Revenue Recognition Report & Invoicing

Often, service-based organizations (Agencies, Legal Firms, Consultants, etc) who bill for their time and expenses need a way to see their total expenditures in one place. By combining labor costs, expenses, and even invoicing amounts in one Revenue Recognition report, these organizations can compare expenditures to what they are charging for their services, ensuring the financial health of their organization. Workzone's Revenue Recognition report shows expenses over the lifetime of a project or within a given timeframe, relying on Time Tracking, Labor Rates, and Expense Tracking features for projects.

Administrators and Managers can access the Revenue Recognition Report from the main Reports module on the left navigation bar. In the left sidebar, Revenue Recognition Report is in the section named Revenue, as shown here:

Column Layout

The report is split into three basic column sets, with their respective columns (and the calculations done in those columns):

• Project Info
  • Workspace
  • Project
  • Project #
  • Category
  • Responsible
  • State
  • Labor Budget (Budgeted hours multiplied by category-level labor rates as shown on Labor Expenses report)
  • Expense Budget (Project budget created via Expense Tracking)
  • Contract Amount (Value entered in the Contract Amount project field)
  • Invoice Amounts (The Amount totals in that project's Invoices entries)
• Expenses to Date
  • Total Labor To Date (Logged hours multiplied by category-level labor rates up through the end date of the Dates filters)
  • Total Expense To Date (Logged expenses up through the end date of the Dates filters)
  • Total To Date (The sum of Total Labor To Date and Total Expense To Date)
  • Variance (Contract Amount minus Total To Date)
  • Total Hours To Date (Logged hours up through the end date of the Dates filters)
• Expenses in Selected Period
  • Total Labor In Timeframe (Logged hours multiplied by category-level labor rates within the date range of the Dates filters)
  • Total Expense In Timeframe (Logged expenses within the date range of the Dates filters)
  • Total In Timeframe (The sum of Total Labor In Timeframe and Total Expense In Timeframe)
  • Total Hours In Timeframe (Logged hours within the date range of the Dates filters)

Labor Budget is from the labor expenses reporting and the Expense Budget is from the standard expense tracking feature of Workzone. While this data can be useful to display and compare, it is not used in any of the other columns and their calculations.

Contract Amount is a field designed specifically to benefit this report, and must be enabled in the Add Project Fields. Project managers can use this field to enter the amount of money they've agreed on with a client to spend throughout the course of this project. Contract Amount plays a key role in the Variance calculation.

Total Hours to Date shows the sum of time entered using the standard time tracking up to the end date of the filtered period.

Total Hours In Timeframe shows the sum of time entered using the standard time tracking within the start and end dates of the filtered period.

Filters

There are a variety of filters on the Revenue Recognition Report accessed from the Filters button at the top.

The timeframe selected with the Date filters will filter both the Expenses To Date and Expenses In Timeframe column sets. The Expenses To Date columns will display data that applies through the life of the project up to the end of the selected timeframe, where as the Expenses In Timeframe columns will only show data that applies to the specified timeframe.

Columns to Display

In addition to exporting to a spreadsheet and printing the report with the icons at the top, clicking the gear icon shows a box to control which columns are displayed by unchecking or checking the displayed checkboxes.

Click the Save button to confirm any changes, or Cancel to leave the columns as currently set.

Invoicing

Workzone can collect invoicing details on a project and display that information on the Revenue Recognition report. The Invoices tab on a project's details tray can add a new invoice and shows information from existing invoices, as shown here:

1. Clicking this tab on a project's details tray shows the project's invoice entries.
2. The values here come from the sum of the project's existing invoice entries and the value entered in the Contract Amount project field.
3. This row is used to enter the details of a new invoice. Click the + Add button after filling out the appropriate fields.
4. Existing invoices display on these rows, sorted by Date.
5. These icons appear on hover for an existing invoice row. The pencil is used to edit the fields of the existing invoice, while the trash can deletes the particular invoice (after confirming).

Status is manually set per invoice to Pending, Partially Paid, Paid or Overdue from the dropdown.