Revenue Information

Enter, or use Lookup to select, the project for which you want to enter revenue information.

Use this drop-down box to select the revenue formula. You must select valid revenue formulas in the Select Revenue Formula subtask of the Project Settings screen (Administration\Configure\Projects) before you can select them here. You can use the Select Revenue Formula subtask to restrict which formulas are available in this screen.  Each formula listed will produce a separate calculation and all formulas are independent from the type of project specified in the Basic Info screen in the Project User Flow (Projects\Maintain\Project).

For example, the project type could be fixed price, and since all revenue formulas are available for selection, the revenue formula could be "Loaded Labor Hours."  

The following options are included in this drop-down box:

• Contract Value Less Backlog - This formula calculates revenue by subtracting the backlog amount entered in the screen from the total contract value.  Once you have selected this revenue formula, the Backlog Amount field will display. You must estimate the total backlog for this project and enter it in this field. The system will then subtract this amount from the total contract value in the Modifications screen. Backlog in this context is generally defined as the amount of the contract value that has not yet been earned.

• Contract Value Times % Complete Vs. Rate Schedule - This formula compares the revenue calculated by the "Contract Value Times Percent Complete" formula and the revenue calculated by the "Rate Schedule" and then uses the lower of the two amounts. Once you have selected this formula, you must enter the percent complete and the labor and non-labor multipliers in the appropriate fields. Refer to the documentation on the "Contract Value Times Percent Complete" and the "Rate Schedule..." formulas to obtain further details concerning these calculations.   

• Contract Value Times Percent Complete - This formula multiplies the percent complete amount entered in this screen by the total contract value entered in the Modifications screen. This value is then compared to the revenue previously recognized. The system computes the previously recognized revenue by adding the revenue in the Prior Year Cost and Revenue screen and the revenue that has been recorded on a year-to-date basis in the general ledger. The difference between these two amounts is posted in the current period.

• Cost Incurred Using Estimate To Complete - Use this formula if you are recording revenue using a percent completion method.  In order to use this formula, you must be able to estimate your projects' cost to complete and any inception-to-date losses.  The system first calculates the cost percent complete. The system calculates the inception-to-date allowable costs by adding the prior year costs from the Prior Year Cost and Revenue screen and the year-to-date costs in the general ledger. This amount is divided by the estimated costs to complete entered in the screen less any inception-to-date losses. The system multiplies the resulting percentage by the contract value less inception-to-date losses. The result of this calculation is the inception-to-date revenue for the project.  The system then compares this number to the sum of the revenue in the Prior Year Cost and Revenue screen and the amount that has been posted to the general ledger. The difference between these two numbers is the current period revenue.

• Cost Incurred using Estimate At Completion - Use this formula if you are recording revenue using a percent completion method.  in order to use this formula, You must be able to estimate your projects' costs at completion and any inception-to-date losses, in order to use this formula. The system first calculates the cost percent complete. The program calculates the inception-to-date allowable costs by adding all prior year allowable costs in the Prior Year Cost and Revenue screen and adding this number to the year-to-date allowable costs in the general ledger. The result of this calculation is divided by the estimate at completion amount that has been entered in the screen less any inception-to-date loss. The system multiplies this percentage by the contract value less any inception-to-date loss. It then compares the resulting amount to the inception-to-date revenue already recognized. It calculates the inception-to-date revenue already recognized by adding the revenue in the Prior Year Cost and Revenue screen to the revenue recorded in the general ledger for the current fiscal year. The difference between the revenue already recognized and the revenue calculated by the system will be the current period revenue.   

• Cost Plus Fee On Cost - This formula uses year-to-date direct and indirect costs plus a fee on those costs to compute revenue. The direct costs are derived from information posted to the general ledger. The system calculates the indirect costs by multiplying actual or target rates in the Pool Rates subtask of the Cost Pools screen by the year-to-date direct costs. It calculates the fee by multiplying total year-to-date costs by the fee percent. The direct, indirect, and fee amounts are combined to determine year-to-date revenue. Any adjustments to the fee are calculated on a year-to-date basis.

• Cost Plus Fee on Cost Current Month Fee - This formula uses year-to-date direct and indirect costs but applies fee based only on current period costs. The direct costs are derived from information posted to the general ledger. The system calculates the indirect costs by multiplying actual or target rates in the Pool Rates subtask of the Cost Pools screen by the year-to-date direct costs. It calculates the fee by multiplying total costs on a period basis by the fee percent. The direct, indirect, and fee amounts will be combined to determine year to date revenue. Any adjustments to fee are only applied to the current period.  

