Percentage Completed Contracts

A project whose compensation is a fee has a contract for payment based on "percentage completed."

This is specified on the Fees tab in Billing > Billing Terms, where the project's fee method is Overall pct cpl. The fee is specified either as Lump Sum in Fee Basis or as an amount in Fee.

For an accurate calculation of accrued revenue, that matches your estimate of how far the project continues, the project must have a revenue method that uses data for the project's percent complete. The revenue method can be standard or user-defined.

For example, the project can use revenue method P:

JTD Revenue = (Percent Complete*Compensation) + JTD Reimbursable Expenses

To use method P, you must recalculate and enter data for the project's Percent Complete on the Fees tab of Billing Terms before you run Revenue Generation each time for the project.

Although method P is more work, to keep the Percent Complete data updated, it causes the project's revenue to be more accurate.

As an alternative, you can use revenue method M.

JTD Revenue = (JTD Direct Labor x Multiplier) + JTD Reimbursable Expenses

This data is from these fields:

• In Billing > Billing Terms > Labor Tab, the data specified in Multipliers

• In Billing > Billing Terms > Exp/Con/Unit Tab, the Job-to-date expense data in Expense Terms.