Percent Complete Revenue Options in SuiteProjects Pro
Options in SuiteProjects Pro ASC 606 compliance are no longer optional for most professional services organizations, and proportional revenue recognition means percent complete is now a must. The good news? SuiteProjects Pro has multiple options to get you there.
In this Power-Up Series video, Top Step CEO, Ronn Breaux, breaks down all three percent complete recognition rules so you can choose the right one for your business.
Key Takeaways:
- Learn how the standard Percent Complete rule works using planned vs. approved hours in a weighted or simple calculation and how to apply it to specific phases or switch to budgeted hours for a more straightforward calculation.
- Explore the Incurred vs. Forecast rule, a cost-weighted approach, that accounts for booked hours, varying resource rates, and can factor in purchases and expenses for a fully loaded percent complete
- Discover how to create user level totaled revenue transactions out of the box, giving you revenue contribution by resource as a reportable KPI
- See the new audit detail now captured on Incurred vs. Forecast transactions - point-in-time hour, cost, and percentage breakdowns that take the guesswork out of audit reviews
- Get a clear picture of the Balanced Rule including when it might make sense and why its limited audit trail makes it a rule to use with caution
Whether you're just starting to tackle 606 compliance or trying to fine-tune your current revenue recognition setup, this video will help you understand your options and make the right call. Watch now and see which percent complete rule is the right fit for your team.
Have not had a chance to watch the video yet? You can watch it here.
Frequently Asked Questions
Can a percent complete rule only apply to certain project phases / tasks?
Yes, you have to structure your WBS by phase, then you can filter percent complete recognition rules by phase.
Do you have to use planned hours in the standard percent complete rule?
Yes, you can set the denominator of the recognition rule to use budget hours.
What is the primary use case for the Incurred vs Forecast recognition rule?
There are two primary use cases: first is to base denominator on resource bookings. The second primary use case is to inject costs into the numerator and the denominator.
What if I want to use booking as the denominator but not use resource costs?
SuiteProjects Pro provides up to three loaded costs. You can repurpose one of the costs and set it as $1. Then set the rule to use the $1 cost to calculate hours over hours calculation.
What if I need a custom percent complete calculation to send to my finance system to calculate percent complete revenue?
Top Step can script a custom percent complete and store the value in a custom field on the project properties where it can be exported to the financial system.
