Handling Accrued Revenue

Use the process below to set up and process Accrued Revenue in JobBag.

JobBag allows you to recognise Accrued Revenue on a job using a dedicated Accrued Revenue System Maintained Item.

When this item is added to a job, JobBag automatically recognises the value as Accrued Revenue when WIP & Accruals is processed.

This provides a simple way to accrue revenue without relying on the Inhouse WIP Accrued Revenue setting.

When would you use Unbilled Accrued Revenue?

You may want to use Unbilled Accrued Revenue when:

• You want to recognise revenue on a job that hasn't yet been invoiced to the client.
• You have generated value on a job but haven't billed the client by the end of the month.
• You want to recognise the unbilled value as revenue at month-end.
• You want unbilled value recognised as Accrued Revenue in your Profit & Loss and Income Analysis reports.

Before you start

You will need to create and map the appropriate General Ledger (GL) accounts before processing Accrued Revenue.

The following GL accounts are required:

• Balance Sheet – Current Asset: Unbilled Accrued Revenue

  Clone your existing Work in Progress account. Once created, map this account as a control account in the Inhouse Unbilled Value (B/S) field.

  Navigate toLedger > Chart of Accounts > Settings

• Profit & Loss – Income: Accrued Revenue Income

  Clone an existing Billings/Income account. Once created, map this account to the Unbilled Value field in the System Maintained Accrued Revenue Kind.

  Navigate toJobBag > Kinds > System Maintained > Accrued Revenue (Kind).

Notes:

• The Accrued Revenue Kind and Item are System Maintained in JobBag, so there is no need to create these manually.
• Cloning an existing GL account is the preferred method of creating new accounts.

For more information on creating GL accounts, see How to Create a New Chart of Accounts

Monthly Process

Step 1 – Add the Accrued Revenue Item to the Job

Open the relevant job and add the Accrued Revenue System Maintained Item.

Enter the required quantity/value to reflect the amount of revenue to be accrued.

Step 2 – Process WIP & Accruals

The Accrued Revenue items will be shown in the WIP Value column.

Step 3 – Review Reporting

Once WIP & Accruals has been processed, the Accrued Revenue will be recognised.

The accrued amount will be reflected in the relevant reports, including:

• Profit & Loss
• Income Analysis Report
• Wip and Accural Reports - Transaction and Transaction Detailed

Step 4 – Following Month Accrued Revenue Review

When rolling into the following month, review the Accrued Revenue items on each job and decide whether the accrual needs to be reversed, continued or updated.

You have the following options:

• Reverse the accrual: Delete the Accrued Revenue item from the job. The previous month's accrual will be reversed when WIP & Accruals is processed.
• Continue the same accrual: Leave the Accrued Revenue item on the job if the same amount is to be accrued again in the current period.
• Update the accrual: Update the amount on the existing item or add a new Accrued Revenue item to the job if further accruals are required.

Important: Any Accrued Revenue items remaining on the job will be recognised again when WIP & Accruals is processed for the current period.

Frequently Asked Questions

Do I need to create a Kind or Item for Accrued Revenue?

No. The Accrued Revenue Kind and Item are System Maintained in JobBag. You only need to create and map the required General Ledger accounts.

Why do I need to delete the Accrued Revenue item each month?

Deleting the previous month's item allows the previous accrual to be reversed so the job reflects its current value.

Can I accrue revenue on a job that hasn't been invoiced?

Yes. Unbilled Accrued Revenue allows you to recognise the value generated on a job as revenue before the client invoice has been raised.

Where will the accrued revenue appear?

The accrued revenue will be reflected in your Profit & Loss and Income Analysis reports once WIP & Accruals has been processed.