Intercompany Transactions

Log into the Company the cash is being moved from, in this example, Company 01.  Use an Overhead Project, Phase & Task Assigned to Company 01, the company issuing the cash.  Use Cash Clearing account in your GL Accounts setup as an Asset Account:

The resulting Posting log shows Company 01 as the owner, and uses A company Overhead Project, Phase & Task and a Cash Clearing account as an Asset Account.

See the resulting Posting Log below:

In Company 02, process a CR mirroring the CD in Company 01:

The resulting Posting log shows Company 02 as the owner, and uses the same Project, Phase, Task & Cash Clearing account from Company 01.  This will create an Intercompany Event for Intercompany Billing to be processed:

See the resulting Posting Log below:

When both transactions are posted, in General Ledger Reporting run a simple Trial Balance on the single Cash Clearing Account to assure that it “always” nets to zero.  Be sure to set your report to report “ALL” Companies.

In Company 01, the CR file is available to process Intercompany Billing on:

There will only be an intercompany on one company, the company initiating the payment and chosen when selecting the Project, Phase & Task assigned to that company in both transactions.

Labor Cross Charge

Labor Cross Charge Form


The Labor Postings grid on the Labor Cross Charge form displays Labor Cross Charge transaction files that are created by transaction postings in the Period time frame that you enter on this form. It does not display postings removed with the Undo Posting Utility.  Note:  This needs to be ran each month, NOT for prior months in the same period if you want accurate MTD (month to date) income statements.

STEP 1:  Timesheet Posting

Post Timesheet Files

When all of your employees’ timesheets for a selected labor period have been submitted and approved, you are then ready to post the timesheets to your Vision database.

Before you post timesheets for a selected labor period:

  • The data on all submitted and approved timesheets must be accurate.
  • Close the labor period to prevent users from making any changes to their timesheets.

When timesheets are posted, Vision:

  • Debits the direct or indirect labor account set up for the employee type. (For example, in the Standard Chart of Accounts for a regular employee, Vision debits the accounts below for – Direct Labor – Employees or those below for – Indirect Labor – Employees.)
  • Credits the Accrued Wages account set up in your Chart of Accounts. (For example, in the your Chart of Accounts, Vision credits account 0070.300 – Job Cost Variance.)
  • If applicable, updates the time taken for benefit accrual plans (for example, vacation, sick, and personal time).
  • Recognizes multiple cost rates and effective dates.

STEP 2:  Adjusted Salary Job Cost (if using)

Adjusted Salary Job Cost

  1.  Click Run, this process takes the amount in the custom field “Weekly Salary” on the Accounting Tab in the info center does the calculation and updates the Job Cost on the same tab.  This ONLY updates those employees with a Job Cost Type of “Salary”.   See screen print below: 

STEP 3:  Labor Cross Charge

Labor Cross Charge Toolbar

Click a toolbar option on the Labor Cross Charge form to perform a Labor Cross Charge task.

The following table describes each toolbar option:

  1.  Highlight & Select ALL files, be sure to check the middle box that says “Show labor adjustments and transfers”.
  2. Click Run, this will take just a few seconds if done weekly.
  3. This process will create two files that require you to post them.  A Journal entry & a Labor Adjustment.  Both Files will be named as you see above and start with XCharge followed by the date you process.
  4. If for any reason you need to un-post any timesheet record after you have ran this utility.  You will need also un-post both files above.  Then repeat steps 1-3.

STEP 4:  Transaction Posting

Labor Adjustment & Journal Entry Posting

  1.  Select both files as shown below and click Post.

  1. Run any General Ledger, Project, and Accounting (Labor Cross Charge) Reports as desired.

Income Statements

Labor Cross Charge Reports

Project Reports by Department

Year End Close

Overview of Year-End Processes

See DeltekVisionYearEndChecklist2016 Attached:

Initialization Utilities

You can run separate initialization utilities to complete the year-end process.  For example, you can open a new year without finishing the old year for Payroll and Accounts Payable purposes.  The following summarizes each initialization utility.

Do not initialize until you review all of the following:

You must perform initialization steps only once. If you perform these steps more than once, it may be necessary to restore a backup copy of your database. The initialization utility displays the date on which it was last run; Deltek recommends that you make note of that date.  When you run the separate initialization utilities, Vision records the process on the Posting Log Review report, located under Transaction Center » Posting Review Report. The entry appears as an AL transaction type, indicating an audit log posting. This information is useful as an audit trail for all changes that updated your database in a specific period. The transaction appears in the period in which the action was performed.


Open New Period (Fiscal Year)

Vision keeps track of how many periods per fiscal year were designated during installation. Click Utilities, Period Setup to view the current settings. When the new period happens to be in a new fiscal year, it prompts Vision to set year-to-date reporting values to zero.  Open the new fiscal period at the beginning of the General Ledger fiscal year. Click Utilities » Open New Period.

Do Not Open a Period Until You are Ready to Post to It

Deltek recommends that you do not open a period until you are ready to post to it. Because the new period becomes the current period, you will need to post to the prior period, and run reports and process in the prior period, after you open the next period.

Open New Benefit Year

The Open New Benefit Year utility zeros out all year-to-date benefit hour information (the year-to-date hours earned and year-to-date hours taken). If the benefits are set up to carry over hours to the next benefit year, Vision adds the current year’s unused earned hours to the new benefit year’s starting balances, based on the limits specified.

If the benefit hours are set to pre-accrue at the time that you open the New Benefit Year, Vision adds these yearly benefit hours to the employee automatically. You can accrue benefit hours manually or with payroll processing.  You must initialize for the New Benefit Year prior to posting any timesheets or Payroll for the new year.

Click Utilities » Open New Benefit Year.

1099 Initialization (Accounts Payable users only)

The 1099 Initialization utility resets vendor year-to-date values to zero. The
initialization step transfers the Paid This Year amount for all vendor records to the Paid Last Year field on the Accounting tab of the Vendor Info Center. The Paid Last Year field amounts appear on the 1099-MISC form in box 7.

You must complete all Accounts Payable payment processing and adjustments before running the 1099 Initialization. You cannot process the 2016 1099–MISC forms before initializing a new 1099 year.

Click Utilities » 1099 Initialization.

Open New W-2 Quarter /Year (Payroll Users Only)

Vision keeps track of which W-2 quarter and W-2 year are open. You must perform quarterly initialization at the end of each calendar quarter and at the beginning of the calendar year. The Open New W-2 Quarter/Year utility resets the employee year-to-date Payroll values to zero.

It is not necessary to process the 2016 W-2s before opening the New W-2 Quarter/Year. However, you must complete all Payroll processing and Payroll adjustments for 2016 before opening the New W-2 Quarter/Year.

Processing with Two Fiscal Years Open

Opening Multiple Periods Spanning Different Fiscal Years

Vision makes it possible for you to open, and process in, multiple periods. The open periods can span fiscal years. For example, December 2016 can be open at the same time as January 2017.  Any adjustments made in the old year automatically update balances in the new fiscal year, regardless of when this occurs. You can open January without completing all of the December processing first, allowing you to begin processing January transactions before closing the December period.

Accounts Payable Payment Processing in the New Fiscal Year

When two fiscal years are open, you must complete all Accounts Payable payment processing and Accounts Payable disbursements before running the 1099 Initialization utility for the new 1099 year. Once the new 1099 year is open, then it is possible to enter new Accounts Payable payments and Accounts Payable disbursements for the 2017 processing year. This ensures that the year-to-date figures are properly updated for the vendors. It is possible to create and post new Accounts Payable vouchers as usual with two fiscal years open.

Payroll Processing in the New Fiscal Year

When two fiscal years are open, you should complete all Payroll processing and
Payroll-related adjustments for 2016 in W-2 year 2016 before running the Open
New W-2 Quarter/Year utility for the new W-2 year. Once the new W-2 year is
open, then it is possible to enter new Payroll payments for the 2017 processing
year. This ensures that the year-to-date figures are properly updated for the

Opening the New Period / Fiscal Year

Prior to Opening the New Period / Fiscal Year

Make a year-end backup before opening the 2016 fiscal year. Label it clearly
(including the Vision version number) and keep it permanently on file. Consider
storing an additional copy of the year-end backup off-site.

