Project Interim Results (tppdm6103m000)

Use this session to view the settings defined for the interim financial results of a selected project.

Field Information

Primary Scenario
Project

The project code.

Project Status
Free
Active
Finished
Closed
Archived
Primary Description

The description of the primary results.

Revenue Recognition
Revenue Recognition Method

Select the method for revenue recognition:

  • Completed Project Method (RR)
  • Percentage of Completion Method (RR)
  • Earned Revenue Factor Method
  • Actual Revenue Method
  • Reimbursement Contract Method
  • Milestone Method (only for projects controlled by Activity)
Calculation Method

The method to calculate the percentage of the work completed.

Allowed values

Cost to Cost

The percentage of completion is the cost incurred on the project divided by the estimated total cost of the project. If the cost control level, Project is not used for this method, the Actual Cost and the Forecast Cost cannot be used to calculate the percentage of completion.

Hours Progress

The percentage of completion is the number of actual hours spent on the project divided by the total hours forecasted for the completion of the project. If the cost control level, Project/Cost Type is used, the Excl. Commit Actual and Forecast Quantity fields are available for the cost type Labor and can be used to calculate the percentage of completion.

Note: If the Forecast Quantity is not defined, you can use the Budget Quantity and the Excl. Commit Actual to calculate the percentage of completion.
Manual Entry

The percentage of completion is entered manually. You must specify the percentage in which the estimate of the completed work is expressed, manually.

Note: 

This field is enabled only if the Revenue Recognition Method field is set to Percentage of Completion.

Default value is Cost to Cost.

You can modify this value only if the project status is Free.

Infor LN allows you to calculate the revenue to be recognized based on the Percentage of Completion method only if:

  • In the Project Accounting Parameters (tpppc0100s000) session, Leading Forecast Method field is set to Estimate to Complete or Estimate at Completion.
  • You must run the Build Actual Cost Control (tpppc4803m000) session to retrieve the latest aggregated cost for the project, based on which the percentage of completion is calculated.
Percentage of Completion

The percentage of completion of the project. You must multiply this percentage with the contract amount to calculate the revenue to be recognized.

Note: 

You can manually enter the percentage of completion or click Percentage of Completion to get the calculated value. LN calculates the percentage using the following formula:

percentage of completion = costs (incurred) / estimate at completion cost 
Revenue Recognition Threshold

The minimum percentage completion expected before revenue is recognized.

Note: Only if the percentage completion is greater than or equal to this field, revenue is recognized when interim results are generated using the Generate Interim Results (tpppc3250m000) session. However, if the Profit Percentage is negative, revenue will be recognized irrespective of minimum percentage completion being met or not.

Default value

0

Revenue Recognition Limit

The limit on the revenue to be recognized. Specify a maximum percentage.

Note: The value can be changed. The revenue recognition limit is valid for all RR methods except the Completed Project method. The percentage times the contract amount gives the maximum revenue that can be recognized (until the completion of the project). This percentage is ignored when the project is complete and the final revenue (and COGS) is posted.

Default value

100

Earned Revenue Factor

Specify the earned revenue factor. You must multiply this factor with the cost to calculate the revenue to be recognized.

Note: 

You can manually enter the earned revenue factor or click Calculate ERF to get the calculated value. LN calculates the factor using the following formula:

ERF = project contract amount / total budgeted costs

To calculate ERF, the project status must be Active, because the total budgeted cost is known only for active projects and a project contract needs to be linked as otherwise no contract amount is known.

Cost Interim Results
Costs of Sales Method

Select the method to calculate the cost of goods sold.

Allowed values

  • Percentage of Completion : (COS = Progress % x Estimate at Completion)
  • Completed Project Method (COGS)
  • Profit Percentage method
  • Reimbursement Contract Method
Percentage of Completion

The percentage of completion of the project. You must multiply this percentage with the estimate at completion (EAC) to calculate the cost to be recognized.

Note: 

Infor LN defaults this value with the Percentage of Completed calculated for the project when Method is set to Percentage of Completion.

You cannot use this value to calculate the cost to be recognized if the Method field is set to Profit Percentage.

Profit Percentage

Specify the profit percentage. The COGS is calculated on the basis of this percentage and the revenue recognized.

Note: 

You can manually enter the percentage or click Calculate Profit Percentage to get the calculated value. LN calculates the percentage using one of the following formulas:

profit percentage = budget / contract amount

or

profit percentage = EAC (Estimate at Completion) / contract amount

When the COGS is determined at project level, LN allows you to select the base to calculate the profit percentage. You can either select Budget or select Estimate at Completion as the base to calculate the profit percentage.

Base for Earned Revenue Factor

The method based on which the Earned Revenue Factor Method is calculated.

Allowed values

Estimate at Completion
Budget
Manual Entry
Not Applicable
Alternate Scenario
Alternate Description

The description of the alternate results.