This section discusses the incurred cost lines, which formulate the maximum amount of costs eligible for billing. The sources of the data, how the lines were calculated, and method of modifying are also provided. The Through Date is the same date as Line 8B, Date Of This Request.
For projects on which your company is classified as "small business," this line is not used and is always zero. Because small businesses are not subject to Cash Basis Billing, there is no calculation of the costs that have been paid. For small businesses, all incurred costs are eligible for billing and appear on line 10.
For projects on which your company is classified as "large business," this line consists of three different types of costs:
Previously billed allowable costs from the Manage Billing History screen
These are the cash basis transactions, residing on the Manage Billing History screen with a Transaction Type of COST, that have been billed ITD. These are the paid Other Direct Costs (ODCs) transactions that have been previously billed. This does not include direct labor, travel, inventory, subcontractor progress payment invoices, burdens, or Cost of Money (COM), because these transactions are not subject to cash basis billing. Note that paid subcontractor delivery invoices that have been accepted by your company are included in line 9, but their burdens are not.
Allowable paid costs from the Manage Open Billing Detail screen
These are the cash basis ODC transactions, residing on the Manage Open Billing Detail screen that have been paid but not billed. This does not include direct labor, travel, inventory, subcontractor progress payment invoices, burdens, or COM, because these accounts are not subject to cash basis billing. Subcontractor delivery invoices are included on line 9; the source for these transactions is not the Manage Open Billing Detail screen, but rather the Manage Subcontractor Progress Payments screen. The Update Subcontractor Progress Payments process transfers subcontractor transactions from Maintain Open Billing Detail to Manage Subcontractor Progress Payments.
Allowable paid subcontractor delivery invoices accepted on the Manage Subcontractor Progress Payments screen
The source for this amount is the Paid Amount field on the Manage Subcontractor Progress Payments screen for Invoice Types of Delivery. This is not the Shipment Value, but rather the paid portion of the Invoice Amount, which has been "netted" for liquidation of progress payments. Costpoint checks the Payments subtask to ensure the invoice has been paid. Also, the Accepted check box must be selected. If the Invoice Amount and Paid Amount are equal, this check box is automatically selected during the Update Subcontractor Progress Payments process. You can also manually modify this field. Note that the burden for these costs is considered to be incurred costs, rather than paid costs, and appears on line 10 instead of line 9.
In the Line Detail subtask (lines 9, 10, 13, 14a, 14b, and 14d) of the Manage Progress Payment Bills screen, you can review and modify the transactions that compose this line. Modification is restricted to the Write Off Amount, Hold Amount, Write Off Description, and Hold Reason Description fields. In addition, for lines containing burden or cost of money, you can modify the Billing Amount field. Modifying the Write Off Amount and Hold Amount fields automatically modifies the Billing Amount field. Note that you must select the Allow User to Edit Bills check box on the Setup Information tab of the Manage Project Billing Information screen before you can make modifications. Also, if you want to place amounts "On Hold" for less than the Billing Amount, you must select the Allow Transactions To Be Partially Billed check box, also on the Controls tab of the Manage Project Billing Information screen. There is no partial billing of subcontractor transactions; either the invoice is accepted or rejected on the Manage Subcontractor Progress Payments screen through the Accepted column.
As with line 9, Costpoint calculates line 10 differently for "large" and "small" businesses. If your company is classified as a "small business" for the project, line 10 includes the following:
Previously billed allowable costs, burdens, and COM from the Manage Billing History screen;
Allowable incurred costs, burdens, and COM from the Manage Open Billing Detail screen, excluding subcontractor progress payment invoices. Burdens and COM on subcontractor progress payments are included;
Allowable subcontractor delivery invoices (Invoice Amount) from the Manage Subcontractor Progress Payments screen; and
Allowable burdens and COM on subcontractor delivery invoices from the Manage Open Billing Detail screen.
If your company is classified as a "large business" for the project, line 10 includes the following:
Allowable previously billed costs on line 10 from the Manage Billing History screen;
Allowable previously billed burdens and COM from the Manage Billing History screen, including burdens for costs and hours (for hours-based pools) billed on line 10 as well as for cash basis costs billed on line 9;
Allowable direct labor from the Manage Open Billing Detail screen. Direct Labor is always billed when incurred;
Allowable inventory from the Manage Open Billing Detail screen. These accounts should not designated as cash basis accounts and are billed in full;
Allowable travel from the Manage Open Billing Detail screen. These accounts should not designated as cash basis accounts and are billed in full;
Allowable burdens and COM on allowable costs and hours (for hours-based pools) from the Manage Open Billing Detail screen for costs billed on line 10 as well as for cash basis costs billed on line 9. For cash basis accounts, the burden is limited to the portion of the transaction amount that has been paid; and
Allowable burdens and COM on subcontractor delivery invoices included on line 9.
You can modify line 10 in the same fashion as line 9.
Costpoint calculates this field by adding line 9 and line 10. It cannot be modified.