• Do Not Compute - Use this formula if you do not want revenue computed on your project.  Using this formula after your project has been completed will prevent changes in the revenue as a result of indirect or labor rates changes.

• Equal To Billings After Retainage - Use this formula to make inception-to-date revenue equal to billings after retainage. The Amount Billed field in the Project Billing Summary screen is summarized up to and including the ending subperiod being calculated to determine the inception-to-date billed after retainage. The system compares this amount to the inception-to-date revenue. The system calculates inception-to-date revenue by adding the total revenue from the Prior Year Cost and Revenue screen and the year-to-date revenue in the general ledger. The difference between these two amounts will be posted to the general ledger in the current period.  

• Equal To Billings Before Retainage - Use this formula to make inception-to-date revenue equal to billing before retainage. The Amount Billed and the Amount Retained fields in the Project Billing Summary screen are combined and summarized up to and including the ending subperiod being calculated to determine the inception-to-date billed amount. The system compares this amount to the inception-to-date revenue amount. The system calculates inception-to-date revenue by adding the total revenue in the Prior Year Cost and Revenue screen to the year to date revenue in the general ledger. The difference between these two amounts is posted to the general ledger in the current period.

• Equal To Deliveries - Use this formula to make inception-to-date revenue equal to deliveries. The system calculates deliveries by summarizing the Delivery Amount field in the Project Billing Summary screen up to and including the subperiod entered in the screen. It compares this amount to the inception-to-date revenue. The system calculates inception-to-date revenue by adding the total revenue in the Prior Year Cost and Revenue screen to the year-to-date revenue in the general ledger. The difference between these two amounts is posted to the general ledger in the current period.

• Equal To Project Ledger Sales - Use this revenue formula if you want the revenue on your project reports to be equal to the amount in the general ledger. When you use this formula, the system usually posts revenue to the general ledger with a monthly journal entry. When revenue is calculated, the project tables are updated with the year-to-date revenue from the general ledger.

When you use the Equal to Project Ledger Sales formula, the Compute Revenue process looks at GL_POST_SUM table for the revenue account. When you use this formula, you either enter an Adjusting Journal Entry (AJE) to credit the revenue account and debit the unbilled account, or you post a sales order that credits the revenue account automatically. When you execute the Compute Revenue process, it sets the revenue amount equal to the costs of the project on the labor and non-labor lines (actual direct cost plus burden) and then plugs the difference into the ACCT_FUNC_NO = 1 line.

• Fee on Hours Plus Cost Incurred - This formula calculates revenue by adding direct and indirect costs and a fee based on hours incurred. The direct costs are derived from information posted to the general ledger. The system calculates the indirect costs by multiplying actual or target rates in the Pool Rates subtask of the Cost Pools screen (Projects\Maintain\Allocations) by the year-to-date direct costs. The program calculates the fee by multiplying fee per hour that was entered in this screen by the number of hours incurred. This is a year-to-date formula.

• Fixed Amount Contract To Date - Use this formula to determine your contract-to-date revenue manually. The system uses the amount entered in the screen as contract-to-date revenue and compares it to inception-to-date revenue already in the system. The system calculates inception-to-date revenue by adding the total revenue in the Prior Year Cost and Revenue screen and the year-to-date revenue in the general ledger. The difference between these two amounts is posted as revenue in the current period.

• Fixed Amount Month To Date - Use this formula if you would like a standard amount per month to be recognized as revenue. This formula compares the fixed monthly amount that is entered in the screen to the revenue in the general ledger for the period being computed. The difference between these two numbers is recognized as revenue.

• Fixed Amount Year To Date - Use this formula to record a standard amount of revenue each year. This formula compares the year-to-date revenue amount that is entered in the screen to the year-to-date revenue that has been recorded in the general ledger. The difference between these two amounts is recognized as revenue in the current period.

• Labor Cost Times Multiplier Plus Non-Labor Times Multiplier (Cost) - Use this revenue formula to calculate revenue by applying a multiplier to labor and non-labor costs. You enter the multipliers in the Revenue Information (Projects\Maintain\Revenue) or Multiplier Overrides screens. The system multiplies the multipliers entered in these screens by the labor and non-labor costs that are posted to the general ledger. You should enter a (PLC) project labor category for all labor costs. This is a transaction-based revenue formula.

• Labor Cost times Multiplier Plus Non-labor times Multiplier (Hours) - Use this formula to have multiplier-based revenue using actual labor rates. The system computes the labor amount by dividing labor cost by actual hours incurred. You should enter a PLC for all labor amounts. Labor amounts that do not have associated hours are ignored during this calculation. A rate type of "A" is used with this formula. It is different from the "Labor Cost Times Multiplier Plus Non-Labor Times Multiplier" because it computes revenue using actual rates. This is a transaction-based formula.