Perform the Open New Period/Fiscal Year step only once. If you perform this step more than once, it will be necessary to restore to a backup copy of your database. The Open New Period /Fiscal Year utility displays the date on which it was last run; you should make note of this date.

Areas That Reset to Zero after You Open a New Fiscal Year

Areas that reset YTD values to zero after you open a new fiscal year include the following:

  • Time Analysis report
  • Project reports for overhead type projects
  • Overhead Allocation calculation for the new year
  • Year-to-date figures on the Key Financial Metrics reports
  • YTD values on accounting reports, such as the Cash Journal or Check Register
  • Income Statement accounts close out to the prior year’s Retained Earnings account on the Balance Sheet.
  • When you open a new fiscal year, the year-to-date totals zero or are cleared out. However, the transactions are not gone. You can go into the prior period / year and run reports to see the prior year totals.

Open the New Period/Fiscal Year

To open the New Period / Fiscal Year, complete the following steps:

  1. Click Utilities » Open New Period.
  2. If the current period open is the last period in the fiscal year and you open a new
    period, Vision displays the following warning “if” you are using a Period 13.


If not, or after this period is opened you will see this warning:


WARNING – You are currently in fiscal period 12 of 12 for the year 2016. If you continue, you will open the first fiscal period for the year 2017.

Open New Benefit Accrual Year

To open the benefit accrual year, complete the following steps:

  1. Click Utilities » Open New Benefit Year. Vision displays a dialog box that lists the current benefit accrual year and the new (next) benefit accrual year:


  1. After you verify the dates, click OK.

Run the 1099 Initialization Utility

You can run the 1099 initialization while in the December 2016 accounting period or the
January 2017 accounting period.

To run the 1099 Initialization utility, complete the following steps:

  1. Click Utilities » 1099 Initialization.
  2. After verifying the most recent 1099 initialization run, click Initialize.
    The following message displays:

Click Yes to continue Initialization.

Opening a New W-2 Quarter /Year

You must open a new W-2 quarter/year after the last Payroll and all benefit adjustments of 2016 have been completed, and before processing the first Payroll of 2017.

You must open a New W-2 quarter/year to track any data accumulated by Vision Payroll. When you do so, Vision resets all employees’ year-to-date Payroll information to zero and starts tracking Payroll data for the new calendar year.

Perform the Open New W-2 Quarter/Year procedure only once. If you perform this step more than once, it will be necessary to restore from a backup copy of your database. The Open New W-2 Quarter/Year utility displays the date on which it was last run; please make note of that date.


You must run the Open New W-2 Quarter/Year utility separately for each company. This utility only initializes for the active company. See the Vision Online Help for more information.

To open a new W-2 Quarter/Year, complete the following steps:

  1. Click Utilities » Open New W-2 Quarter. Vision displays a dialog box reflecting the current and next applicable W-2 Quarter/Year. See the example below.
  2. After verifying the dates, click OK.


 Year-End Steps Summary

  • Backup before opening your new fiscal year
  • Open New Fiscal Period/Year – If using a 13th period for Audit/Year End Adjustments be sure to open 201613 (Period 13) prior to opening 201701 January 2017. 
  • Open new Timesheet Periods
  • Open the New Benefit Accrual Year
  • Process all of your transactions for month end and 2016 year end
  • Run final Overhead Allocation for 2016 (if applicable)
  • Run final Revenue Generation for 2016 (if applicable)
  • Run final Adjust Salaried Job Cost for 2016 (if applicable)
  • Run final Consultant Accruals for 2016 (if applicable)


Q – Can I have December and January periods open at the same time?

YES – You can have December and January periods open at the same time.

– Can employees enter time in January even if I am not ready to open the
January period?

YES – You can have your 2017 timesheet periods open and employees can enter
their time, you just can’t post them until you have opened the January 2017
accounting period.  You would setup the timesheet periods in Configuration
> Time & Expense > Company Timesheet > Timesheet Calendar tab.

–  After opening the new fiscal year, there are no longer any year-to-date values
for the overhead projects. Why?

The year-to-date amounts for overhead projects reset to zero once the Open New
Period utility has been run for the new fiscal year. To see prior year Overhead Project Information;  Go to the prior period / year  then  Run the Project Detail report, the previous year’s values will be visible.

More helpful information on Year End processes in Deltek Vision is available at
the Deltek Year End Info.


Accounting 101:



The Income Statement has only one area for revenues and four categories for
expenses.  For the expenses, there is a separation between direct (those which are chargeable to direct projects) and indirect or overhead expenses.  Typically, these are
categorized as either labor or non-labor expenses.  As a result, the main categories for Income Statements are Revenues, Direct Expenses, Direct Labor, Indirect Expenses, and Indirect Labor.  Deducting ALL expenses from revenues and the amount remaining is Operating Profit.  Sometimes referred to as NOI (Net Operating Income) or EBIT (Earnings before Interest and Taxes).

See my blog on DCAA & FAR compliance with Deltek Vision:


Revenue depends on how the firm chooses to recognize revenue.  It can be as simple as the sum of all invoices sent to clients where Billed = Revenue.  Others may choose to have some WIP (Work in Process) recognized as well so that revenue is NOT solely dependent on billing.  This too can be a simple calculation of  Billed + WIP.  WIP = the sum of all Unbilled Labor & Expenses at Billing Rates, but it may also have limits or other formulas using the project budgets as part of the formula.  For Fixed Fee projects it can also be based upon a % complete.

See my previous blog on Revenue Generation:  

Direct Expenses

Direct expenses are all expenses incurred on a project.  They include both reimbursable and non-reimbursable expenses.  In Deltek Vision these are known as Reimbursable (billable) or Direct (non-billable) expenses.  Whether a T&M type invoice where billable
expenses are listed or simply included in a fee amount these expenses are included as part of your invoice posting in Deltek Vision.

Net Revenues

Net Revenue is simply Revenue minus ALL direct expenses, whether billable or not.

Direct Labor

Direct labor is the hours charged to Direct Projects times the Job Cost Rate for the
Employee.  For Hourly employees it is simple math.  For Salaried employees
firms do it differently.  Deltek Vision calculates the annual salary divided by 2080 to calculate the Hourly Job Cost Rate.  Therefore, if a salaried employee has more than 40 hours in a standard week of time on his timesheet then his Gross Labor Cost will be overstated when compared to his salary paid.  Some firms choose to eliminate this variance using Deltek Vision’s utility called Adjusted Salary Job Costing.  Takes a few seconds and recalculates the hours each week to the paid rate instead of the calculated Job Cost rate.  Other firms choose to post this negative variance to overhead reducing their overhead by an equal amount to that which was overstated.  Both options satisfy all GAAP & DCAA audit requirements.

See my previous blog on Adjusted Salary Job Costing:

Gross Margin or Profit

Gross Margin simply Net Revenue minus Direct Labor whether billable or not.

Operating Profit, EBIT or NOI

Deducting all Indirect Expense from the Gross Margin produces your firms Operating
Profit.  No matter the name is the same for all firms.

Cash Basis Accounting

See my blog if you are also using Cash Basis Accounting:

10 Key Performance Indicators

Utilization Rate

The utilization rate is the percentage of hours spent on direct projects vs. the total number of hours worked.  It is not a measure of productivity. A reasonable goal for the entire staff would be a utilization rate of 60 percent to 70 Percent.  For the Operations, professional and technical staff a reasonable goal would be 75 percent to 90 percent.  Most firms today are calculating the Utilization based on the “Standard – Benefit”.  The standard is 8 hours per day for salaried personnel and the total hours on the timesheet for the hourly staff.  Benefit hours are hours charged to any overhead project designated as a Benefit project.  In a week with 8 hours charged to holiday
where 32 hours is direct, using this calculation the employee would have a 100%

Overhead Rate

The overhead rate is the cost of all overhead related expense (Indirect expenses, including indirect labor) expressed as a percentage of total direct labor.  It’s perhaps the most critical of all the performance factors.  If it is unknown or calculated incorrectly, it is impossible to accurately determine the firm’s profitability.  The lower the overhead rate, the higher the profit margin.  A target of 150 percent to 175 percent of total direct labor (1.5 to 1.75 x total direct labor) would be acceptable.  Managing indirect expenses will reduce the overhead rate.  A rate that exceeds 1.75 is usually of concern to management.

