to select the revenue formula for a project. After you enter a revenue formula ID, its description populates the field to the right.Use this tab to set up a revenue formula for a project. Use this tab when you enter a new quick project or modify an existing quick project.
Each revenue formula produces a separate calculation, and all formulas are independent from the type of project specified on the Basic Info tab of the Manage Project User Flow. For example, the project type could be Fixed Price, and since all revenue formulas are available for selection, the revenue formula could be Loaded Labor Hours.
Click to select the revenue formula for a project. After you enter a revenue formula ID, its description populates the field to the right.
Based on the revenue formula you enter, additional revenue calculation fields, such as Fee on Hours, Pct Complete, Labor Multiplier, and Non-Labor Multiplier, display in this screen and require entry.
The following options are included in the Revenue Formula field:
Contract Value Less Backlog — This formula calculates revenue by subtracting the backlog amount entered in the screen from the total contract value. After you select this revenue formula, the Backlog Amount field displays. You must estimate the total backlog for this project and enter it in this field. Costpoint then subtracts this amount from the total contract value on the Manage Modifications screen. Backlog in this context is generally defined as the amount of the contract value that has not yet been earned.
Contract Value Times % Complete Vs. Rate — This formula compares the revenue calculated by the Contract Value Times Percent Complete formula and the revenue calculated by the Rate Schedule and uses the lower of the two amounts. After you have selected this formula, you must enter the percent complete and the labor and non-labor multipliers in the appropriate fields. Refer to the documentation on the Contract Value Times Percent Complete and the Rate Schedule... formulas to obtain further details concerning these calculations.
Contract Value Times Percent Complete — This formula multiplies the percent complete amount entered in this screen by the total contract value entered on the Manage Modifications screen. This value is then compared to the revenue previously recognized. Costpoint computes the previously recognized revenue by adding the revenue on the Manage Prior Year Cost and Revenue screen and the revenue that has been recorded on a year-to-date basis in the general ledger. The difference between these two amounts is posted in the current period.
Cost Incurred Using Estimate To Complete — Use this formula if you are recording revenue using a percent completion method. To use this formula, you must be able to estimate your projects' cost-to-complete and any inception-to-date losses. Costpoint first calculates the cost percent complete. Costpoint calculates the inception-to-date allowable costs by adding the prior year costs from the Manage Prior Year Cost and Revenue screen and the year-to-date costs in the general ledger. This amount is divided by the estimated costs to complete entered in the screen less any inception-to-date losses. Costpoint multiplies the resulting percentage by the contract value less inception-to-date losses. The result of this calculation is the inception-to-date revenue for the project. Costpoint then compares this number to the sum of the revenue on the Manage Prior Year Cost and Revenue screen and the amount that has been posted to the general ledger. The difference between these two numbers is the current period revenue.
Cost Incurred using Estimate At Completion — Use this formula if you are recording revenue using a percent completion method. To use this formula, you must be able to estimate your projects' costs at completion and any inception-to-date losses. Costpoint first calculates the cost percent complete. The program calculates the inception-to-date allowable costs by adding all prior year allowable costs on the Manage Prior Year Cost and Revenue screen and adding this number to the year-to-date allowable costs in the general ledger. The result of this calculation is divided by the estimate-at-completion amount that was entered in the screen less any inception-to-date loss. Costpoint multiplies this percentage by the contract value less any inception-to-date loss. It then compares the resulting amount to the inception-to-date revenue already recognized. It calculates the inception-to-date revenue already recognized by adding the revenue on the Manage Prior Year Cost and Revenue screen to the revenue recorded in the general ledger for the current fiscal year. The difference between the revenue already recognized and the revenue calculated by Costpoint is the current period revenue.
Cost Plus Fee On Cost — This formula uses year-to-date direct and indirect costs plus a fee on those costs to compute revenue. The direct costs derive from information posted to the general ledger. Costpoint calculates the indirect costs by multiplying actual or target rates on the Pool Rates subtask on the Manage Cost Pools screen by the year-to-date direct costs. It calculates the fee by multiplying total year-to-date costs by the fee percent. The direct, indirect, and fee amounts are combined to determine year-to-date revenue. Any adjustments to the fee are calculated on a year-to-date basis.
Cost Plus Fee on Cost Current Month Fee — This formula uses year-to-date direct and indirect costs but applies fees based only on current period costs. The direct costs are derived from information posted to the general ledger. Costpoint calculates the indirect costs by multiplying actual or target rates on the Pool Rates subtask of the Manage Cost Pools screen by the year-to-date direct costs. It calculates the fee by multiplying total costs on a period basis by the fee percent. The direct, indirect, and fee amounts are combined to determine year-to-date revenue. Any adjustments to fee are applied only to the current period.
