When it comes to managing revenue within Aspire Software, there are several factors to understand. Do you know how revenue is earned in the system and how your team can make an impact? Do you know the difference between Over/Under and revenue variance? If you aren’t clear on these items, keep reading!
How is revenue earned in Aspire Software?
There are 4 ways revenue can be earned in Aspire:
- Received Purchase Receipt for items added to a work ticket.
- Allocations from Inventory
- Labor hours on the time entry screen are saved & status is pending.
- Completing of work tickets.
Aspire will show job costs and earned revenue in real time if the system is used accurately.
What is Over Under?
The Over/Under amount represents the difference between the amount of revenue you have invoiced and the amount of revenue you have earned. Invoiced Revenue – Earned Revenue = Over/UnderAn Opportunity/Job has either been over-billed based on revenue earned or under-billed based on revenue earned.
What is Revenue Variance?
Revenue Variance is a function to show the over/under on a contract as zero at the completion of each contract year or upon completion or cancellation of the contract.
What can cause revenue to be earned inaccurately in Aspire?
- Estimates are created with inaccurate estimated costs. Example: If a $20,000 estimate is created with $1,000 estimated cost (the estimated cost should have been $10,000), the system will earn revenue faster than it should.
- Purchase Receipts are created when the vendor bill is actually received and not when the items are ordered. Purchase receipts should be created at the time the items are ordered and received when they arrive to the job site or yard.
- Inventory is not allocated to work tickets. Inventory adjustments are made to inventory instead.
- Labor hours are entered on incorrect work tickets. This can happen with larger jobs that have multiple work tickets. The hours and purchase receipts are added to the incorrect work tickets.
- Incorrect Work Tickets are scheduled and completed. This can happen with contracts that have multiple occurrences.
We hope this high-level overview was beneficial. If you are curious on how we can help your company implement best practices for managing your Earned Revenue, contact us today! You can schedule a consultation here.
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