Cost Incurred Using Estimate to Complete (Contract Value)

Costpoint adds the Est To Complete (ETC) amount from the Manage Revenue Information screen to the ITD allowable cost and then subtracts the ITD Revenue Loss Amount (also found on the Manage Revenue Information screen), if any.

It divides the resulting value into the ITD allowable cost to arrive at the ITD cost percent complete.

It then multiplies the ITD cost percent complete by the contract value from the screen to arrive at the ITD Revenue before loss. It subtracts the ITD Revenue Loss Amount, if any, from the ITD Revenue before loss, to arrive at the ITD revenue. Revenue recognized for the fiscal year, up to and including the current subperiod being calculated in the project revenue ledger, is summarized. Revenue for all fiscal years before the fiscal year being computed is summarized using the revenue amount on the Manage Prior Year Cost and Revenue screen. The program then subtracts the sum of these two values from the ITD revenue amount to arrive at the amount of ITD revenue not yet recognized.

Example: 10,000 Contract Value

5,500 ETC Amount

5,500	ETC Amount
+ 5,500	ITD Allowable Costs
- 1,000	ITD Loss
= 10,000

2,000	Prior Year Allowable Costs
+ 3,500	YTD Allowable Costs
= 5,500	ITD Allowable Costs

5,500/10,000 = 55% ITD Cost Percent Complete

10,000	Contract Value
x 55%	ITD Cost Percent Complete
= 5,500	ITD Revenue Before Loss

5,500	ITD Revenue Before Loss
- 1,000	ITD Loss
= 4,500	ITD Revenue