Do Not Compute — Use this formula if you do not want revenue computed on your project. Using this formula after your project has been completed prevents modifications in the revenue as a result of indirect or labor rates modifications.
Equal To Billings After Retainage — Use this formula to make inception-to-date revenue equal to billings after retainage. The Amount Billed field on the Manage Project Bill Summary screen is summarized up to and including the ending subperiod being calculated to determine the inception-to-date billed after retainage. Costpoint compares this amount to the inception-to-date revenue. Costpoint calculates inception-to-date revenue by adding the total revenue from the Manage Prior Year Cost and Revenue screen and the year-to-date revenue in the general ledger. The difference between these two amounts will be posted to the general ledger in the current period.
Equal To Billings Before Retainage — Use this formula to make inception-to-date revenue equal to billing before retainage. The Amount Billed and the Amount Retained fields on the Manage Project Bill Summary screen are combined and summarized up to and including the ending subperiod being calculated to determine the inception-to-date billed amount. Costpoint compares this amount to the inception-to-date revenue amount. Costpoint calculates inception-to-date revenue by adding the total revenue on the Manage Prior Year Cost and Revenue screen to the year to date revenue in the general ledger. The difference between these two amounts is posted to the general ledger in the current period.
Equal To Deliveries — Use this formula to make inception-to-date revenue equal to deliveries. Costpoint calculates deliveries by summarizing the Delivery Amount field on the Manage Project Bill Summary screen up to and including the subperiod entered in the screen. It compares this amount to the inception-to-date revenue. Costpoint calculates inception-to-date revenue by adding the total revenue on the Manage Prior Year Cost and Revenue screen to the year-to-date revenue in the general ledger. The difference between these two amounts is posted to the general ledger in the current period.
Equal To Project Ledger Sales — Use this revenue formula if you want the revenue on your project reports to be equal to the amount in the general ledger. When you use this formula, Costpoint usually posts revenue to the general ledger with a monthly journal entry. When revenue is calculated, the project tables are updated with the year-to-date revenue from the general ledger.
When you use the Equal to Project Ledger Sales formula, the Compute Revenue process looks at GL_POST_SUM table for the revenue account. When you use this formula, you either enter an Adjusting Journal Entry (AJE) to credit the revenue account and debit the unbilled account, or you post a sales order that credits the revenue account automatically. When you execute the Compute Revenue process, it sets the revenue amount equal to the costs of the project on the labor and non-labor lines (actual direct cost plus burden) and then plugs the difference into the ACCT_FUNC_NO = 1 line.
Fee on Hours Plus Cost Incurred — This formula calculates revenue by adding direct and indirect costs and a fee based on hours incurred. The direct costs are derived from information posted to the general ledger. Costpoint calculates the indirect costs by multiplying actual or target rates on the Pool Rates subtask of the Manage Cost Pools screen by the year-to-date direct costs. The program calculates the fee by multiplying fee per hour that was entered in this screen by the number of hours incurred. This is a year-to-date formula.
Fixed Amount Contract To Date — Use this formula to determine your contract-to-date revenue manually. Costpoint uses the amount entered in the screen as contract-to-date revenue and compares it to inception-to-date revenue already in Costpoint. Costpoint calculates inception-to-date revenue by adding the total revenue on the Manage Prior Year Cost and Revenue screen and the year-to-date revenue in the general ledger. The difference between these two amounts is posted as revenue in the current period.
Fixed Amount Month To Date — Use this formula to recognize a standard amount per month as revenue. This formula compares the fixed monthly amount that is entered in the screen to the revenue in the general ledger for the period being computed. The difference between these two numbers is recognized as revenue.
Fixed Amount Year To Date — Use this formula to record a standard amount of revenue each year. This formula compares the year-to-date revenue amount that is entered in the screen to the year-to-date revenue that has been recorded in the general ledger. The difference between these two amounts is recognized as revenue in the current period.
ITD Fee on Cost — This formula uses ITD allowable direct and indirect costs plus a fee on those costs to compute revenue. The direct costs are derived from information posted to the general ledger. Costpoint calculates the allowable indirect costs by multiplying actual or target rates on the Manage Cost Pools screen by the ITD allowable costs. It calculates the fee by multiplying ITD allowable costs by the fee percent. The allowable direct, indirect, and fee amounts are combined to determine ITD revenue. Any adjustments to the fee are handled on a year-to-date basis.
