Enhanced interface

Revenue templates—Contracts

This list supports the enhanced lists interface. Learn more about using enhanced lists.

A revenue template defines the revenue recognition schedule for the flat/fixed amount associated with a contract line. You can create any number of revenue templates and reuse them across contracts.

Subscription	Contracts
Regional availability	Australia Canada South Africa United Kingdom United States
User type	Business Employee Project Manager Warehouse
Permissions	Contract revenue template: List, View, Add, Edit, Delete
Restrictions	Only Business users can Add, Edit, or Delete revenue templates. Employee, Project Manager, and Warehouse users can only List and View revenue templates. You cannot edit or delete the "Project time" or "Evergreen Revenue" revenue templates.

About revenue templates

A revenue template defines the rules that you want to use to recognize revenue for a contract line. The recognition method selected on the template determines how the revenue is divided and scheduled. When you create a contract line, you associate one or two revenue templates with it, depending on your Contracts configuration.

Intacct creates the following revenue templates based on your configuration:

Project Time: If Enable deferred revenue for time and materials projects is set to true in the Configure Revenue Management page
Evergreen Revenue: If Term type options = "Evergreen" or "Both" in the Configure Contracts page
Recognize on invoice: If Enable revenue recognition on invoice is set to true in the Configure Revenue Management page. This template indicates there's no deferred revenue, so there's no revenue schedule or requirement for the user to post revenue separately.

You cannot edit or delete the system-created templates.

Add a revenue template

The user interface for adding a revenue template changes slightly based on the recognition method you select. See Recognition methods for details about each recognition method and examples of revenue schedules created using each method.

Add a Daily rate, Straight line, or Quantity-based revenue template

The method for creating revenue templates for the following three recognition methods is the same:

Straight line: Revenue is allocated evenly over the recognition term. Calculations differ according to whether partial periods exist and where a partial period occurs. Learn more about straight line revenue calculations.
Daily rate: Revenue is allocated using a daily recognition rate: (total schedule amount / number of days in recognition term) * (number of days in month))
Quantity-based: Revenue is allocated when a usage record is associated with the contract line: (the quantity used / the total contracted quantity) * Flat/Fixed amount. Learn more about quantity-based recognition.

To add a Daily rate, Straight line, or Quantity-based revenue template:

Go to Contracts > Setup > Templates and select Add (circle) next to Revenue.

The Revenue Template page appears.
In the Name field, enter a meaningful identifier for the revenue template. This identifier will appear in the applicable selection lists in Intacct.
The identifier must be unique across revenue and expense templates. For example, you cannot have both a revenue template and an expense template named "Daily rate template".
In the Description field, enter a meaningful description for the revenue template.
Use the Recognition method dropdown list to select Daily rate, Straight line, or Quantity-based.
Select the desired Default posting type.
If you select "Automatic", Intacct will automatically post scheduled revenue journal entries on each scheduled posting date. If you select "Manual", the user will manually post the scheduled revenue journal entries when desired. The user can change the posting type from "Manual" to "Automatic" during the revenue schedule's life cycle as needed.
Select the desired Revenue adjustment option or accept the default option. This option is currently limited to Daily rate and Straight line templates.
Accept the default Status selection of Active or if you do not want the current template to be available for use yet, use the Status dropdown list to select Inactive.
Select Save.

Add a Predefined percentages revenue template

The Predefined percentages recognition method lets you set up contract revenue recognition schedules any way you want. Set up custom, non-linear schedules, like milestone schedules, to adapt revenue processes for your business.

The revenue template maps the period for recognition to occur with the percentage of the amount to recognize that period. Intacct generates the revenue schedule based on the template start and end dates entered in the contract line.

Example of a Predefined percentages revenue template

Template details

	No. of months offset	Percent to recognize
1	0	30
2	4	30
3	8	40
4

In this example, 0 in the No. of months offset indicates that the first period of recognition is scheduled for the month in which the template start date occurs. The second recognition period is four months from the template start date, and the third recognition period is eight months from the template start date.

