Contract Type and the Revenue Generation Calculation

The method that is most appropriate for calculating 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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