Contract balances
The Ind AS 115 contract-balances disclosure per project over a period: contract liability, contract asset and contract acquisition costs rolled forward from the ledger, with the revenue recognised in the period and how much of it came out of the opening liability.
Contract balances
This report is the Ind AS 115 contract-balances disclosure: for each project, what has been billed ahead of revenue (the contract liability), earned ahead of billing (the contract asset) and paid as brokerage that is still waiting for its revenue (contract acquisition costs), each rolled forward from the opening date to the closing date, together with the revenue recognised in the period and how much of it came out of the liability held at the start.
Where to find it
In the sidebar, open Accounting > Revenue Recognition and choose the Contract balances tab. The tab keeps the books you chose on the other tabs.
You need the View permission on Revenue Recognition; in the default roles every role has it except the Sales Executive, Site Engineer, Front Desk and Legal & Documentation. Without it the page reads "No access" and "You do not have permission to view revenue recognition. Ask your administrator." Choosing the books needs the View permission on Books ("Choosing a set of books needs the Books read permission. Ask your administrator.").
Before you start
- Posted revenue runs: the Revenue recognised card is built from their lines.
- Demands issued under a deferring Revenue policy, which put With the unit billing on the contract liability ledgers, and commissions approved under the capitalise policy, which fill the contract acquisition costs.
- A cost centre per project (see Cost centres), or the project on the voucher, so each posting can be placed under its project.
What you see
The top card holds the dates and the description: "The contract balances disclosure: what was billed ahead of revenue, earned ahead of billing, and brokerage waiting for its revenue, per project, with the revenue recognised in the period and how much of it came out of the liability held at the start."
- From and To: by default the start of the fiscal year holding today, to today (kept within that year). The report refreshes as soon as both dates are set and From is not after To.
When nothing moved in the period the page reads "No contract balances in these books for the period." Otherwise four cards follow. Rows are per project; a posting that cannot be placed under a project shows as "No project", and a Total row appears when there is more than one row.
Revenue recognised
| Column | What it shows |
|---|---|
| Project | The project. |
| Revenue in the period | The revenue recognised by posted runs whose period end falls between From and To. |
| Out of the opening contract liability | How much of that revenue was already billed (and so sitting in the liability) before From: per subject, the smaller of its liability at the start and its revenue in the period. |
Contract liability
"2100 / 2110 / 2115: billed ahead of revenue".
| Column | What it shows |
|---|---|
| Opening (<day before From>) | The liability at the start, shown as a positive amount. |
| Billed | What demands (and the financing component and development rights) added to it in the period. |
| Recognised | What revenue runs drew down from it. |
| Closing (<To>) | The liability at the end. |
Contract asset
"1220: revenue ahead of billing".
| Column | What it shows |
|---|---|
| Opening (<day before From>) | Revenue not yet billed at the start. |
| Recognised | Revenue that ran ahead of billing in the period. |
| Billed | Billing that caught up in the period. |
| Closing (<To>) | The asset at the end. |
Contract acquisition costs
"1270: brokerage waiting for its revenue".
| Column | What it shows |
|---|---|
| Opening (<day before From>) | Capitalised brokerage not yet released at the start. |
| Capitalised | Brokerage approved and capitalised in the period. |
| Released | Brokerage released to expense by revenue runs in the period. |
| Closing (<To>) | The balance at the end. |
Zero amounts show as "—".
What you can do
There are no actions on this report besides the From and To dates. Open the ledgers themselves under Ledger report to see the individual entries, or a revenue run to see the lines behind its revenue.
Things to know
- The three balance cards come from the ledgers; the revenue card comes from the runs. The roll-forwards read every posted (and reversed) voucher on the contract liability, contract asset and contract acquisition cost ledgers, including manual journals. Revenue in the period counts only the lines of posted revenue runs. After a manual journal on one of those ledgers the two can disagree by that amount.
- Revenue sits in the period of its run's period end, not of the voucher date. A run closing 31 March shows its revenue in March even if it was posted in April, and a run reversed on a later date still shows its revenue in its own period; the reversal shows only in the ledger columns.
