ASC 606 changed the treatment of significant uninstalled materials and how to address them when calculating Revenue Recognition and preparing the WIP. The actual cost of the significant uninstalled materials and the projected cost at complete, as well as the contract, need to be adjusted prior to calculating the revenue to recognize.
Actual Cost can have the significant uninstalled materials cost removed via a Job Cost Journal entry, which can be made to auto reverse to add the cost back.
The Projected Cost and Contract can be updated for revenue recognition purposes using the Projected Value Entry window.
Benefits:
- Ensure the revenue recognition calculation is complete and accurate
Roles:
- Operations/Project Administrator
- Controller/CFO
Location:
- Financing and Accounting > Data Entry > Revenue Recognition > Projected Value Entry
Video: