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