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:

ProjectInvoicing MethodsExpected Revenue
Fixed Price ContractInstallment Invoicing; Progress InvoicingInstallment Amount
Cost PlusCost PlusSales amount of Cost Plus Lines
Fixed Price Contract/Cost PlusUnit RateElement/Activity Quantity x Sales Rate per Unit

 

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

ExtensionInvoicing MethodExpected Revenue
Scope ChangeContract AmountExtension Amount
Scope ChangeBudgeted CostSales Amount of Budgeted Lines
Scope ChangeActual CostSales amount of Cost Plus Lines

 

Levels at which it can be recognized:

  • Project
  • Extension
  • Element
  • Activity