Although both the cost-type and loaded-labor type revenue formulas are transaction-based, it is slightly more complicated to change from a cost-type to a loaded-labor type. The loaded-labor type of revenue formula uses PLCs and their related billing rates as the major component of revenue. A PLC must be associated with every labor entry in the LAB_HS table for Costpoint to accurately compute revenue. If you plan to recompute revenue for each period of the current fiscal year, remember that PLCs must be in the LAB_HS table for all the labor lines.
To modify the revenue formula from a cost-type to a loaded-labor, complete the following steps:
On the Manage Project Account Groups screen, ensure that all hours have been recorded with a PLC and the labor account has a function code of LABOR.
Set up the Link Project Labor Categories to Projects screen (if rates are project-specific).
Set up Link Project Labor Category Rates to Projects screen (if rates are project-specific) or the Link PLC Rates to Employee/Vendor screen (if using workforce billing rates).
Set up the Manage Rate Sequence Orders screen at the transaction level of the project and reference the source project (the project used on the Link Project Labor Category Rates to Projects screen or the Link PLC Rates to Employee/Vendor screen.
Modify the revenue formula. When you enter the new revenue formula, Costpoint displays a message stating that, if you modify the revenue formula, all of the allowable columns for the current fiscal year are deleted. Click Yes if you are changing the revenue for the entire fiscal year. If you do not click Yes, the revenue formula is not modified.
Load the labor rates.
If you are making this modification prospectively, you can change the formula first to Do Not Compute and then to the loaded-labor formula. This eliminates the warning about modifying revenue formulas. After you have saved the Do Not Compute formula, modify it again to a loaded-labor type. This method prevents you from having to clear the allowable columns. You probably need an inception-to-date revenue adjustment when using this method. The loaded-labor revenue formulas are period-to-date formulas, so no year-to-date adjustments are shown in the table.
If you are making the modification retroactively, PLCs must be listed on each line of the Labor Summary table for this project. You must clear the allowable columns if you want to modify the revenue for all periods of the fiscal year. You must recalculate revenue for each period of the fiscal year, but you must post only the revenue in the current period. When you use this method, there is no evidence that the previous formula was used.