Required GL Accounts: Profit Recognized

The Profit Recognized account is used in contract processing within Eralis Job, specifically in the estimated cost to complete process. The account reflects the value of the adjustments made to recognized revenue on expenses for the period. As part of the estimated cost to complete process, the system creates a reversing journal entry to move income or costs between the income statement and the profit recognized account. These transactions are a point-in-time reflection of required changes to the recognized revenue and expenses based on an assessment of what is required to complete the job. As such, the processed journals are auto-reversing journal entries.