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ByDesign Revenue Recognition

Feb 14, 2017 at 08:57 PM

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Hi Experts,

My customer wants to use the revenue recognition functionality in ByDesign but the issue is that they have never run this functionality even though they have been using the system since 2012. They manually transfer balances from deferred accounts to actual accounts.

My query is if they try to run the revenue recognition now to close year end 2016 what would be the impact from the systems point of view and what can we do to mitigate those issues (this is a non-finance person speaking).

Kind Regards

Bilal Hashmi

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1 Answer

Thomas Meder
Feb 15, 2017 at 09:18 PM
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Hello Bilal,

they can just switch it on, but I would recommend to complete the close of 2016 first. They have practice in it and introducing new functionality during year close is never a good idea.

But having completed the close, they can switch it on.

Recommendation:

  1. Request a test system or refresh it with fresh data.
  2. Add revenue recognition to scoping. Asure work center view Sales Documents (WOC Cost & Revenue) is assigned to the revenue accountants.
  3. For the sales documents in process, assign a manual revenue recognition method, based on values. Maintain the manual data. In future periods, proceed with manual revenue recognition for those (safest method). Or: assign an automatic revenue recognition method, but this might lead to differences in terms of revenue recognition, as the calculation method might differ.
  4. Do a revenue recognition run.
  5. Compare results.
  6. Do same changes in productive systems (usually by merge-back of the change project).
  7. Cancel manual accruals - they should be replaced by the values of the revenue recognition module.

I hope this helps. Please consult also the help documents on automated accrual method determination, to apply them consistently (usually required by GAAP).

Best regards,

Thomas

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