Break-Even Rate

Each employee of the firm has his or her own break-even cost, which represents the actual cost of each person’s Employment.  It’s equal to the overhead rate plus each person’s hourly salary, represented by the unit of 1.0.  If a firm has an overhead rate
of 1.5 (150 percent) then the break-even rate for each employee is 2.5 x hourly
salary (1.0 + 1.5 = 2.5).  For an employee with an hourly cost of $30, the break-even cost would be $75 per hour.  To develop an hourly billing rate for each employee, divide the break-even cost by the desired profit margin.  If a 20% margin is desired divide $75 by .8 (1.0 – .2) which would give a billing rate of $93.75.

Net Revenue Multiplier

The net revenue multiplier represents the actual revenue generated by the firm, expressed as a percentage (or multiple) of direct labor.  If the NR multiplier is greater than the break-even rate then the firm is earning a profit.  If it is less than the break-even rate then the firm is losing money.

DSO (Days Sales Outstanding)

The average age of a firm’s receivables (both billed (Aged AR) and unbilled (WIP) can be calculated.  The formula is Outstanding Receivables divided by the average revenue stream.  Some firms calculate their average revenue stream using the past 90 days (Gross Revenue for current & 2 prior periods divided by 90).  Others use a yearly
average dividing by 365.  85 days is a standard firms should strive maintain with BOTH Billed & Unbilled Receivables (WIP) being booked and calculated.  Firms who do not book WIP (Unbilled Receivables) should expect DSO on billed receivables only to be at 60 days or less.  To achieve this you must bill every 30 days or sooner and collect within 30 days of your invoiced date.

EBIT as a % of Net Revenue

This metric is determined by dividing the profit known as EBIT (Earnings before Interest & Taxes) by the net revenue.  It indicates a firm’s effectiveness in completing projects profitably.  This is found on income statements for each indirect and the total.  The EBIT as a % of NR” is a key financial metric.

Net Revenue Per Employee

The net revenue per employee is calculated by dividing the annual net operating revenue by the number of employees.  It is useful in forecasting a realistic range for future annual net operating revenue.

 Cash flow

Cash flow is a measure of how much money the firm actually has on hand at any given time to pay accounts payable: employee salaries, taxes, insurance premiums,
reimbursable expenses, consultant fees, and expenses. While a firm may appear
to be profitable on paper, cash flow can be a serious challenge for professional service firms and can adversely affect the ability of a firm to meet its financial obligations to employees, vendors, and consultants in a timely manner.  A monthly cash flow report and 12-month cash flow projection can help a firm plan ahead to smooth out the swings in cash flow by accelerating collections, requesting an initial payment prior to starting a project, and carefully planning purchases of equipment and supplies.


The backlog is the unbilled dollar value of a firm’s current projects. Because monthly invoices continually reduce the firm’s backlog, it is essential to continually replace
invoiced fees with newly contracted fees. A desirable target for backlog is equal to or greater than the firm’s annual net revenue.

Burn Rate

Aside from financing, the term burn rate is also used in project management to determine the rate at which hours (allocated to a project) are being used.  To identify when work is going out of scope, or when efficiencies are being lost simply put, the burn
rate of any project is the rate at which the project budget is being burned or spent.

Project Plan – Step by Step

With everything fully integrated and the correct security and access in place, Project Managers can easily and accurately create new Project Plans.

Note:  A Template is created per the firms specifications.  You may have multiple templates as needed for your different project types.

Step 1:  From the Dashboard click
on the last plan “COPY PLAN TEMPLATE”.

This will open your template from which
you will copy to create your new plan.

Step 2:  Once you see the template, proceed to Step 3.

Step 3:   Click on “New” on the top bar, and then click on “Copy Current Plan”

Step 4:  The dialogue box below will open.   Leave the Plan Name Field (box 1) as is.

Step 5:  Click OK

Step 6:   When Plan opens, complete the required fields (shaded).  You must have a Project Manager and Initial  Contact.  If the client is not new please
select that as well.  You can search or simply type in part of a name and pick.

Step 7:  Set or Adjust dates as necessary for the estimated start and end dates of the project.

Step 8:  The next tab has Rates, project will default to the current year standard rates.  If this is not correct, please search and/or ask Accounting for assistance as to what  to assign here.

Step 10:  For any Billing Group not needed, simply  click on that row and click Delete at the top.

Step 11:  If a new Billing Group is  required, Click “New Row” and then type in
Billing Group Number and Billing Group Name you want.

Step 12:   You can select multiple employees at once when inserting.  Using your shift key, you can select any that  are in a group.  Or you can hold down
your Control key and select them at random.

Step 13:   Insert Hours for each employee/resource as needed.  Click SAVE.

Note:  Billing Setup Requirements can be incorporated within the plan and either  created when the Plan is first created or later prior to the first invoice.


Step 1:  E-mail Accounting to request a new project setup.  Be sure to tell them to create your project from your Plan Number (Best to Copy & Paste to make sure they copy from the right plan.)

Month End Close


When Using

Deltek Vision’s Revenue Generation


Daily Processing & Posting Steps

  1. Post Invoice Files – NOTE:  this is critical
    when scheduling Revenue Generation (Do not leave un-posted invoice files overnight)
  2. Post Accounts Payable Files (Vouchers, Cash Disbursements
    or A/P Disbursements)
  3. Post Cash Receipt Files
  4. Post Unit Files
  5. Post Expense Reports Files
  6. Post Journal Entry Files

Weekly Processing & Posting Steps

  1. Post any A/P, CR, Unit, Expense or JE Files not already
  2. Post Timesheets (this assumes you are on weekly 7 day
  3. Run Revenue Generation (REV GEN) – From Saved Favorite
    (See my blog on Rev Gen)
  4.  Run Adjusted Salary Cost (if using)  (See my blog on ASJC )
  5. Run Labor Cross Charge (if using)
  6. Compare Project Sub-Ledger to General Ledger – Run Project
    Earnings Report with Activity set to “Current” on the Activity Tab.  Select Current Labor Amount Cost, Current Expense Amount Cost, Current Revenue, Current Profit on the Columns Tab.  In the selection criteria set Charge Type Code = R.  Note:  Active Only UNCHECKED.


  1. Run a standard income statement and compare to Project
    Earnings:  Current Revenue = Revenue, Current Profit = Gross Margin, Current Labor Amount Cost = Direct Labor, Current Expense = Reimbursables + Other Directs.
  2. Review All Sub-ledgers to confirm they agree with General Ledger:  Total Aged AR = Balance Sheet Account, Unbilled Receivables from Project Earnings = Balance Sheet Account, Unpaid Payables = Balance Sheet Account & Unpaid Expense Reports = Balance Sheet Account.  Balance Sheet Accounts
    must be those assigned in Configuration.


