How Performance Obligation Event Thresholds and Amounts are Processed

The tables below demonstrate how various performance obligation event settings affect the ways in which the system calculates the Next MS Threshold and MS Amount fields.

After creating five sequences and saving the record, the system populates the Next MS Threshold amount for the first sequence of each Project MS type. In this case, there are two types, so the system populates sequences 10 and 20.

Sequence Processed Invoicing Recurring Project MS MS Threshold Next MS Threshold MS Amount
10 No Yes No Hours 100 100 0
20 No No No Cost 3000 3000 0
30 No Yes No Hours 100 0 0
40 No Yes Yes Hours 50 0 0
50 No No No Cost 3000   0

When hours reach 100, an alert is triggered. The Invoicing field is selected, indicating that an invoice milestone should be created, but by the time that happens, five more hours have been recorded, so the system updates the MS Amount field with the 100 hours specified by the threshold, plus the 5 additional hours logged prior to the creation of the invoice milestone. The next sequence with the same Project MS is sequence 30, so the system marks sequence 10 as Processed, then adds the sequence 30 threshold to the sequence 10 actual amount and populates the Next MS Threshold field for sequence 30.

Sequence Processed Invoicing Recurring Project MS MS Threshold Next MS Threshold MS Amount
10 Yes Yes No Hours 100 100 105
20 No No No Cost 3000 3000 0
30 No Yes No Hours 100 205 0
40 No Yes Yes Hours 50 0 0
50 No No No Cost 3000 6000 0

When hours reach the next threshold of 205, another alert is triggered, but by the time the invoice milestone is created, the actual amount is 215. Sequence 30 is marked as Processed and the system finds the next sequence with the same Project MS type. Because sequence 40 is specified as recurring, however, the system creates a new sequence 60 and uses that to display the new Next MS Threshold amount. Once the sequence 60 threshold has been reached, and the invoice milestone created, the system continues creating and processing new sequences based on the recurring threshold.

Sequence Processed Invoicing Recurring Project MS MS Threshold Next MS Threshold MS Amount
10 Yes Yes No Hours 100 100 105
20 No No No Cost 3000 3000 0
30 Yes Yes No Hours 100 205 215
40 No Yes Yes Hours 50 0 0
50 No No No Cost 3000 6000 0
60 No Yes No Hours 50 265 0

When cost equals the initial threshold of 3000, an alert is triggered. For this sequence, however, the Invoicing field is not selected, so the MS Amount equals the Next MS Threshold Amount. Sequence 20 is marked as Processed and the system locates the next sequence with the same Project MS type and populates the Next MS Threshold field with the sequence 20 MS Amount of 3000 plus the sequence 50 MS Threshold of 3000.

Sequence Processed Invoicing Recurring Project MS MS Threshold Next MS Threshold MS Amount
10 Yes Yes No Hours 100 100 105
20 Yes No No Cost 3000 3000 3000
30 Yes Yes No Hours 100 205 215
40 No Yes Yes Hours 50 0 0
50 No No No Cost 3000 6000 0
60 No Yes No Hours 50 265 0