Revenue Computations This topic describes how revenue is computed for the various revenue formulas. Click a link for information about a formula. Related Topics:Contract Value Less Backlog Costpoint calculates the Inception-to-Date (ITD) "revenue to recognize" by subtracting the backlog amount from the total contract value. Contract Values Times % Complete Vs. Rate Schedule The Contract Value times % Complete Vs. Rate Schedule formula (selected on the Manage Revenue Information screen) compares two different formulas and uses the lower of the two. Labor Cost Times Multiplier Plus Non-Labor Times Multiplier Costpoint calculates revenue based on the multipliers entered on the Manage Revenue Information screen or on the Manage Multiplier Overrides screen. Contract Value Times Percent Complete Costpoint calculates the inception-to-date (ITD) revenue to recognize by multiplying the percent complete from the Manage Revenue Information screen by the total contract value on the Manage Modifications screen. Cost Plus Fee on Cost This method applies a set fee percentage to allowable costs to arrive at revenue amounts. With this method, allowable costs and burdens must first be determined. Cost Incurred Using Estimate at Completion (Contract Value) Costpoint subtracts the ITD Revenue Loss Amount (from the Manage Revenue Information screen), if any, from the Est At Comp (EAC) amount (also from the Manage Revenue Information screen). Cost Incurred Using Estimate to Complete (Contract Value) Costpoint adds the Est To Complete (ETC) amount from the Manage Revenue Information screen to the ITD allowable cost and then subtracts the ITD Revenue Loss Amount (also found on the Manage Revenue Information screen), if any. Cost Incurred Using Estimate at Completion (Funded Value) Costpoint first calculates the allowable estimate at completion (EAC) amount. Cost Incurred Using Estimate to Complete (Funded Value) Costpoint first calculates the total allowable estimate at completion (EAC) amount by adding the estimate to complete (ETC) amount on the Manage Revenue Information screen to the inception-to-date (ITD) allowable cost and then subtracting the ITD revenue loss amount (also on the Manage Revenue Information screen), if any. Equal to Project Ledger Sales The program summarizes revenue in the general ledger for the fiscal year up to and including the period being calculated. Equal to Billings Before Retainage Costpoint summarizes the amounts in the Amount Billed column on the Manage Project Bill Summary screen for the fiscal year, up to and including the period being calculated. Equal to Billings After Retainage The amounts in the Amount Billed column on the Manage Project Bill Summary screen are summarized, for the fiscal year, up to and including the period being calculated to arrive at the YTD billed amount after retainage. Equal to Deliveries The amounts in the Delivery Amount column on the Manage Project Bill Summary screen are summarized, up to and including the period being calculated, to arrive at the ITD Delivery Amount. Fee on Hours Plus Cost Incurred This method summarizes the allowable direct and indirect costs incurred and a set fee per hour to arrive at revenue amounts. With this method, allowable costs and burdens must first be determined. Fixed Amount Month to Date Costpoint compares the amount entered on the Manage Revenue Information screen to the sum of all period-to-date revenue in the project revenue ledger for the period being computed. Fixed Amount Year to Date Costpoint compares the amount entered on the Manage Total Ceilings screen to the sum of all revenue recognized for the fiscal year up to and including the current period being calculated in the project revenue ledger. Fixed Amount Contract to Date Revenue recognized for the fiscal year up to and including the current period being calculated in the project revenue ledger is summarized. Funded Value Times Percent Complete Costpoint calculates the inception-to-date (ITD) revenue to recognize by multiplying the percent complete from the Manage Revenue Information screen by the total funded value on the Manage Modifications screen. ITD Fee on Cost This method applies a set fee percentage to ITD allowable costs to arrive at revenue amounts. With this method, allowable costs and burdens within the current fiscal year must first be determined. Loaded Labor Rate Before computing revenue for T&M-based contracts, you must run the Load Labor Rates screen. Loaded Labor Rate Plus Costs Incurred on Non-Labor (T&M) This formula is similar to the Loaded Labor formula, in that revenue is based on allowable hours multiplied by a rate per hour; however, this formula also includes in the recognition of revenue on non-labor ODC costs incurred as well. Loaded Labor Plus Non-Labor Plus Burden on Non-Labor This formula is similar to the Loaded Labor Rate Plus Cost Incurred on Non-labor (T&M) formula; however, this formula includes in the recognition of revenue burden costs incurred as well. Loaded Labor Plus Non-Labor w/Burden w/Fee This formula is similar to the Loaded Labor Plus Non-labor plus Burden on Non-labor formula; however, this formula includes in the recognition of revenue fee incurred on non-labor as well. Loaded Labor Rate w/Fee Plus Non-Labor w/Burden w/Fee This formula is similar to the Loaded Labor Plus Non-labor w/Burden w/Fee formula; however, this formula includes in the recognition of revenue fee incurred on labor as well. Rate Schedule Times Multiplier Plus Non-Labor Times Multiplier This is similar to the Loaded Labor Rate formula and is based on allowable hours (the lesser of actual or ceiling amounts) multiplied by rate per hour. Unit Revenue Only Costpoint uses this formula if you selected the Calculate Revenue on Units check box on the Manage Revenue Information screen. Parent Topic: Related Topics HomeProjectsProject SetupRelated TopicsRevenue Computations
