The changes to KEY2ACT Signature in the 2016 R3 Release includes features to help you comply with the ASC 606 requirement, new and updated windows, and changes to Job Cost.
Ability to Mark Tasks as Required
In Service Management, you’ll now have the ability to mark task responses as required.
This setting is available for all response types. While this box will appear in Service Management, it won’t be applicable in MobileTech until the next version is released in early 2018. Take the time to review your tasks and determine which should be required now and update to MobileTech when it’s available.
Compliance with ASC 606
The ASC 606 requirement goes into effect for all non-publicly traded companies December 15, 2018. Publicly traded companies need to comply by December 2017. The Job Cost module will now allow you to remain in compliance with this new regulation.
There is now an option to select the Revenue Performance Obligations as your Recognition Method in the posting options window. However, this is not the default option when you upgrade your system. Your Revenue Recognition Method will be set to the selection it is on today. You will need to manually change your settings to transition to this new method.
Once you have turned this on, all jobs you create after that time will be RPO jobs and will require you to enter in additional information when you make those new jobs. Any job that was created before the update will remain the same.
Updates to the Job Maintenance Window
When you change the settings to Revenue Performance Obligations, you then will see the option to exclude certain jobs from the RPO. This is useful if you don’t want the job to be included when you generate revenue.
For RPO jobs, you have to associate the cost codes to a revenue code. That code then becomes the way that job is recognized.
The revenue code is the obligation to a customer to finish the job. For example, if you have a job where you’re purchasing and installing equipment for a customer you may have two separate obligations to that customer. You then assign revenue codes for each job.
There are two revenue types: point in time and over time. Point in time means you’ll recognize revue when the obligation is completed. Over time is like Percentage of Completion – where the revenue process is going to look at what percent the project is complete.
Revenue codes need to be assigned to cost codes, which can be done in this window. You’ll see all unassigned cost codes and those that are already assigned. You can select cost codes individually or as a group to assign them.
When you go through the revenue reporting process, you can see what percentage is complete for each project or obligation and you can see which you should recognize revenue for.
The Mass Revision Entry feature makes it quick and easy to process multiple changes for a variety of different jobs.
Finally, there is a new RPO Report included in the release and will be available in your report list in SSRS.
These new features and new and updated windows are a benefit to any KEY2ACT users. If you need help with the update or have other questions on your KEY2ACT system, contact the professionals at Stoneridge Software, a KEY2ACT Executive partner.