Calculation Method Examples for Employee Realization Reporting

If you are new to Vision, you may find it helpful to review examples of how the calculation methods for the Employee Realization feature affect the employee realization calculation for an invoice.

You enter the calculation method on the Reporting tab in Accounting System Settings.

The calculation method is used to calculate the value of employees' time records on an invoice. This value is then used to determine the percentage of an invoice's revenue to allocate as realization to each employee who has time records on the invoice.

In the following examples, the Employee Realization Reporting settings on the Reporting tab in Accounting System Settings are as follows:

• The Reporting Realization by Employee check box is selected.
• Frequency = Invoice.
• The general ledger revenue account — 401.00 — is the only account entered in the Allocation Accounts grid.

Invoice A is a fixed-fee invoice for $900. The invoice has $650 posted to the 401.00 account and $250 posted to the 407.00 account. Only $650 will be allocated for employee realization because only account 401.00 is designated for employee allocation in the Allocation Accounts grid on the Reporting tab in Accounting System Settings.

	Percentage and Amount of Realization Allocated to Each Employee
	Using the Billing Calculation Method	Using the Cost Calculation Method	Using the Hours Calculation Method
Time records included on Invoice A
Time Record 1 for Jim Taylor has 1 hour of labor	Jim's realization: $123.50 Jim's billing value for the time is $100. $100 / $525 = 19% 19% of $650 = $123.50 *see the note below regarding $525	Jim's realization: $91 Jim's cost for the time is $40. $40 / $290 = 14% 14% of $650 = $91 *see the note below regarding $290	Jim's realization: $110.50 Jim's hours for the time are 1. 1 / 6 = 17% 17% of $650 = $110.50 *see the note below regarding 6
Time Record 2 for Jan Carlton has 2 hours of labor	Jan's realization: $214.50 Jan's billing value for the time is $175 $175 / $525 = 33% 33% of $650 = $214.50	Jan's realization: $221 Jan's cost for the time is $100. $100 / $290 = 34% 34% of $650 = $221	Jan's realization: $214.50 Jan's hours for the time are 2. 2 / 6 = 33% 33% of $650 = $214.50
Time Record 3 for Ken Brownwell has 3 hours of labor	Ken's realization: $312.00 Ken's billing value for the time is $250. $250 / $525 = 48% 48% of $650 = $312.00	Ken's realization: $338 Ken's cost for the time is $150. $150 / $290 = 52% 52% of $650 = $338	Ken's realization: $325 Ken's hours for the time are 3. 3 / 6 = 50% 50% of $650 = $325
Notes:	* For the Billing calculation method, $525 is the total billing value for all three time records ($100+$175+$250)	* For the Cost calculation method, $290 is the total cost value for all three time records ($40 + $100 + $150)	* For the Hours calculation method, 6 is the total hours for all three time records (1+2+3)