• Loaded Labor Plus Non-Labor W/Burden W/Fee - Use this formula to compute revenue using labor rates times hours incurred plus non-labor costs with burden and a fixed fee. The system multiplies the labor hours in the Labor Summary screen by the assigned labor rate to obtain the loaded labor portion. The non-labor amounts that have been posted to the general ledger are combined with the burden at provisional rates stored in the Pool Rates subtask of the Cost Pools screen (Projects\Maintain\Allocations). The system applies the fixed fee entered in this screen to the non-labor costs. This is a transaction-based formula.

• Loaded Labor Plus Non-labor Plus Burden on Non-labor - Use this formula to compute revenue using loaded labor rates plus non-labor amounts and related burden. The system computes the loaded labor amount by multiplying labor hours in the Labor Summary screen by the assigned labor rate. The non-labor amounts are taken from amounts posted to the general ledger. The burden is computed on non-labor using the provisional rates in the Pool Rates subtask of the Cost Pools screen (Projects\Maintain\Allocations). This is a transaction-based formula.

• Loaded Labor Rate - Use this revenue formula to compute revenue using loaded labor rates only. All non-labor costs are ignored when you use this formula. The system will compute the labor portion of this formula by multiplying the assigned labor rate by the hours incurred by PLC in the Labor Summary screen. This is a transaction-based formula.

• Loaded Labor Rate Plus Cost Incurred On Non-labor (T&M) - Use this formula to compute revenue using loaded labor plus non-labor costs. This formula does not compute fee or burden. The system multiplies labor hours incurred in the Labor Summary screen by the assigned labor rate to obtain the loaded labor amount. The non-labor amounts that have been posted to the general ledger are computed as pass-through amounts. This is a transaction-based formula.

• Loaded Labor Rate W/Burden W/Fee Plus Non-Labor W/Burden W/Fee - Use this formula to apply burden and fee to loaded labor rates and non-labor with burden and fee rates. The system multiplies the hours incurred in the Labor Summary screen by the assigned labor rate to obtain the loaded labor amount. The provisional rate in the Pool Rates subtask of the Cost Pools screen (Projects\Maintain\Allocations) is used to calculate the burden on both the labor and non-labor. The non-labor amounts are taken from amounts that were posted to the general ledger. The system applies the fee amount entered in this screen to both the labor and non-labor amounts. This is a transaction-based revenue formula.

• Loaded Labor Rate W/Fee Plus Non-Labor W/Burden W/Fee - Use this formula to compute revenue using loaded labor rates with fee applied and non-labor with burden and fee rates. The system multiplies the hours incurred in the Labor Summary screen by the assigned labor rate to obtain the loaded labor amount. The value that you enter in the Labor Fee Pct. field is applied to the labor amount. The non-labor amounts that have been posted to the general ledger plus fee computed using the Non-Labor Fee percent are used to compute the non-labor portion of the revenue formula. The system applies the burden to the non-labor using the provisional rates in the Pool Rates subtask of the Cost Pools screen (Projects\Maintain\Allocations). This is a transaction-based formula.

• Rate Schedule times Multiplier Plus Non-labor times Multiplier - Use this formula to calculate revenue using a variety of different labor rates. You must always use a PLC for labor transactions when using this formula. You can set up the rate schedule to use any of the rate types. This allows you to calculate revenue according to who or what group of employees is charging. The system computes the non-labor using the multiplier entered in this screen. This is a transaction-based formula.

• Unit Revenue Only - Use this formula to calculate revenue by using units. The system multiplies units posted to the Unit Usage History table by the unit price in the Set Up Product Price Catalogs screen or the Project Unit Pricing screen. This is a transaction-based formula.  

If you change the Revenue Formula for this project, use this field to specify what fiscal year the program should use when it sets the revenue amounts back to zero in the PROJ_SUM and PROJ_BURD_SUM tables.

Warning: Once you have established a revenue formula for a project, changing the formula in this screen may require additional steps to ensure proper calculations. Contact Costpoint General Support before changing any revenue formulas.

Revenue Calculation Value is displayed as a series of up to three grayed-out fields. The descriptions of these fields will change based on the option selected in the Revenue Formula field. Some formulas will use only one field; other formulas will use two or three fields.  If a formula does not use a revenue calculation value, these fields will remain grayed out.

For example: If you choose "Cost Plus Fee On Cost" as the Revenue Formula, the field will be titled Labor Fee Percent and Non-labor Fee Percent. You then enter the fee percentages that apply to this project.

