Progressus Software

Next-Generation Professional Services Automation
Architected for the Microsoft Cloud

Ability to have WIP Evaluate if the project is over/under billed compared to WIP and post to a different GL account based on those conditions

When the billed sales for a project exceed the Percent complete of sales, the WIP calculation should post the difference to a deferred revenue account (liability account).

When the billed sales for a project are less than the Percent complete of sales, the WIP calculation should post the difference to an asset account.


Need the ability to setup a Deferred Revenue and an Accrued Revenue for posting of WIP. The system should evaluate the over/under of billing vs WIP and post accordingly.

  • Kim Bateson
  • Feb 12 2021
  • Planned
WIP
Business Impact

This could have ASC 606 implications

Issue 4: Netting The Sum Of Contract Assets And Contract Liabilities

ASC 606 does not explicitly state whether an entity should present its total contract assets and total contract liabilities as separate line items or on a net basis. Considering the principles in ASC 210-20 and the guidance stating that an entity must disclose the balances of each balance sheet item separately, an entity should not combine total contract assets with total contract liabilities to present a net position; rather, both balances should be presented separately.

https://www.revenuehub.org/presentation-of-contract-assets-and-contract-liabilities/


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  • Tasha Anspach commented
    February 12, 2021 17:07

    I have had a few prospects request this functionality. One is a current customer implementing currently.


  • +4