Monthly Processing & Posting Steps

  1. Complete ALL Weekly Processing & Posting Steps
  2. Open New Period
  3. Immediately Close Old Period
  4. The Controller should have access to create and post journal entries in a prior and closed period.
  5. All other users should be by Security locked into the New & current period to avoid errors.
  6. Any other Key Reconciliations can be completed including bank rec’s if desired.
  7. ONLY indirect (overhead) expenses should be posted into the prior now closed period.
  8. Adjust AP Vouchers – When errors were made, you can adjust AP Vouchers so that the correction remains attached to the original.  See “MANUALAP VOUCHER ADJUSTMENT” file.
  9. Recurring Journals like Depreciation etc. can be posted anytime throughout the month, but if not done post now.
  10. Review Financials for any necessary adjustments.  Note:  Anything
    above Gross Margin line should be done in the new period, the old period should
    not be touched except for Indirect Expense entries.  (See my Blog Accounting 101)

Revenue – Multi-Currency

Gains and Losses for Revenue Generation in Vision 7.0

In 7.0, there is a new feature that applies if you use the Multicurrency.  The general ledger debit and credit account distribution for value changes due to exchange rate fluctuations of unbilled services during Revenue Generation posting has changed.

Before 7.0, the unbilled services offset entry for exchange rate fluctuations went to the uninvoiced revenue account. Now the gains and losses are allocated to the appropriate unrealized gains or losses accounts.  This allows you to differentiate unbilled gains and losses from unbilled revenue in both project reports and the general ledger.

  • You specify the unrealized gains and losses accounts on the Gains and Losses tab in Accounting Company Settings (Configuration » Accounting » Company Settings) or in Individual Organization Configuration (Configuration» Organization » Individual).
  • When Revenue Generation calculates unbilled services to zero in the billing currency, the unbilled services unrealized gains and losses is reversed, and the offset entry is allocated to uninvoiced revenue.
  • The new gains and losses capabilities in Revenue Generation replace the Calculate revenue separately in billing, project, and functional currencies option in User Defined Revenue Configuration.  This replaced option had been designed to prevent gains and losses from being calculated on unbilled services at all. See the “Calculate Revenue Separately in Billing, Project, and Functional Currencies” description on page 20 of the Release Notes for more information.
  • For transactions with zero cost be aware of the following:  When you report billing amounts in the project currency, the billing extension is stored in the project currency. If the transaction does not have an associated cost, Vision is unable to do proration to translate the billing extension to the billing currency during Revenue Generation.
  • The Gains Losses and Revaluations Detail report (Reporting » Accounting) was updated to include a section for unbilled services.
  • The unbilled services line of the File Reconciliation report (Utilities » Advanced Utilities » File Reconciliation) was updated to include the Revenue Generation adjusting entries to unbilled services due to gains or losses against the sub ledger.
  • New Unbilled Gain/Loss and Adjusted Unbilled columns were added to the Office Earnings, Project Summary, and Project Earnings reports in Reporting » Projects. These columns display revenue and unbilled values.  This allows you to match the unbilled value to the general ledger and the File Reconciliation report.
  • On the Revenue Generation Transaction List report and the Revenue Generation Posting log (Transaction Center » Transaction Lists and Transaction Center » Posting Logs):
  • The Functional Currency Adjustment column replaces the Functional Currency Current Revenue column.
  • The Project Currency Adjustment column replaces the Project Currency Current Revenue column.
  • On the Journal Entry Transaction List report (Transaction Center » Transaction), the consolidated automatic entries to the gains and losses projects are sorted at the bottom of the Details section.
  • On the Journal Entry Posting Log report (Transaction Center » Posting Logs), the consolidated automatic entries to the gains and losses projects display in the Summary section.
  • The following fields related to this new feature were added to the Analysis Cubes: Unbilled Gain/Loss and Adjusted Unbilled were added to the Values » Unbilled measures folder and the Values » Unbilled-Multicurrency measures folder in the project data cube.
  • The Refresh PR Summary Table utility (Utilities » Advanced) has been updated to include the new Unbilled Gain/Loss and the Adjusted Unbilled columns that were added to the Office Earnings, Project Summary, and Project Earnings reports.

For more information on Multicurrency see my previous blog on Multi-Currency:

Allocations (Automated)


When most A & E firms grow and become multi-office and/or divisions they are usually in the process of finding and implementing new accounting which will allow them to
generate separate profit and loss statements for each office.  To do this, we need to find the best way to allocate those common corporate overhead (those costs for our central
headquarters activities such as accounting, personnel, the company president’s
cost, etc.) to the offices.  Deltek Vision allocates Overhead to Direct Projects if you like as a utility included with the software package.  But here we are talking about the allocation of Corporate Overhead to the business units.


Finding the amount to allocate is easy but determining the best method for your firm takes understanding and discussion with the firm’s management.  How it is done, will almost always vary from firm to firm.


I have found a few methods are most common, but by no means your only
options.  Just some of the Allocation methods I’ve seen to distribute those costs are:  Net Revenue, Total Payroll, Headcount, FTE Count and Gross Margin.  So, if my particular office has 23% of the Net Revenue, Payroll, Headcount, FTE count or Gross Margin from the total in all offices, then my office would receive 23% of the corporate overhead allocated.


Rather than one single allocation method, some firms will use multiple allocation methods to spread corporate costs depending on the nature of each.  For example, the cost of the HR Costs may be allocated based on the number of employees in each office, while insurance and maintenance cost might be allocated on the square footage occupied by each office, etc.  I’d recommend keeping overhead allocation as simple as possible and sticking to a single method unless you have a very unique situation.

Regardless of which allocation method you choose, some will claim it is just unfair.  Just try and be happy with the fact that they are paying enough attention to the numbers.
The conversations that will follow are a healthy process that will benefit the financial health of your firm.


Once the decision have been made, then it is up to accounting to come up with the calculations monthly and post the journal entries to account for the allocation.  The bigger the firm, the more departments/profit centers you have the more time consuming this process can be.  Many will revert to a spreadsheet, always prone to errors followed by recoriding a time consuming manual journal entry.


The alternative is to create an AUTOMATED TRANSACTION ENTRY where the calculation method(s) decided are part of a SQL Stored Procedure.  A Stored Procedure is a SQL Query that not only calculates the allocation amounts per department but creates the journal entry ready to post.  This formula would then  transfer those Corporate costs across a group of profit centers, departments, divisions or companies.  Whatever you call them, in Deltek Vision these are your Organizations (Orgs).  The formula creates a Transaction Entry file ready for posting into your General Ledger.

There are no limits for the uses for SQL Stored Procedures.  Allocations of Corporate Overhead, Professional Liability Insurance, Fringe Benefit Costs, Rent, Other Expenses, WIP Adjustments and even Overtime Premium Costs not posted in timesheets just to name a few.  Another common need is  automated units that coincide with timesheet entry for Computer Time, Add-On’s tied to billed hours and many others.

More information can be found in another blog Automated Transaction Entry:

Custom Reports


Many have asked for custom reporting to consolidate 2 or 3 reports into one.  Not only are we usually shocked to find out how expensive they can be, but also when we learn about maintenance with upgrades over time.  There are alternatives to custom reports that enables data to be pulled into one standard Vision report.  An example is attached and shown below with typical project summary data along with the three (3) columns on the far right not currently reportable on standard project summary reports.

WIP and Held found on either Unbilled Detail or Unbilled Summary Billing reports and Write-Offs found on Project Detail Reports, but now all available on one Project Summary.  You may have other ideas that could be done in a similar fashion.  Remember, there is always a solution to any reporting or processing problem.  If you have needs or ideas please let me know.

If the information is Deltek Vision, I can create a report to display it in a way that is meaningful to your team.  I will work with you to design a report that gives you the exact information you need.  I have created numerous Deltek Vision reports all configured from standard Deltek Vision reports.

See examples of a few different reports below:










Every firm looks at Project Financials somewhat differently, so you may have other needs and ideas.  Please contact me to discuss.

If the information is Deltek Vision, I can create a report to display it in a way that is meaningful to your team.  I will work with you to design a report that gives you the exact information you need.  I have created numerous Deltek Vision reports all configured from standard Deltek Vision reports.

Did you ever want to center the footer on your Invoice Templates?

There is a way, contact me for assistance.


Multicurrency Overview

Vision Multicurrency allows your firm to transact business in any number of global currencies, while maintaining core financial records in a single, functional currency.

