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 Contract | Cost-Plus |
|---|---|
| Completed Project | Completed Project |
| Percentage of Completion | ---------- |
| Earned Revenue Factor | ---------- |
| Actual Revenues | Actual Revenues |
| Milestones * | Milestones * |
| ---------- | Reimbursement |
COGS applicable for various RR types
| RR Type | Applicable COGS |
|---|---|
| Completed Project | Completed Project |
| Reimbursement | Reimbursement |
| Percentage of Completion | Profit Percentage |
| Actual Revenues | Profit Percentage/ Reimbursement |
| Milestones * | Profit Percentage |
| Earned Revenue Factor | Reimbursement |
* Only for projects controlled by activity.
RR types allowed per invoice calculation method (for extensions)
| Contract Amount | Budgeted Costs | Actual Costs |
|---|---|---|
| Completed | Completed | Completed |
| Actual Revenues | Actual Revenues | Actual Revenues |
| Percentage of Completion | Percentage of Completion | ----------- |
| Earned Revenue Factor | Earned 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 Type | Applicable COGS | Levels |
|---|---|---|
| Completed Project | Completed Project |
|
| Reimbursement | Reimbursement |
|
| Percentage of Completion |
|
|
| Actual Revenues | Profit Percentage/ Reimbursement |
|
| Milestones * | Profit Percentage |
|
| Earned Revenue Factor | Reimbursement |
|
* Only for projects controlled by activity.