> ## Documentation Index > Fetch the complete documentation index at: https://usepike.com/docs/llms.txt > Use this file to discover all available pages before exploring further. # Revenue recognition > Track earned revenue separately from invoiced revenue, month by month, per project. Revenue recognition separates two numbers that rarely match: what a project has **earned** (recognized) and what it has **billed** (invoiced). The gap between them is WIP or deferred revenue - both are first-class metrics in Pike. Available to **admins** and **finance** users. ## Recognized vs invoiced | Number | What it measures | | - | - | | **Recognized** | Revenue earned as work is delivered (accrual basis) | | **Invoiced** | Revenue billed to the client (cash-basis proxy) | | **WIP** | `max(0, recognized − invoiced)` - earned, not yet billed (an asset) | | **Deferred** | `max(0, invoiced − recognized)` - billed ahead of delivery (a liability) | WIP and Deferred are two sides of the same gap. A project shows one or the other in any period, never both. Invoiced counts issued invoices with status **Sent**, **Paid**, or **Overdue**. Drafts are excluded. ## Recognition methods Each project earns recognized revenue by one method, set per project under **Finance → Settings**. The method defaults from the project's billing type when the project is created. | Method | Formula | Default for | | - | - | - | | **Time %** | `(logged minutes ÷ time budget) × revenue budget` | Fixed price | | **Worked** | `logged hours × billable rate` | Time & materials | | **Worked - adjustment** | Worked revenue, or the amount entered for a month | *(opt-in)* | | **Manual** | Amount a finance user enters per month | *(no auto-compute)* | **Time %** is progress-based. It requires both a time budget and a revenue budget on the project. As logged time grows relative to the time budget, a proportional share of the revenue budget is recognized. It does not depend on member rates. **Worked** recognizes the sell value of hours as they are logged. It uses no budget - recognition accumulates continuously with hours. **Worked - adjustment** recognizes worked revenue like **Worked**, but lets a finance user enter a different amount for any month. Leave a month blank to recognize the worked amount. The difference (`worked − recognized`) is shown as the **Adjustment** row in the monthly table. **Manual** produces no computed value. Every month's recognized amount must be typed manually. Use it for milestone billings, retainers where the period value is negotiated, or any project where the formula does not match contractual reality. ## Monthly grid The recognition view shows one row per project and one column per month. Each cell displays: * The **computed value** from the project's method (Time % or Worked) * The **manual override** for that month, when one has been entered * The **recognized** amount that month (override if present, otherwise computed) * The **invoiced** amount that month * The **diff** (recognized − invoiced): green when earned ahead of billing, red when billed ahead of delivery Totals across all months appear in the rightmost column. ## Manual overrides A finance user can type an amount into any month's cell for any project. That amount becomes the recognized value for that month and takes precedence over whatever the method would compute. The computed figure stays visible next to it for comparison. ``` recognized (month) = manual amount if entered = computed value otherwise ``` **Empty cell (—)** means no override - the method's computed value applies. **Entering 0** is a real override that recognizes zero revenue for that month. It is not the same as leaving the cell empty. Overrides are editable at any time. There is no period lock. ## How recognized feeds the rest of Finance Recognized revenue is the single revenue figure used everywhere in Finance. It is not a separate view. * **Project profit** = recognized − cost. Switching recognition method moves the profit number. * **Budget usage** = recognized ÷ revenue budget. * **WIP / Deferred** on the project Finance card = the gap between recognized to date and invoiced to date. * **Workspace profitability** rolls up recognized across all projects in the selected range. Because there is one definition of recognized revenue, the recognition page and the project profit cards always agree. ## Recognized to date ``` recognized to date = sum of recognized (method-resolved) across all months ``` Each month contributes its resolved amount (override else computed) as a delta. The lifetime total is the running sum. Recognized is recomputed on read from current data - changing a time budget, revenue budget, or recognition method retroactively restates every past month for that project. ## Where to find it | Location | Scope | | - | - | | **Finance → Revenue recognition** | All projects, any date range, one grid | | **Finance → Overview** | Workspace roll-up of the six cards | | **Project → Finance → Overview** | Single project, monthly breakdown | Workspace recognized, invoiced, WIP, deferred, cost, and profit. The same six cards on one project, plus the monthly table. How cost is built and how profit is recognized minus cost. This documentation is built and hosted on [Mintlify](https://mintlify.com), a developer documentation platform.