With Deltek Vision, Multicurrency allows your firm to process transactions in any currency. Specifically, you can record vendor invoices, client invoices, and employee expenses and process both payments and receipts in any currency. You can also manage a project in one currency while billing the client in another currency.

Transactions are automatically associated with the exchange rate in effect on the date the transaction occurs. Exchange rates are stored internally by day to facilitate these associations. You can also override the exchange rate for an individual transaction.

Multicurrency Summary

The core features of the Multicurrency module include:

  • The ability to process transactions in any currency, including the ability to:

1. Record vendor invoices in any currency.
2. Generate client invoices in any currency.
3. Process payments and receipts in any currency.
4. Process employee expense reports containing expense items in different currencies.

  • The option to manage a project in one currency and bill for the project in a different currency.
  • Pre-configured currency settings — including the currency symbol and number of decimal places — for all ISO-recognized currencies.
  • Exchange rates that are stored by day, so that a transaction can be associated with the exchange rate that was in effect on the date the transaction occurred.
  • The ability to override the exchange rate for an individual transaction.
  • Support for inverse exchange rates and triangulation.
  • Integration with the Vision Multicompany feature, which supports the management of multiple legal entities in a single Vision database. Each entity can have its own functional currency.
  • Flexible multicurrency reporting features, including:

1. The ability to generate reports in any currency.
2. Currency revaluation, to restate foreign currency balances as exchange rates fluctuate.
3. When used with the Vision Multicompany module:

  • Consolidated financial reporting for multiple companies using multiple currencies.
  • The option to generate consolidated financial statements using the accounting standards specific to your  Country, including Generally Accepted Accounting Principles (GAAP) and International Accounting Standards  (IAS).   Using Unlimited  Processing Transactions Vision automatically calculates and post any gains and losses when you settle the transactions. In other words, if you issue a payment or receive a payment it does that automatically. This is kind of like Cash Basis, where the cash (in this case the gain or loss) is recognized when you issue payments (process payments) or receive cash (cash receipts).

Running the Gains & Losses Process

When you run the Gains/Losses and Revaluations process, Vision calculates and post currency exchange gains and losses, but ONLY for the following:

  • Unpaid accounts payable vouchers in a foreign currency
  • Unpaid client invoices in a foreign currency
  • Foreign-denominated general ledger account balances
  • Unrealized Gains and Losses

An unrealized currency exchange gain is an expected increase in cash resulting from a change in currency exchange rates.

An unrealized currency exchange loss is an expected decrease in cash resulting from a change in currency exchange rates.

Example: Your Company’s functional currency is United States dollars. You bill a client in euros when the exchange rate is 1.5 dollars to the euro. At the end of the accounting period, you have not yet received payment. The exchange rate is now 1.6 dollars to the euro. When you revalue the unpaid balance based on the new exchange rate, the result is an unrealized gain. The change in the exchange rate results in a potential increase in cash for your company, but you have not yet actually received that cash.

Realized Gains and Losses

A realized currency exchange gain is an actual increase in cash resulting from a change in currency exchange rates.

A realized currency exchange loss is an actual decrease in cash resulting from a change in currency exchange rates.

Example: Your Company’s functional currency is United States dollars. You bill a client in euros when the exchange rate is 1.5 United States dollars to the euro. When you post the cash receipt, the exchange rate is 1.6 dollars to the euro. The result is a realized gain. The change in the exchange rate results in an actual increase in cash for your company.

Revenue Generation and Multicurrency

If you use Multicurrency, you must perform the following additional steps to set up and use Revenue Generation:

Before you process Revenue Generation for one or more projects, you must specify the exchange date on the Revenue Generation form. The exchange date identifies the exchange rate that Vision is to use from the Daily Exchange Rate table.

If you want to run Revenue Generation during the accounting period, Deltek recommends that you select today’s date or the closest date available as your currency exchange date. If you do this, you must use the exchange rate for that date for all currencies in which you run Revenue Generation for that date.

Revenue Generation:

Each of the standard revenue methods calculates a project’s revenue in the billing currency.

When you process Revenue Generation, Vision determines whether or not additional revenue has accrued as a result of expressing the revenue in the project’s billing currency. If it has, Vision translates this incremental amount into the equivalent amount in the project’s functional currency, and posts the resulting amount to the General Ledger.

A project’s revenue method formula often includes data that affects the project’s billable amount. Any amount needed to reconcile the revenue amount with the project’s billable amount is expressed as work in progress (WIP), or Unbilled Services. This reconciliation amount is in the project’s billing currency.

As part of the Revenue Generation process, Vision recalculates the unbilled balance in the project’s functional currency and compares the amount to the unbilled balance in the billing currency (the currency in which revenue is being calculated) as of the exchange date specified on the Revenue Generation form. During this process, Vision resolves any difference between these balances amounts that results from exchange rate fluctuation.

You can also select the option to calculate revenue separately in billing, project and functional currencies. The option is available only when you create a user-defined revenue method.

Accounts Payable and Multicurrency

The following Multicurrency considerations affect your use of Vision Accounts Payable.

Currency Types

Multicurrency has the ability to store transactions and other data in multiple currencies, and to use this stored information to fulfill different business needs. You cannot change a currency after related data has been posted. For example, you cannot change the project currency after you have posted expense charges against that project.

Functional Currency

This is the main currency of the in which a firm operates. Normally, this is the currency in which cash is generated and expended by the company. For example, a company located in France would normally use the euro as its functional currency. Amounts on the General Ledger reports display using your company’s functional currency.

Reports can be generated with multiple currencies. Alternatively, for some General Ledger, project, and CRM reports, you can select a single presentation currency so that all amounts are expressed in a single currency. For example, you can generate a Project Summary report that includes projects managed in multiple currencies, but report all financial data in euros on the report.

Transaction Currency

As with other expense entry applications, a voucher can use any transaction currency. The transaction currency of the voucher does not need to be the same as the currency of the vendor’s invoice.

When you create a voucher, you must specify a bank code. The bank code determines the currency in which the check or electronic funds payment is made to the vendor.

To translate the voucher’s total amount (transaction currency) into the payment amount (payment currency), Vision uses the voucher date as the exchange date for locating the most recent preceding date’s exchange rate in the Daily Exchange Rates table.

You cannot modify the payment amount, but you can override it on the Currency Override dialog box.

Project Currency

The currency in which you manage a project may be different from the functional currency of the project’s home company. For each project, you define the project currency at the top level of its work breakdown structure (WBS) and the project currency applies to any and all lower levels (that is, phases or tasks) of the project’s WBS. When labor or expense charges are made to a project, the charges are recorded in the project currency, as well as all other appropriate currencies.

You use the project currency for all project management purposes, including project reporting and project planning. Use the Project Currency option on the General tab of the Project Info Center.

Billing Currency

The currency you use to generate invoices and billing reports for a specific project and all its phases and tasks. For each project, you define the billing currency at the top level of its work breakdown structure (WBS) and the billing currency applies to any and all lower levels (that is, phases or tasks) of the project’s WBS.

Note: Project and billing currencies do not need to be the same. This allows you to plan and manage a project in one currency and invoice the client in another currency. Use the Billing Currency option on the General tab of the Project Info Center.

Payment Currency

The currency in which you make payments may be different from the transaction currency of the original receivable or payable. The way you set the payment currency varies, depending on the transaction type. Typically, the payment currency is the currency specified for an account that is subsequently referenced by a bank code.

For example, on an accounts payable voucher, the bank code determines the currency in which the check or electronic funds payment is made to the vendor. You specify currencies for accounts on the General tab of the Chart of Accounts Info Center. You specify accounts for bank codes on the Bank Codes tab of Bank Codes Configuration.

Presentation Currency

You use a presentation currency to generate a report with all amounts expressed in a single currency.

For example, if you are generating a Project Summary report that includes projects managed in multiple currencies, but you want all project financial data to appear in euros on the report, you would select euros as the presentation currency.

You can specify a presentation currency on General Ledger reports, certain Project reports, and some of the CRM reports (such as the Opportunity List report).