Say you created a contract line for services with a template start date of March 1 for a fixed fee of 5,000.00. Using the template defined above, the recognition schedule is as follows:

Recognition date	Amount
March 31	1,500.00
July 31	1,500.00
November 30	2,000.00

To add a Predefined percentages revenue template:

Go to Contracts > Setup > Templates and select Add (circle) next to Revenue.

The Revenue Template page appears.
In the Name field, enter a meaningful identifier for the revenue template. This identifier will appear in the applicable selection lists.
The identifier must be unique across revenue and expense templates. For example, you cannot have both a revenue template and an expense template named "Predefined percentages template".
In the Description field, enter a meaningful description for the revenue template.
Use the Recognition method dropdown list to select Predefined percentages. A table appears in the lower portion of the page.
Select the desired Default posting type.
If you select "Automatic", Intacct will automatically post scheduled revenue journal entries on each scheduled posting date. If you select "Manual", the user will manually post the scheduled revenue journal entries when desired. The user can change the posting type from "Manual" to "Automatic" during the revenue schedule's life cycle as needed.
Accept the default Status selection of Active or if you do not want the current template to be available for use yet, use the Status dropdown list to select Inactive.
In the Template details table, specify the number of months offset from the contract line start date and corresponding percentages to be recognized. The total Percent to recognize values must equal 100 to save the revenue template.
Select Save.

Add a Project or Task percent complete revenue template

Contract revenue associated with fixed-fee projects is usually recognized based on a form of percentage of completion. The method for creating revenue templates for the following two recognition methods is the same:

Project percent complete—Revenue for a fixed fee project is recognized proportionate to either approved hours divided by source hours or by a percentage determined by user input
Task percent complete—Revenue for a task related to a fixed fee project is recognized proportionate to either approved hours divided by source hours or by a percentage determined by user input

The Percent complete revenue templates are only available if your company is also subscribed to Projects and has the Track time by field set to either Project and task or Customer, project, and task in the Configure Projects page.

To add a Project or Task percent complete revenue template:

Go to Contracts > Setup > Templates and select Add (circle) next to Revenue.
The Revenue Template page appears.
In the Name field, enter a meaningful identifier for the revenue template. This identifier will appear in the applicable selection lists in Intacct.
The identifier must be unique across revenue and expense templates. For example, you cannot have both a revenue template and an expense template named "Project recognition template".
In the Description field, enter a meaningful description for the revenue template.
Use the Recognition method dropdown list to select either Project percent complete or Task percent complete.
Use the Recognition method source dropdown list to select the source Intacct will use to determine the percentage of completion. For example, if you select Estimated hours, Intacct will divide the total Estimated hours for the project or task by the number of approved hours (Actual hours) to determine the percentage of completion.
If you want to set threshold percentage values at which revenue can be recognized, select the Step revenue checkbox and complete the Template details table.
Example of threshold recognition
Say you have a design company, and you typically recognize revenue in stages as a project progresses, but you do not recognize the revenue in exact proportion to the project's percentage of completion as many last minute changes usually come in at the end of a project. You want to recognize revenue as follows:
- When the project is 35% complete, recognize 30% of the revenue
- When the project is 65% complete, recognize an additional 30% of the revenue
- When the project is 100% complete, recognize the remaining 40% of the revenue
You create a revenue template with the following Template details:
Threshold percent Percent to recognize
35 30
65 30
100 40
Total 100
You have a contract line for a three-month project starting January 10. You agree on a Flat/Fixed amount of 10,000.00 and you want to recognize revenue at the project level.
You run Preview as of January 31. Intacct finds a percentage of completion value of 30%. Intacct does not present any available revenue to recognize for the project as 30 is less than the first threshold setting of 35.
You run Preview as of February 28. Intacct finds a percentage of completion value of 60%. Intacct presents 3,500.00 to recognize as 60 is greater than 35 but less than the next threshold level of 65. You recognize 3,500.00 in February.
35% * 10,000.00 = 3,500.00
You run Preview as of March 31. Intacct finds a percentage of completion value of 100% as you finished the project earlier than expected. Intacct presents the remaining 6,500.00 to recognize.
(30% + 40% = 70%) * 10,000.00 = 6,500.00
MEA allocations do not support revenue templates with Step revenue.
Accept the default Status selection of Active or if you do not want the current template to be available for use yet, use the Status dropdown list to select Inactive.
Select Save.

