How Do I Limit Revenue on Reimbursable Expenses

If you use revenue method P for a project, you can limit the revenue that is generated from reimbursable expenses.

To do this, define a revenue method in which revenue is calculated as the lesser amount of these calculations of P:

% Complete * Compensation + JTD Reimbursable Expenses

% Complete * Compensation + Reimbursable Allowance

First define a method that calculates this alternative to P. Then define a method that takes the lesser of P or the alternative method.

To define the methods:

To define the method that calculates the alternative to P, on the Navigation menu, click Settings > Advanced Accounting > User Defined Revenue.
On the User Defined Methods grid, click Insert.
On the Revenue Methods dialog box, enter the code and description.
Enter the formula: (Percent Complete * Compensation) + Reimb Allowance.
Click Save. The User Defined Methods list shows the new method.
To define the completed method that takes the lesser of P or the alternative:
1. On the User Defined Methods grid, click Insert.
2. On the Revenue Methods dialog box, enter the code and description. Use this new method to limit revenue on reimbursable expenses.
3. In the Operators list, click Lesser of.
4. In the First Method column, select Method P.
5. In the Second Method column, select the alternative method.
6. Click OK.
7. Click Save.
In the Projects hub, specify the second method for each project for which you want to limit revenue that is generated from reimbursable expenses. Because it uses a mix of percent complete and reimbursable expenses, this formula may calculate revenue differently than you expect. The revenue generation process will recognize the correct amount of revenue after the project is complete.
As an alternative, you can limit the revenue that is generated from reimbursable expense data by defining a new method that applies the Subject to Max operator to Method P's formula:

% Complete * Compensation + JTD Reimbursable Expenses [Subject to Max]