You can specify as the presentation currency any currency enabled for use by your enterprise.

On the report options dialog, you specify the Presentation Currency options, and then select the date Vision uses to calculate currency exchange rates for the report.

GL Accounts and Banks

Each account set up for use as a bank account (in Bank Codes Configuration) must have a currency. You can also specify a currency for other accounts if the balance of the account should be maintained in a currency other than the company’s functional currency (an account for a loan from a foreign bank, for example).


The Vision Multicurrency feature lets you generate reports targeted at the special business needs of a multicurrency enterprise. For example:

  • An Income Statement for a London company, with all amounts shown in British pounds, the company’s functional currency.
  • An Aged Accounts Receivable report that includes all invoices that have a transaction currency of the Euro, to view currency exposure.
  • An Aged Accounts Receivable report for the Asian region, which includes all invoices that are payable in various currencies, such as Japanese yen, Chinese yuan, or Hong Kong dollars.
  • An Aged Accounts Receivable report with a presentation currency of Canadian dollars, used to report on invoices for a client for whom you do work in Canada, the US and Mexico.
  • A Project Summary report for all active hospital projects, managed in any currency. The currency options available depend on the type of report. For example, the default currency for general ledger reports is the functional currency, but you can also choose to generate general ledger reports using a specific presentation currency. Certain reports let you show multiple currencies on a single report. All are reports that contain line item detail.
  • Employee Expense Reports that contain line items in different currencies.
  • Billing Backup reports that contain line items in different currencies.
  • Transaction and posting lists for data entry files that contain transactions in different currencies.

Daily Exchange Rates Overview

The Daily Exchange Rates application allows you to set up exchange rates from one currency to another currency for a specific date. You specify: The “from” currency and “to” currency are the dates to which the exchange rate applies. The exchange rate allows up to six decimal places.

If Vision cannot find an exchange rate for a specific date (you have not set one up), Vision looks at the period exchange rate table for the date within the specified range of dates.

Translation Methods

You specify a “translation method” for an account range or an account, and this method applies to all translations to that account. The choices for translation method are: Daily Exchange Rate (default) Period End Exchange Rate, Period Average Exchange Rate or the Historical Exchange Rate. Exchange Rate Data Feed Services

The Currency Exchange Rate Service is an online exchange rate data feed service, which you can incorporate into Vision’s Daily Exchange Rates feature. If your firm wishes to use this service, you need to contact directly. See Currency Exchange Rate Service Overview for related information.

Exchange Rates Overview

When you post a transaction, Vision checks to see if the various currency types (transaction, functional, billing, and project) are the same. If the transaction currency is the same as the project or billing currency, when a transaction is posted the transaction amount is assigned directly to the project or billing amount. However, if the currencies differ, Vision automatically calculates exchanges between the transaction currency and the functional currency of the project charged by the transaction.

Daily Exchange Rates

By default, Vision uses the daily exchange rate in effect on the date that you enter for the transaction. You can override an exchange rate for any transaction.

Gains and Losses from Currency Exchange: General Information

Firms that conduct business in more than one currency can have financial gains or losses due to changes in currency exchange rates. Such gains and losses commonly result from transactions conducted in a currency other than the principal company’s functional currency or when revaluation of general ledger account balances in a currency other than the company’s functional currency.

Currency Exchange Gain or Loss

A currency exchange gain occurs when the settlement of a transaction or the revaluation of an account balance results in an expected or actual increase in cash flow into your company.

A currency exchange loss occurs when the settlement of a transaction or the revaluation of an account balance results in an expected or actual decrease in cash flow into your company. Such gains and losses can be either realized or unrealized.

Generally Accepted Accounting Practices and Currency Gains and Losses

Compliance with generally accepted accounting practices in the United States requires you to include realized currency exchange gains and losses in net income. For unrealized gains and losses, you have the option either to include them in, or exclude them from, net income.

Businesses located outside of the United States sometimes operate under different standards of accounting practice. They may have different guidelines for determining realized and unrealized gains and losses and for including such gains and losses in net income. Vision provides the flexibility to handle currency exchange gains and losses in accordance with whatever generally accepted accounting practices your company operates under.

Automated Transaction Entry

Oracles Mass Allocation (aka “Stored Procedure”):  A formula that allocates revenues or expenses across a group of profit centers, departments, divisions or companies.  Whatever you call them, in Deltek Vision these are your Organizations (Orgs).  The formula creates a Transaction Entry file for posting into your General Ledger.

In Oracle, a Mass allocation is a process through which one can distribute
and allocate expenses to various accounts.  It is a very useful tool to properly distribute amounts between accounts and across organizations.  For example, rent for the entire premises can be allocated to different orgs based on the area occupied by each department. The Mass allocation journals in Oracle are handled in a step by step manner. The following steps are involved in creating a Mass Allocation Journal Entry:

1. Define the Mass Allocation  – The definition contains parameters as to how and what is to be distributed.

2. Validate the Mass Allocation – The second step is to validate the mass
allocation to ensure that the accounts, orgs and/or projects are correct and

3. Generate the Mass Allocation Journal – Finally, generate the mass
allocation journal so as to distribute or allocate the amounts based on the
defined formula.

4. Review and post the entries – Once the mass allocation journals are
generated, the last step in the process is to review the journals and post the
entries to the Oracle GL General Ledger.

In Deltek Vision, we can emulate the Mass Allocation formula by creating a SQL Stored Procedure.   These can be used to automatically create journals, instead of manually calculating in a spreadsheet and then keying in or importing the journal for posting.  A single Stored Procedure can perform multiple allocations.  We can use these to automatically create Journal Entries, Labor Adjustments, AP Vouchers, Unit
Transactions or any other type of transaction entry.

And all are done via a SQL Stored Procedure, once written it is a simple click of a mouse followed by posting in Vision.  These system shortcuts can simplify your life, automate closing entries and take you out of spreadsheet calculations improving your monthly close time and reporting process.  The following steps are involved in creating a SQL Stored Procedure in Deltek Vision:

1. Define the SQL Stored Procedure  – The definition contains parameters as to how and what is to be distributed.  Chart out the formula in a spreadsheet to identify where and what information is required.  Next identify the calculations that need to be made and upon what criteria.  The spreadsheet becomes the basis for your SQL Stored Procedure and validation.

2. Create the SQL Query – Write the SQL Query in SQL Management Studio and
test the formula to ensure that the calculations, accounts, orgs and/or projects are correct and accurate.

3. Validate the SQL Query  – The next step is to test and create the SQL Stored Procedure.   Then to add the SQL Query from above and decide how it will be generated.  Several options here, a scheduled Workflow, or directly from the SQL Server, a simple shortcut to “double click” or it can be scheduled.

4. Execute the SQL Stored Procedure – Finally, generate the transaction file
so as to distribute or allocate the amounts based on the defined formula.

5. Review and post the entries – Once you have executed the SQL Stored
Procedure the transaction files are generated in Deltek Vision.  The last step in the process is to review the un-posted transaction files and then post the entries to the Deltek Vision GL General Ledger.

There are no limits for the uses for SQL Stored Procedures.  Allocations of Corporate Overhead, Professional Liability Insurance, Fringe Benefit Costs, Rent, Other Expenses, WIP Adjustments and even Overtime Premium Costs not posted in timesheets just to name a few.  Another common need is  automated units that coincide with timesheet entry for Computer Time, Add-On’s tied to billed hours and many others.

Mass Allocations versus Recurring Journals

Revenue Recognition (REV GEN)

Revenue Recognition makes it possible to match both revenues and expenses in the same accounting period.  Using this principal, both revenues and
expenses are recognized when they are realized no matter when cash is received
or paid out.  As part of the concept, matching revenues with expenses on financial statements is the cornerstone of accrual accounting.

Revenue Recognition MethodsThe ways in which a
firm chooses to recognize revenue is unlimited.  A few of the more common methods are described here.  The basis for choosing any revenue recognition method is
the principle of matching revenue and expenses.

