Extension (tpptc0110s000)

Use this session to maintain the extensions you need for your fixed contract project. An extension is almost a project in itself and is generally used to invoice unexpected costs to the customer.

The revenue recognition method and the cost of goods sold method is defined at the project and extension level. RR and COGS can also be determined at the element and activity level depending on the method of RR and COGS selected.

The amount approved for invoicing is displayed next to the Ceiling check box. For projects with invoicing types set to Unit Rate, the amount is updated while transferring transactions from the Invoicing module to the Invoicing package.

For projects with invoicing type set to Cost-Plus, the amount is updated when the transactions are approved for invoicing.

Note: Use the Maps section to view the location of the Address Code and the Ship-from Address. You must select only one record at a time.

Field Information

Extension

Project

The code that identifies the project.

Status

The current status of the project.

Extension

The code that identifies the extension.

General

Search Key

search key

Sold-to Business Partner

The code that identifies the sold-to business partner. Please note that this business partner needs a department code otherwise installments cannot be invoiced.

Extension Type

Scope Change

Additional work is work that is not included in the specifications and drawings (the basis for the budget).
Reduced work is work that is canceled or of which changes in dimensions, material specifications, and so on are given later on.

The costs will be booked with a reference to the relevant extension, with sessions such as the Labor Costs (tpppc2131m000) session. After processing the transactions, invoices can be created.

Provisional Amount

A provisional amount, which is included in the budget in advance, is a rough estimate of the costs if it is not clear what materials will be used or if the design of a certain component is not yet final. The settlement of the difference (amounts) will be posted to the cost object recorded in the field Sundry Cost Code for Provisional Amounts in the Projects (tppdm6100m000) session.

Fluctuation Settlement

The costs calculated as a result of a fluctuation settlement for material costs and/or wage costs (prices) that must be posted to an extension. The settlement costs from a fluctuation settlement will always be posted to a sundry cost code recorded for the project in the Projects (tppdm6100m000) session.

Quantities to be Settled

The difference between the actual quantity and the budgeted quantity of a cost object will be settled.

This field is only available if the extension status is Free.

Extension Status

Free
Actual
Final
Invoicing Allowed
Invoiced

Invoice Calculation Method

Contract Amount: The invoice will be based on the amount in the Contract Currency field in the Extension (tpptc0110s000) session.
Budgeted Costs: The invoice will be based on the budgeted quantity and sales price of the extension.
Actual Costs

Text

If this check box is selected, a text is present.

Control

Start Time

The date and time, according to the project plan, on which work that is related to the extension starts.

The input value must be after the start date set in the Projects (tppdm6100m000) session.

Finish Time

The date and time, according to the project plan, on which work that is related to the extension is completed.

The input value must be after the start date and must be before the finish date set in the Projects (tppdm6100m000) session.

Cost Control

Indicates whether the extension is included in cost control.

If this check box is selected, you can:

Maintain planned and actual purchase orders by extension
Control the extension's costs
Record progress by extension
Record actual costs by extension

If this check box is cleared, you need not control the extension cost amount separately, but you can include it in the project costs.

Phys. Progress Registration

The level at which you want to record the extension's progress.

Amounts

Expected Sales Currency

The currency of the expected sales amount for the extension.

Expected Sales Amount

The expected sales amount for the extension.

Ceiling

If this check box is selected, the amount entered in the Contract Currency field is considered as the ceiling amount.

Note: This check box is available only if the invoice calculation method is set to Actual Costs.

Approved for Invoicing

The amount approved for invoicing.

Note: If the extension transactions are set to Approved in the Cost-Plus Transactions to be Invoiced (tppin4810m000) sessions, the amount is updated.

Currency

The business partner currency.

Contract Amount

The contract amount of the extension. Variations are carried out for this amount.

You can only enter an amount if the Extension Type field is set to Scope Change.

If the Ceiling check box is selected, the contract amount becomes the ceiling amount. This amount is the maximum that can be invoiced. If the ceiling amount is reached LN does not allow you to set the records to Approved.

Currency

home currency

Contract Amount

The amount in the home currency. Click Rotate Currency to see the amount in the other home currencies.

Currency Rate/Rate Factor

exchange rate

Rate Factor

rate factor

Currency

The business partner currency.

Provisional Amount

The contractual provisional amount. This amount is included in the budget.

You can only enter an amount if the Extension Type field reads Provisional Amount.

Currency

home currency

Provisional Amount

The amount in the home currency. Click Rotate Currency to see the amount in the other home currencies.

Currency Rate/Rate Factor

The currency exchange rate to convert the transaction currency to the home currency that is displayed.

Rate Factor

The rate factor that belongs to the currency rate that is shown.

Options

Project Surcharges: If this check box is selected, project surcharges can be applied to the extension.
Sequence Number: The sequence number of the holdback.
Use Holdback: If this check box is selected, holdback can be applied to the extension.
Provisional Amount Settled: If this check box is selected, the provisional amount is settled by posting the invoice in the Compose/Print/Post Invoices (cisli2200m000) session to Financials .

Invoicing

Transferred to Invoicing

If this check box is selected, the invoice is transferred with the Transfer Transactions to Invoicing (tppin4200m000) session.

Invoice Document

LN enters the code of the financial company to which the invoice is posted. Usually this is the company linked to the project.

Transaction Type

LN enters the procedure type for the transaction. Invoicing identifies an invoice by this field.

Invoice Document

LN enters a sequence number for the invoice. Invoicing identifies an invoice by this field.

Sales Type

The default sales type. You can change the value or leave this field empty.

Ship-from Address

The address of the ship-from business partner.

Address Code

The code that identifies the address linked to the extension.

Miscellaneous

Classification

Responsibility: The code that identifies the responsibility.
Employee Responsible: The code that identifies the responsible employee.
Line of Business: The line of business linked to the project.

Note: This value is defaulted from the Business Partner (tccom4100s000) session. However, you can modify the value.
Geographical Area: The geographical area covered within the project scope.

Note: This value is defaulted from the Business Partner (tccom4100s000) session. However, you can modify the value.
Acquiring Method: The method used to acquire the project.
Financing Method: The method used to finance the project.
Category: The code that uniquely identifies the category.
Business Sector: The code that identifies the business sector.
Phase: The code that uniquely identifies phase.

Job Sheets

Number of Job Sheets Printed: The number of job sheets printed.

Interim Results

Revenue Interim Results

Revenue Recognition Method

Select the method for revenue recognition.

To recognize revenue, you can use one of the following methods:

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)

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

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

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:

The percentage of completion has to be entered manually, since the Estimate at Completion (EAC) is not defined for an extension.

This field is available only if the Revenue Recognition Method field is set to Percent Complete.

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 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.

This field is available only if the Revenue Recognition Method field is set to Earned Revenue Factor.

Cost Interim Results

Costs of Sales Method

Select the method to calculate the cost of goods sold (COGS).

To calculate the cost of goods sold, you can use one of the following methods:

Completed Project Method (COGS)
Profit Percentage method
Reimbursement Contract Method

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 to get the calculated value. LN calculates the percentage using the following formula:

profit percentage = budget / contract amount

This field is available only if the Costs of Sales Method field is set to Profit Percentage.