Revenue Computations This topic describes how revenue is computed for the various revenue formulas. Click a link for information about a formula. Related Topics:Contract Value Less Backlog Costpoint calculates the Inception-to-Date (ITD) "revenue to recognize" by subtracting the backlog amount from the total contract value. Contract Values Times % Complete Vs. Rate Schedule The Contract Value times % Complete Vs. Rate Schedule formula (selected on the Manage Revenue Information screen) compares two different formulas and uses the lower of the two. Labor Cost Times Multiplier Plus Non-Labor Times Multiplier Costpoint calculates revenue based on the multipliers entered on the Manage Revenue Information screen or on the Manage Multiplier Overrides screen. Contract Value Times Percent Complete Costpoint calculates the inception-to-date (ITD) revenue to recognize by multiplying the percent complete from the Manage Revenue Information screen by the total contract value on the Manage Modifications screen. Cost Plus Fee on Cost This method applies a set fee percentage to allowable costs to arrive at revenue amounts. With this method, allowable costs and burdens must first be determined. Cost Incurred Using Estimate at Completion (Contract Value) Costpoint subtracts the ITD Revenue Loss Amount (from the Manage Revenue Information screen), if any, from the Est At Comp (EAC) amount (also from the Manage Revenue Information screen). Cost Incurred Using Estimate to Complete (Contract Value) Costpoint adds the Est To Complete (ETC) amount from the Manage Revenue Information screen to the ITD allowable cost and then subtracts the ITD Revenue Loss Amount (also found on the Manage Revenue Information screen), if any. Cost Incurred Using Estimate at Completion (Funded Value) Costpoint first calculates the allowable estimate at completion (EAC) amount. Cost Incurred Using Estimate to Complete (Funded Value) Costpoint first calculates the total allowable estimate at completion (EAC) amount by adding the estimate to complete (ETC) amount on the Manage Revenue Information screen to the inception-to-date (ITD) allowable cost and then subtracting the ITD revenue loss amount (also on the Manage Revenue Information screen), if any. Equal to Project Ledger Sales The program summarizes revenue in the general ledger for the fiscal year up to and including the period being calculated. Equal to Billings Before Retainage Costpoint summarizes the amounts in the Amount Billed column on the Manage Project Bill Summary screen for the fiscal year, up to and including the period being calculated. Equal to Billings After Retainage The amounts in the Amount Billed column on the Manage Project Bill Summary screen are summarized, for the fiscal year, up to and including the period being calculated to arrive at the YTD billed amount after retainage. Equal to Deliveries The amounts in the Delivery Amount column on the Manage Project Bill Summary screen are summarized, up to and including the period being calculated, to arrive at the ITD Delivery Amount. Fee on Hours Plus Cost Incurred This method summarizes the allowable direct and indirect costs incurred and a set fee per hour to arrive at revenue amounts. With this method, allowable costs and burdens must first be determined. Fixed Amount Month to Date Costpoint compares the amount entered on the Manage Revenue Information screen to the sum of all period-to-date revenue in the project revenue ledger for the period being computed. Fixed Amount Year to Date Costpoint compares the amount entered on the Manage Total Ceilings screen to the sum of all revenue recognized for the fiscal year up to and including the current period being calculated in the project revenue ledger. Fixed Amount Contract to Date Revenue recognized for the fiscal year up to and including the current period being calculated in the project revenue ledger is summarized. Funded Value Times Percent Complete Costpoint calculates the inception-to-date (ITD) revenue to recognize by multiplying the percent complete from the Manage Revenue Information screen by the total funded value on the Manage Modifications screen. ITD Fee on Cost This method applies a set fee percentage to ITD allowable costs to arrive at revenue amounts. With this method, allowable costs and burdens within the current fiscal year must first be determined. Loaded Labor Rate Before computing revenue for T&M-based contracts, you must run the Load Labor Rates screen. Loaded Labor Rate Plus Costs Incurred on Non-Labor (T&M) This formula is similar to the Loaded Labor formula, in that revenue is based on allowable hours multiplied by a rate per hour; however, this formula also includes in the recognition of revenue on non-labor ODC costs incurred as well. Loaded Labor Plus Non-Labor Plus Burden on Non-Labor This formula is similar to the Loaded Labor Rate Plus Cost Incurred on Non-labor (T&M) formula; however, this formula includes in the recognition of revenue burden costs incurred as well. Loaded Labor Plus Non-Labor w/Burden w/Fee This formula is similar to the Loaded Labor Plus Non-labor plus Burden on Non-labor formula; however, this formula includes in the recognition of revenue fee incurred on non-labor as well. Loaded Labor Rate w/Fee Plus Non-Labor w/Burden w/Fee This formula is similar to the Loaded Labor Plus Non-labor w/Burden w/Fee formula; however, this formula includes in the recognition of revenue fee incurred on labor as well. Rate Schedule Times Multiplier Plus Non-Labor Times Multiplier This is similar to the Loaded Labor Rate formula and is based on allowable hours (the lesser of actual or ceiling amounts) multiplied by rate per hour. Unit Revenue Only Costpoint uses this formula if you selected the Calculate Revenue on Units check box on the Manage Revenue Information screen. Parent Topic: Related Topics HomeProjectsProject SetupRelated TopicsRevenue Computations