Revenue Method – Billing

One of the most common methods based on billing.  Revenue is recognized at the time of invoicing.  However, WIP (Work in Progress or Unbilled Receivables) is not recognized so this is not recommended for Accrual Accounting, as are all other examples.

Revenue Method – Percent Complete

Usually on Lump Sum or Fixed Fee Contracts, Project Managers assess where they are in the project and bill accordingly.  These types of contracts can be billed as a Percent Complete on the project as a whole, or by Phase or Task.  Under this method, there are two ways revenue recognition can occur.  Using milestones or Costs incurred compared to the total estimated cost.

Revenue Method – Time & Material (T & M)

This method for standard contracts is one of the most simplistic.  It is Labor & Expenses
at billing rates.  Each time an invoice is generated, any adjustment (write-offs, write-ons, and transfers, changes to bill rates or markups) made to the labor and expenses accrued will adjust revenue up or down accordingly from that previously accrued.

Revenue Method – Variations

There are many variations to these and other revenue recognition methods.
Subject to a Max, is an example regardless of the method, revenue ceases to accrue when the total reaches the contract limit.  Using this method still allows for additional
costs to accrue, and therefore the project profit and multiplier will drop accordingly.

 Deltek Vision Revenue Generation – REV GEN

Revenue Generation lets you use Vision Accounting on an accrual basis, recognizing project revenue as it is earned matching revenue with expenses incurred to date, aka “Accrued Revenue”.  Without Revenue Generation, Vision recognizes revenue only as it is billed.

Whether you use one of Vision’s standard revenue methods or a method you define, Vision accrues unbilled services for each project making journal entries automatically.  It also updates each project’s related data for use by Vision in generating financial statements. If you select the most appropriate revenue method for each project, based on the project’s contract type, you can improve the accuracy of your project reports and financial statements.


In Vision, when you enable Rev Gen, you must create at least one Asset Account for Unbilled Receivables (WIP) and one Revenue Account for Uninvoiced or Unbilled Revenue.  You can however choose to have multiple accounts for income statement purposes if desired.  One for Labor, Reimbursable Expenses, Reimbursable Consultants,  In House Recoverable/Misc. and Fee/Add-On’s or Additional Items.  If
you choose to go this route you have a separate asset account for each as well.

Once the above is decided, Revenue Methods or Revenue Categories must be assigned to “every” project, and every phase and task on those projects.  There
is a utility to do this systematically called Search & Replace.  Great care needs to be done that full testing of any custom revenue methods prior to assigning to all projects.

When you run Rev Gen, Revenue accrues based on revenue methods assigned to each project.  A journal entry is created and posted that will debit unbilled receivables and credit unbilled revenue.  The amount on the balance sheet is the WIP, part of the total receivables for the firm.  The amounts on the income statement are part of Gross Revenue, although not yet billed.  They can be displayed separately or summed together with other Labor, Reimbursable & Other types of Billed Revenues.  When you invoice, the unbilled receivable asset accounts are relieved for the amounts billed and
revenue is reclassified from the Uninvoiced Revenue accounts to the Billed Revenue Accounts.

You specify a project’s revenue method at the lowest level of its work breakdown structure. For example, if a project has tasks, you must enter the revenue method at the
task level for that project.

– When a project is complete

– Revenue = Billings (…..payments,

– When a project is still in progress

– Revenue = Billings + WIP

– This is where the dance begins…….. (“1″)

(1)”from the Kansas City Vision User Group”

Sometimes a tough concept to educate PM’s on.  While Billings (sum of all invoices) is simple enough, how we measure WIP in terms of billable dollars is not so easily understood.  The Theme is to fairly represent revenue based on what we have earned
(effort that is billable) as of a specific point in time whether we have billed it or not.  But of course we need to be careful to not overstate revenue.  WIP must be managed closely, just like other receivables.   It is critical that you confirm that the sub-ledgers
(Project Reports) reconcile to the General Ledger.  In other words a listing of the unbilled amounts (WIP) by project on a project report compared to the account balance on the balance sheet.

Timing is Critical – Running REV GEN

Because Revenue Generation calculates revenue on a job-to-date basis, you can run the utility whenever you want (multiple times during the same accounting period). To keep your project reports accurate and up-to-date, you should run Revenue Generation
at least once a month or at the end of each accounting period, most schedule and run nightly.  To see current period revenue, simply run a current period Project Earnings Report.

Vision provides multiple reports that show the results of posting revenue.  The Revenue Generation Posting Log found in Transaction Posting Logs.  This report shows the prior JTD, new incremental job-to-date, and total job-to-date revenue that will be distributed to projects when the Revenue Generation file is posted.  Additionally, there are several
Project Reports that will each report JTD, MTD & YTD Revenue found in Project Reporting.  When configured correctly, these Project Reports will reconcile to the Income Statements to the penny serving as a drill down for the Gross Revenue, Net Revenue and Gross Profit sections of your income statement.


Billing Periods are critical.  With REV GEN, financials are no longer dependent on billing since revenue is accrued.  So billing generally is generated and booked in the subsequent period to when the revenue is accrued.  In other words, June activity is billed in July, July in August etc.

WIP when reviewed may be considered by management to be overstated either because of the age of the unbilled receivables or because the unbilled is over fee.  As stated above, WIP must be managed closely just like other receivables.


Billing in the following period is generally a new concept for most, but has some significant benefits.  Financials can be reviewed usually within days of month end since no longer dependent on billing.  Training and understanding is required, but other than the period change billing processes remain unchanged allowing for a very systematic close and a much faster review of company financials.

WIP Adjustments may be considered necessary when Unbilled Receivables appear to be at risk.  Decisions can be made as to what the triggers are for adjusting revenue.  Once determined, a monthly report is created which is then translated into an adjusting Journal Entry to adjust revenue down accordingly.  This adjusting journal entry is reversed in the next period, each month then rebooked again at the end of the next period.  This way, each month you again analyze the current unbilled receivables and adjust accordingly.  The income statement reflects the net change of this adjustment (difference between current and prior month adjustment).

This can be automated using a Sql Query which would calculate the adjustment, create the journal entry which you would simply post in the closing period and then reverse in the new period at the appropriate times.  All results are reportable using standard Vision Reporting, on both income statements and project reports.

Adjusted Salary Job Costing


ASJC is the practice of adjusting the hourly rate for salaried employees per timesheet posting. Used for Government work, where contractually, you are obligated to report actual cost rates on a job. Salaried employees do not get paid for overtime, so there
is a variance between timesheet cost and payroll expense (known as Job Cost
Variance).  In the most simple form, it spreads the salary cost over the hours on the timesheet. This allows employees to record all hours worked, however hourly rates may fluctuate with every timesheet posting accordingly.


In your Configuration you select and set your Timesheet Periods, your Job Cost Posting Frequency, and your Payroll Frequency. If Timesheet Periods are in sync with payroll
frequency, then ASJC works well and will eliminate any Job Cost Variance if
properly configured and payroll posted correctly.

But, if your Timesheet Periods are not in sync with Payroll or your Timesheet spans two periods ASJC will not work as is currently configured.


To enable, you must first choose to ”Allow Job Cost to be Salaries” as well as selecting the Job Cost Posting Frequency.  This is found under Configuration/Accounting and then click on the Timesheets Tab.  Once enabled, each employee must be assigned with either Hourly or Salary Pay Type (drop down box) on the Accounting Tab in the Info Center.  If Hourly, no change to the Job Cost Amount, but if Salary change the Job Cost Amount to the Annual Salary divided by the number of Timesheet periods in the year.  If weekly timesheets, this would be 52, if bi-weekly 26 etc.


Processing goes hand in hand with Timesheet Posting.  Immediately following timesheet posting go to Accounting/Adjusted Salary Cost.  Highlight the timesheet posting and click “Run”.  Do not highlight more than one posting sequence and run together unless you have timesheet periods that cross GL Periods.  (see problems below if this is the case)


You cannot run the Adjust Salaried Job Costing routine between periods if you have
a payroll cycle that overlaps two different periods.  Nor if you have TS Weeks that don’t sync perfectly with Payroll Cycles.


