Revenue Recognition Types

The various revenue recognition types that are allowed for each contract type and invoice calculation method (for extensions), are listed. The applicable COGS for various RR types and the level at which the RR and COGS are calculated for various methods, are also explained.

RR types allowed per contract type
Fixed Price ContractCost Plus
Completed ProjectCompleted Project
Percentage of Completion----------
Earned Revenue Factor----------
Actual RevenuesActual Revenues
Milestones *Milestones *
----------Reimbursement

 

COGS applicable for various RR types
RR TypeApplicable COGS
Completed ProjectCompleted Project
ReimbursementReimbursement
Percentage of CompletionProfit Percentage
Actual RevenuesProfit Percentage/ Reimbursement
Milestones *Profit Percentage
Earned Revenue FactorReimbursement

 

* Only for projects controlled by activity.

RR types allowed per invoice calculation method (for extensions)
Contract AmountBudgeted CostsActual Costs
CompletedCompletedCompleted
Actual RevenuesActual RevenuesActual Revenues
Percentage of CompletionPercentage of Completion-----------
Earned Revenue FactorEarned Revenue Factor-----------
Milestones *Milestones *Milestones *
---------------------Reimbursement

 

* Only for projects controlled by activity.

Levels at which RR and COGS is calculated for the various methods
RR TypeApplicable COGSLevels
Completed ProjectCompleted Project
  • Project
  • Extension
ReimbursementReimbursement
  • Project
  • Extension
  • Element
  • Activity
Percentage of Completion
  • Profit Percentage
  • Percentage of Completion
  • Project
  • Extension
Actual RevenuesProfit Percentage/ Reimbursement
  • Project
  • Extension
  • Element
  • Activity
Milestones *Profit Percentage
  • Project
  • Extension
Earned Revenue FactorReimbursement
  • Project
  • Extension
  • Element
  • Activity

 

* Only for projects controlled by activity.

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