Contracts and Revenue Generation
The method most appropriate for revenue generation depends on each project's contract type.
Related Topics:
- Time and Materials Contracts Without Upset Limits
Learn how to calculate accrued revenue for a project with a time and materials contract with no upset limits. - Time and Materials Contracts with Upset Limits
Learn how to calculate accrued revenue for a project with a time and materials contract with upset limits. - Percent Complete Contracts
You can calculate revenue for a project whose compensation is a fee that is calculated based on the project's percent complete. - Lump Sum or Fixed Fee Contracts
When a project has a lump sum contract, its revenue is accrued according to progress made. Progress is usually based on a percent complete that has been calculated and updated for each accrual (revenue method P). - Cost Plus Fixed Fee Contracts
When a project contract, such as a government contract, specifies that the compensation is "cost plus fixed fee," the project's revenue accrues based on either a lump sum payment or a percent of total costs.
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