Set Revenue and Cost Percentage Of Completion Based on All Cost

You can recognize revenue based on amount of Cost consumed during a period as opposed to the Total Cost of the Project by choosing the option to calculate the Revenue Percentage Of Completion based on All Cost.

This calculation is applied to:

• All Views (Actual, Forecast, Combined)
• All Periods, regardless of whether they are Forecast, Current, or Actual.

Note: If a Milestone is excluded from Invoicing, the Charge will not be displayed in Financial Planner.

This article explains how to recognize revenue based on the amount of cost consumed during a period by setting the Revenue Percentage of Completion calculation to use All Cost instead of the total project cost.

1. From the Icon Bar click Setup .
2. From the Navigation Menu click Financial to expand the corresponding menu.
3. From the Financial menu items, click Financial Planner Templates.
4. From the Financial Planner Templates list that displays, click the Name of the template you wish to access.
5. From the Forecast Methods section of the General tab select:
   1. Percentage Of Completion (POC) for Revenue .
   2. All Cost for Compute POC based on.

   

6. Click Save.
7. View the impact of your changes:
   When All Cost is selected for the Compute POC based on option, the cost for the period is divided by the total cost of the Project to obtain a percentage for that period. This percentage is then multiplied by the Total Revenue (Labor + non-Labor Revenue) to calculate the Revenue per period.

   As an Example:

   1. Current Cost= 1,000$
   2. Billable Total= 10,000 $
   3. Total cost: 2,000$
   4. Cost per Period=1,000$
   5. %Cost: Cost per Period for (A)/Total Cost) = 50%
   6. $10,000 (Billable Total) x 50%= 5,000 (Revenue per period)