COMPUTE BILLING VALUE OF COST INCURRED

Use this screen to compute the billing value of cost incurred for selected projects. Some industries refer to the billing value calculation as "Goal" or "Effort."

The following occur during this process for the selected projects:

  1. The application applies goal multipliers and multiplier overrides to labor and non-labor costs. The goal multipliers that this application uses are from the Goal Multiplier group box in the Basic Revenue Info screen (Projects » Project Setup » Revenue Setup). The multiplier overrides are from the Maintain Multiplier Overrides screen (Projects » Project Setup » Revenue Setup).

  2. The application retrieves labor data from the LAB_HS and PY_GOAL tables.

  3. The process applies labor multipliers to rate types of A (Actual), S (Standard), and C (Ceiling), rather than B (Billing).

  4. The process retrieves units and non-labor data from the PSR_PY_SUM, PROJ_SUM, and PY_GOAL tables.

  5. The system applies non-labor multipliers to non-labor costs.

  6. No multipliers are applied to units.

  7. Since billable value is computed only on allowable costs, any unallowable labor or unallowable non-labor is NOT included in the computation, but the overall multiplier rate stored in the header will include both allowable and unallowable costs.

  8. No burdens or fees are applied during the computation.

  9. The application calculates billable value amounts at the transaction level of the project and stores them in the report table at the employee/vendor/vendor employee level for labor, and at the account level for non-labor and units.

  10. Since billable value computations are on a YTD calculation, the system will store all prior year billable value amounts in the Maintain Prior Year Billable Value Amounts screen in Costpoint Project Setup to arrive at the ITD calculations.

Run this process for each fiscal period for this project. Even if there are no costs incurred, the YTD goal amount will not be computed correctly unless you complete all steps for Billing Value (Goal) calculation including Load Labor Rates (Projects » Cost and Revenue Processing » Revenue Processing or Projects » Billing » Prepare Billings), Compute Burden Cost (Projects » Cost and Revenue Processing » Project Cost Processing), Compute Revenue (Projects » Cost and Revenue Processing » Revenue Processing).

Run this screen as frequently as needed and at any time during the fiscal period; however, do not run this screen when other users are updating the LAB_HS, PROJ_SUM, PROJ_REV_SETUP, OVRIDE_MLT_ON_DIR, or PY_GOAL tables.

Initialize these Costpoint tables in the following order:

  1. Prior year cost and revenue (PSR_PY_SUM) for revenue, non-labor amounts, and unit amounts.

  2. Maintain labor summary (LAB_HS) for labor amounts and hours.

  3. Prior year billable value amounts (PY_GOAL) for prior year billable value amounts for labor, non-labor, and units.

  4. Basic Revenue Info (PROJ_REV_SETUP) to enter goal multipliers by project.

  5. Maintain multiplier overrides (OVRIDE_MLT_ON_DIR) to enter account overrides.

Select Project

Use this group box to limit the projects that will have billable value calculated.

Range Option

Use this drop-down list to select the range of projects to be included in the billable value computation. Valid options are:

The default for this field is All.

From

Enter, or use to select, the beginning project of the range you want to compute. If you select All or From Beginning in the Range Option field, this field will be inactive.

To

Enter, or use to select, the ending project of the range you want to compute. If you select All or To End in the Range Option field, this field will be inactive.

Select Subperiod

Use this group box to select the last subperiod to be calculated for the selected projects. The system will calculate all selected projects up to and including the selected subperiod.

Fiscal Year

Use this drop-down list to select the last fiscal year to be included in the billable value computation for the selected projects. All existing years are available for selection.

Period

Use this drop-down list to select the last fiscal period to be included in the billable value computation for the selected projects. All existing periods are available for selection.

Subperiod

Use this drop-down list to select the last subperiod to be included in the billable value computation for the selected projects. All existing subperiods are available for selection. The unnamed field to the right displays the final date of the subperiod selected.

Include Project Classification

Select items in this group box to specify which types of projects to include in the computation of billable value. You can select as many classifications as you want, and there is no default value for this group box.

Include Projects with No Costs

Select this check box to include projects that do not have any costs incurred. Select this check box if you know that you have no costs but have already recognized some revenue, or if you want to insert a header record into the goal header table for all projects in the PROJ table.

Table Information

Changes to this screen update the following tables:

PROJ_GOAL_HDR

PROJ_GOAL_DETL

Source Tables

AR_HDR_HS

LAB_HS

OVRIDE_MLT_ON_DIR

PROJ_BILL_HS

PROJ_REV_SETUP

PROJ_SUM

PSR_PY_SUM

PY_GOAL

Steps to initialize billing value:

  1. Enter amounts in the Prior Year Cost and Revenue screen (PSR_PY_SUM) for revenue and non-labor amounts.

  2. Enter amounts in the Maintain Labor Summary screen (LAB_HS) for labor amounts and hours.

  3. Enter amounts in the Prior Year Billable Value Amounts screen (PY_GOAL) for labor, non-labor, and units.

  4. Use the Basic Revenue Info screen (PROJ_REV_SETUP) to enter goal multipliers by project.

  5. Use the Maintain Multiplier Overrides screen (OVRIDE_MLT_ON_DIR) to enter account overrides.

Steps to compute billing value:

  1. Post all costs to the General Ledger.

  2. Compute burden cost.

  3. Load labor rates (for prior year also).

  4. Compute revenue.

  5. Compute billing value of cost incurred.

Calculation for the Overall Effective Multiplier in the Project Goal Header Table (PROJ_GOAL_HDR)

Actual Revenue

ITD REVENUE - ITD EXPENSE COSTS / ITD LABOR COST

 [ (PSR_PY_SUM. TOT_REV_AMT + PROJ_SUM. TOT_REV_ACT_AMT) ]  less  [ ( PSR_PY_SUM. DIR_AMT where ACCT_FUNC_NO = 3 Non-Labor, 12  Unallow Non-Labor, or 13 Units)  +  ( PROJ_SUM. SUB_DIR_AMT where ACCT_FUNC_NO = 3  Non-Labor , 12 Unallow Non-Labor, or 13 Units) ]  divided by  [ ( PSR_PY_SUM. DIR_AMT where ACCT_FUNC_NO = 2  Labor  or 11 Unallow Labor ) + ( PROJ_SUM. SUB_DIR_AMT where ACCT_FUNC_NO = 2 Labor or 11 Unallow Labor ) ]

Target Revenue

ITD REVENUE - ITD EXPENSE COSTS / ITD LABOR COST

 [ (PSR_PY_SUM. TOT_REV_AMT + PROJ_SUM. TOT_REV_TGT_AMT) ]  less [ ( PSR_PY_SUM. DIR_AMT where ACCT_FUNC_NO = 3 Non-Labor, 12  Unallow Non-Labor, or 13 Units)  +  ( PROJ_SUM. SUB_DIR_AMT where ACCT_FUNC_NO = 3  Non-Labor ,12 Unallow Non-Labor, or 13 Units) ] divided by  [ ( PSR_PY_SUM. DIR_AMT where ACCT_FUNC_NO = 2  Labor  or 11 Unallow Labor ) + ( PROJ_SUM. SUB_DIR_AMT where ACCT_FUNC_NO = 2 Labor or 11 Unallow Labor ) ]