- The contract liability ledger is chosen per charge component. Under Component mappings each With the unit component names the contract liability ledger its billing goes to (the standard chart sends the unit price components to 2100 and differential area to 2110), so a project's billing lands where its demands put it. Ledger 2115 is credited by a revenue run with the fair value of the development rights received when the policy treats rehab units as non-cash consideration.
- Advances are not contract balances. Money received before it is billed stays on the customer's ledger and is shown on the Balance sheet as advances from customers; it appears here only once a demand bills it.
- Projects are placed by cost centre first, then by the project on the voucher. A voucher of these books tagged with a project of another promoter still gets its own row.
- There is no export on this report.
Related
Related
- Revenue runsScreen
The revenue runs (period closes) of the chosen books, the dialog that prepares a new draft run, and the scheduled rules that draft runs automatically.
- Revenue runScreen
One period close: what each booking and member offer recognises, the journals and cost moves it posts, the subjects it left out, and the actions to recompute, post, reverse or delete it.
- Revenue policyScreen
The CA's effective-dated choices on how the books recognise sale revenue and the costs that go with it: framework, method, possession trigger, OC rule, cost treatments and judgement areas.
- Remaining obligationScreen
The Ind AS 115 disclosure of revenue still to come from what is already booked: each live booking and member offer's price less what the posted revenue runs have recognised, per project, banded by the financial year of the project's expected possession.
- Project performanceScreen
Revenue, cost of sales and margin per project for a period and to date, the booked price and how much of it is recognised, the cost budget against cost incurred and cost to complete, progress by stages and by cost, revenue by month, and the flags the CA needs to act on.
- Component mappingsScreen
Which ledger each charge component posts to in the chosen set of books (a main ledger, an optional second tax ledger, an optional cost centre and, for sale and tenant charges, the revenue treatment and contract liability ledger), and the action to copy template additions into the books.
- Cost centresScreen
The cost-centre tree of a set of books, usually one per project with a child per tower, so the ledger and the reports can be cut by project; mirror the projects in one click or add cost centres by hand.
- DemandScreen
One demand: the installments it bills, its amounts with GST, the expected TDS and what is payable in money, the receipts and TDS credits against it and how the money is placed on the charges, with the actions to edit, issue, cancel or delete it.
- CommissionScreen
One channel-partner commission: the partner, the brokerage with GST and TDS, the payouts against it, and the actions to edit, approve, cancel or delete it.
- Ledger reportScreen
The ledger of one account between two dates: opening balance, every posting with a running balance, and closing balance, with CSV export.
- Balance sheetScreen
Assets against liabilities and equity as of a date, with the year's profit to date carried into equity and a check that the two sides agree.
- Revenue recognition: policy, point in time vs over time, and revenue runsConcept
Each set of books carries an effective-dated revenue policy (framework, method, possession trigger, cost and brokerage treatments, judgement areas) chosen by the CA; a revenue run is the period close that computes every booking's and member offer's progress under it, recognises the catch-up revenue, cost of sales and brokerage, and posts the journals.
- Contract liability, contract asset and the transaction priceConcept
A booking's transaction price is the sum of its charges treated "With the unit"; while revenue is deferred, demands for those charges are credited to a contract liability (billed ahead of revenue), a revenue run debits it as revenue is recognised, and revenue recognised ahead of billing sits in the contract asset.
- Contract acquisition costs (capitalised brokerage)Concept
Under a revenue policy that capitalises the costs of obtaining a contract, an approved channel-partner commission is parked in Contract Acquisition Costs instead of brokerage expense and released to expense by each revenue run in step with the booking's revenue; possession expected within the practical-expedient months expenses it at once.
- Fiscal years, periods, locks, opening balances and the year-end closeConcept
Each set of books runs in fiscal years of twelve monthly periods; a voucher can post only into an open year and an unlocked period, opening balances carry each ledger's balance into a year, the year-end close moves income and expense into Profit & Loss Account by a closing journal and writes the next year's openings, and a monthly balance cache is kept as a cross-check.