Interim COGS and Revenues by Project (tipcs3190m000)Use this session to view and adjust interim cost of goods sold (COGS) and revenues for a PCS project. With interim COGS and revenue you can gain an insight in the results of a PCS project, before any end item is shipped. The data that you can view in this session is the result of running the Calculate Interim COGS and Revenues by Project (tipcs3290m000) session. You cannot specify data in this session, but you are allowed to adjust the values in the following fields: The overview session can list several interim COGS and revenues for a specific project. If you double click an interim COGS and revenue, all details can be viewed.
Project A collection of manufacturing and purchasing actions that are performed for a particular customer order. A project is initiated to plan and coordinate the production of the to be manufactured items. For a standard-to-order production, the project is only used to link the item with the customer order. A project can also include these:
End Date The date until which the actual costs are taken into account for revenue recognition. The date is determined in the Calculate Interim COGS and Revenues by Project (tipcs3290m000) session when calculating the revenue recognition. POC Confirmed The Percentage of Completion (POC) expresses the percentage of work on the PCS project that is completed. You can type a percentage in this field to overrule the POC that is used by LN to calculate interim COGS and revenue. The setting of the Percentage of Completion Calculation Method field in the Project Details (tipcs2130m000) details session determines whether LN uses the POC (costs based), the POC (hours based), or the POC (manual) to calculate the interim COGS and revenue for a specific project. Currency A generally accepted medium of exchange such as coins, treasury notes, and banknotes. The following currency types are available in LN:
The currency equals the currency for the PCS project calculation, which can be viewed in the Standard Cost by Project (tipcs3560m000) session. TotalEstimated Costs The total estimated costs for the PCS project. The default value of this field equals the number in the Estimated Costs field, which is calculated by LN. However, you can change the TotalEstimated Costs, for example, when you expect costs that differ from the costs already recorded in LN. The difference between the TotalEstimated Costs and the Estimated Costs is expressed in the Variance field. Note You cannot maintain this field if the Post Interim COGS and Revenues by Cost Component check box in the Project Details (tipcs2130m000) session is selected. In that case, the costs are posted by cost component. Click on the toolbar to start the COGS by Cost Component (tipcs3191m000) session. In this session, you can maintain the costs by cost component. Total EstimatedRevenue The total estimated revenue for the PCS project. The default value of this field equals the number in the Estimated field, which is calculated by LN. However, you can change the Total EstimatedRevenue, for example, when you expect a sales order, but the order is not yet recorded in LN. The difference between the Total EstimatedRevenue and the Estimated is expressed in the Variance field. Total Estimated Result The Total EstimatedRevenue minus Total Estimated. Confirmed If this check box is selected, the interim COGS and revenue are confirmed. You can confirm interim COGS and revenue in two ways:
You can cancel the confirmation by clicking (de-) Confirm again in the Interim COGS and Revenues by Project (tipcs3190m000) details session. Posted If this check box is selected, the interim COGS and revenue is posted to the General Ledger module in Financials. You can click Confirm and Post Interim COGS and Revenues by Project to start the Confirm and Post Interim COGS and Revenues by Project (tipcs3291m000) session. If you select the Post Interim COGS and Revenues check box while running the session, the interim COGS and revenue is posted. Expected loss If this check box is selected, the total estimated costs exceed the total estimated revenue. An expected loss (the Expected loss check box is selected) affects the calculation of the interim COGS. According to the General Accepted Accounting Principles (GAAP), a loss must be recognized as soon as it is noticed. Consequently, the calculation of interim COGS in case of an expected loss differs from the calculation of interim COGS in case of a profit. Example
If the Expected loss check box is selected, the calculation of the amount in the Interim field is as follows:
In case of a profit ( the Expected loss check box is cleared), the interim COGS is calculated as described in the Interim field. Note Profit or loss makes no difference for calculating interim revenue. Reason of change You can type additional information to indicate why you did revenue recognition, or why you manually changed the calculation for revenue recognition. For example, you can indicate that you raised the amount in the Total EstimatedRevenue field because you received an additional sales order but the order is not yet incorporated in the LN software. Results Calculation Type If you carry out revenue recognition when the status of the PCS project is Active or Finished, the calculation type of the revenue recognition is always Interim. If you close the PCS project using the Close Project (tipcs2250m000) session, the status of the last revenue recognition automatically changes from Interim to Final. In addition, the POC in the Confirmed field is automatically set to 100%. The interim COGS amount and the interim revenue amount are recalculated because of a reversal transaction that is generated to balance the account. Allowed values Currency The currency in which the interim COGS and revenues by project is expressed. Actual Result The Actual Revenue minus Actual COGS. Posted Interim Result The Posted Interim Revenue minus Posted Interim COGS. Revenues Actual Revenue The revenue that is already posted for a PCS project by the Invoicing module in Invoicing at the date of the interim revenue recognition. The actual revenue can originate from:
Confirmed Interim Revenue The interim revenue that is or will be posted to the General Ledger module in Financials. The default value of this field equals the value in the Interim Revenue field but you can adjust the interim revenue in this field before you confirm it. Posted Interim Revenue The interim revenue that is already posted to the General Ledger during previous interim revenue recognition. EarnedRevenue LN calculates the EarnedRevenue by multiplying the estimated total revenue at completion (the value in the Total EstimatedRevenue field) by the Percentage of Completion (POC). A number of POCs is displayed in this session: POC (hours based), POC (costs based), and POC (manual). Which POC method is used to determine the EarnedRevenue depends on the value of the Percentage of Completion Calculation Method field in the Project Details (tipcs2130m000) details session. In the end, the percentage that you type in the POC Confirmed field, is leading. COGS Actual COGS The cost of goods sold (COGS) that were already made for the project at the date and time of the interim revenue recognition. The actual COGS can originate from:
If the Post Interim COGS and Revenues by Cost Component check box in the Project Details (tipcs2130m000) session is selected, the actual COGS are specified by cost component, which can be viewed in the COGS by Cost Component (tipcs3191m000) session. EarnedCOGS LN calculates the EarnedCOGS by multiplying the estimated total costs at completion (the value in the TotalEstimated Costs field) by the Percentage of Completion (POC). A number of POCs is displayed in this session: POC (hours based), POC (costs based), and POC (manual). Which POC method is used to determine the EarnedCOGS depends on the value of the Percentage of Completion Calculation Method field in the Project Details (tipcs2130m000) details session. In the end, the percentage that you type in the POC Confirmed field, is leading. If the Post Interim COGS and Revenues by Cost Component check box in the Project Control Parameters (tipcs0100m000) session is selected, the earned COGS are specified by cost component, which can be viewed in the COGS by Cost Component (tipcs3191m000) session. Posted Interim COGS The interim COGS that is already posted to the General Ledger during previous interim revenue recognition. Confirmed Interim COGS The interim COGS that is or will be posted to the General Ledger module in Financials. The default value of this field equals the value in the Interim field but you can adjust the interim COGS in this field before you confirm it. If the Post Interim COGS and Revenues by Cost Component check box in the Project Details (tipcs2130m000) session is selected, the confirmed interim COGS are specified by cost component, which can be viewed in the COGS by Cost Component (tipcs3191m000) session. POC Calculation Estimated Hours The estimated hours for the PCS project. Initially, this field is 0 (zero) because the estimated hours are not calculated by LN. If you run the Calculate Interim COGS and Revenues by Project (tipcs3290m000) session for the first time to get interim COGS and interim revenues, you must type the number of estimated hours yourself in the Total Estimated Hours field. After that, this number of hours is also displayed in the Estimated Hours field. Actual Hours The number of hours that is actually spent on the PCS project. Spent hours are, for example, man hours and machine hours that are booked on production orders related to the PCS project. Estimated Costs The estimated costs for the project, which include:
The costs for orders that are related to the project, such as sales orders and service orders, are not included in the estimated costs. If the Post Interim COGS and Revenues by Cost Component check box in the Project Details (tipcs2130m000) session is selected, the costs are specified by cost component, which can be viewed in the COGS by Cost Component (tipcs3191m000) session. Actual Costs The costs of production, hours accounting, purchase, service, sales, finance, warehousing, and PCS itself that are actually booked on the PCS project. You can determine actual costs on several levels:
If the Post Interim COGS and Revenues by Cost Component check box in the Project Details (tipcs2130m000) session is selected, the actual costs are specified by cost component, which can be viewed in the COGS by Cost Component (tipcs3191m000) session. POC (costs based) The Percentage of Completion (POC) expresses the percentage of work on the PCS project that is completed. The POC (costs based) is based on the costs for the project. The POC is calculated by dividing the actual costs that are spent on the project until a specific date by the estimated total costs at completion. For example, the total estimated costs of the project are $1980,-. The actual costs until the moment that you want to recognize revenue are $200,-. The POC is 200/1980 = 10,1%. The setting of the Percentage of Completion Calculation Method field in the Project Details (tipcs2130m000) details session determines whether LN uses the POC (costs based), the POC (hours based), or the POC (manual) to calculate the interim COGS and revenue for a specific project. Note that LN always calculates the POC (costs based), even if the POC (costs based) is not used to calculate interim COGS and revenue. You can always overrule the POC by typing a percentage in the POC Confirmed field. POC (hours based) The Percentage of Completion (POC) expresses the percentage of work on the PCS project that is completed. The POC (hours based) is based on the hours that are spent on the project. The POC is calculated by dividing the actual hours that spent on the project until a specific date by the estimated total hours at completion. For example, the total estimated hours of the project are 500. The actual hours until the moment that you want to recognize revenue are 100. The POC is 100/500 = 20%. The setting of the Percentage of Completion Calculation Method field in the Project Details (tipcs2130m000) details session determines whether LN uses the POC (costs based), the POC (hours based), or the POC (manual) to calculate the interim COGS and revenue for a specific project. Note that LN always calculates the POC (hours based), even if the POC (hours based) is not used to calculate interim COGS and revenue. You can always