Setup Considerations: Percent Complete Revenue Recognition
You can use this topic to help make decisions when planning your configuration and use of percent complete revenue recognition. It explains:
- Why to set it up.
- How it fits into the rest of Workday.
- Downstream impacts and cross-product interactions.
- Security requirements and business process configurations.
- Questions and limitations to consider before implementation.
Refer to detailed task instructions for full configuration details.
What It Is
Workday enables you to recognize revenue for fixed-fee projects based on the percentage of project completion.
Business Benefits
Percent complete revenue recognition reduces the manual reconciliation and calculations needed to identify the percentage of project completion. You can:
- Create percent complete configurations to source actual costs and total estimated costs.
- Recognize revenue on projects, or project plan phases and tasks, as a percent complete by cost or hours.
- Approve percent complete revenue recognition before generating installments.
Use Cases
Use percent complete revenue recognition when your company needs to:
- Generate percent complete calculations by cost or hours.
- Recognize revenue as you log transactions against projects, and project plan phases and tasks.
- Recognize revenue for fixed-fee projects as a percent complete.
Questions to Consider
Questions | Considerations |
|---|---|
Where do you source the cost factors from to calculate the percent complete of a project? | You can create percent complete configurations to source:
|
Where do you source the hours factors from to calculate the percent complete of a project? | Workday sources:
|
What plan calculation type do you use for your projects? | Workday supports these estimated cost factors for percent complete configurations:
Project plan phase and task granularity is supported for Baseline, Forecast, and Manual Input. |
How do you recognize revenue for percent complete? | You can configure Workday to apply cost or hours factors to the contract amount on a cumulative basis for each billable project. |
Recommendations
To reduce manual reconciliation and calculations, Workday recommends that you create percent complete configurations to source actual costs and total estimated costs.
Requirements
Features | Considerations |
|---|---|
Cost | To recognize revenue for percent complete projects, you must create and approve a billable project with a budget. |
Project Budget Plans | Workday requires a project budget to source the total estimated costs when you create percent complete configurations to recognize revenue. |
Estimated Cost Factor | The estimated cost factor on the percent complete configuration must match the plan category on the related project. |
Currency | These currencies must match the project company currency:
When the manual journal entry currency doesn't match the project company currency, Workday changes the actual cost to zero. |
Limitations
Features | Considerations |
|---|---|
Negative Percent Complete Configurations | When your percent complete configuration results in a negative cost, Workday changes the actual cost to zero. |
Percent Complete Configurations | Workday only supports percent complete configurations for the total cost of your project. |
Tenant Setup
No impact.
Security
Domains | Considerations |
|---|---|
Manage: Project Details in the Project Tracking functional area. | View project completion for revenue recognition. |
Set Up: Revenue - Percent Complete in the Customer Contracts and Project Billing functional areas. | Create, edit, manage, and view percent complete configurations. |
Business Processes
Business Processes | Considerations |
|---|---|
Accounting Journal Event
| Create and approve accounting journals related to project transactions. |
Customer Contract Event
| Create and approve customer contracts. |
Percent Complete Project Event
| Create and approve revenue recognition for percent complete projects. |
Revenue Recognition Schedule Event
| Create and approve revenue recognition schedules for percent complete projects. |
Reporting
You can access the:
- Manage Percent Complete Configurationsreport to view your percent complete configurations.
- Percent Complete by Cost Reconciliationreport to view actual costs and drill down on individual journal lines.
You can use these report data sources to create custom reports that display percent complete project details:
- Customer Contract Lines
- Percent Complete Configurations
- Percent Complete Lines
Integrations
Web Services | Considerations |
|---|---|
Get Percent Complete Configurations
| Retrieves percent complete configurations. |
Get Percent Complete for Revenue
| Retrieves percent complete projects available for revenue recognition. |
Put Percent Complete Configuration
| Adds or updates percent complete configurations. |
Submit Percent Complete for Revenue
| Submits percent complete projects for revenue recognition. |
Connections and Touchpoints
Features | Considerations |
|---|---|
Customer Contracts | You can create revenue recognition schedules for percent complete projects on customer contracts. |
Expenses | You can use expenses to calculate the percent complete of a project. |
Financial Accounting | You can create operational journals for percent complete revenue recognition. |
Project Billing | You can use billable project transactions to calculate the percent complete of a project. |
Projects | You can recognize revenue for your projects. |
Time Tracking | You can use the time tracked on billable projects to calculate the percent complete of a project. |
Workday offers a Touchpoints Kit with resources to help you understand configuration relationships in your tenant. Learn more about the Workday Touchpoints Kit on Workday Community.