Labor Cost Times Multiplier Plus Non-Labor Times Multiplier (Cost) — Use this revenue formula to calculate revenue by applying a multiplier to labor and non-labor costs. You enter the multipliers on the Manage Revenue Information screen or the Manage Multiplier Overrides screen. Costpoint multiplies the multipliers entered in these screens by the labor and non-labor costs that are posted to the general ledger. You should enter a (PLC) project labor category for all labor costs. This is a transaction-based revenue formula.
Labor Cost times Multiplier Plus Non-labor times Multiplier (Hours) — Use this formula to have multiplier-based revenue using actual labor rates. Costpoint computes the labor amount by dividing labor cost by actual hours incurred. Enter a PLC for all labor amounts. Labor amounts that do not have associated hours are ignored during this calculation. A rate type of A is used with this formula. It is different from the Labor Cost Times Multiplier Plus Non-Labor Times Multiplier formula because it computes revenue using actual rates. This is a transaction-based formula.
Loaded Labor Plus Non-Labor W/Burden W/Fee — Use this formula to compute revenue using labor rates times hours incurred plus non-labor costs with burden and a fixed fee. Costpoint multiplies the labor hours on the Manage Project Labor History screen by the assigned labor rate to obtain the loaded labor portion. The non-labor amounts that have been posted to the general ledger are combined with the burden at provisional rates stored on the Pool Rates subtask of the Manage Cost Pools screen. Costpoint applies the fixed fee entered in this screen to the non-labor costs. This is a transaction-based formula.
Loaded Labor Plus Non-labor Plus Burden on Non-labor — Use this formula to compute revenue using loaded labor rates plus non-labor amounts and related burden. Costpoint computes the loaded labor amount by multiplying labor hours on the Manage Project Labor History screen by the assigned labor rate. The non-labor amounts are taken from amounts posted to the general ledger. The burden is computed on non-labor using the provisional rates on the Pool Rates subtask of the Manage Cost Pools screen. This is a transaction-based formula.
Loaded Labor Rate — Use this revenue formula to compute revenue using loaded labor rates only. All non-labor costs are ignored when you use this formula. Costpoint computes the labor portion of this formula by multiplying the assigned labor rate by the hours incurred by PLC on the Manage Project Labor History screen. This is a transaction-based formula.
Loaded Labor Rate Plus Cost Incurred On Non-labor (T&M) — Use this formula to compute revenue using loaded labor plus non-labor costs. This formula does not compute fee or burden. Costpoint multiplies labor hours incurred in the Labor Summary screen by the assigned labor rate to obtain the loaded labor amount. The non-labor amounts that were posted to the general ledger are computed as pass-through amounts. This is a transaction-based formula.
Loaded Labor Rate W/Burden W/Fee Plus Non-Labor W/Burden W/Fee — Use this formula to apply burden and fee to loaded labor rates and non-labor with burden and fee rates. Costpoint multiplies the hours incurred on the Manage Project Labor History screen by the assigned labor rate to obtain the loaded labor amount. The provisional rate on the Pool Rates subtask of the Manage Cost Pools screen is used to calculate the burden on both the labor and non-labor. The non-labor amounts are taken from amounts that were posted to the general ledger. Costpoint applies the fee amount entered in this screen to both the labor and non-labor amounts. This is a transaction-based revenue formula.
Loaded Labor Rate W/Fee Plus Non-Labor W/Burden W/Fee — Use this formula to compute revenue using loaded labor rates with fee applied and non-labor with burden and fee rates. Costpoint multiplies the hours incurred on the Manage Project Labor History screen by the assigned labor rate to obtain the loaded labor amount. The value that you enter in the Labor Fee Pct. field is applied to the labor amount. The non-labor amounts that have been posted to the general ledger plus fee computed using the Non-Labor Fee percent are used to compute the non-labor portion of the revenue formula. Costpoint applies the burden to the non-labor using the provisional rates on the Pool Rates subtask of the Manage Cost Pools screen. This is a transaction-based formula.
Rate Schedule times Multiplier Plus Non-labor times Multiplier — Use this formula to calculate revenue using a variety of different labor rates. You must always use a PLC for labor transactions when using this formula. You can set up the rate schedule to use any of the rate types. This allows you to calculate revenue according to who or what group of employees is charging. Costpoint computes the non-labor using the multiplier entered in this screen. This is a transaction-based formula.
Unit Revenue Only — Use this formula to calculate revenue by using units. Costpoint multiplies units posted to the Unit Usage History table by the unit price on the Manage Product Price Catalogs screen or the Project Unit Pricing subtask of the Manage CLIN Information screen. This is a transaction-based formula.