Revenue formulas available in Costpoint can be divided into two categories - transaction-based formulas and fixed formulas. Transaction-based formulas derive their revenue from transactions that are incurred and posted. Fixed revenue formulas are calculated using a fixed amount that usually comes from an external source such as a contract value, total billings, or other specified amount.
Transaction-based formulas use the direct costs and hours incurred to calculate revenue. The incurred costs and hours are stored in the PROJ_SUM table. Calculated revenue amounts are stored on the same row in the PROJ_SUM table as the direct costs and hours incurred. For example, the "Cost plus Fee on Cost" formula stores the cost incurred data in the DIR_ALLOW_AMT column and stores the revenue related to that direct amount in the TOT_REV_ACT_AMT column on the same row in the table. The table is summarized in rows by project/account/org/fiscal year/period/subperiod. The total of the TOT_REV_ACT_AMT column in all rows in the table is summarized to obtain the project's total revenue. Unless there is a ceiling or a revenue adjustment, all the project's revenue are stored on the same row as the direct costs. If a ceiling or revenue adjustment exists, an additional row will be inserted into the table. This additional row will have the account number of the revenue account that is in this project's project account group and an ACCT_FUNC_NO = 1 in the PROJ_SUM table. Often, this additional row can cause problems when you change revenue formulas.
The transaction-based formulas include:
Cost Plus Fee on Cost
Cost Plus Fee on Cost Current Month Fee
Fee on Hours Plus Cost Incurred
Loaded Labor Rate
Loaded Labor Rate Plus Cost Incurred on Non-Labor (T&M)
Loaded Labor Plus Non-Labor Plus Burden on Non-Labor
Loaded Labor Plus Non-Labor W/Burden W/Fee
Loaded Labor Rate W/Fee Plus Non-Labor W/Burden W/Fee
Loaded Labor Rate W/Burden W/Fee Plus Non-Labor W/Burden W/Fee
Labor Cost times Multiplier Plus Non-Labor times Multiplier (Cost)
Labor Cost times Multiplier Plus Non-Labor times Multiplier (Hours)
Rate Schedule times Multiplier Plus Non-Labor times Multiplier
When you use fixed revenue formulas, the revenue amount is stored in a combination of rows in the table. A revenue amount equal to the direct cost amount is stored on the same row as the direct costs. The difference between the total cost and the revenue is stored on the line where the account number is the revenue account in the project's project account group. This is sometimes referred to as the "revenue plug." It is simply the amount that is necessary to bring the revenue stored on each line equal to the revenue calculated by the revenue formula. The ACCT_FUNC_NO of this row will always be equal to "1." The rows in the PROJ_SUM table remain the same until they are recalculated with new information. If you change the revenue formula to a transaction-based formula, only the cost/transaction lines will be evaluated and the revenue line will be ignored. This will cause the total revenue of the new formula to be off by the "revenue plug."
The fixed formulas include:
Contract Value Less Backlog
Contract Value Times Percent Complete
Contract Value Times % Complete Versus Rate Schedule
Equal to Project Ledger Sales
Equal to Billing Before Retainage
Equal to Billing After Retainage
Equal to Deliveries
Estimate To Complete
Estimate At Completion
Fixed Amount Month To Date
Fixed Amount Year To Date
Fixed Amount Contract To Date
Unit Revenue Only