Revenue Calculation (BR130)
Run Revenue Calculation (BR130) to calculate revenue for the activities you select. Revenue is calculated for the method and level you specify for all revenue-recognizing activities of a contract. The balance on the revenue level activity is evaluated to determine whether there is a balance in the billed or unbilled account categories.
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Note: When the revenue method is Percent Complete (Method B - Gross
Margin) or Completed Contract (Method B - Gross Margin) and you define the
revenue accounts as an account and subaccount rather than a General Ledger
code, revenue is calculated using the GL Accnt Unit
Master file cost balances instead of the total cost amount from the Percent
Complete file.
The gross margin calculation for revenue recognition is based on the following formulas:
Gross Margin % = Gross Profit / Contract Amount
Revenue = 1 / (1 - Gross Margin %) x Costs to Date