Actual Revenue Method

Select this method to recognize revenue on the basis of the revenue amount. The recognized revenue is calculated on the basis of different revenue components such as expected revenue, invoiced revenue and forecasted revenue.

Note

The revenue components are included only when the corresponding check boxes are selected in the Generate Financial Interim Results (tpppc2260m000) session.

The calculation of the expected revenue depends on the invoicing method of the project and the extension.

Calculation of revenue recognized

Recognized revenue = Invoiced revenue + (expected revenue-invoiced revenue)+forecast revenue.

Invoiced Revenue is the revenue entered in the Revenues (tpppc3800m000) session.

Forecast revenue is the revenue entered in the Forecast Extra Revenues (tpppc3816m000) session.

The calculation of expected revenue depends on the invoicing method of the project and the extension.

The following table displays the expected revenue for the various invoicing types and the agreement methods for a project:

Project	Invoicing Methods	Expected Revenue
Fixed Price Contract	Installment Invoicing; Progress Invoicing	Installment Amount
Cost Plus	Cost Plus	Sales amount of Cost Plus Lines
Fixed Price Contract/Cost Plus	Unit Rate	Element/Activity Quantity x Sales Rate per Unit

The following table displays the expected revenue for the various invoicing types and the extension:

Extension	Invoicing Method	Expected Revenue
Scope Change	Contract Amount	Extension Amount
Scope Change	Budgeted Cost	Sales Amount of Budgeted Lines
Scope Change	Actual Cost	Sales amount of Cost Plus Lines

Levels at which it can be recognized:

Project
Extension
Element
Activity