Threshold percent	Percent to recognize
35	30
65	30
100	40
Total	100

Edit a revenue template

Changes made to a revenue template will apply to revenue schedules created after the change was made. Revenue template changes will not apply to a revenue schedule that already exists.

You cannot edit the system-created "Project time", "Evergreen Revenue", or "Recognize on invoice" revenue templates. You also cannot edit the Recognition method, Recognition method source, or Step revenue fields if a contract line is associated with the revenue template.

Go to Contracts > Setup > Templates > Revenue.
Find the revenue template that you want to edit.
Select More actions > Edit at the end of the row.
Make your changes.
Select Save.

Go to Contracts > Setup > Templates > Revenue.
Select Edit next to the applicable template.
Edit the desired fields and select Save.

View a revenue template

Go to Contracts > Setup > Templates > Revenue.
Find the revenue template that you want to view.

Records designated as Inactive do not appear in the list by default. To view these records, select Filters at the top of the list and select Remove next to the Status filter to remove it.
Select the template's name.

Go to Contracts > Setup > Templates > Revenue.
To view inactive revenue templates, select the Include inactive checkbox.
Select View next to the applicable template.

Delete a revenue template

You can delete a revenue template if it has not been used by any contract lines. This removes the template from Intacct. Alternatively, you can deactivate a template (change the status to Inactive), which prevents it from displaying in any template selection lists but retains the template for historical purposes.

You cannot delete the system-created "Project time", "Evergreen Revenue", or "Recognize on invoice" revenue templates.

Go to Contracts > Setup > Templates > Revenue.
Find the revenue template that you want to delete.
Select More actions > Delete at the end of the row.
Select Delete to confirm.

Go to Contracts > Setup > Templates > Revenue.
Select Delete next to the applicable template.
Intacct prompts you to confirm the delete.
Select OK.
The template is removed from the list.