overrule the POC by typing a percentage in the POC Confirmed field. POC (manual) The Percentage of Completion (POC) expresses the percentage of work on the PCS project that is completed. The POC (manual) is determined by the user who makes an estimate of the work that finished on the project. You must type the estimate in the Stage of Completion field in the Project Details (tipcs2130m000) details session for the specific project. The setting of the Percentage of Completion Calculation Method field in the Project Details (tipcs2130m000) details session determines whether LN uses the POC (costs based), the POC (hours based), or the POC (manual) to calculate the interim COGS and revenue for a specific project. You can always overrule the POC by typing a percentage in the POC Confirmed field. Generation date The date and time that you calculated the interim COGS and revenue. Total Estimated Hours The total number of estimated hours for the PCS project. This number is not calculated by LN but you must type the number when you determine interim revenue and COGS for the first time by running the Calculate Interim COGS and Revenues by Project (tipcs3290m000) session. Variance The difference between the Estimated Costs and the TotalEstimated Costs. The Estimated Costs field is calculated by LN. However, the TotalEstimated Costs field can be changed by the user, for example, when you expect more or less costs than LN calculates in the Estimated Costs field. Changing the TotalEstimated Costs field results in a change of the Variance field. If the Estimated Costs and the TotalEstimated Costs are equal, than the Variance is 0 (zero). If the Post Interim COGS and Revenues by Cost Component check box in the Project Details (tipcs2130m000) session is selected, the estimated costs variance is specified by cost component, which can be viewed in the COGS by Cost Component (tipcs3191m000) session. Estimated The estimated expected revenues (including the revenues that are already realized) for all sales orders, service orders, and warehousing orders related to the project. Variance The difference between the Estimated (which is calculated by LN) and the Total EstimatedRevenue. You can change the amount in the Total EstimatedRevenue field, for example, because you expect a sales order, but the order is not yet recorded in LN. Changing the Total EstimatedRevenue field results in a change of the Variance field. If the Estimated and the Total EstimatedRevenue are equal, than the Variance is 0 (zero). Interim The interim revenue that is or will be posted to the General Ledger module in Financials. The interim revenue is calculated by running the Calculate Interim COGS and Revenues by Project (tipcs3290m000) session. The calculation is as follows: estimated total revenue at completion = estimated revenue of the entity + estimated revenue variance earned revenue = estimated total revenue at completion * percentage of completion (POC) interim revenue of current period = earned revenue - (already posted actual revenue + interim revenue posted in prior periods) If necessary, the user can overrule the calculated amount by typing an amount in the Confirmed Interim Revenue field. The interim revenue must be confirmed by clicking (de-) Confirm in this session, or by running the Confirm and Post Interim COGS and Revenues by Project (tipcs3291m000) session while the Confirm Interim COGS and Revenues check box is selected. If you click Confirm and Post Interim COGS and Revenues by Project, the Confirm and Post Interim COGS and Revenues by Project (tipcs3291m000) session is started, and you can confirm and post the interim revenue to the General Ledger module in Financials. Interim The interim COGS that is or will be posted to the General Ledger module in Financials. The interim COGS is calculated by running the Calculate Interim COGS and Revenues by Project (tipcs3290m000) session. The calculation is as follows: estimated total costs at completion = estimated cost of the projects + estimated cost variance earned COGS = estimated total costs at completion * percentage of completion (POC) interim COGS of current period = earned COGS - (already posted actual GOGS + interim COGS posted in prior period) If necessary, the user can overrule the calculated amount by typing an amount in the Confirmed Interim COGS field. Note In case of a loss (the Expected loss check box is selected), the calculation of interim COGS is different. For more information, refer to Expected loss. The interim COGS must be confirmed by clicking (de-) Confirm in this session, or by running the Confirm and Post Interim COGS and Revenues by Project (tipcs3291m000) session while the Confirm Interim COGS and Revenues check box is selected. If you click Confirm and Post Interim COGS and Revenues by Project, the Confirm and Post Interim COGS and Revenues by Project (tipcs3291m000) session is started, and you can confirm and post the interim COGS to the General Ledger module in Financials. If the Post Interim COGS and Revenues by Cost Component check box in the Project Details (tipcs2130m000) session is selected, the interim COGS are specified by cost component, which can be viewed in the COGS by Cost Component (tipcs3191m000) session. Confirmation date The date that the interim COGS and revenue are confirmed. User confirmed The user that confirmed the interim COGS and revenue. Posting date The date that the interim COGS and revenue are posted to the General Ledger module in Financials. User posted The user that posted the interim COGS and revenue.
Calculate Interim COGS and Revenues by Project Click to start the Calculate Interim COGS and Revenues by Project (tipcs3290m000) session. (de-) Confirm Click to confirm an interim COGS and revenue. If the interim COGS and revenue are already confirmed, you can click to deconfirm them. Note that before confirming, you can adjust the POC in the POC Confirmed field, and/or the COGS or revenue in respectively the Interim COGS field and the Interim revenue field. To confirm interim COGS and revenue, you can also run the Confirm and Post Interim COGS and Revenues by Project (tipcs3291m000) session while the Confirm Interim COGS and Revenues check box is selected.
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