Concept: Revenue Recognition Accounting

When you create accounting, Workday:

Ignores revenue installments with pending milestones.
Posts accounting using the dimensions that you configure in the account posting rules. Example: For the Deferred Revenue and Unbilled Receivables account posting rules, you can configure Customer Group or Project Hierarchy. You can also configure custom organization and custom worktag dimensions.
Processes revenue recognition installments individually, or in batches.

Workday then:

Initiates the
Revenue Recognition Installment Event
business process and routes the accounting for approval.
Posts the accounting created for each installment in the relevant period, using the installment date as the accounting date.

When you schedule accounting using the earliest open accounting period, Workday generates accounting based on the earliest open period even when more than 1 period is open.

Workday displays the amount in base currency and the currency conversion rate on the completed installment lines when you:

Cancel completed installments that have accounting.
Create new revenue recognition schedules with foreign currency and complete installments.
Generate revenue recognition accounting.

When you create operational journal lines, Workday uses the currency conversion rate that you specify on the

Create Revenue Recognition Schedule for Customer Contract

task to display the actual currency rate for foreign currency installment lines. Once you generate accounting, the currency conversion rate on the installment lines matches the currency conversion rate on the operational journal lines.

You can use the

Find Journals

report to ensure that the accounting posts correctly.

When you update usage-based transactions for which you created revenue recognition accounting, you must:

Cancel any existing revenue recognition accounting.
Create new revenue recognition accounting.

Workday creates intercompany accounting when:

You configure worktag derivation rules for time or expense transactions on a project hierarchy.
The line company on the customer contract differs from the project or worker company.

For foreign currency customer contracts, Workday uses the contract effective date to post intercompany accounting for the contract line company and the project or worker company when you:

Configure worktag derivation rules for time or expense transactions on a project hierarchy.
Select
Contract Effective Date
as the default currency rate on the
Create Revenue Recognition Schedule for Customer Contract
task. You can only configure the currency conversion rate on new revenue recognition schedules with foreign currency.