Deltek Insight 2011: Reconciling Unbilled A/R and the Analysis Report

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  • So what’s the end result? Billings have $1,000, Revenue is $1,000, and Unbilled = 0. (in and out)
  • Revenue includes more than the billingOpposite of #1, where revenue is computed first, then bill includes a cost not in revenueRetainage – Lesley mentioned retainage of a portion of fee on CP contract on the previous slide, but any retainage will impact. For example – T&M retainage of 10% of billings up to $50K
  • CPFF billing worksheet
  • For FP contract using generic billings
  • The last 2 columns
  • G/L is your book of record – so that is presumed to be correct, all other things being equal.
  •  Thanks for your time and attention today.  I hope this presentation has been helpful to you.  I’m happy to take any questions that you might have at this time.  Deltek has also provided several Social Media forums for its customers, which are listed out on this slide, where you can get additional news and updates. 
  • Deltek Insight 2011: Reconciling Unbilled A/R and the Analysis Report

    1. 1. GCS-303Reconciling Unbilled A/Rand the Analysis ReportLesley Beardow, CPASenior ConsultantSusan Smith, CPA, MBAGCS Practice DirectorWJ TechnologiesDeltek Premier Partner
    2. 2. Enabling Success Project Human Financial Project Manufacturing Resources Management Management Do More Market Teaming CRM and Capture Win More Intelligence Solutions Management Know More Business Performance Management Winning More Increasing Project Improving Cash Reducing the Cost Business Visibility Flow of Compliance2 5/22/2012 © 2010 Deltek, Inc. - The specifications, functionality and schedules described reflect Deltek’s current estimates, may change without notice, and do not constitute obligations of Deltek.
    3. 3. Do More Project Human Project Financial Manufacturing Resources Management Management Do More Market Teaming CRM and Capture Win More Intelligence Solutions Management Know More Business Performance Management Project Execution Project & Corp Time, Expense, La Reporting, GRC & & Management Accounting bor, Payroll Compliance3 5/22/2012 © 2010 Deltek, Inc. - The specifications, functionality and schedules described reflect Deltek’s current estimates, may change without notice, and do not constitute obligations of Deltek.
    4. 4. OverviewUnbilled Receivables What is it? Where does it come from?How GCS Premier tracks Unbilled ReceivablesHow GCS Premier reports on Unbilled Receivables Billing Worksheets Analysis of Unbilled Receivables ReportHow to reconcile Unbilled ReceivablesHow to write off unbilled receivables
    5. 5. AgendaDefining Unbilled ReceivablesUnbilled Receivables in GCS PremierReconciling Unbilled ReceivablesWriting Off Unbilled Receivables
    6. 6. Unbilled Receivables =Revenue minus BillingsRevenue is posted and: Unbilled Receivables, sfx 12 is hit Contract Revenue, sfx 30 is hit.Example:Revenue Basis in Contract Master File (for contract 1000) = Billed Post billings for $1,000 1000-000-11 Billed Receivables 1,000 DR 1000-000-12 Unbilled Receivables 1,000 Cr Post revenue for $1,000 1000-000-12 Unbilled Receivables 1,000 DR 1000-000-30 Revenue 1,000 Cr
    7. 7. Unbilled Receivables whenRevenue not equal BillingsRevenue Basis = Normal on a Cost Plus contract1. Billings have a 15% withhold on fee Unbilled will have this withholding amount, to date2. No withholding on fee, but indirect billing rates are different from those used for revenue Difference will be in Unbilled receivables
    8. 8. Other Valid Sources ofUnbilled ReceivablesTiming Differences1. “Administrative Delay” caused by billings being processed & released, but AP records another voucher, then revenue is computed2. Revenue computed & posted, financials released, then issue billings that include a cost not present/known when revenue was calculated3. Intentional difference caused by customer cutoff for billing on the last Friday of the month vs. the month end dateRetainageRevenue is taken for the full amount, but the amount billed is less the X% retainedFixed Price ContractsRevenue computed on Percentage of Completion method, and billing is either on Milestones or Progress Payments
