Reimbursement Contract Method

Select this method to recognize revenue on the basis of actual cost transactions and their sales values.

When to use this method

This method is often used for projects/extensions with the contract type set to Cost Plus.

Calculation of revenue recognized

Revenue Recognized = Total accrued sales amount + unpaid transactions (costs originating from unpaid purchase order invoices) - unbillable cost lines.

Note

The commitments are included if the parameter Type of Hard Commitment is set to Costs, in the Project Progress Parameters (tpppc0100s000) session.

Levels at which it can be recognized:

  • Project
  • Extension
  • Element
  • Activity

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