Select this checkbox to calculate revenue on units in addition to the revenue that is calculated based on the revenue formula. You must enter one of the following transaction-based revenue formulas in the Revenue Formula drop-down box for unit revenue calculations to be allowed:

Contract Value Times % Complete vs. Rate Schedule

Cost Plus Fee On Cost

Cost Plus Fee On Cost Current Month Fee

Fee on Hours Plus Cost Incurred

Labor Cost Times Multiplier Plus Non-Labor Times Multiplier (Cost)

Labor Cost Times Multiplier Plus Non-Labor Times Multiplier (Hours)

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/Burden W/Fee plus Non-Labor W/Burden W/Fee

Loaded Labor Rate W/Fee Plus Non-Labor W/Burden W/Fee

Rate Schedule times Multiplier Plus Non-labor times Multiplier

If you try to use revenue formulas other than the ones listed above with unit-based revenue, the system displays this message: "This fixed amount formula is not allowed to have unit revenue."

To calculate unit-based revenue only and not include any non-unit based revenue, use the "Unit Revenue Only" revenue formula. Do not select the Calculate Revenue on Units checkbox if you are using this formula.

Enter the inception-to-date revenue loss amount, if applicable. This field displays only if you select "Cost Incurred Using Estimate To Complete" or "Cost Incurred Using Estimate at Completion" in the Revenue Formula drop-down box.

Use this drop-down box to select a discount method for this project. If you choose to use a discount method, the system applies the following rules when computing revenue or calculating bills:

1. Burdens apply to the amount BEFORE discount.

2. Discounts apply to the direct cost amounts (this includes burdens for the "w/Burden" discount methods).

3. Fee applies to total AFTER discount.

4. Sales tax applies to the amount AFTER discount.

5. Retainage applies AFTER discount.  

For ceilings:

1. Account Ceilings are enforced before discounts are applied.

2. Project Total Ceilings are enforced after discounts are applied.

Note: If you change the revenue formula for a project, the system clears out the discount amount fields (DISC_ACT_AMT and DISC_TGT_AMT) in the PROJ_SUM and PROJ_BURD_SUM tables.

 

Warning: If you change the Discount Method for a project in this screen, you must also change the discount method for that project in the Other Info subtask of the Project Bill Info screen in the Project User Flow (Projects\Maintain\Project).

The selections are:

• None – Select this option if you do not want to apply discounts on this project. This is the default for new records.

• PLC Discounts – Select this option to apply discounts on labor rates by labor category. The discount percentage applies against the billing rates stored in the labor category rate tables. All of the billing rates still reside in the PLC rate tables, but a column exists to store the discount percentage. The Load Labor Rates process (Projects\Process\Billing) calculates the discounted billing rate and loads the original and discounted billing rates into the labor history and open billing detail tables. This is available only for standard bills.

Note: If you change the Discount Method from "PLC Discounts" to another method, the system resets the discount percentages to zero in the Project PLC Rates screen (Projects\Maintain\Labor Categories) and the Empl/Vend PLC Rates screens in the Project User Flow (Projects\Maintain\Project).

• Account Discounts – Select this option to apply a discount on labor and/or ODCs at the subtotal level. You can use accounts discounts only for standard bills. If you select this option, the system retrieves the discount percentage from the Account Discounts screen (Projects\Maintain\Billing) and applies it to specific accounts for each project. This is available only for standard bills.

• Aggregate Volume by Customer – Select this option to apply a discount on fees or labor that is tied to the aggregate volume of business with a particular customer.  For example, if the aggregate volume of orders is equal to $500,000.00 but less than $1,000,000.00, you could apply a discount amount of 1%. If the aggregate volume of orders goes up to $1,000,000.00 but is less than $2,000,000.00, you could then apply a discount amount of 2%. For a project to be included in the aggregate volume funded value computations for a customer, the Include in Aggregate Volume checkbox must be selected in the Govt Contract screen in the Project User Flow.

If you select this option, the Calculate Bills (Projects\Process\Billing) and the Compute Revenue (Projects\Process\Revenue) screens compute discounts based on aggregate volume using the discount percentage from the Customer Volume Discounts screen (Projects\Maintain\Billing) and apply the discount to the accounts specified. This is available only for standard bills.

• Aggregate Volume by Project - Select this option to apply a discount on fees or labor that is tied to the aggregate volume of business for a particular project. This method is similar to the "Aggregate Volume by Customer" discount method but is considered a project override.  For example, if the aggregate volume of orders is equal to $500,000.00 but less than $1,000,000.00, you could apply a discount amount of 1%. If the aggregate volume of orders goes up to $ 1,000,000.00 but is less than $2,000,000.00, you could then apply a discount amount of 2%. For a project to be included in the aggregate volume funded value computation, the Include in Aggregate Volume checkbox must be selected in the Govt Contract screen in the Project User Flow (Projects\Maintain\Project).