Costpoint calculates this line by adding the incurred direct costs and their appropriate burden costs, at actual or target rates. The source for this data is the Project Summary table (PROJ_SUM, PROJ_BURD_SUM) for current year costs and the Manage Prior Year Cost and Revenue screen (PSR_PY_SUM, PSR_PY_BURD_SUM) in Costpoint Project Setup for prior years. You can modify this line on the Manage Progress Payment Bills screen.
This line is the amount entered in the Estimate to Complete field on the 1443 Info tab of the Manage Project Billing Information screen. If this project has been classified as Work-In-Process, and you have completed the Manage Cost of Goods Sold screen, the value entered in the Estimated Costs field defaults to the 1443 Info tab of the Manage Project Billing Information screen. For non-WIP projects, you can manually enter the Estimate to Complete value on the 1443 Info tab. You can modify this line on the Manage Progress Payment Bills screen.
This line is a calculated amount. It is determined by the amount of estimated costs and whether they have exceeded the Contract Price. If the estimated costs (line 12a added to line 12b) do not exceed the Contract Price (line 5), Costpoint multiplies the Total Eligible Costs (line 11) by the Progress Payment Rate (line 6a) to arrive at the line 13 costs. If the estimated costs exceed the Contract Price (line 5), Costpoint obtains a loss ratio percentage by dividing the Contract Price by the estimated costs. It multiplies this percentage by the Total Eligible Costs (line 11) to reduce the total costs eligible for progress payment. It then multiplies the resulting amount by the progress payment rate to arrive at the line 13 costs. There is a Line Detail subtask (lines 9, 10, 13, 14a, 14b, and 14d) available for this line on the Manage Progress Payment Bills screen. Line 13, and the Line Detail subtask, are non-editable.
Example:
|
Line 12a: Total Costs Incurred To Date |
4,825,000 |
|
Line 12b: Estimated Additional Cost To Complete |
425,000 |
|
Estimated Total Costs (Line 12a plus 12b) |
5,250,000 |
|
Line 5 Contract Price |
5,000,000 |
|
Loss Ratio Percentage (Line 5 Contract Price divided by EAC) |
|
|
5,000,000/5,250,000 |
95.238095% |
|
Line 11: Total Costs Eligible For Progress Payments |
4,600,000 |
|
Recognized Costs for Progress Payment |
|
|
4,600,000 x 95.238095% |
4,380,952 |
|
Progress Payment Rate |
80% |
|
Line 13: Eligible Costs |
|
|
4,380,952 x 80% |
3,504,762 |
The source for this line is the total Paid Amount column from the Manage Subcontractor Progress Payments screen, for transactions with an Invoice Type of Progress Payment. The Paid Amount field is updated by the Payments subtask. The transactions composing this line balance are available for review purposes only in the Line Detail subtask on the Manage Progress Payment Bills screen. You can complete modifications to this line on the Manage Subcontractor Progress Payments screen. For example, if a subcontractor transaction needs to be placed "On Hold," change the Accepted field on the Manage Subcontractor Progress Payments screen from Y to N.
This line is derived from the Liquidation Amount column on the Manage Subcontractor Progress Payments screen. For Invoice Types of Delivery, the Liquidation Amount is the difference between the Invoice Amount and Delivery Value. On subcontractor delivery invoices, the Paid Amount has already been included on line 9 or line 10, depending on the project's business classification. The Liquidation Amount allows you to bill for the amount that you have paid to the subcontractor for his progress payments. Review and modification of this line is identical to line 14A.
Costpoint calculates this line by subtracting Line 14b from Line 14a. This represents the portion of subcontractor progress payments from delivery invoices that were not included on line 9 or line 10. You cannot modify this line.
Costpoint calculates this line, which is the unpaid subcontractor progress payments, only for small businesses. For large businesses, this line is zero. It is the difference between the Invoice Amount and Paid Amount fields from the Manage Subcontractor Progress Payments screen. The process of reviewing and modifying this line is identical to line 14a.
Costpoint calculates this line by adding lines 14c and 14d. This is the amount of unliquidated progress payments for both paid and unpaid subcontractors. You cannot modify this line.
Costpoint calculates this line by adding lines 13 and 14e. This is the total dollar amount of costs eligible for progress payment. You cannot modify this line.
Costpoint calculates this line by multiplying the Contract Price by the Liquidation percentage on the 1443 Info tab of the Manage Project Billing Information screen. This represents the maximum amount of the contract available to be progress billed. You cannot modify this line.
This line is the lesser of line 15 or line 16. Costpoint compares the total costs eligible for progress payment with the maximum amount of the contract eligible to be progress billed and uses the lesser of the two values. You cannot modify this field.
This line is the sum of all progress payment invoices previously submitted. Because all calculations on the 1443 are ITD, Costpoint subtracts all previous progress payment invoices to arrive at the amount requested on this invoice. The source for this value is the Manage Accounts Receivable History screen, Invoice Amount field. You can modify this line in the Manage Progress Payment Bills screen.
Costpoint calculates this line by subtracting line 17 from line 18 to arrive at the maximum balance eligible for progress payments. You cannot modify this field.