Costpoint Online Help

Using the Help Search
Using the Help Search
  • Phrase:Returns all topics that contain the exact phrase in the search criteria. Use quotation marks around the phrase.
    Ex."system administration"
  • And:Returns all topics that contain all the words in the search criteria, in any combination. Insert a plus sign between all words in the search criteria.
    Ex.system + administration
  • Or:Returns all topics with any combination of words in the search criteria. This is the default.
    Ex.system administration
For more information:Searching Online Help

Loaded Labor Rate Plus Costs Incurred on Non-Labor (T&M)

This formula is similar to the Loaded Labor formula, in that revenue is based on allowable hours multiplied by a rate per hour; however, this formula also includes in the recognition of revenue on non-labor ODC costs incurred as well.

The program a first calculates the revenue amount for the loaded labor portion of the formula. This process is the same as that used to arrive at revenue using the Loaded Labor formula.

Next, the program summarizes allowable non-labor costs incurred. You must charge costs to accounts with a Function Code of NON-LABOR for them to be considered in the calculation of allowable costs. The program compares costs incurred to cost ceilings established on the Manage Direct Cost Ceilings screen to determine allowable costs. You can set cost ceilings at the summary or detail account level. You can also set them at multiple project levels. Only ceilings set at project levels equal to or lower than the level of the revenue formula are observed, however. For example, you set up a three-level contract. The revenue formula exists at the second level, and costs are charged at the third level. Ceilings set at the second or third level are observed when allowable costs are determined, however, ceilings set at level one of the project are ignored. Allowable costs are added to the loaded labor revenue amount to arrive at total T&M revenue.

Costpoint compares this revenue amount to the contract and funded values set on the Manage Total Ceilings screen. If a code of R displays next to the amount, this value is used as a total revenue ceiling amount. If a code of A displays next to the amount, this value is used as a total revenue and billing ceiling amount. Revenue for the fiscal year up to and including the subperiod being calculated is summarized to arrive at year-to-date revenue recognized. Prior year revenue on the Manage Prior Year Cost and Revenue screen is summarized and added to year-to-date revenue to arrive at contract-to-date revenue recognized. If total revenue computed exceeds the revenue ceiling, a credit is placed in the PROJ_SUM table on the revenue account line of the owning organization at the project level at which the revenue formula is entered. Thus the amount calculated is allowable total revenue.

If you are posting revenue by performing org, you need to run the Redistribute Revenue screen at this time to reallocate revenue across organizations that incurred the over-ceiling costs and fee proportionately.

Please note that revenue is calculated on a period-by-period basis. Allowable costs and fee incurred for a given period constitute revenue for that period. Adjustments made to prior period costs are reflected in the revenue recognized for that period. For example, assume the current period for revenue calculation is period 5. You enter adjusting timesheets into period 3 for corrections to costs incurred in period 3. Financial Statements for period 3 are final, and are not rerun for this period. When revenue for period 5 is calculated, allowable costs and fee are recognized as current period revenue for period 5 along with revenue on the adjusted timesheets entered in period 3. In the Project Summary table, revenue for period 3 does not change. When revenue is posted, revenue for all periods of the current fiscal year up to and including the period selected is summarized in the Project Summary table. In the GL_POST_SUM table, revenue account balances are summarized for all periods of the current fiscal year up to and including the period selected. The difference is posted to the current period in GL_POST_SUM. Therefore, on a period-by-period basis, revenue amounts in GL_POST_SUM may not equal revenue per the Project Summary table. The amounts tie on a YTD basis, however.