I can create Sql Stored Procedures that makes this possible for firms who do NOT want to change Payroll Cycles or Timesheet Periods.

Cash Basis Accounting


Cash Basis and Accrual Accounting differ in the manner in which they deal with the issue of when to recognize revenues and expenses. The Cash Basis focus is, as its name implies, on the flow of cash. That is to say, whenever cash is collected revenue
is recognized as earned. A similar basis for expenses is used, namely whenever
cash is disbursed the related expense is recognized as having been incurred.

In Accrual Basis, revenue is recognized when it is earned.  The recognition of expenses follows in a similar manner, by booking them when incurred.  This recognition is
independent of any payments received or paid since cash is not the criteria for

Many companies use cash basis accounting for reporting of taxes, but operate and manage their business on accrual basis accounting, for both income statements & balance sheets.  Many Accounting Systems on the market today operate as an accrual or cash basis system only, but not both.  Cash Basis is calculated manually
outside the system, usually at year end and often by an outside CPA for an
extra cost.

Fortunately, Deltek Vision does both at the same time, and with no special utilities involved, nor any extra cost.  This is an excellent feature because it allows firms to report both accrual and cash basis financials throughout the year.


For Cash Basis Accounting to work  properly you must map some Cash Basis Asset & Liability accounts to your Accrual  Income Statement accounts.  As a general
rule, you only need to map accounts receivable and payroll liability accounts
to the accrual income statement accounts where you want your transactions to
post for cash basis reporting purposes.   Deltek Vision handles all Accounts Payable processing without any additional  setup required.  The account charged when
A/P payments are issued will be the same as the original account on the A/P


Cash Basis can be set up at any time.  It is common to begin at the beginning of a
fiscal year, but with Deltek Vision it only matters that you begin at the
beginning of a month.  All that is required is that all Trial Balance account balances have to be translated from accrual to cash basis.  Once translated, the closing
trial balance from the prior period becomes your opening Cash Basis Trial
Balance.  You import these thru Utilities, History Loading, Account Balances.


When an AP Voucher is paid, Vision recognizes the cash basis event.  However,
if an adjustment or Billing Transfer is later made to the voucher after the
payment has been made there is no cash event for Vision to recognize.

Likewise, the same goes if you are using Company Paid Expenses on the Expense Report for employees.  Those are expenses on the expense report recorded by an employee but paid by company credit card, not reimbursed to the employee.  When you pay the expense reports any expenses marked Company Paid, will have NO Cash Basis Accounting for those accounts since those have not been paid with a check.


For either AP Vouchers or Expense Reports, a manual cash only journal entry could be created and posted.  Or for AP Vouchers, you could void the check and reissue with the same number which would then recognize the cash basis event for all accounts in the voucher.

For Employee Expenses paid with company credit cards, I can provide you with “a work around” that will automate the Cash Basis Accounting.

For AP Vouchers, I can provide a Sql Query to report Voucher Adjustments or Billing Transfers after payments have been made and then update the Cash Basis Accounting at month end.

In either case, this requires that processing procedures be put in place and followed in order for Cash Basis to be properly recorded.


Once enabled and Account Balances  have been loaded, then reporting is available on all standard Vision reports found under Reporting/General Ledger.  On  all reports, on the General Tab of the report options check the box that says “Cash  Basis”.  All balances or activity reported will  then result in Cash Basis instead of Accrual balances and amounts.

DCAA & FAR Compliance

Pre-Award Survey & Review

Most small firms are introduced to the issue of accounting system compliance in association with their first government contract pre-award survey. Pre-award surveys usually take place prior to award of the firm’s first prime contract.  If that contract will be subject to the Federal Acquisition Regulations (FAR), and most are, the pre-award survey will usually be conducted by an auditing arm of the Federal Government. If the prospective contract will require cost-based invoicing or reporting, an important part of the pre-award survey will be the accounting system review. As outlined in the Defense Contract Audit Agency (DCAA) publication entitled “Information for Contractors” the purpose of this review is “to determine the adequacy and suitability of the contractor’s accounting system and practices for accumulating costs under the type of Government contract to be awarded.

Software Review

Contrary to the belief prevalent in many companies, the issue of accounting system
compliance does not really revolve around the software itself. Certainly a key consideration is the functionality and capability of the software employed, but even more important is the network of practices and procedures required for compliance. And most important of all are the internal control mechanisms that monitor and enforce them. When DCAA (or any other Federal audit activity) reviews an accounting system for compliance with Federal regulations, they usually start with the company’s policies, practices and procedures. After they have satisfied themselves that the company’s policies and procedures are adequate and their day-to-day practices follow their own policies, then they will turn to the software systems in place to support the policies.

Firms using Deltek are among the very few that enjoy a  presumption of compliance by government audit agencies.

When DCAA examines a contractor’s software tools and systems for compliance, the
extent of the review will be determined by the nature of the software and their own familiarity with it. If the software is known to DCAA as is Deltek Vision the review is often very high level.

Compliance for the Deltek Vision Customer

Deltek Vision can be easily operated in a government contract compliant manner given a well-designed system of practices, procedures and internal controls. At times, it may seem easier to just do the work with a pencil and paper. However, manual systems are prone to lapses in consistency and communication not usually associated with automated systems.

Requirements for the Contractor Accounting System DCAA Compliance for Contractors

  1. Segregation of Direct from Indirect Costs
  2. Consistent Method for Allocation of Indirect Costs
  3. Operable Cost Accounting System under General Ledger Control
  4. Policies & Procedures with Internal Controls to support compliance
  5. Timekeeping system that tracks employees time on each activity (see Labor Charging below)
  6. Labor distribution that separates direct from indirect labor cost
  7. Exclusion of Unallowables
  8. Identification of Costs by Phase and Task
  9. Segregation of Pre-production from Production Costs

Labor Charging System

Timekeeping procedures and controls is the area of utmost concern.  It is critical that employees are fully trained on their responsibility for accurately recording time charges.  This is the single most important feature management can emphasize.  To be effective, internal controls should meet the following criteria:

  1. Segregation of Responsibilities – Supervisors should not record time for employees.  Payroll and Timekeeping personnel should be separate.
  2. Procedures must be Evident – Clear-cut and reasonable procedures in writing to avoid any confusion.
  3. Maintenance and Reviews – Controls must be continually verified and violations must be remedied promptly.
  4. Employee Reminders – Employees must be constantly reminded of the importance of accurate timesheets and of all policy and procedures in place.
    1. Timesheets must be recorded daily
    2. Timesheets  must be in ink or electronic
    3. Correct distribution of time by Project, Phase & Task
    4. Record all hours worked whether paid or not
    5. Signature is required even if electronic
  5. Supervisors & Approvers
    1. Supervisors must approve all timesheets
    2. Supervisors are prohibited from completing an employee’s timesheet

Deltek Vision Job Costing

The good news is with Deltek Vision there is NO setup required.  All functionality is in place to properly cost your projects and segregate direct from indirect.  Internal Controls must be put into place, training provided, vigilant monitoring and complete documentation in a Policy & Procedures Manual.  Aside from that, Deltek Vision does everything required to comply with DCAA and FAR requirements.


  1. Recognizing and Tracking Unallowables (Costs that are expressly unallowable or mutually agreed to be unallowable, including mutually agreed to be unallowable directly associated costs, shall be identified and excluded from any billing)
  2. Reporting & Calculating the Overhead Rate (See example below)


  1. Edit Chart of Accounts as needed to segregate Unallowables.
  2. Edit Expense Report Categories and Chart of Account Mapping as needed.
  3. Edit Expense Categories if used as needed.
  4. Maintain a constant and diligent review to assure all Costs are being properly accounted for in Project & General Ledger Reports.  Review standard Vision Reports for the YTD Overhead Rate on a monthly basis.

For more information see the DCAA website (DCAA Website)