Calculate Interim COS and Revenues by Project (tipcs3290m000)

Use this session to calculate interim cost of goods sold (COGS) and revenues for PCS projects. Interim COGS and revenues are useful to gain an insight into the interim results of a PCS project, even before any end item is shipped

Interim COGS and revenues are calculated on the basis of the Percentage of Completion (POC) of the project. The setting of the Percentage of Completion Calculation Method field in the Project Details (tipcs2130m000) session determines how the POC is calculated: Cost to date, Hours progress, or Manually entered.

The calculated interim COGS and revenues can be viewed and maintained in the Interim COGS and Revenues by Project (tipcs3190m000) session. If the Post Interim COS and Revenues by Cost Component check box is selected in the Project Details (tipcs2130m000) details session, you can also view the COGS by cost component in the COGS by Cost Component (tipcs3191m000) session.

For more information about how the interim COGS and revenues are calculated, refer to Recognizing Interim Revenue in Project Control.

Field Information

Project

project

Project Status

The indication of the project's progress.

  • Active

    This status indicates the project's execution stage. You can release planned orders, so that the required purchase and production activities can be actually started and completed.
  • Finished

    As far as manufacturing is concerned, the project is finished. Also all purchase and production activities have been completed or closed, and all sales orders have been delivered for the project.
Project Employee

The employee that is working on the PCS project.

Calculation Office

calculation office

Calculation Group

calculation group

Search Key

search key

Percentage of Completion Calculation Method

The Percentage of Completion (POC) is the percentage of the work on the project that is finished. The POC method determines how the percentage is calculated.

Allowed values

None

Revenue recognition for PCS projects is not implemented.

If you select None, the PCS / COGS financial transactions for non-closed PCS projects are created during project calculation using the Calculate Standard Costs by Project (tipcs3250m000) session. The PCS / COGS financial transactions are based on the realized revenue compared to the expected revenue for sales orders, service orders, and warehouse transfers.

Note: If you want to maintain a situation where revenue recognition for PCS projects is not implemented, as it was in former LN releases, you must select None.
Cost to date

The actual costs spent until a specific date divided 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%.

Hours progress

The actual hours spent until a specific date divided 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%.

Manually entered

A percentage that expresses an estimate of the completed work. For example, you estimate that on a specific moment, 25% of the work on your project is finished.

Perform estimated cost calculation

If this check box is selected, the estimated cost for the PCS project is calculated. The project's standard cost is based on the standard costs of items linked to the project, with the project quantity taken into account, the estimated surcharges, and the estimated standard cost of the activities. Estimated costs for the PCS project that were already calculated, are overwritten.

If this check box is cleared, the estimated project costs are not calculated but they are taken from the Standard Cost by Project (tipcs3560m000) session.

Note: During calculation of the interim COGS and revenue, do not run the Standard Cost by Project (tipcs3560m000) session. The two processes might interfere, and corrupt the data.
Update COS Distribution

If this check box is selected, the cost of goods sold is updated during calculation.

Reference Date

The date that is considered as the end date of the period for which you calculate the interim COGS and revenue. You can also use backdating.