If you are using the revenue schedule method of revenue recognition, you can edit the revenue schedule to either change an amount that is scheduled to be recognized and/or adjust an amount that has already been posted. You may need to edit the revenue schedule if the contract amount changes or a customer cancels a contract after you have already recognized revenue.

Adding a Sales/Invoice record to the revenue schedule allows you to recognize additional revenue on a contract; adding a Credit Memo allows you to credit an amount back to a customer.

Step 1: Edit the Contract Amount (Optional)

If you are editing the revenue schedule because the contract amount has changed, the first step is to edit the contract amount. If you want to adjust the revenue schedule without changing the contract amount, skip to Step 2.

Select Cards > Service Management > Service Manager. Select a customer and select the Contract indicator. The Maintenance Contract window opens.
Use the lookup in the Contract Number field to select a contract.
Adjust the Contract Amount.
Select Save. A message appears asking if you want to re-generate the billing schedule.
- If you select Yes, all unposted billing amounts are automatically adjusted to total the new contract amount.
- If you select No, you must manually adjust the billing schedule so the total billing amount equals the new contract amount.

Step 2: Edit the Revenue Schedule

From the Maintenance Contract window, select Revenue/Cost, then use the Revenue Entered button to open the revenue schedule.

If you changed the contract amount, the revenue schedule was automatically adjusted to distribute the unposted value of the new contract amount evenly among the unposted revenue records. If the Total Revenue amount equals the Contract Amount, you can edit any of the adjustments that were made, for example, if you want to change the Revenue Amount of each record back to its original value and add a single invoice or credit memo to account for the increase or decrease in the contract amount.
If you did not edit the contract amount, you can still make changes to any unposted record. Posted records, however, cannot be changed. If you need to adjust the revenue amount for a period that has already been recognized, for example, to credit revenue back to a customer for a contract that has been canceled, you must add a new record to that period and recognize revenue for the period again.

Adding a Record to the Revenue Schedule

Select Add. On the new line that appears in the scrolling window, you can edit the following:

Date
The system date defaults. Because a period can be recognized multiple times, you can enter a date that falls within a period that has previously been recognized.
Document Type
Select Sales/Invoice to recognize additional revenue on a contract, or select Credit Memo to credit excess revenue back to the customer.
Revenue Amount
Enter the invoice or credit amount. If you are creating a single record to account for an increase or decrease in the contract amount, enter the amount by which the contract was changed. If you are refunding a period of revenue for a canceled contract, enter the amount previously recognized.

Adding a new record changes the Total Revenue amount.

Before you can exit the Revenue Schedule window, you need to balance the Total Revenue amount with the Contract Amount. Continue to edit any unposted records until the difference between the two values is zero.

Step 3: Recognize Revenue

If you added a record to a period that has already been recognized, you need to run the routine again to update the revenue amount for that period. If you edited an amount that is scheduled to be recognized later, the record will be posted when the period is recognized.

Select Microsoft Dynamics GP > Tools > Routines > Service Management > Maintenance Contract > Recognize Revenue.
If you wish, limit the revenue recognition to an Individual Customer.
From the drop-down menu, select the Open Year that contains the contract for which you want to recognize revenue, and select a period.
We recommend you print an edit list before posting. Any revenue that you have previously recognized for this period is listed with the Post Date. Revenue that will be recognized by this routine appears with a Post Date of 0/0/0000.
Select Post. Any previously unrecognized revenue records for the specified customer and period are posted.

The Posted Date appears in the Posting Journal and on the Revenue Schedule window.

Step 4: Verify the General Ledger Amounts

When the revenue recognition routine is run, a Microsoft Dynamics GP General Ledger entry is created and saved under the Batch ID "RECOGNITION."

Recognizing revenue multiple times for a single period will result in the creation of multiple transaction entries. For example, if invoice revenue has been recognized for a period, then a credit memo is recognized for the same period, a GL transaction entry should exist for each record. The transaction entries can then be posted to the designated debit or credit maintenance accounts.

Complete the following steps to verify that a transaction entry has been created for the new revenue record.

Select Transactions > Financial > General.
Select the lookup button in the Journal Entry field. In the Journal Entry lookup window, scroll to locate the entries saved to the RECOGNITION batch, and select the appropriate transaction entry. The maintenance contract number is listed in the Reference column to help you identify the correct transaction entry.
Verify that the correct amounts are being distributed to the correct accounts.