This article details what constitutes a Billable Amount, Invoiced Amount, Recognized Revenue Amount, Unearned Revenue Amount and a Pre-Billing and Unearned Revenue Amount in PSA
Billable Amount
As soon as a Billable entry is created, that amount is considered as being a Billable Amount.
For example:
- A billable Charge Entry of 10,000.00$ is created.
| Billable | Invoiced | Recognized Revenue | Unearned Revenue | Pre-Biling |
|---|---|---|---|---|
| 10,000.00$ | 0.00$ | 0.00$ | 0.00$ | 0.00$ |
Invoiced Amount
As soon as an entry is included in an Invoice, regardless of Invoice State, that amount is considered as being an Invoiced Amount.
For example:
- A billable Charge Entry of 10,000.00$ is created.
- The Charge Entry is included in an Invoice.
| Billable | Invoiced | Recognized Revenue | Unearned Revenue | Pre-Biling |
|---|---|---|---|---|
| 10,000.00$ | 10,000.00$ | 0.00$ | 0.00$ | 0.00$ |
Recognized Revenue Amount
As soon as an entry or any of its revenue transactions are marked as Recognized, that Recognized amount is considered as being a Recognized Revenue Amount.
For example:
- A billable Charge Entry of 10,000.00$ is created with the Recognition Type set to Recognize when Invoice in Apply Revenue Recognition Policy State.
- The Charge Entry is included in an Invoice.
- The Invoice is sent to the Apply Revenue Recognition Policy state.
| Billable | Invoiced | Recognized Revenue | Unearned Revenue | Pre-Biling |
|---|---|---|---|---|
| 10,000.00$ | 10,000.00$ | 10,000.00$ | 0.00$ | 0.00$ |
Unearned Revenue Amount
When the Invoice reaches a State marked as Apply Revenue Recognition Policy, and when an entry within the Invoice is not marked as fully recognized, the Invoiced Amount of the entry (the Recognized Amount of that entry) is considered as being an Unearned Amount.
For example:
- A billable Charge Entry of 10,000.00$ is created with the Recognition Type set to Monthly starting on Project End Date.
- The Charge Entry is included in an Invoice.
- The Invoice is sent to the Apply Revenue Recognition Policy state.
Note: The amount is unearned given the entry has a Recognition Schedule setup for it.
| Billable | Invoiced | Recognized Revenue | Unearned Revenue | Pre-Biling |
|---|---|---|---|---|
| 10,000.00$ | 10,000.00$ | 0.00$ | 10,000.00$ | 0.00$ |
Pre-Billing and Unearned Revenue Amount
When a Charge Entry is invoiced and it has the Use for prepayment option checked, and when the Invoice reaches a State marked as Apply Revenue Recognition Policy, that amount is considered as being a Pre-Billing Amount and an Unearned Revenue Amount.
For example:
- A billable Charge Entry of 10,000.00$ is created with a Charge Item having the Use for prepayment option checked.
- The Charge Entry is included in an Invoice.
- The Invoice is sent to the Apply Revenue Recognition Policy state.
| Billable | Invoiced | Recognized Revenue | Unearned Revenue | Pre-Biling |
|---|---|---|---|---|
| 10,000.00$ | 10,000.00$ | 0.00$ | 10,000.00$ | 10,000.00$ |
Rules/Restricions
With the addition of the Revenue Transaction concept, the following rules/restrictions are in place throughout the application in order to maintain data integrity:
| CONDITION | RESULT |
|---|---|
| When a Project or any of its entries have Invoice associations or an associated Revenue Schedule, and a user attempts to change that Project's Client to a Client having a different Currency through the Project Edit page(Setup > Work > Projects). | Under this condition, this change is not allowed, therefore on saving the Project, a message displays that reads: "The Project's Client cannot be modified because Invoice and/or Recognition Schedule associations exist." |
| When a Project or any of its entries have Invoice associations or an associated Revenue Schedule, and a user attempts to change that Project's Client Currency from the General sub-tab of Invoice Options accessed through Setup > Work > Clients > Client Edit. | Under this condition, this change is not allowed, therefore on saving the Client, after changing the Currency, a message displays that reads: "The Client's currency cannot be modified because Invoice and/or Recognition Schedule associations exist for its Projects or associated entries." |
| When the Milestone is associated to a Recognition Schedule (the Recognition Type is set to Recognize by Milestone or the Start Recognition date is linked to this Milestone), and there is an attempt to delete a Milestone from the Milestone tab of the Project Edit page accessed through Setup > Project list. | The Milestone is not deleted and a message displays that reads: "The Milestone cannot be deleted because it is referenced in a Recognition Schedule." |