Field descriptions

Revenue templates field descriptions
Field	Description
Name	A short identifier for the revenue template. This ID will appear in any applicable revenue template selections lists in Intacct. The identifier must be unique across revenue and expense templates. For example, you cannot have both a revenue template and an expense template named "Daily rate template".
Description	Use this field to describe the purpose of the template. For example, describe the type of contract lines that will use this template.
Recognition method	Determines how revenue is calculated during the contract term. Options are: Straight line: Revenue is allocated evenly over the recognition term. Partial periods are calculated as total schedule amount / total number of days in the recognition term) * (number of days in the partial period). Intacct calculates partial periods first, then spreads the remaining amount over the schedule via straight line. Daily rate: Revenue is allocated using a daily recognition rate: (total schedule amount / number of days in recognition term) * (number of days in month)). Quantity-based: Revenue is allocated when a usage record is associated with the contract line: (the quantity used / the total contracted quantity) * Flat/Fixed amount. See an example of usage and quantity-based revenue recognition. Predefined percentages: Revenue is allocated based on a table of entries that map the period to recognize with the percentage of the Flat/Fixed amount to be recognized that period. Project percent complete: Revenue for a fixed fee project is recognized proportionate to either approved hours divided by source hours or by a percentage determined by user input. Task percent complete: Revenue for a task related to a fixed fee project is recognized proportionate to either approved hours divided by source hours or by a percentage determined by user input. Intacct creates recognition methods exclusively for use with system-created revenue templates: Project Time: If Enable deferred revenue for time and materials projects is set to true in the Configure Revenue Management page Evergreen Revenue: If Term type options = "Evergreen" or "Both" in the Configure Contracts page Recognize on invoice: If Enable revenue recognition on invoice is set to true in the Configure Revenue Management page. This template indicates there's no deferred revenue, so there's no revenue schedule or requirement for the user to post revenue separately. You cannot edit the Recognition method field for a revenue template if a contract line is associated with the revenue template. See Recognition methods for detailed calculation information.
Recognition method source	Determines the data source Intacct uses to determine the percentage of completeness for the project or task. Options are: Estimated hours: Intacct will use divide the total Estimated hours for the project or task by the number of approved hours (Actual hours). Observed percent completed: Intacct will use the most recent "As of date" equal to or less than the invoice date at the project or task level. Budgeted hours: Intacct will divide the total Budgeted hours for the project by the number of approved hours (Actual hours). This source is only applicable to Projects. Planned hours: Intacct will divide the total Planned hours for the project or task by the number of approved hours (Actual hours). You cannot edit this field if a contract line is associated with the revenue template. This field is only applicable when Recognition method = "Project percent complete" or "Task percent complete".
Default posting type	Determines how the revenue will be posted. Options are: Automatic: Intacct will automatically post the journal entry on each scheduled posting date. Manual: The user will manually post the journal entries when desired via the Manage Revenue and Expense Recognition page. Templates where the Recognition method = "Project percent complete" or "Task percent complete" will be set to "Manual" posting. Users can change the posting type of "Manual" schedules to "Automatic" during the schedule's life cycle. Learn more about converting a schedule's posting type.
Step revenue	Displays a table that lets you define recognition thresholds. You determine what percentage of revenue to recognize at what percentage of a project's or task's completion. This field is only applicable when Recognition method = "Project percent complete" or "Task percent complete". If you want a percent complete revenue template to be used by contract lines that participate in MEA allocations, do not select Step revenue. You cannot edit this field if a contract line is associated with the revenue template.
Revenue adjustment option	This option is applicable when delivering a contract line (event-based recognition) and when resuming a schedule from hold. Determines how Intacct will deal with revenue scheduled prior to a contract line's Delivery date or the revenue schedule's Resume date. Options are: Catch-up: One time: Sets the Scheduled posting date to the Delivery or Resume date for all revenue that was scheduled prior to the Delivery or Resume date. Catch-up: Distributed: Recalculates the revenue schedule term using the Delivery or Resume date as the start date and spreads the total revenue amount across the shortened schedule so that any skipped periods due to late delivery are eventually caught up. Walk forward: Regenerates the revenue schedule as of the Delivery or Resume date and pushes the end date out to the date that's equal to the number of days from the original revenue template Start date to the Delivery or Resume date. Intacct prorates any partial periods. The whole period amount remains equal to the originally scheduled whole period amount. This option is only applicable if Recognition method = "Daily rate" or "Straight line".
Status	Options are: Active: The template will be available for use. Inactive: The template will not be available for use, but could be made available at a future date. You can change the template's status as desired.

Template details table

This table appears when either:

Recognition method = "Predefined percentages", or
Recognition method = "Project percent complete" or "Task percent complete" AND Step revenue is selected

The table columns are different depending on the Recognition method.

Template details table field descriptions
Field	Description
No. of months offset	The number of months in the future from the contract line start date the corresponding percentage will post. For example, 2 indicates two months from the contract line start date, 4 indicates four months from the contract line start date, and so on. Enter 0 if you want the corresponding percentage to be posted in the month the contract line starts. This column is only applicable when Recognition method = "Predefined percentages".
Percent to recognize	The percentage of the Flat/fixed amount that will post at the corresponding number of months from the contract line start date. You can enter up to 8 decimal places in this field. This column is only applicable when Recognition method = "Predefined percentages".
Threshold percent	The percentage of completeness at which you want to recognize revenue. This value is cumulative. See Add a Project or Task percent complete revenue template for an example of threshold recognition. This column is only applicable when Step revenue is selected.
Percent to recognize	The percentage of revenue to recognize at the corresponding threshold percentage. The total of this column must equal 100. This column is only applicable when Step revenue is selected.