Concept: Revenue Recognition for Grants
For cost reimbursable award lines, Workday recognizes revenue at the time of expense.
For fixed amount award lines, Workday can recognize revenue either:
- When you bill sponsors.
- When you record cash sales for sponsor payments without invoices.
- Following a revenue recognition schedule.
Cost Reimbursable Award Lines
For cost reimbursable award lines, Workday recognizes revenue when you settle or complete spend transactions. You can view the accounting on the source transactions.
Workday calculates cost reimbursable revenue for eligible spend transactions that contain a:
- Grant worktag associated with a cost reimbursable award line.
- Fund worktag with a funding type ofSponsor Funded.
- Status of settled or completed, based on the award costs processing rule settings of your company. See Set Up Award Costs Processing Rules.
- Spend category or pay component worktag type on the target or offset in the allocation definition.
- Budget date between the start and end dates on the corresponding award line of the specific grant. To remove this condition:
- Select from the related actions menu of the company.
- Select theIgnore Award Line Dates for Award Costscheck box.
Fixed Amount Award Lines Without Deferred Revenue
When you leave the
Deferred Revenue
check box on a fixed amount award line unchecked, Workday recognizes revenue when you either:
- Bill sponsors.
- Approve cash sales. See Record Cash Sales.
Fixed Amount Award Lines With Deferred Revenue
Workday follows a revenue recognition schedule when you:
- Select theDeferred Revenuecheck box on a fixed amount award line.
- Associate a revenue recognition schedule with the line using theCreate Revenue Recognition Schedule for Awardtask.
When you don't associate a revenue recognition schedule with the line, Workday recognizes deferred revenue when you bill for the line. You can run the
Create Revenue Recognition Accounting
task to back out the deferred revenue and book the revenue.