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Earned Revenue Report

Track revenue recognition across production projects using percentage of completion accounting.

Accessing the Report

Reports > General > Earned Revenue

Key Metrics

MetricDescription
ProjectProject name
Contract ValueTotal contract amount
% CompleteCompletion percentage
Earned RevenueRevenue recognized
Billed to DateAmount invoiced
Over BillingBilled ahead of work
Under BillingWork ahead of billing

Available Filters

FilterDescription
As of DatePoint-in-time report
DivisionBusiness unit
Production StageActive stages
Project ManagerFilter by PM

Revenue Recognition Method

Percentage of Completion

% Complete = Actual Cost ÷ Total Estimated Cost
Earned Revenue = Contract Value × % Complete

Example

  • Contract: $100,000
  • Estimated Cost: $70,000
  • Actual Cost: $35,000
  • % Complete: 50%
  • Earned Revenue: $50,000

Over/Under Billing

Over Billing (Unearned Revenue)

Billed > Earned Revenue
  • Customer paid ahead
  • Liability on balance sheet
  • Cash flow positive

Under Billing (Unbilled Revenue)

Earned Revenue > Billed
  • Work ahead of billing
  • Asset on balance sheet
  • Bill to collect

Billing Status Analysis

StatusAction
Significantly over-billedMonitor work progress
Slightly over-billedNormal for some billing methods
EvenBilling aligned with work
Slightly under-billedConsider billing soon
Significantly under-billedBill immediately

Accounting Implications

Balance Sheet Impact

Over Billing creates:

  • Deferred Revenue (liability)
  • Reduces current assets

Under Billing creates:

  • Unbilled Revenue (asset)
  • Increases receivables

Income Statement

Earned Revenue is recognized income regardless of billing status.

Using the Report

Month-End Close

  1. Run as of month-end date
  2. Calculate revenue recognition
  3. Record journal entries
  4. Document for audit

Cash Flow Management

  • Identify under-billed projects
  • Prioritize billing
  • Improve collections

Project Health

  • Spot billing/work misalignment
  • Address stuck projects
  • Monitor customer payment patterns

Export Options

Click Export CSV to download:

  • Revenue recognition data
  • For accounting entries
  • Audit documentation

Tips

  • Update % complete regularly
  • Review before month-end
  • Address large under-billing
  • Document revenue recognition basis