Basic Revenue Formula Types
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
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 is inserted into the table. This additional row has 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 modify 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
Fixed-Revenue Formulas
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 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 is always 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 are evaluated and the revenue line is ignored. This causes 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
- Cost Incurred using Estimate At Completion (Contract Value)
- Cost Incurred using Estimate To Complete (Contract Value)
- Cost Incurred using Estimate At Completion (Funded Value)
- Cost Incurred using Estimate To Complete (Funded Value)
- Equal to Project Ledger Sales
- Equal to Billing Before Retainage
- Equal to Billing After Retainage
- Equal to Deliveries
- Fixed Amount Month To Date
- Fixed Amount Year To Date
- Fixed Amount Contract To Date
- Funded Value Times Percent Complete
- Unit Revenue Only