AIA billing applications post to the General Ledger for proper revenue recognition:
- Revenue Recognition:
- When an AIA application is finalized, revenue is recognized.
- GL entries are created based on the install items and their GL account mappings.
- Revenue is posted in the period of the application.
- Account Mapping:
- Install items should be mapped to appropriate GL revenue accounts.
- Tax accounts are used for taxable items.
- Retainage may be tracked in a separate GL account.
- Financial Reporting:
- AIA billing appears in revenue reports.
- Job profitability includes AIA billing amounts.
- Retainage can be tracked and reported separately.