If you select this option, the Calculate Bills (Projects\Process\Billing) and the Compute Revenue (Projects\Process\Revenue) screens compute discounts using the discount percentage from the Project Volume Discounts screen (Projects\Maintain\Billing) and apply the discount to the accounts specified. This is available only for standard bills.

• Account Discounts w/Burden – Select this option to apply a discount on labor and/or ODCs at the subtotal level including the burden amounts associated with the direct costs. You can use accounts discounts only for standard bills. If you select this option, the system retrieves the discount percentage from the Account Discounts screen (Projects\Maintain\Billing) and applies it to specific accounts for each project.

The discount applies to the direct cost amount with burden included. This is available only for standard bills.

• Aggregate Volume by Customer w/Burden – Select this option to apply a discount on fees or labor that is tied to the aggregate volume of business with a particular customer.  For example, if the aggregate volume of orders is equal to $500,000.00 but less than $1,000,000.00, you could apply a discount amount of 1%. If the aggregate volume of orders goes up to $ 1,000,000.00 but is less than $ 2,000,000.00, you could then apply a discount amount of 2%. For a project to be included in the aggregate volume funded value computation for a customer, the Include in Aggregate Volume checkbox must be selected in the Govt Contract screen in the Project User Flow (Projects\Maintain\Project).

If you select this option, the Calculate Bills (Projects\Process\Billing) and the Compute Revenue (Projects\Process\Revenue) screens compute discounts based on aggregate volume using the discount percentage from the Customer Volume Discounts screen (Projects\Maintain\Billing).

 

The discount applies to the direct cost amount with burden included. This is available only for standard bills.

• Aggregate Volume by Project w/Burden - Select this option to apply a discount on fees or labor that is tied to the aggregate volume of business for a particular project.  For example, if the aggregate volume of orders is equal to $500,000.00 but less than $1,000,000.00, you could apply a discount amount of 1%. If the aggregate volume of orders goes up to $ 1,000,000.00 but is less than $2,000,000.00, you could then apply a discount amount of 2%. For a project to be included in the aggregate volume funded value computation, the Include in Aggregate Volume checkbox must be selected in the Govt Contract screen in the Project User Flow (Projects\Maintain\Project).

If you select this option, the Calculate Bills (Projects\Process\Billing) and the Compute Revenue (Projects\Process\Revenue) screens compute discounts using the discount percentage from the Project Volume Discounts screen (Projects\Maintain\Billing).

 

The discount applies to the direct cost amount with burden included. This is available only for standard bills.

Select this checkbox to allow revenue in excess of the value of the project to be computed and posted.

Note:  You should have already specified in the Project Settings screen (Administration\Configure\Projects) whether you want excess revenue recognition based on the contract value or the funded value.

Enter the amount by which the signed value ceiling can be exceeded. This field is available only if you selected the Allow Revenue to Exceed Value checkbox.

Select this radio button to post all revenue to this project's owning organization.

When selecting this method, you should be aware that the costs related to the project will be posted to the performing org.  If you use this method, you may want to consider selecting the Default to Owning Org checkbox in the Basic Info screen in the Project User Flow (Projects\Maintain\Project). This will default the owning organization in all transaction screens. You can also use the Create Cost Transfer Journal Entry to reclassify the costs to the owning organization of the project.  

When a parent project exists, the revenue will roll up to the higher level.  

For example;

Project 3000 - revenue formula level

3000.01 - costs are charged here

3000.02 - costs are charged here

If you are posting revenue by owning organization or performing organization, all revenue will post to the 3000 project.

Project 4000

4000.01 - revenue level and where costs are charged

4000.02 - revenue level and where costs are charged

If you are posting revenue by owning organization or performing organization, all revenue will post to 4000.01 and 4000.02 (at the level that the revenue formula exists).

Select this radio button to post all revenue to this project's performing organization. When a parent project exists, the revenue will roll up to the higher level.

Enter the value to be used as the goal multiplier for labor costs. The default for this field is 1.000; if you accept this default, the billing value amount will be equal to costs with no additional markup.

Enter the value to be used as the goal multiplier for non-labor costs. Non-Labor multipliers will be applied to non-labor amounts spent (excluding applied overhead amounts). The default for this field is 1.000; if you accept this default, the billing value amount will be equal to costs with no additional markup.