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Financial Management for Encompix

Progress Billing Module

Another key financial ingredient for To-Order manufacturers is the ability to invoice their customers based on contractual payment agreements or milestone completions. These payments help to offset the expenses associated with a long-term project, rather than waiting until the shipment is completed to generate an invoice. 

Encompix supports flexible, user-defined progress billing and typically retains the accounting transaction in an unearned revenue account, waiting for either the revenue recognition transaction or for the shipment to occur.

Revenue Recognition Module

Companies who manufacture products with very long lead times may need the ability to recognize revenue based on the percentage of actual expenses incurred, rather than against shipment of the product(s) produced. The Encompix Revenue Recognition Reporting provides visibility by first calculating the percentage complete by comparing actual costs to budgeted costs. User defined thresholds are used to determine whether or not revenue can be recognized. If the percentage complete falls within the defined threshold, the allowable dollar value is automatically posted to the appropriate revenue account(s).

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