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 Interim Results (tpppc3250m000) session.

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

Calculation of revenue recognized

Recognized revenue = Expected revenue + Forecast revenue.

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

Forecast revenue is the revenue entered in the Revenue Forecast (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