    9. 9. How GCS Premier tracksUnbilled ReceivablesGeneral Ledger, suffix 12Billing Worksheets, which show Unbilled amounts for that contractAnalysis of Unbilled Receivables Report - Let’s take a look
    10. 10. Contract Billing Worksheet
    11. 11. Contract Billing Worksheet
    12. 12. Analysis of Unbilled Recs.
    13. 13. Analysis of UnbilledReceivables - Per AnalysisThe last 2 columns, Per Analysis and Per G/L should be the samePer Analysis source: Total revenue in prior years, from the Prior Year Summary file, plus revenue posted this year, from sfx 30 The Prior Year Summary file is updated when you close your Fiscal Year, during implementation, and when you update costs from a prior year by using Update Prior Year’s Contract Costs Less - Total billings in prior years, from the Prior Year Billable Data file, plus total posted billings in the current year, from the Current Year Billing file. Prior Year Billable Data file is updated when you close your fiscal year, when you post T&M billings, and during implementation. Current Year Billing file is updated when you post Fixed Price or Cost Plus bills (not T&M)
    14. 14. Analysis of UnbilledReceivables - Per G/LThe last 2 columns, Per Analysis and Per G/L should be the samePer G/L source: The balance in sfx 12.Suppose they are different? Which is correct?
    15. 15. Differences between PerAnalysis and Per G/LPossible reasons: Revenue or billing has not been posted Contract not implemented correctly (could affect both columns) Either sfx 12 or the Prior years summary file is incorrect – or both Journal entries made to sfx 12 which do not affect the Prior Year’s summary file – and so will not affect the Per Analysis column Postings to sfx 12 from other than posting revenue or billings such as Labor Distribution, Accounts Payable. Contract task set up changed – originally revenue at contract level and changed to task level (or vice versa) Adjustments made to prior years files, which will not affect sfx 12.
    16. 16. Reconciling the differencesReview Billings – does Aged A/R match sfx 11?Review Contract Revenue Summary to see if the revenue posted equals the G/Lsfx 30 amount.Review prior years revenueAdd contract to date cash receipts to the outstanding billed receivables – does this match the sum of the billings? [Cash Receipts + O/S A/R (not paid) should = Total Billings] If not, perhaps a billing was not paid in full (and never will be) but thebilling amount was not corrected.
    17. 17. Correcting UnbilledReceivablesOnce you have reviewed and realized that your unbilled receivables is incorrect, takethe following correcting actions:Write off through Contract Revenue Set up a contract called “Prior Years’ Adjustments” Enter a revenue adjustment in the contract master file for your corrections compute and post revenue Do a journal entry to correct sfx 12, on affected contracts .OR Write off on Income Statement Set up an F/S code called “Adjustments to Prior Year Revenue” or the like Enter a journal entry to correct sfx 12 and an “Other” account type assigned to this FS code.
    18. 18. Key Session TakeawaysUnbilled Receivables = Revenue minus BillingsContract Billing Worksheets show Unbilled ReceivablesThe Analysis of Unbilled Receivables shows Unbilled Receivables computed byGCS Premier and what’s in the GL sfx 12Reconcile your Unbilled Receivables so that you always know what it is made up of
    19. 19. Session Content OverviewUnbilled Receivables definedReports to help reconcile Unbilled ReceivablesReconciling Unbilled Receivables
    20. 20. Questions www.twitter.com/deltek www.facebook.com/deltekinc www.linkedin.com/company/163414 www.youtube.com/user/deltekinc2120 5/9/2011 2/16/2011 ©2010 Deltek, Inc. • CONFIDENTIAL • All Rights Reserved ©2011 Deltek, Inc. All Rights Reserved
    21. 21. Call to ActionFor more information feel free to call or email usWJ Technologies, LLCLesley Beardow, CPA, Senior Consultant• Lesley.Beardow@WJTechnologies.com 703-885-7154Susan Smith, CPA, MBA, Practice Director• Susan.Smith@WJTechnologies.com 703-885-8156Watkins Meegan, LLCRich Wilkinson, Director• Rich.Wilkinson@WatkinsMeegan.com 703-847-4435

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